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SR 07-12-2022 5E City Council Report City Council Meeting: July 12, 2022 Agenda Item: 5.E 1 of 5 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Subject: Approval of First Modification to Agreement with Intercare Holdings Insurance Services, Inc. for Workers' Compensation Claims Administration Services Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10506 in the amount of $1,090,267 with Intercare Holdings Insurance Services, Inc. (Intercare) for workers’ compensation claims administration services. This will result in an eight-year amended agreement with a new total amount not to exceed $2,789,776, with future year funding contingent on Council budget approval. Summary The City Council authorized a pilot program at the Big Blue Bus, now Department of Transportation (DoT) to determine the most cost-effective model for managing workers’ compensation claims. Consequently, effective November 1, 2017, claims administration responsibilities for all Big Blue Bus claims transferred from the City’s in-house workers’ compensation staff to Intercare, a Third-Party Administrator (TPA). Based on the pilot program’s performance, staff recommends a permanent shift to a TPA for management of DoT’s workers’ compensation claims. The current agreement with Intercare is set to expire on August 31, 2022. Intercare agreed to extend the agreement for three years with no year-to-year increase for the first year of the extension and 1.5% annual increase each year thereafter. Staff believes that such a modification to the agreement would be prudent and cost-effective for the City. The extension will provide additional time for the City to evaluate moving its entire Workers’ Compensation Program to the 5.E Packet Pg. 44 2 of 5 TPA model and engage with bargaining groups regarding any potential labor relations issues. Discussion The Risk Management Division of the Finance Department is responsible for managing the City’s self-insured Workers’ Compensation Program. Self-insured employers can either administer the claims in-house or subcontract this service to a TPA. In 2001, the City moved to the internal management model to improve program outcomes through direct control and provide better customer service to injured employees. As a result, the Risk Management Division’s staff became responsible for coordinating medical care and financial benefits to injured workers, as mandated by State regulations. Pilot Program: Background In early 2017, a cross-departmental working group, tasked with developing initiatives to contain the City’s rising workers’ compensation costs, conducted an assessment of the TPA model. The working group found that the TPA model offers several advantages over a self-administered program like the City’s. Most significantly, a well-established TPA has more resources to support better claim outcomes. TPAs, by virtue of working with more than one client agency, have the ability to provide more supervisory and backup resources for their claims examiners, as well as dedicated assistants responsible for all clerical tasks. This ensures that claims are managed effectively even when the assigned examiner is out of the office. The City’s self-administered program is too small to have this level of staffing. In addition, many TPAs have in-house units to provide ancillary workers’ compensation services, such as fraud investigations, staff trainings, and medical management. Given a favorable assessment of the TPA model, the working group developed a three- year pilot program to determine whether the City could benefit from using a TPA to manage its workers’ compensation claims. The Big Blue Bus was selected as the Department to pilot the model primarily due to its sizable workforce consisting of employees in both physically demanding and sedentary jobs, and the Department’s desire to be more involved in management of its claims. On July 25, 2017 (Attachment A), Council approved the pilot program and the selection of Intercare as the TPA to manage the workers’ compensation claims for the Big Blue Bus. As a result, the City entered into an agreement with Intercare for three years with two one-year renewal 5.E Packet Pg. 45 3 of 5 options (Attachment B). To avoid making any major changes to the City’s Workers’ Compensation Program during the pandemic, staff exercised the two renewal options, extending the duration of the pilot program to five years. This ensured stability for injured employees already dealing with the