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HomeMy WebLinkAboutMINUTES - 12021986 - 1.61 ITC: '' BOARD OF SUPERVISORS Contra FROM: Joseph J. Tonda , Risk Manager C00 }0 i l DATE: November 18, 1986 County SUBJECT: Contract Extension with Public Agency Claims Services - Workers' Compensation Administrator SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION Authorize the Board Chairperson to execute on behalf of Contra Costa County and all districts of which it is the ex-officio governing board a contract extension between the County and Public Agency Claims Services (PACS) , an investigative, administrative, and claims adjustment service relating to workers ' compensation claims against the County and its districts. Reason for Recommendation PACS became our workers' compensation administrator on December 1 , 1985. The level of service provided has been an improvement over the previous administrator. PACS personnel has been cooperative in meeting the needs of the County and have implemented changes as requested by Risk Management. Fiscal Impact The contract calls for monthly payments totaling $355,008.00 with a maximum payment limit of $400,000.00. This amount will be paid from the Workers' Compensation Trust Fund. The annual administration charge is increased from $312,997.00 to $355 ,008.00. The County and PACS agreed that two additional positions (examiner and clerk) are neces- sary to provide the level of service necessary to properly handle the County' s claims . The new examiner will also act as a hearing representative which will reduce legal expenses. In addition, effective administration of claims will have a positive impact on workers' compensation costs. We are presently conducting a study to determine the feasibility of the County admin- istering its own program. The contract allows us to terminate the contract with sixty (60) days' written notice. If staff finds it prudent to bring the c.l"ad kis in-house, that recommendation will be made prior to the expiration of the contract. Background The County has self-insured .its workers' compensation program since July 1 , 1977. Claims were handled by Scott-Wetzel from September, 1981 , to December 1 , 1985. The decision to .change administrators from Scott-Wetzel Services to PACS became effective December 1 , 1985. The performance by Scott-Wetzel was acceptable until 1983 when it started to deteriorate. Scott-Wetzel attempted to correct the situation without success . CONTINUED ON ATTACHMENT: X-YES SIGNATURE: I RECOMMENDATION OF COUNTY ADMINISTRATOR REC M NDA N O OARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER 0 VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ONTHEDATE SHOWN. CC: County Administrator ATTESTED DGW 2 1986 Ris11 Management Phil Batchelor, Clerk ofthe gond of Auditor-Controller Supervisors and County Administrator Contractor via Risk Management M382/7-83 BY /V/ DEPUTY r In 1985, The County conducted a comprehensive search for a new administrator. A committee consisting of four management representatives, two labor union repre- sentatives , and a personnel analyst was appointed to oversee the selection process. After reviewing a number of written proposals, checking with clients, defense and applicant attorneys, and interviewing the finalists, PACS was selected as the new administrator. Page 2 of 2