R2018-99 Authorizing Agreement with JWF Specialty Co. Worker's Compensation Benefits

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LETTER to the DECATUR CITY COUNCIL Financial Management Department Letter#2018-09 DATE: July 9, 2018 TO: Honorable Mayor Moore Wolfe and City Council FROM: Billy Tyus, Interim City Manager Gregg Zientara, City Treasurer&Director of Finance SUBJECT: RESOLUTION AUTHORIZING AGREEMENT WITH JWF SPECIALTY SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Resolution, authorizing the City Manager to execute a professional service agreement with JWF Specialty for Third Party Administration of workers compensation claims. BACKGROUND: The City of Decatur manages the City's self-insured workers compensation insurance program with the assistance of a third-party administrator("TPA"). The TPA provides claims management services under a professional service agreement,whereby,the TPA performs claim processing, including: • 1St report of injury to Illinois OSHA and Illinois Workers Compensation Commission, • Management of all medical treatments to return the injured employee to maximum medical improvement, • Management and review of all medical expenses to ensure control of expenses, • Payment of all medical expenses incurred, • Payment of all statute required temporary total temporary disability ("TTD") payments to injured and off duty employees, • Consultation to City in the management of workers compensation claims and claim settlements to ensure compliance with state workers compensation law, • Maintenance of the workers compensation claim data base and claim management files under secured status in compliance with all state and federal laws The current City TPA arrangement with Gallagher Bassett will expire on September 30, 2018. The City has had the current contractual TPA arrangement with Gallagher Bassett since 2012. With pending end of the Gallagher Bassett arrangement, the City elected to conduct a request for proposal review with potential, qualified, and interested TPA's. An RFP process was conducted,with the assistance of Arthur J.Gallagher and Company,the City business insurance advisor. Three (3) potential TPA's were responsive to the City request for proposal. Following internal review, City due diligence, presentation of capabilities to the City, and evaluation by the City, JWF Specialty emerged as the most qualified TPA candidate.