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Home My WebLink About6. Village Manager Report 12/06/2011Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: NOVEMER 30, 2011 SUBJECT: PORTABLE / MOBILE RADIO PURCHASE PURPOSE: To request Board approval for the purchase of various portable, mobile and consolette radio equipment and radio accessories through Northwest Central Dispatch System (NWCDS). BACKGROUND: The Police and Fire Departments are member agencies of Northwest Central Dispatch System (NWCDS). NWCDS is currently comprised of eleven municipalities and one separate fire protection district. In 1998, the current radio system and infrastructure was placed into service. This system serviced the original six member agencies of NWCDS. Since 1998, Schaumburg, Hoffman Estates, Streamwood, Inverness and Rolling Meadows have joined NWCDS. As a result, radio equipment used by these additional member agencies was integrated into the NWCDS infrastructure. This integration has resulted in a hybrid of systems over which NWCDS has been required to communicate. Over the past twelve years the original system has met the needs of the member agencies, however it is has become outdated and is no longer supported by the vendor, Motorola. Additionally, the systems in use by the newly added member agencies lack interoperability with the original NWCDS member agencies. NWCDS is currently upgrading its radio system infrastructure. The upgraded infrastructure will necessitate the purchase of new portable, mobile and consolette radio equipment and radio accessories for daily use by all member agencies. The new system will consolidate all member agencies onto one system providing for true radio communication interoperability. DISCUSSION: In addition to communication interoperability, the need to replace existing mobile /portable radios for police and fire use is due to the move to narrowbanding of the UHF and VHF spectrum by the FCC forcing the upgrade to the NWCDS radio infrastructure and the decision by Motorola to abandon support of our current radios. NWCDS is making a significant investment into this new radio technology. Improved interoperability within the Village between the public safety and public works departments is gained by the upgrade. Additionally, the new radio system would provide for full interoperability amongst all NWCDS member agencies and offer a unique integration with the State of Illinois Starcom system. The existing radio system at NWCDS has been in place for over ten years. Based on current technology utilized in the new system, the village could expect ten to fifteen years of use before next being replaced. The original estimate for purchasing replacement radios for our police and fire departments was over $1 million. Subsequent negotiations with the vendor, Motorola, and quantity discounts have lowered the final cost to just under $850,000. A breakdown of the cost for radios and accessories is attached for your review. Portable and Mobile Radio Purchase November 30, 2011 Page 2 of 2 Financing of the radios will be done through NWCDS. More favorable rates are expected due to the consolidation of the purchase. At this time five and seven -year financing terms are being considered. Based on a total cost of $850,000, the monthly payment on a five -year loan at 3.0% is $15,296. The monthly payment on a seven -year loan at 3.25% is $11,327. These monthly payments are estimates based on initial rates provided by the bank. Final rates are expected by the end of the year and should not change significantly from initial estimates. RECOMMENDATION: It is recommended the Village Board approve the purchase of various mobile, portable and consolette radios and radio accessories at a not to exceed amount of $850,000. Financing is to be provided through NWCDS. David O. Erb Finance Director DOE/ I: \NWCD \NWCD Radio Purchase.docx Motorola Radio Subscriber Order Summary Village of Mount Prospect Mount Prospect Police Department Qtv TOTAL Subscriber Units Ordered 119 $371,536.87 Accessories $43,708.87 Department Total $415,245.74 Mount Prospect Fire Department Qtv TOTAL Subscriber Units Ordered 78 $403,938.94 Accessories $25,382.76 Department Total $429,321.70 Total Community Purchase 197 $844,567.44 11/30/2011 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: NOVEMBER 28, 2011 SUBJECT: WORKERS' COMPENSATION THIRD -PARTY CLAIMS ADMINISTRATION PURPOSE: To present a recommendation for renewal of the annual service agreement for third -party claims administration for the year beginning January 1, 2012 and ending December 31, 2012. BACKGROUND: 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, 2011. 