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EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 4 <br /> PROJECT TITLE: <br /> Award Request for Proposal Briefing COUNCIL BILL# <br /> 2017-056 for Workers' Proposed Action Originating Department Finance/Purchasing <br /> Compensation Third Party Consent Contact Person Theresa Bauccio-Teschlog <br /> Self-Insured Administration X Action Phone Number 425-257-8901 <br /> and Consulting Services to First Reading FOR AGENDA OF May 16, 2018 <br /> CorVel Enterprise Comp,Inc. Second <br /> Reading <br /> Third Reading <br /> Public Hearing <br /> Initialed by: <br /> Department Head <br /> Administration <br /> Council President <br /> Location Preceding Action Attachments Department(s)Approval <br /> Purchasing, Human Resources, <br /> Risk Management <br /> Amount Budgeted $3,015,206 <br /> Expenditure Required $111,108 AccountNurnber(s): Fund 503 -Workers' Comp <br /> Budget Remaining $2,904,098 <br /> Additional Required <br /> DETAILED SUMMARY STATEMENT: <br /> The City issued a Request for Proposal for a provider to conduct third-party administrative services to manage claims <br /> for the City's self-insured workers' compensation program. The Request for Proposal was downloaded by eleven <br /> known vendors,advertised in both The Herald and Daily Journal of Commerce and posted on the City's website. After <br /> careful evaluation, CorVel scored the highest of the proposers. The evaluation team believes that City employees will <br /> benefit from CorVel's mobile claims application,dedicated claims adjuster,and account manager for after hours and <br /> emergencies, and is recommending that the contract be awarded to CorVel. <br /> The contract years will run July 1 through June 30. The first year includes a one-time fee($51,930)to convert 40 years <br /> of historical data and up to 130 open claims from the current provider to CorVel. The annual contract costs are <br /> estimated as follows: <br /> 2018 2019 2020 2021 <br /> Jul 1-Dec 31 Jan 1-Dec 31 Jan 1-Dec 31 Jan 1—Jun 30 <br /> Conversion 51,930 <br /> , Claims Processing 59,178 118,356 118,356 59,178 <br /> Total 111,108 118,356 118,356 59,178 <br /> There are sufficient funds within Fund 503 to cover the expenditures required. <br /> RECOMMENDATION: (Exact action requested of Council): <br /> Award Request for Proposal 2017-056 for Workers' Compensation Third Party Self-Insured Administration and <br /> Consulting Services to CorVel Enterprise Comp,Inc. in the estimated amount of$406,998,including Washington <br /> state sales tax for a three-year term. <br /> 9 <br />