HomeMy WebLinkAboutR-78-0591Sbt1ifit0tf NO,
"SUPMAX ThIUM CHARGE OF $2,500 PER MONTH AND ALLOCATING
p �' V HE SUM OF $30,000 FROM THE INSURANCE FUND
Dn 0 COVER THE COSTS OF THE IMPLEMENTATION OF
���� J!N.rs SAID REPORTING SYSTEM.
r C9
FOLLOW„
A`RES0tUTION AUTHORIZING THE CITY MANAGER
``O ENTER INTO A ONE-YEAR CONTRACT WITH RENEWAL
OPTION WITH McDONNELL DOUGLAS AUTOMATION
COMPANY TO IMPLEMENT A REPORTING SYSTEM AND
THE PURCHASE OF SOFTWARE FOR THE B6800, FOR
WORKMEN'S COMPENSATION AND LIABILITY, DEPARTMENT
OF FINANCE, RISK MANAGEMENT DIVISION, AT A
WHEREAS, a survey of the data processing market revealed only:
three firms who could meet the City's specifications for Workmen's
Compensation and Liability Reporting System; and
WHEREAS, after extensive negotiations only one firm met with`:
full compliance with the specifications by the City of Miami, Florida;
and
WHEREAS, a survey of the data processing market revealed re-
solicitation would not attract additional offers; and
WHEREAS, the City Manager recommends that the only specification
received and subsequently amended to be in full compliance be accepted;
and
WHEREAS, McDonnell Douglas Automation Company is the only
company to be in full compliance with said specification, the City Manager
recommends it be accepted to provide a Reporting System for Workmen's
Compensation System; and "DOCUMENT IND X
WHEREAS, it is deemed in the best interesJU"UIty of44ai
to acquire said Reporting System;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
SECTION 1. The City Manager be, and he is hereby, authorized
and directed to enter into a one-year contract with McDonnell
Douglas Automation Company for a Reporting System with software
for the B6800, for Workmen's Compensation, Department of Finance,
Risk
Management Division, with renewal option at the expiration
Page 1 of 2
CITY COMMISSION
MEETING OF
SEP2 3 1978
EE CULON NO. •
r
•
•
the ohe=yeet term, at a cost not to ekceed $21500 pet
taithi
SCION 2.* That the amount of $30,000 be allocated from the
Insurance Fund to cover the cost of implementation of a Reporting
System with software for the B6800 for Workmen's Compensation,
Department of Finance, Risk Management Division, for a period
of one (1) year.
PASSED AND ADOPTED THIS 28 day of September
AT 'T E S Tt
�c
City Clerk
PREPARED AND APPROVED BY:
Assistant City Attorney
APPROVED AS TO FORM AND CORRE6ES :S
City Attorney
'age 2 pf 2
�.J P F T ' i • -
FOLLOW"
3
toi ioseph R. Grassie
City Manager
N O6i:
G
Jades E► Gunderson
Director of Finance
September 21, 19/8
t'IC; :
tJuircr Necessity for Implementation
Of Repotting System
F%ft Ftcs:,.
To properly provide benefits to injured employees and control costs
for Workmen's Compensation, Liability, Collision, and Group Insurance
expenditures, the Reporting System will provide the ability to:
Prepare timely State of Florida reports, pursuant to Florida
statutory requirements, as follows:
(a) Loss Report.
(b) Wage Summary Report.
(c) W.C.C. 13 (Progress Report).
(d) W.C.C. 4 (notices of all compensation payments).
The above listed reports currently require approximately six months'
time of individual computation in that these reports are computed by
hand and are subject to error as are any items that require duplica-
tion of handling in calculation for each report. Further, these reports
are required at various times; i.e., July 1st of each year, January 1st
of each year, as well as each time benefits begin, change, or are sus-
pended, also, yearly from date of each accident.
Recovery of Monies to the Benefit of the City of Miami
Recovery is minimal at this time, and historically has been so because
of our inability to obtain information in a timely fashion.
(1) Third Party Recovery
This involves our being notified of all City vehicular accidents
in order for us to put on notice all insurance companies and
our City employee involved in accidents that we have a lien
against any monies recovered.
At this time, the expected yearly return is $20,000; however,
we feelwith a data system that at the very least we could
double and possibly triple this amount within twelve months.