effects of the public health crisis. Pilot Program: Assessment and Recommendation Staff evaluated the pilot program’s success against a set of objective performance measures. The results from the pilot program are outlined below. It is important to note that most of the claims administered by City staff were filed by sworn public safety employees, who receive more generous workers’ compensation benefits, which makes those claims more costly. • Total Liabilities (i.e., an estimated future value of all open claims) for DoT’s claims declined from $7.4 million to $5.4 million by March 31, 2022. In contrast, total liabilities for the claims from all other Departments increased from $21.9 million to $26.1 million. • Total Expenses during FY 2020-21 for claims managed by Intercare increased by 0.4% from FY 2016-17. By comparison, total expenses for claims managed by in-house staff increased by 25.2%. • In FY 2020-21, Temporary Disability Payments (i.e., payments for lost wages) per open claim for DoT increased by $628 from FY 2016-17. For all other Departments, the payments increased by $6,080. Given the pilot program’s success, staff prepared a cost-benefit analysis to project savings if a TPA took over the administration of the remaining workers' compensation claims. The analysis is based on Intercare’s performance with DoT’s claims over the duration of the pilot program. It assumes that a TPA would achieve the same cost savings in total liabilities and total expenses for the Public Works Department since its employees receive the same State workers’ compensation benefits as DoT employees. Sworn public safety employees, however, are entitled to a different set of benefits (e.g., injury presumptions, 4850 disability benefit, higher permanent disability, etc.). As such, 5.E Packet Pg. 46 4 of 5 it is harder to project the cost savings – if there are any – that a TPA might achieve for claims from the Fire and Police Departments. The analysis below accounts for this difference by presenting three scenarios showing varying levels of impact on total liabilities and expenses when shifting all claims to a TPA: • Scenario #1, a TPA would achieve a 50% reduction in liabilities and expenses for the Fire and Police Departments when compared to reductions achieved for the DoT over four years of the pilot program. • Scenario #2, which staff believes to be the most likely scenario, assumes that reductions for these two departments would be 25% of what Intercare has achieved for the DoT. • Scenario #3, assumes a TPA would not be able to reduce total liabilities and total expenses for claims from the Fire and Police Departments. As a result, in the third scenario, unlike under the other two scenarios, the City would not realize savings from shifting to the TPA model. Below is a summary of the results from the analysis. Likelihood Impact Annual Savings Scenario #1 25% High $898,845 Scenario #2 50% Medium $351,756 Scenario #3 25% None ($195,333) Given the uncertainty in cost savings realized from shifting all other departments to the TPA model, as well as the additional staffing disruption that it would create in the Risk Management Division, staff does not believe that a program-wide shift is feasible at this time. Staff therefore recommends a permanent shift to the TPA model for the management of DoT’s workers’ compensation claims only. However, the Risk Management Division would like the option to consider shifting portions of its in-house program to a TPA as attrition occurs over time and if ongoing analysis continues to show that a TPA can assist with lowering the City’s liabilities. As such, staff is requesting an authorization from the Council to extend the contract with Intercare, set to expire on August 31, 2022, for an additional three years. After three years, staff will 5.E Packet Pg. 47 5 of 5 complete a new request for proposal (RFP) process and reconsider the manner in which the program is delivered. Past Council Actions Meeting Date Description July 25, 2017 (attachment A) Authorize agreement with Intercare Holdings Insurance Services, Inc. following an RFP process Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Self Insurance, Workers’ Compensation Fund to increase the amount of the agreement with Intercare Holdings Insurance Services, Inc. for Workers’ Compensation Claims Administration Services. The annual cost for the first year of the extension is $358,025, which is the same as the cost for the last year of the current agreement; each year thereafter contains