SR - AGR-0233.I - THIRD PARTY ADMINISTRATION WORKERS COMPENSATIONAGENDA ITEM
January 12, 2016
TO: Honorable Mayor and
Members of the City Counc
THRU: Rick Otto,
City Manager
FROM: Steven V. Pham, I - Ita
Resources/Emt)16.yee
Relations Director
ReviewedNerifie
City Manager
Finance Direct
To Be Presented By:
ns Calendar
City Mgr Rpts
--- -- Council Reports
Legal Affairs
Boards /Cmtes
Public Hrgs
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Admin Reports
Plan/Environ
1. SUBJECT
Renew the agreement between the California Insurance Pool Authority (CIPA) and Keenan and
Associates for Third Party Administration of the City of Orange's Workers' Compensation
Program.
2. SUMMARY
The City Council previously approved a contract with Keenan & Associates in 2013 that has
now expired. It is recommend that the City enter into a new three year agreement calling for a
3% increase for each year.
3. RECOMMENDATION
Enter into a three (3) year agreement extension with Keenan and Associates to serve as the City's
Workers' Compensation Administrator.
4. FISCAL IMPACT
There is a minimal increase of 3% in the new agreement for the next 3 years. This is an average
increase of $5,000 each year.
5. STRATEGIC PLAN GOAL(S)
#2d. Effectively manage and develop City assets.
6. DISCUSSION and BACKGROUND
In an effort to continually promote a cost effective and efficient Workers' Compensation claims
management for the City and continue continuity with its current workers compensation program,
it is recommended to extend the current contract with Keenan and Associates Workers
Compensation third party administrator for another three years. Risk Management is very pleased
with the service Keenan and Associates has provided, and has engaged in appropriate
benchmarking to ensure competitive rate structures that encourage proper service levels required
ITEM # * A PAGE 1 1/12/2016
by the City. The average annual cost per year for the agreement is approximately $164,000. The
City of Orange and City of Brea have shared a joint agreement with Keenan for the past 3 years.
7. ATTACHMENTS
Agreement for Claims Administration Services
Redline of Prior Agreement
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