To: Joseph R. Gtassie, City Matiaget
Re: Necessity for Implemeritatioh of Repotting System
September 21, 1978
Page 2
(2) Special Disability Fund Recovery
This requires our being able to notify the State of Florida's
Department of Commerce, Special Disability Fund, that we had
prior knowledge of a disability; and therefore, we are able to
obtain reimbursement from the State under this Special Disability
Fund. The notification to Tallahassee must be filed within 60
days of first payment of Permanent Partial Disability. Last
year, the City of Miami was required to pay into the State
Disability Fund over $70,000. Our total estimated recovery,
however, is approximately $20,000. We feel with the proper
availability of information, combined with the City's policy
of continuing employment of employees with prior medical dis-
abilities, we should be able to make recoveries far in excess
of the amount the City is required to place into the State
Disability Fund.
Further, this proposed Reporting System will therefore provide
us with the records necessary to substantiate a claim within
a reasonable span of time, allowing us to recover an amount at
least equal to our contribution to the fund. In the past, we
have been unable to substantiate and file in a timely manner
our claims; therefore, we have been able to recover the amount
of approximately $20,000 heretofore mentioned.
Recovery for Damage to City Property
This involves our being notified of all damage to City property,
whether it be a vehicle, a light pole, a fence, etc., in order
to recover from the insurance company or the individual at fault,
any costs of repairs to said City property. This would entail a
notification by all Departments of occurring incidents.
Prior to the Reporting System, there has been no record made of
these damages; therefore, the recoveries by the City have been
minimal at best.
(3)
MEM
MMM
MEM
MEM
1
With the Reporting System, we would be able to follow up each
case, and the City will receive the maximum amount of monies
that would be realized from these damages.
) Coordination and Elimination of Duplication of Payments of
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10! Joseph R. Grassier City Manager
tt@; Necessity for Implementation of Reporting SysteM
eptember 2L 1978
Page 3
Benefits under Workmen's Compensation and Group Insurance
Since medical payments are provided under two separate self-
Insurance programs, it is necessary to eliminate duplicate
payments being made. This Reporting System will provide such
control.
Safety Information Will Be Provided with Reference to Identi-
fication of the Following:
(a) Location - where all accidents and injuries occur.
(b) Cause - why all accidents occur.
(c) Type of injuries sustained.
The above -mentioned information is vital to the development of
an effective safety program which will in turn provide a more
comprehensive and effective safety program.
Instant Cost Analysis
(a) Monthly reporting to each Department, through division by
employee, of all expenditures chargeable to the Department.
(b) Because it is required for each Department's budget to
reflect Workmen's Compensation costs, Group Insurance costs,
and Liability costs, this Reporting System is vital in
enabling these costs to be properly estimated for timely
budget preparation.
(c) This Reporting System will eliminate problems which the
Departments currently face in formulating their budget
requests relative to all of the foregoing areas.
Accurate Record Keeping
At the present time, there are approximately 4,200 injuries per
year, varying in degree and cost. Also, at the present time,
there are approximately 10,000 open files, including injuries
from prior years on which benefits are still being provided.
"SUPPORTIVE
DOCUMENTS
FOLLOW,
I.. II IIIIIII IIIIII II II II I I IIIIIIIIIII IIIIIIIIIIII I III IIIIIIIIIIIIIIu
TO: Joseph R. Grassie, City Manager
tie; Necessity for Implementation of Repotting System
September 21, 1978
Page 4
this Reporting System will provide a history of injuties suss
tamed by each employee, as well as proof of the follot4ingt
(a) Medical history.
(b) All compensation paid.
(c) Disability ratings.
All pertinent data (i.e., notes to file, etc.) relating tin,
and enumerated in, prior items of this summary.
(d)
MM
MM
MM
MM
MM
Joseph R. Grassie
City Manager
Jatiles E. Gunderson
Director of Finance
'7t
1 t;I�
1'1
_If'iill
August 29, 1978
Reporting System for Workmen's
Compensation and Liability
It is requested that a Resolution authorizing the City Manager to enter
into a contract with McDonnell Douglas Automation Company to implement
a computerized Reporting System for Workmen's Compensation and Liability
Systems be placed on the September 14, 1978 Commission Agenda.
This request and recommendation is based on the following factors:
1. It is imperative for the City of Miami to maintain up-to-date
data on injuries sustained by City employees for both our
safety program and our premium calculation, since we are self -
insured.
2. Instant claim and cost analysis to enable the processing of
funds by the Department of Finance, Risk Management Division,
would further develop the expedient processing of Workmen's
Compensation and Liability Claims and give us record visi-
bility that we cannot now maintain manually.
A survey and extensive meetings were held with the following companies
which indicated they could provide the services necessary to the City:
1. Automatic Data Processing, Inc.
2. McDonnell Douglas Automation Company.
3. Florida Administrators, Inc.
The only company that met full compliance with City specifications was
McDonnell Douglas Automation Company.