an annual increase of 1.5%. Future year funding is contingent on Council budget approval. Contract Modification Request Agreement # Current Authorized Amount Modified Request Amount Dept Account # Total Revised Contract Amount 10506 $1,699,509 $1,090,267 74800002.534510 $2,789,776 Prepared By: Oles Gordeev, Risk Manager Approved Forwarded to Council Attachments: A. 7.25.17 Staff Report (Attachment A) B. Intercare Executed Agreement (Attachment B) C. Intercare Oaks Initiative Disclosure Form 5.E Packet Pg. 48 City Council Report City Council Meeting: July 25, 2017 Agenda Item: 3.B 1 of 8 To: Mayor and City Council From: Gigi Decavalles-Hughes, Director, Finance Department, Risk Management Edward F King, Director, Department of Transportation Subject: Workers' Compensation Claims Administration Services Recommended Action Staff recommends that the City Council: 1. Award RFP #105 to Intercare Holdings Insurance Services, Inc., a California- based company, for workers’ compensation claims administration services; 2. Authorize the City Manager to negotiate and execute an agreement with Intercare Holdings Insurance Services, Inc. for three years, with two one-year renewal options in an amount not to exceed $1,699,509 over a five-year period, with future year funding contingent on Council budget approval; and 3. Authorize the City Manager to negotiate and execute a first modification to agreement #10234 in the amount of $113,800 with TCS Risk Management Services, LLC, a California-based company, for workers’ compensation data analysis and consulting services. This will result in a five-year amended agreement with a new total amount not to exceed $326,300, with future year funding contingent on Council budget approval. Executive Summary The Finance Department and Big Blue Bus (BBB) are requesting to engage in a three- year pilot program to determine the most cost-effective model for managing workers’ compensation claims. BBB will serve as the test group for the pilot program. As proposed, administration of BBB’s workers’ compensation claims will transfer from in- house staff in the Risk Management Division of the Finance Department to a private claims administrator, referred to as a “Third Party Administrator” (TPA). Pilot program performance will be evaluated and monitored by BBB and Finance throughout the pilot period. 5.E.a Packet Pg. 49 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 2 of 8 In order to pursue the pilot program, staff from the Finance, BBB and Human Resources Departments solicited formal proposals from TPAs for workers’ compensation claims administration services. Based on this process, staff recommends that the City enter into an agreement with Intercare Holdings Insurance Services, Inc. for an amount not to exceed $1,699,509 over a five-year period. In addition, staff recommends that the City amend its existing contract with TCS Risk Management Services, the City’s workers’ compensation consultant, for assistance with transitioning claims administration services to the TPA and tracking and monitoring the pilot program’s performance. The amendment will cost $113,800 and result in a new agreement amount not to exceed $326,300. Background The City’s workers’ compensation costs continue to grow at an accelerated pace. In FY 2017-18 alone, the City’s contributions to the Workers’ Compensation Self-Insurance Fund increased by 50%. Further, contributions are projected to rise by 10% annually thereafter if current claims trends continue. In response to this, the Finance Director convened a Workers’ Compensation Working Group composed of the Assistant City Manager, City Attorney, Human Resources Director, and Risk Manager for the purpose of promoting initiatives to curb the City’s growing workers’ compensation costs. Under the guidance of the Working Group, a variety of pilot cost control projects have been put in place across the City. Examples include the “Wow, That’s Fast” Program, which provides comprehensive case management services to injured sworn personnel and post-job-offer functional capacity testing to ensure prospective employees are capable of safely carrying out essential job functions prior to placement. The most recent idea to emerge from the Working Group involves a BBB/Risk Management Division proposal to contract with a TPA to manage the BBB’s workers’ compensation claims. The idea was intriguing to the Working Group due to the many advantages a reputable and established TPA could have over an in-house program, and it resulted in the development of a three-year pilot program proposal to determine which model is more cost-effective. The details of the pilot program proposal follow. 5.E.a Packet Pg. 50 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 3 of 8 Discussion The Risk Management Division of the Finance Department is responsible for managing the City’s Workers’ Compensation Program. In this capacity, the Department has relied on in-house personnel to administer workers’ compensation claims since 2001. The decision to use internal or external staff to administer claims is unique to each employer. In 2001, the City selected an internal management model in hopes of improving program outcomes through direct control over claims administration. Over the past two decades, however, TPAs have made advancements in the quality, sophistication, and breadth of services offered to their clients. TPAs also have a variety of advantages over an in-house program like the City’s. A few key examples include: • TPAs can provide their employees with incentives for consistently exceeding performance targets. Public sector compensation plans are not set up to contemplate incentive plans of this nature. • Due to size, TPAs have systems in place to automatically redeploy examiner staff when the account’s assigned examiner is out of the office (e.g., vacation, medical/family leaves, etc.). This ensures that claims continue to move forward when the assigned examiner is unavailable. The City’s program is too small to provide this type of back-up. • TPAs have more resources available to support claims staff and improve outcomes. An established TPA can provide everything from proprietary risk management information systems (RMIS) that offer unique capabilities (e.g., employees can track claim status and medical appointments on smart phones, etc.) to in-house training units devoted to keeping claims staff up-to-date on the latest developments/best practices in the workers’ compensation arena. • TPAs are able to spread their fixed administrative costs (e.g., administrative staff, training, RMIS, office rents, etc.) across all of their clients. 5.E.a Packet Pg. 51 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 4 of 8 Collectively, these advancements and advantages have positioned TPAs to provide very cost-effective claims administration services. This information was presented to the Working Group and prompted their subsequent support for pursuing a pilot program to determine whether the City could benefit from using a TPA to manage its workers’ compensation claims. Pilot Program Proposal The Working Group selected BBB to serve as the test group for the pilot program. BBB represents a little over one-quarter of the City’s workers’ compensation open claim inventory and generates roughly 90 to 100 new claims per year. Further, it receives claims from a cross-section of workers that mirrors the City’s total inventory of claims (i.e., claims from workers performing sedentary jobs and physically demanding jobs). These characteristics, coupled with the BBB’s keen desire to be more involved in managing its workers’ compensation claims, make it the ideal test group in the City for the pilot program. Once BBB was selected for the pilot, a group of staff from BBB, Finance/Risk Management, and Human Resources was assembled to develop and issue an RFP for claims administration services. The group also established the following parameters for pursuing the pilot program: • Implementation: The TPA will manage all of BBB’s existing workers’ compensation claims and any new claims received during the pilot period. BBB staff, in turn, will serve as the TPA’s primary contact throughout the pilot program. BBB already handles certain human resources-oriented tasks with internal staff, and as such, is uniquely positioned to effectively oversee the efforts of a TPA. The balance of the City’s claims will continue to be managed by the City’s in- house staff in Risk Management. Efforts of the in-house staff previously devoted to BBB will be redeployed to the remaining claim inventory. This will bring down internal staff caseloads to approximately 110 claims per examiner, which is 5.E.a Packet Pg. 52 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 5 of 8 equivalent to the TPA examiner caseload requirements set out in the RFP and considered an industry best practice. • Ongoing Oversight: BBB, Finance/Risk Management, and Human Resources will work together to closely monitor the TPA’s performance during the pilot period to