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. CCMSI has proposed extending the current agreement through December 31, 2012. Terms of the agreement, including fees for indemnity and medical only claims, remain unchanged from the prior year. Service 2011 Rates 2012 Rates Claims Administration $ 10,000 $ 10,000 Annual Administration 2,500 2,500 Internet Claims Access 1,000 1,000 Per Claim Fee Indemnity 795 795 Medical Only 130 130 Incident Only 30 30 In addition to the fees related to new claims there is an annual fee for CCMSI to handle run -off claims through to their closure. The fee for run -off claims in 2012 is $200 per claim. There were 32 indemnity claims and 1 medical only claim that were carried over from the previous service provider. Through 2011 we have been successful in closing all but 2 of the indemnity claims. The total cost for run -off claims for 2012 will be $400. Workers' Compensation Third -Party Claims Administration November 28, 2011 Page 2 Our experience with CCMSI continues to be very positive. Troublesome claims are handled efficiently and the interaction between the Village and CCMSI staff is excellent. The Village holds a semi - annual claims review with CCMSI and our WC attorney that has proven beneficial in a timely settling of claims and reducing costs to the Village. The internet reporting tool that is utilized for submitting and tracking progress on claims continues to be invaluable. I recommend we continue our relationship with CCMSI. RECOMMENDATION: It is recommended we approve the agreement for CCMSI to provide workers' compensation claims administration services during 2012 based on the Fee and Payment Schedule Addendum attached. The base fee for 2011 is $13,900. David O. Erb Finance Director DOE/ Attachment I: \Risk Management \CCMSI\2012 Renewal.docx Village of Mount Prospect - Addendum to Service Agreement Page 1 of 3 ADDENDUM TO SERVICE AGREEMENT BETWEEN VILLAGE OF MOUNT PROSPECT AND CANNON COCHRAN MANAGEMENT SERVICES, INC. THiS ADDENDUM is made and entered into this 1st day of January 2011, 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 bell . This pricing is effective on January 1, 2011, and terminates on December 31, g p 19.. 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 bome by the Client. The electronic transfer of data will be subject to a flat fee of $2,500. FEE AND PAYMENT SCHEDULE I sleiullii=l 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 @ $7951 per claim Medical only claims @ $130 / per claim Incident/record only @ $30 / 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 $10,000 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 toss expense +tams. (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. AA resulting claims will be handled on a time and expense basis. Any claim which falls underthe catastrophic definition in the reinsurance contract s,g., brain demace, death, etc., will also be handled on a time and expense basis. Village of Mount Prospect — Addendum to Service Agreement Paae 2 of 3 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 � ■■aq,y 4 5 7 � 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 intemet • Ability to generate OSHA Log, OSHA 301 Form and Illinois First Report of Injury (Illinois Form 45) �,a afra ed Car SNCM"�k �' See 't y F. � Provider Bill Re- pricing Service Fee Fee schedule re- pricing $9.00 per bill Usual and Customary re- pricing $9.00 per bill PPO Re- pricing Bills with additional PPO discount opportunities below the Fee Schedule will be billed at 30% of savings. Pharmacy 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. • 1st 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 han or reopened. Village of Mount Prospect — Addendum to Service Agreement Page 3 of Executed this day of 200_ CANNON COCHRAN MANAGEMENT SERVICES, INC. Rodney J. Golden Its: Chief Operating Officer /Executive Vice President VILLAGE OF MOUNT PROSPECT • 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. / r/a. ;uJy F r ra jr d Yry ,p<✓ r i r r A '� 1 < hra Wr " "FC�Y- w 'Y�E ,Y,r^ r"ry 1, "��rY"YrII,, w✓!k r, ti , ��.f� ,r a ,,Y P " %Y „^y �. �:d, /'., �i �,�� f(�/ .N(�� )��f 6 l �� m�� cl� r ��,k V'�� ri�iY "' �,�� , JrY'��v!1 CCMSI in conjunction with our reporting agent will comply with MMSEA Section 111 Reporting on behalf of Illinois Community College Risk Management Consortium. • All injury claims will be queried to CMS for Medicare eligibility (no charge). • CCMSI will collect additional mandatory data on claims where Medicare eligibility has been verified. CCMSI along with our reporting agent will report all claims meeting the reporting guidelines as set forth by CMS. (one -time $25 per claim fee) e The total fee of $13,500 will be billed in quarterly installments of $3,375,00 due,,,on the first day of January 2011; April 2011„ July 2011 and N7em er 2011_ P, Run -off claims: An additional fee will be billed for the third 12 months basest” 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. Executed this day of 200_ CANNON COCHRAN MANAGEMENT SERVICES, INC. Rodney J. Golden Its: Chief Operating Officer /Executive Vice President VILLAGE OF MOUNT PROSPECT •