Attached hereto is a Resolution for approval by the City Commission to
authorize the implementation of a Reporting System for the Department of
Finance, Risk Management Division, with McDonnell Douglas Automation
Company; said contract to be for an initial term of one (1) year and con-
taining an option to purchase the software for the B6800. The system will
be fully compatible with our new equipment so that we will be able to trans-
fer the operation to it after one year.
JEG:AJS:jr
Attachment (1)
cc; George F. Knpx, Jr., City Attorney
DOCUPvIENTS
FOLLOW"
' ' (14C130 NELL. L3140►ilGLAS A�JTOI 1,7i/OM COMF"APJV
ui■ 1■111111iiiii1ii111111iimiiiii■1miiiiiiiiuimEnfi
A DIVISION OF MCDONNELL OOUGL, ,
LAMBERT — ST. LOUIS MUNICIPAL AIRPORT
BOX 516, ST. LOUIS, MO. 63166
SERVICE AGREEMENT
Cif of Miami
Cu store.,
P. O. Box 330708
Street Address
Misrni, Florida 33133
City Stan. Zip Cods
Page.lof 6 pages
Agreement No.
14428
Expiration Dote
of Service
Agreement 1 June 1980
MCDONNELL DOUGLAS AUTOMATION COMPANY (MCAUTO) °groat to Perform and CUSTOMER agrees to pay for the
fallowing services upon the terns, conditions end at the rotas specilisd heroin (quotations aspire 21 August 19
accepted by Customer's esee:tjtion and return of this Agreement prior thereto).
This Service Agreement is subject to the Terms end Conditions included herein .
I. OBJECTIVE
78
unless
McDonnell Douglas Automation Company (MCAUTO) will provide an interim
Group Claims System, the Workers Compensation System and a Liability
System to the City of Miami.
II. SCOPE OF WORK
A. ;7orkcr's Compensation System
MCAUTO will install the Workers Compensation Tracing (WCT) System
to provide a record of current and year-to-date workers compensa-
tion payments made by the City of Miami.
On or about 1 October 1978, the Cii: of Miami will provide a termi-
nal approved by MCAUTO, or have MCAUTO provide the terminal under a
separate agreement, for data entry and transmission. Formats will
be specified by MCAUTO for the entering and transmission of data
from the City of Miami terminal for the WCT System. Attachment 7
is a form that may be used by the City of Miami to code WCT claims.
Attachment 8 lists by line with examples the data items that will
presently be retained by the system if coded.
In addition, MCAUTO will provide instructions to the City of Miami
on coding the following fields:
1. Social Security Number
2. Average Weekly Wage
3. Compensatory rates by Type
.4. Date of Payment
5. Three one -digit clerical flags
6. Third party Recovery Amount
7. Secondary Injury Fund Recovery Amount
ACF 3t0 (20 FEB 73)
•
The above additional fields will be collected only for printing
on the detail report and will not affect present programming logic.
In addition, MCAUTO will collect payment history.
•
le
1
AiletiONNLt.L bOUGLAs AIJTOP.fA hON coMPANV
Poo." of pages
AVIViieht NO, _14428
test of the attachments alit* the Loss Experience Report, Loss
Experience SumMary, Update Transaction Error List, and the Accide
Ahalysis Reports, which are the reports that will be provided to
the City of Miami. Headings will be appropriately modified for
the City of Miami and the seven above mentioned additional fields
Will be printed on the detail lines of the Loss Experience Report
Liability System
MCAUTO will process liability claims for the City of Miar. as 3
part of the Workers Compensation Tracking (WCT) System. The City
of Miami will enter claims as instructed for the WCT Systsm but
will provide a specified prefix for liability clim huL,O,1.1s.
MCAUTO will separate the liability claims from the Zile iJefore
producing the WCT reports for regular compensation claims and wil
then produce an identical set of reports (wit. 4WOpriatce jTi
changes) for the liability claims.
Processing for the liability claims will begin coAcurrently with
processing for the WCT System.
APPLICABLE CHARGES
MCAUTO will develop and implement the above systems 1: the Ci.ty of
Miami. The Interim Group Claims System and the WCT System will com-
mence approximately 1 October 1978. A one time charge of $8,450 wi
be charged to the City of Miami. This charge incluaas:
o development of the WCT System to enable the processing of
department, division and section breaks.
o development of the Interim Group Claims System tor the interim
lag study and expanded breaks on the department smary.
o a maximum of two weeks (ten work days) alloted for implementa-
tion and system setup by a MCAUTO Scnior Analyst, including a
maximum of six days on -site.