ensure that any issues with TPA performance are detected and addressed in a timely manner. • Employee Notification: Injured employees with open workers’ compensation claims will be provided ample notice of the changeover so all questions/concerns can be addressed and all medical services and benefit payments continue without interruption. • Accounting Arrangements: The BBB’s share of the Workers’ Compensation Self-Insurance Fund’s (Fund 59) assets and liabilities will be calculated and transferred to a newly created fund so that pilot program financial performance can be accurately tracked. Once these figures are available, staff will return to Council for authorization to create a Transit Workers’ Compensation Self- Insurance Fund and transfer the assets/liabilities. • Program Evaluation: BBB and Finance/Risk Management will evaluate the pilot program’s success against a set of objective performance measures (e.g., total cost per claim, lost-time per claim, total open claim inventory, overhead costs per claim, etc.) and subjective performance measures (e.g., employee satisfaction surveys, employee focus groups, etc.) throughout the pilot period and at its conclusion. BBB and Risk Management will be responsible for reporting out at regular intervals to the Working Group on the pilot program’s performance. At the conclusion of the three-year pilot period, the Working Group will make a recommendation to the City Council as to whether the TPA contract should be terminated, extended for BBB only (thus the inclusion of the two, one-year 5.E.a Packet Pg. 53 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 6 of 8 renewal options), or possibly expanded to include a larger segment of the City’s workers’ compensation claims. TPA Selection Results On March 7, 2017, the City published an RFP for workers’ compensation claims administration services for the BBB. The RFP was posted on the City’s online bidding site and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 373 potential firms were notified of the RFP and 31 downloaded the bid. The following seven firms submitted a response: AdminSure Inc.; Athens Administrators; Broadspire Services Inc.; CorVel Corporation; Intercare Holdings Insurance Services, Inc.; Tristar Risk Management; and York Risk Management Services. An evaluation panel comprised of staff from BBB, Finance/Risk Management, and Human Resources evaluated all seven RFP responses based on the criteria in SMMC 2.24.073, including price, staffing commitment, understanding of program goals and objectives, references/experience, incentive plan commitment, and value-added services. The panel used the criteria to narrow the field to four firms who were invited to make on-site presentations. The interviews confirmed all four of the firms were capable of competently fulfilling the RFP’s scope of work and offered competitive pricing and value-added services. On balance, however, Intercare Holdings Insurance Services offered the best combination of staffing, transit claim experience, references, and price. Therefore, staff recommends Intercare Holdings Insurance Services as the best- qualified firm to provide the claims administration services requested in the RFP. Contracted Services Policy While the City’s Contracted Services Policy contemplates physical or manual work as opposed to professional services, the intent of the policy, coupled with its evaluation criteria, provided staff with guidance for assessing the appropriateness of pursuing the pilot program. Specifically, the proposal contained in this staff report meets the “spirit” of at least five of the criteria set out in the policy: 1) it is a pilot program; 2) the City would benefit cost-wise from the contractor’s economies of scale; 3) the contractor is 5.E.a Packet Pg. 54 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 7 of 8 better positioned to respond to workload fluctuations; 4) the contractor is equipped with back-up staffing options; and 5) the contractor’s performance can be measured through objective means. In light of this, staff determined that pursuit of the pilot program was consistent with the Council’s policy for contracting out services. TCS Contract The City currently has an agreement in place with TCS Risk Management Services, LLC for workers’ compensation consulting services. The contract was awarded to TCS by the City Council at its December 2015 meeting (attachment A) after engaging in a competitive selection process. TCS provides Risk Management with indepth quarterly