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Indian River County, Florida <br />Memorandum <br />TO: Jason Brown, County Administrator <br />THRU: Kristin Daniels, Director, OMB <br />FROM: Beth Martin, Risk Manager <br />DATE: June 10, 2019 <br />SUBJECT: Third Party Claims Administration Services <br />Please consider the following for inclusion on the June 18, 2019 Board of County <br />Commissioners' agenda. <br />Background <br />The County's modified self-insurance program relies upon the services of a third party claims <br />administrator to analyze and process workers' compensation and third party liability claims made <br />against the County. Since February 2005 Johns Eastern Company, Inc. (JECO) has provided <br />these services. As in the past, Siver Insurance Consultants reviewed the current agreement, <br />claims count and payments for the past three (3) years. Following the review, Siver assisted the <br />County with negotiation of a renewal agreement. <br />Analysis <br />The proposed agreement continues with prior terms of a flat rate agreement with three (3) <br />percent cost increases annually. This annual increase is consistent with earlier agreements and <br />provides detailed scope of services and performance standards. The proposed agreement begins <br />on October 1, 2019 at an annual cost of $218,545.00. On October 1, 2020 the annual price <br />becomes $225,102.00 and on October 1, 2021 it is $231,855.00, or a three (3) percent annual <br />increase. Beginning October 1, 2022 the agreement can be extended for two (2) additional years <br />upon mutually acceptable terms. JECO, a leading firm in their industry, has consistently <br />provided outstanding services on behalf of the County and their longevity with the County brings <br />both stability and historic knowledge to the renewal. <br />Funding <br />Funding for claims administration services is provided by the Self Insurance Fund, Other <br />Professional Services account (account number 50224613-033190). The Self Insurance Fund is <br />an internal service fund that allocates charges to the County's user funds. <br />Recommendation <br />Staff recommends that the Board authorize the Chair to execute the agreement after review and <br />approval by the County Attorney's Office with an initial annual cost of $218,545.00, three (3) <br />85 <br />