Explanation
BACKGROUND: The Department of Human Resources, Risk Management Office, requires services to verify the accuracy of the Bureau of Workers' Compensation payroll and claims data for the City of Columbus; to provide occupational injury management data, general workers' compensation consulting services; to calculate the allocation of workers' compensation claims experience by department, division, and fund; to conduct claims management on a per request basis; and to attend Industrial Commission hearings on a per request basis.
The Department of Human Resources executed a Request for Proposal (RFP) in late 2019, for workers' compensation cost containment services. In accordance with relevant sections of the Columbus City Codes, Chapter 329, CCI Investments, LLC dba CareWorks Comp, now called Sedgwick Claims Management Services, Inc., was the recommended service company based on the ability to assist the city with cost saving strategies in its workers' compensation program.
The original term of the contract was three years, with the option to extend, upon mutual agreement and with sufficient appropriation, for two additional one-year contracts. This represents the first of the two additional one-year contracts and the cost is $55,000.00.
Sedgwick Claims Management Services, Inc. (formerly CareWorks Comp) has been the city's third-party administrator for the workers' compensation cost containment program since March, 2009. The term of the current contract is from March 1, 2023 to February 29, 2024.
Contract Compliance: The Federal Tax Identification number for Sedgwick Claims Management Services, Inc. consultants is 36-2685608.
Emergency Action: Emergency action is requested to allow for the continuation of actuarial services with regards to workers' compensation cost containment programs.
Fiscal Impact: Funds totaling $55,000.00 are specifically budgeted for this contract in the Department of Human Resources 2023 employee benefits fund budget; the availability of funds is contingent on the passage of Ord. 2937-2022, the 2023 Other Funds Appropriations ordinance.
Title
To authorize the Director of the Human Resources Department to renew the contract with Sedgwick Claims Management Services, Inc., to provide workers' compensation cost containment services from March 1, 2023 to February 29, 2024; to authorize the expenditure of $55,000.00, or so much thereof as may be necessary, to pay the cost of said contract; and to declare an emergency. ($55,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to renew the contract with Sedgwick Claims Management Services, Inc. to provide workers' compensation consulting and actuarial services from March 1, 2023 through February 29, 2024; and
WHEREAS, the original term of the contract was three years, with the option to extend, upon mutual agreement, for two additional one-year contracts, subject to appropriation; and
WHEREAS, this ordinance represents authority for the first of the two additional one-year contract renewals; and
WHEREAS, it is necessary to authorize the expenditure of $55,000.00, or so much thereof as may be necessary, to pay contract costs for actuarial services; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Human Resources in that it is immediately necessary to authorize the Director to contract for workers' compensation actuarial services to avoid disruption in services, thereby preserving the public health, peace, property, safety and welfare; Now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Human Resources Department is hereby authorized to renew the contract with Sedgwick Claims Management Services, Inc. to provide workers' compensation consulting services from March 1, 2023 through February 29, 2024.
SECTION 2. That the expenditure of $55,000.00, or so much thereof as may be necessary, from the employee benefits fund 5502, Human Resources Department, Division No. 46-01, Object Class 03 Services, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage, if the Mayor neither approves nor vetoes the same.