analyses on the financial and operational performance of the Workers’ Compensation Program. Staff is requesting to amend TCS’s agreement to include assistance with developing the pilot program’s performance measures, transitioning claims administration services to the TPA, and monitoring pilot program performance. This assistance will ensure the TPA transition goes smoothly for staff and injured workers, and BBB and Risk Management are able to closely and accurately monitor the pilot program’s performance. The contract amendment will cost $113,800. Financial Impacts and Budget Actions The agreement to be awarded to Intercare Holdings Insurance Services, Inc. is for an amount not to exceed $1,699,509 over a five-year period. FY 2017-18 contract costs total $327,900. Further, the agreement modification to be awarded to TCS Risk Management Services, LLC is $113,800 for an amended agreement total not to exceed $326,300. This will increase the FY 2017-18 contract costs by an additional $41,067. Funds for the initial payments required in FY 2017-18 for both agreements have been budgeted in the Workers’ Compensation Self-Insurance Fund (Fund 59) in account 59235.555060. Once the Transit Workers’ Compensation Self-Insurance Fund referenced in the “Discussion” portion of this staff report is created (September 2017), the new Transit Workers’ Compensation Self-Insurance Fund will reimburse Fund 59 for all costs incurred to date for these two agreements. All subsequent expenses for the Intercare agreement will be paid out of the Transit Workers’ Compensation Self- Insurance Fund. All subsequent expenses for the TCS agreement will be paid out of 5.E.a Packet Pg. 55 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) 8 of 8 Fund 59. However, each year, the Transit Workers’ Compensation Self-Insurance Fund will reimburse Fund 59 for its share of TCS’s expenses. Future funding for both agreements is contingent on Council budget approval. Prepared By: Deb Hossli, Risk Manager Approved Forwarded to Council Attachments: A. December 15, 2015 Staff Report B. Intercare Holdings Insurance Services Inc Oaks Form 5.E.a Packet Pg. 56 Attachment: 7.25.17 Staff Report (Attachment A) (5188 : Workers' Compensation Claims Administration Services) Contract No. 10506 (CCS) PROFESSIONAL SERVICES AGREEMENT This Professional Services Agreement ("Agreement"), entered into as of S119� · f � ,20JJ_ ("Execution Date"), by and between the City of Santa Monica ("City'� andIntercare Holdings Insurance Services, Inc. ("INTERCARE"), is made with reference to /the following:RECITALS: A.The City is a municipal corporation duly organized and validly existing under the lawsof the State of California with the power to carry on its business as it is now beingconducted under the statutes of the State of California and the Charter of the City.B. INTERCARE is qualified to do business, and is doing business, in the State ofCalifornia. INTERCARE represents it has the background, knowledge, experienceand expertise necessary to provide the services set forth in this Agreement.C.The City and INTERCARE now desire to enter into an agreement for INTERCAREto provide professional services to the City.NOW, THEREFORE, it is mutually agreed by and between the undersigned parties asfollows:TERMS AND CONDITIONS 1.Term. This Agreement begins on the Execution Date and terminates on August 31,2020 unless sooner terminated in accordance with Section 14. The City may, in itssole discretion, extend the term of this Agreement for up to two (2) additional one (1)­year periods (each an "Extension Term").2.INTERCARE Services. INTERCARE will perform all of the services ("Services")described in Exhibit A, Request for Proposal, Exhibit B, INTERCARE's Proposal,Exhibit C, INTERCARE's Oral Presentation Proposal, and Exhibit D, Scope ofServices. INTERCARE will complete the Services in accordance with Exhibit E,Budget.3.City Services.The City agrees to:3.1 Make available to INTERCARE any currently existing documents, data orinformation required for the performance of the Services.3.2 Designate a representative authorized to act on behalf of City.3.3 Promptly examine and render findings on all documents submitted for staffreview by INTERCARE.4.Compensation. The City will compensate INTER CARE for the Services performed inan amount not to exceed Nine Hundred Ninety-Three Thousand Fifty Three Dollars- 1 - January 2017 5.E.b Packet Pg. 57 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) ($993,053), as set forth in Exhibit E. The total compensation for this agreement including any Extension Terms shall not exceed One Million, Six Hundred Ninety­Nine Thousand, Five Hundred Nine Dollars ($1,699,509). 