REPORT TO THE CITY COUNCIL
February 25, 2016
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: MIKE PAYNE, Risk Manager
Personnel Services Department
SUBJECT
Title
Approve first amendment to Professional Services Agreement between Mariotto Resolutions and the City of Fresno (City) for services as the Ombudsperson for the Workers’ Compensation Alternative Dispute Resolution with the Fresno Police Officers Association (FPOA), amending the term of the agreement and increasing total compensation
Body
RECOMMENDATION
It is recommended that the City Council approve the First Amendment to the Professional Services Agreement with Mariotto Resolutions to extend the term of the agreement and increase the total compensation for the duration of the agreement.
EXECUTIVE SUMMARY
The Workers’ Compensation Alternative Dispute Prevention and Resolution Agreement between the City and the Fresno Police Officers Association (FPOA) includes the services of an Ombudsperson. Mariotto Resolutions was selected based upon the experience of the Ombudsperson as well as references. The annual cost for the services of the Ombudsperson will be $86,000, which is $36,500 greater than estimated at the beginning of the program. Based on estimates from the City’s actuary, it is estimated that the program will result in savings far greater than the amount of the Agreement, as amended, with the Ombudsperson.
BACKGROUND
In June 2015, the City Council approved the Workers’ Compensation Alternative Dispute Prevention and Resolution Agreement between the City and the Fresno Police Officers Association (FPOA). The program includes the services of an Ombudsperson who engages all parties to proactively identify and prevent disputes, as well as identify and implement solutions that will facilitate advancement of a claim, and to ensure that injured employees are receiving care and benefits to which they are entitled. The Ombudsperson considers the concerns of the City and the injured employee to establish common interests so that disputes may be prevented and efficiently resolved within the program.
The City worked with FPOA to search for experienced firms that had practical experience in providing similar services. Mariotto Resolutions was selected based upon the experience of the Ombudsperson as well as references.
When the program was established, the City entered into an agreement with Mariotto Resolutions to fulfill the Ombudsperson role estimating the expenses for this function would be no more than $49,500. After six months, staff can more accurately estimate the expenses associated with this element of the Alternative Dispute Prevention and Resolution program. It is estimated that the annual cost for the services of the Ombudsperson will be $86,000 annually, which is $36,500 greater than initially estimated. However, based on information from the City’s actuary, it is anticipated that the program will result in savings far greater than the amount of Agreement with the Ombudsperson.
Although the program is in its infancy, it is having the desired effect of providing more timely treatment of injured FPOA active (in-service including DROP) and retired members. As a result, the length of absence of active (in-service including DROP) members is reduced as demonstrated by the reduction associated with indemnity expenses. The Ombudsperson also fulfills a role that reduces the need for employees to seek legal counsel. Therefore, it is recommended that the agreement for the Ombudsperson be extended for an additional year, to a total term of two years and the compensation be increased to $86,000 annually.
The City Attorney’s Office has approved the First Amendment to the Professional Services Agreement as to form.
ENVIRONMENTAL FINDINGS
This contract amendment is not a “project” pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference is not applicable because this contract amendment is not a bid or award of a contract.
FISCAL IMPACT
Approval of this First Amendment, to the Professional Services Agreement, will result in $36,500 of increased annual costs above the initial estimate, for a total annual cost of $86,000. Since this expense is solely for the benefit of FPOA bargaining units, the Workers Compensation budget for the Police Department will be adjusted accordingly with no additional appropriations required.
Attachment:
First Amendment to Professional Services Agreement
Original Agreement dated June 30, 2015