TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with Insurance Services Office, Inc. of Jersey City, NJ, for access to the Insurance Service Office (ISO) ClaimSearch Database, in a total annual amount not to exceed $30,000 for a period of three years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary subsequent amendments. (Citywide)
Levine Act: Yes
DISCUSSION
City Council approval is requested to enter into a contract with Insurance Services Office, Inc., to provide access to the Insurance Services Office (ISO) ClaimSearch Database, which includes access to claims records reported to the ISO under casualty lines, including, but not limited to, workers’ compensation, general liability, auto bodily injury liability, medical payments, homeowners and farm owners’ liability, Errors and Omissions Directors and Officers, and marine. The requested contract will ensure the continuation of claims management, analysis, investigation, and support services that are imperative to our Workers' Compensation claims investigation process.
City Charter Section 1801 requires that contracts for City purchases be awarded to the lowest responsible bidder after a competitive bid process, but allows for awards without a competitive bid process, if accompanied by a Resolution adopted by the City Council. Insurance Services is the only private company that makes available a property and casualty claims database that provides an extensive repository of claims records, therefore no useful purpose would be served by advertising for bids and to do so would constitute an unnecessary expenditure of public funds.
The Human Resources Department Risk Management Bureau Workers Compensation Division has been utilizing these services since March 30, 2011. Insurance Services Office, Inc. has changed the scope of its business, which increased the costs and requires a contract agreement to be completed. Insurance Services Office, Inc., is the insurance industry's all-claims database and the front line of defense against claims fraud. Insurance Services Office Inc. is a contributory database that features a secure internet platform and a stringent privacy and security policy.
The system provides a wide variety of integrated tools to help at every step of the claims process to improve and streamline workflow and increase service, productivity, and profitability. Their system supplies the data to improve claims processing and avoid paying questionable or fraudulent claims. The system helps research prior loss histories, identify claims patterns, and detect fraud.
This matter was reviewed by Assistant City Attorney Gary J. Anderson on October 2, 2023, Purchasing Agent Michelle Wilson on September 25, 2023, and by Budget Management Officer Jennifer Rodriguez on September 27, 2023.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All parties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and Commissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives, during a proceeding and for 12 months following the date a final decision is rendered.
TIMING CONSIDERATIONS
City Council action is requested on October 17, 2023, to avoid delays in providing necessary Workers’ Compensation services and payments.
FISCAL IMPACT
The total annual amount of the contract will not exceed $30,000 for a period of three years. Sufficient funds to support this contract are budgeted in the Insurance Fund Group in the Citywide Activities Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOE AMBROSINI
DIRECTOR OF HUMAN RESOURCES
APPROVED:
THOMAS B. MODICA
CITY MANAGER