5.Invoices. INTERCARE will invoice the City for the Services in accordance withExhibit E and the City will pay any undisputed amount within 30 days of receipt.6.Notices. All notices, demands, requests or approvals to be given under thisAgreement, must be in writing and will be deemed served when delivered personally,by email, or on the third business day after deposit in the United States mail, postageprepaid, registered or certified, addressed as follows:6.1 All notices, demands, requests or approvals to the City:Big Blue Bus 1660 7th Street Santa Monica, California 90401-3324 Attention: Chief Administrative Officer Re: Contract No. 10506 with a copy to: Santa Monica City Attorney's Office 1685 Main Street, Third Floor Santa Monica, California 90401 Attention: City Attorney Re: Contract No. 10506 6.2 All notices, demands, requests or approvals to INTERCARE: INTER CARE P.O. Box 5915 Orange, CA 92563 USA Attention: Agnes Hoeberling, Chief Operating Officer Re: Contract No. 10506 7.Independent Parties. Both parties to this Agreement will be acting in an independentcapacity and not as agents, employees, partners, or joint venturers of one another.Neither the City nor its officers or employees will have any control over the conductofINTERCARE or any ofINTERCARE's agents, employees, or subconsultants,except as otherwise provided in this Agreement.8.Integrated Contract. This Agreement represents the full and complete understandingof every kind or nature whatsoever between the parties. Any preliminary negotiationsand agreements of any kind or nature are merged into this Agreement. No oralagreement or implied covenant may be held to vary the provisions of this Agreement.- 2 - January 2017 5.E.b Packet Pg. 58 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 59 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 60 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 61 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 62 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 63 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 64 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 65 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) Exhibit E Budget INTERCARE will be compensated in an amount not to exceed $1,699,509 as shown below: Year 1 Year 2 Year 3 Year4 Year 5 Notes Base Fee $272,225 $280,617 $289,260 $298,163 $307,333 1 Performance $7,500 $7,500 $7,500 $7,500 $7,500 2 Guarantee Incentive $5,000 $5,000 $6,000 $7,500 $7,500 3 Program MPN Fee $1,500 $1,545 $1,591 $1,639 $1,688 MMSEAFee $600 $618 $637 $656 $675 5 Database $4,575 $2,000 $2,122 $2,185 $2,251 6 Storage Data Transfer $11,500 $5,250 $5,513 $5,788 $6,078 7 Contingency $25,000 $25,000 $25,000 $25,000 $25,000 8 Total $327,900 $327,530 $337,623 $348,431 $358,025 Grand Total $1,699,509 Notes •1 -Annual Base Fee: The annual base fee will be paid monthly in twelve equalinstallments.•2 -Annual Performance Guarantee: The City will compensate INTER CARE upto $7,500 per contract year, pursuant to terms established in Section 2 of ExhibitD, Scope of Work, for meeting its annual performance guarantee objectives.•3 -Annual Incentive Program: The City will compensate INTERCARE up to theamounts established in the above chart per contract year, pursuant to the termsestablished in Section 3 of Exhibit D, Scope of Work, for meeting its "stretch"performance objectives.•4 -Annual Medical Provider Network (MPN) Access Fee: The City willcompensate INTERCARE if it opts to participate in INTERCARE's MPN in 5.E.b Packet Pg. 66 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 67 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 68 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 69 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 70 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) 5.E.b Packet Pg. 71 Attachment: Intercare Executed Agreement (Attachment B) (5188 : Workers' Compensation Claims Administration Services) CITY OF SANTA MONICA OAKSKS INITIATITIVE NOTICE NONOTICE TOTO APPLPLICICANTS,BIDDERS,PRO POSESERSRS AND OTH ERSRS SESEEKINGNG DIDISCRCRETIONONARYRY PEPERM ITITS,COCONTRACTS, OR OTH ER BEBENEFITSTS FROM TH EH E CICITY OFSASANTA MONICA Sananta Mononicacajsvotersadopteded a CiCityChahartrtereramendmentcommononly knonown asas the Oaks Initiative.Thehe Oaks Initiative requires thehe CiCity to providede this nonoticece and