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Similar to the previous contracts, the work will involve installing and removing various traffic regulation signs including stop, yield and speed limit signs. Flashing red lights and supplemental signs will be affixed to new stop signs for a 60-day period to allow motorists to adjust to the changes in the neighborhood. And has been done in previously completed neighborhoods, stop sign and school crossing signs will have permanent, reflective colored panels attached to the posts to emphasize the intersection control and crosswalks. Stop sign posts will be red and school crossing posts will be fluorescent yellow- green. Recommendation It is Staffs recommendation that the low bidder, Nafisco Inc., be awarded the construction contract for the 2009 Neighborhood Traffic Sign Project in the amount not to exceed $87,069.90. There are sufficient funds in the 2009 Proposed Budget to cover the cost of this contract. Please include this item on the November 18th Village Board Meeting Agenda. Enclosed is a project area map for your reference. Matthew P. Lawrie ~ I concur with the above recommendation. Attachment: Project Area Map c: Village Clerk Lisa Angell h: \engineering\traffic\ritcp\2009sign _ contract\rec _ memo.doc 2009 NEIGHBORHOOD TRAFFIC SIGN PROJECT ~ I 3 EUCLID AVE 4 f<i 7 8 9 - 1=0 ~ CENTRAL RD IL II 14 11511 a 0:: I- o W ll. U) o 0:: ll. I- Z :J o :E ~ ~ 12 11~1 ! ~tr II II It I Jill Jill 'I Jl 1"L II! U LII ,c II Il II J IIiI il II i11'7'1 IIII ~ GOLF RD c:;;- og W I- DEMPSTER ST ~ .q(GO~ II I ~ QlJ. I- 18 ~t\tI?D ~ :E ...J W I II" ANTICIPATED CONSTRUCTION SCHEDULE Il . . JANUARY 2009 APRIL 2009 OAKTON ST I Mount Prospect FROM: DIRECTOR OF FINANCE ~~. II I ~ Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER DATE: OCTOBER 14, 2008 SUBJECT: WORKERS' COMPENSATION THIRD-PARTY CLAIMS AD PURPOSE: To present a recommendation for renewal of the annual service agreement for third-party claims administration for the year beginning January 1,2009 and ending December 31, 2009. BACKGROUND: The Village is self-insured in its workers' compensation program. To assist in the administration of claims the Village has contracted out the service to a third-party administrator. The Village's current agreement for claims administration is set to expire on December 31,2008. A new agreement is needed at this time to have the current provider continue to service the Village. DISCUSSION: Cannon Cochran Management Services, Inc. (CCMSI) is the current service provider for workers' compensation claims administration. Their proposed agreement for 2009 is attached. There were no changes to the terms or conditions in the agreement and the minimum annual fee remains unchanged from the prior year. The per claim fee for indemnity and medical only claims has increased slightly from 2008. Below is a summary of fees for the current year and 2008. Service 2009 Rates 2008 Rates Claims Administration $ 12,000 $ 12,000 Annual Administration 2,500 2,500 Internet Claims Access 1,000 1,000 Per Claim Fee Indemnity 795 775 Medical Only 130 125 Incident Only 30 30 Workers' Compensation Third-Party Claims Administration October 14, 2008 Page 2 In addition there is an annual fee for CCMSI to handle run-off claims through to their closure. The fee for run-off claims in 2009 is $200 per claim. There were 32 indemnity claims and 1 medical only claim that were carried over from the previous service provider. Through 2008 we have been able to close 19 of these run-off claims (18 indemnity and one medical). The total cost for run-off claims for 2008 will be $2,600. Our experience with CCMSI has been very positive. Troublesome claims continue to be handled efficiently and the interaction between the Village and CCMSI staff is excellent. The internet reporting tool that is available for tracking progress on claims has proven to be invaluable. I recommend we continue our relationship with CCMS!. RECOMMENDATION: It is recommended we approve the agreement for CCMSI to provide workers' compensation claims administration services during 2009 based on the Fee and Payment Schedule Addendum attached. The base fee for 2009 is $18,100. ~~ a:.- David O. Erb Director of Finance DOE/ Attachment 1:\Risk Management\CCMSI\Renewal- 2009.doc Village of Mount Prospect - Addendum to Service Agreement Page 1 of 4 ADDENDUM TO SERVICE AGREEMENT BETWEEN VILLAGE OF MOUNT PROSPECT AND CANNON COCHRAN MANAGEMENT SERVICES. INC. THIS ADDENDUM is made and entered into this 1 st day of January 2009, by and between Village of Mount Prospect (the "Client"), and Cannon Cochran Management Services, Inc., ("CCMSI"), a Delaware corporation. By this Addendum, the January 1, 2008, to December 31, 2008, Service Agreement is automatically continued with the pricing provisions outlined below. This pricing is effective on January 1, 2009, and terminates on December 31,2009. Section H. 3. (c) under "Term and Termination" has been amended to read as follows: (c) Provide an electronic transfer of data if such is feasible, with the cost of providing such borne by the Client. The electronic transfer of data will be subject to a flat fee of $2,500. FEE AND PAYMENT SCHEDULE Life of Contract: 1 Year -1/1/09 -12131/09 CCMSI will manage all workers' compensation claims for the life of this contract for an annual fee as follows: Claims will be analyzed by the number and type of claim on an on-going basis and priced on a per claim fee as outlined below. Workers' Compensation * Indemnity claims @ $795 I per claim Medical only claims @ $130 I per claim Incident/record only @ $30 I per incident Claims will be analyzed by the number of claims as well as the type of claim on an on- going basis and priced on a per claim fee as outlined above. Any additional charges over the $12,000 minimum claim fee will be billed at the expiration of the policy term and quarterly thereafter. The flat rate unit prices include: . Prompt and courteous customer service . Timely investigation and determination of compensability in accordance with CCMSI Best Practices . Strict adherence to state workers compensation statutes and regulations, attendance at hearings, as required. . Preparation for and compliance with and response to regulatory audits . Timely payment of all legitimate claims . Fraud detection and prevention . Litigation Management Note: These prices do not include those costs typically identified and expense as allocated loss expenses. Please see the attached roster that details those typical allocated loss expense items. (ex. Field investigation & adjusting) Claim charges are based on a per claim, not per occurrence basis. Any occurrence resulting in 10 or more claims will be considered a catastrophic claim. All resulting claims will be handled on a time and expense basis. Any claim which falls under the catastrophic definition in the reinsurance contract, e.g., brain damage, death, etc., will also be handled on a time and ex ense basis. Village of Mount Prospect - Addendum to Service Agreement Page 2 of 4 Annual Administration Annual Account Management Fee includes: · Designated Account Manager · Client Specific Service Instructions · Preparation and participation in Semi-Annual claims reviews · Set up and Maintenance of the loss fund account · Monthly loss runs and loss fund activities reports · Filing of all required state forms including state mandated assessments · Reporting to excess/fronting carrier · Computer set-up, training and client specific special analysis codes Internet Claim Access Internet claims system access which includes: · Viewing access to all claims data · Risk Management statistical analysis · Comprehensive and complete access to claims management process · On-line reports · On-line reporting capability via the internet · Ability to generate OSHA Log, OSHA 301 Form and Illinois First Report of Injury (Illinois Form 45) Managed Care. Services Provider Bill Re-Dricina Service Fee schedule re-pricing Usual and Customary re-pricing Fee $9.00 per bill $9.00 per bill PPO Re-Dricina Bills with additional PPO discount opportunities below the Fee Schedule will be billed at 30% of savings. Pharmacv Network Services Pharmacy Network services are priced at 33% of savings. Field Case Management CCMSI does not offer proprietary field case management or vocational rehabilitation services. These are available from third party providers at market price and the cost of these services would be captured as an allocated loss expense to the referral file. Run-Off Claims · 1 st year/12months commencing with the start of the TPA contract or any portion there of $450 per claim · 2nd year or any portion thereof $300 per claim · 3rd and each subsequent year $200 per claim We would propose to bill a deposit fee for the 1 st 12 months based on the number of claims we actually take over and then adjust it at the end of 12 months based on any additional claims that needed to be handled or reopened. $2,500 $1,000 Se.8 List of Services TBD Village of Mount Prospect - Addendum to Service Agreement Page 3 of 4 Data . Conversion $125 an hour This is the fee associated with consolidating all of Village of Mount Prospect's historical data into CCMSl's database. Our cost for this service is $125 an hour and it typically averages 20/30 hours to complete. We would be willing to "cap" the cost of this service at $5,000. In order to accurately and competitively asses this fee we would need to know: . The number of data sources . The experience period data ranges (Le., 1/1/95to 12/31/05) . The total number of claim records to be transferred . Whether or not all transactional information on closed claims is to be transferred or alternatively if we can transfer closed values only Loss Control (Optional) As . . - . . ,- - Outlined CCMSI can provide the Client with loss control services. The Client shall remain fully responsible for the implementation and operation of its own safety programs and for the detection and elimination of any unsafe conditions or practices. The fee for services will be available for rate of $950 per day plus expenses or priced per project. Special System Reports $125 an hour CCMSI will provide special reports, (reports not currently programmed or written) for a fee of $125 per hour for system programming time. CCMSI will provide an estimate of charges before any work will be done. GRAND TOTAL $15,500 Fee & Payment Schedule The total fee of $15,500 will be billed in quarterly installments of $3,875.00 due on the first day of January 2009; April 2009; July 2009 and November 2009. Run-off claims: An additional fee will be billed for the third 12 months based on the number of claims that remain open and then adjusted at the end of 12 months based on any additional claims that need to be handled or reopened. Village of Mount Prospect - Addendum to Service Agreement Page 4 of 4 Executed this day of ,200_. CANNON COCHRAN MANAGEMENT SERVICES, INC. By: Rodney J. Golden Its: Chief Operating Officer/Executive Vice President VILLAGE OF MOUNT PROSPECT By: Its: