TO: Board of Supervisors
FROM: Christine Bricen᷉o, Director of Human Resources
REPORT BY: Sandra Hage, Staff Services Analyst II
SUBJECT: Amendment No. 4 to Agreement 170412B with Sedgwick Claims Management Services, Inc.
RECOMMENDATION
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Approve and authorize Amendment No. 4 to Agreement 170412B with Sedgwick Claims Management Services, Inc., to provide claims adjuster and administrator services for the County’s Workers’ Compensation program for five years. (Fiscal Impact: $169,897 expense for FY 2024-25 and $918,225 expense for five years; Workers’ Compensation Insurance Fund; Budgeted; Discretionary)
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BACKGROUND
Sedgwick Claims Management Services, Inc. (Sedgwick), formerly York Risk Services and Gregory B. Bragg & Associates has provided the County with workers’ compensation claims services since 2006. Napa County has developed an excellent working relationship with Sedgwick. Sedgwick is aware of the County’s expectations regarding claims management and provides insight and recommendations. PRISM, the County’s risk pool provider for excess workers’ compensation insurance, reviews and evaluates third-party administrators. Sedgwick is an approved Third-Party Administrator (TPA).
Amendment No. 4 to Agreement 170412B extends the contract for a five-year term beginning July 1, 2024 through June 30, 2029 at a cost of $918,225.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
440020-Employee-Retiree Benefits/Workers’ Comp Ins |
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Is it Mandatory or Discretionary? |
Discretionary |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
This contract addresses Fiscal Year 2024-25 through 2028-29. Contract fees for each fiscal year are as follows: $169,897 for FY 24-25; $177,542 for FY 25-26; $183,756 for FY 26-27; $190,187 for FY 27-28 and $196,843 for FY 28-29. Program costs include TPA fees and claims and are charged to operations based on FTE with approximately 65% allocated to the General Fund. |
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Consequences if not approved: |
The County will not have a claims administration contract in place and would need to hire qualified staff to process claims. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.