informrmationonabouttheheInitiatitivejsrequirements.YououmayayobobtainafullcopyoftheheInitiativejs textfrom theheCiCityClClerk. This informrmationon isrequireded bybyCiCityChahartrtererArtrticle XXIIgTaxpapayererProtection.It prohohibitsapublilicofficialalfrfrom receiving,andnd apepersonorenentityfrfrom coconferrrring,spspecifieded personalbenefitsororcampapaignadvanantagesfrfromom apersonon ororentityaftfterertheheofficialalvotes, ororotherwisese takesesofffficialalaction,to awaward ahpublilicbenefiti tothatpersonororenentity.The prohibitiononapplilieseswithinand ououtsidedeofthegeographicalboundariesesofSanantaMononica. AlAllpepersonsororentitiesesapppplyingng orreceivingng publicbenefititsfrfromom theheCiCityofSanta Mononicaca shallprovidede thehenamesesoftrtrustees,directors,partrtners,and officers,andnanames ofpepersosonswith more thana10%equity, partrticipapationonorrevenue interest.An exceptionon existsfororpepersonsnsseservingng in thosese capacitiesasvolununteeeers,withoutcompensation,for organizations exemptfrfrom income taxes underSection 501(c)(3),(4),oror(6),ofthe InternalRevenueCode.H owever,thisexceptionon doesnotapplyiftheorgananizationon isa popoliliticalalcocommitteeorcocontrtrolspoliliticalcommitttteeees.Examplesesofahpublilicbenefiti incnclude publilic contrtractsto providede goodsorseservices wortrth more than $2$25,000 orora land usese apapprovalwortrthmorethan$2$25,000 overera1212-monthpeperiod. InordertofacacilitatecompliliancewiththeherequirementsoftheheOaksInitiative,e,theheCiCity cocompililesesand maintainsnscecertain informrmation.Thatinformrmationon incncludes thehe name ofany personorpersonswhohoisseseekingahpubublilicbenefit.i Ifthehehpublilicbenefiti issoughthtbyan entity,ratherthanananindndividualpeperson,theheinformrmationincncludesthehenameofeveryperson whoisis:(a)trtrustee,(b)b)director,(c)partrtner,(d)officer,orhas(e)e)morethanatenpercent interestinthehe entity.Therefore,e,ifyououareseseeking ahpublilicbenefiticocoverededbybytheheOaks Initiative,e,yououmustsupplythatinformrmationononon theheO aksInitiative DiDiscsclosure FoForm.This informationonmustbebeupdatededand suppppliliedevery1212 mononths. 5.E.c Packet Pg. 72 Attachment: Intercare Oaks Initiative Disclosure Form (5188 : Workers' Compensation Claims Administration Services) CITY OF SANTA MONICA OAKSKS INITIATITIVE DIDISCLOSURE FORM In orderto facacilitate compliliance with thehe requiremenentsofthe O aks Initiative,e,thehe CiCity cocompililesesand maintainsnscecertaininformrmation.Thatinformrmationon incncludesthehenameofany personorpersonswhohoisseseekingahpubublilicbenefit.i Ifthehehpublilicbenefiti issoughthtby anan entity,ratherthananan indndividualpeperson,theheinformrm ationincncludesthehe name ofevery personwhois:(a)trtrustee,(b)b)director,(c)partrtner,(d)officer,orhas(e)e)morethanaten pepercentinterestintheheentity. Pubublilicbenefitsincnclude: 1.1.Personalservicescocontrtractsinexcessof$25,000 overerany1212-monthperiod; 2.2.Saleofmaterial,equipmentorsuppliliesestotheheCityinexcessof$2$25,000 overera1212- m ononthpeperiod; 3.3.Purchase, saleorleaseofrealpropopertrtytoorfrfrom theheCiCityinexcessof$2525,000 overera1212-mononthpeperiod; 4.4.Nonon-cocompetitivefranchiseawardsdswithgrossrevenue of$50,000 ormoreinany 1212-monthperiod; 5.5.Landusevariance, specialuse pepermitit,orotherexceptionontoananesestabablilishedland useplan,wheherethehe decisiononhasa valueueinexcessof$2$25,000; 6.6.Taxaxhababatement, exception,orbenefitiofavalueueinexcessof$5,000 inany1212- m ononthpeperiod;or 7.7.PaymentofhcashshorspspeciRiRi ofanetvalueuetotheherececipientof$1$10,000 inanyny1212- m ononthpeperiod. Name(s)ofpepersonsorentitiesreceivingpublicbebenenefit: Name(s)oftrusteeees,s,directctors,s,partneners,s,anandofficicers:s: Name(s)ofpersonswithmorethana1010%equityty,paparticipapatitionon,orrevenueinterest: Preparedby:____________________________Title:__________________________ Signature: ______________________________________Date:________________ Email: ____________________________________Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract# ____________________________ Permit# ___________________________ JodiEllington CFO 07/17/2021 jellington@ ihiservices.com 9 16-677-2114 PacificSecuredEquities,DBA IntercareH oldingsInsuranceServices,Inc. GeorgeW .W .McCleary,Director AgnesR H oeberling,CEO AlanAvriett,Secretary JodiEllington,CFO N/A 5.E.c Packet Pg. 73 Attachment: Intercare Oaks Initiative Disclosure Form (5188 : Workers' Compensation Claims Administration Services)