In addition, the City of Miami will be responsible for travel and
living expenses for MCAUTO's personnel at MCAUTO's cost up to $2,000.
The one time charge covers development and implementation of only en-
hancements detailed in this agreement. Should the City of
mine other enhancements to be required, the development costs of sthcs., -
enhancements will be billed at MCAUTO's time and material ratcs.
ACF 380A (20 FEB 73)
Mt CDONNEL'..l.. VP CPILILAS CPhi'1i101V CCI11IPA NV
111111111111111111111111111111111111111111
A DIVISION OF MCDONNELL DOUGL. ,
LAMBERT - ST. LOUIS MUNICIPAL AIRPORT
BOX 516, ST. LOUIS, MO. 63166
SERVICE AGREEMENT
M1a tni
Grtroree.
Box 330708
Street Address
Miami, Florida 33133
City State Zip Code
Pagel of 6 paget
Agteetnent No. _ 14428
tkcpirotion Date
of Service
Agreement 1 June 1980
MCDONNELL DOUGLAS AUTOMATION COMPANY (MCAUTO) agree, to Pedro* and CUSTOMER agrees to pay for the
following services upon the terms, conditions and at the rates specified herein (quotations •spire 21 August 19
accepted by Customers execution and return of this Agreement prior thereto).
This Service Agreement is subject to the Terms and Conditions included herein
I. OBJECTIVE
78
unfits
McDonnell Douglas Automation Company (MCAUTO) will provide an interim
Group Claims System, the Workers Compensation System and a Liability
System to the City of Miami.
tt. SCOPE OF WORK
• A. ;Jorkc:'s Compensation System
MCAUTO will install the Workers Compensation Tracing (WCT) System
to provide a record of current and year-to-date workers compensa-
tion payments made by the City of Miami.
On or about 1 October 1978, the City of Miami will provide a termi-
nal approved by MCAUTO, or have MCAUTO provide the terminal under a
separate agreement, for data entry and transmission. Formats will
be specified by MCAUTO for the entering and transmission of data
from the City of Miami terminal for the WCT System. Attachment 7
is a form that may be used by the City of Miami to code WCT claims.
Attachment 8 lists by line with examples the data items that will
presently be retained by the system if coded.
In addition, MCAUTO will provide instructions to the City of Miami
on coding the following fields:
1. Social Security Number
2. Average Weekly Wage
3. Compensatory rates by Type
•4. Date of Payment
5. Three one -digit clerical flags
6. Third party Recovery Amount
7. Secondary Injury Fund Recovery Amount
The above additional fields will be collected only for printing
on the detail report and will not affect present programming logic.
In addition, MCAUTO will collect payment history.
ACF 380 (20 FEB 73)
-4Z
43.
• Met:IONA!001)61..As Aurolvir '1014.1 COMPANY
Page-aof 6_ oages
APeehient No, 14 4 2 8
The charges for processing WCT and Liability Claims is based on the
following formula:
1..75 per claim with accident date prior to 1 October 1978
$2.10 per claim with accident date on or after 1 October 1978
4, .43 per transaction against any claim
!eginnino 1 October 1978, a minimum of $1,000 per month will be charg
the City of Miami for processing the WCT System.
1
1
-City of Miami will be responsible for mailing and delivery charges
ocuments and reports or upon the City of Miami's request, by
')KCAt:70 ,L cost plus twenty (20) percent to cover handling.
The UIS, Liability and Interim GCRS fixed prices contained herein are
valid for the year 1978. The prices contained herein are subject to
revisien annually in advance beginning 1 January 1979. Such price re-
visions will be in direct relation to changes in the "Consumers Price
Index (for urban wage earners and clerical workers revised series
CPI-
tJnited States Average, All Items (1967=1OO)"pub1isi by the Lureau of
Labor Statistics, U. S. Department of Labor, hereinatter referred to a:
"CPI". Said price revisions will be effected as follows: Th CFI of
December 1978 will be compared to the CPI December 1977 to determine
the percentage increase. The percentage increase so determined will b,
applied each month for twelve (12) months beginning January 1979 to th
total monthly invoice amount and the increment of increase will be in-
cluded as a charge in addition to all other charges. The percentage
increase will be calculated in the same manner comparing the CPI of
December 1979 to that of December 1977 for application to monthly
invoices beginning January 1979, and the same procedure will be follow,
annually thereafter.
ACF 380A (30 FEB 73)
"SUPPORTIVE
DOCUMENTS
FOLLOW"
b0NNIL x30UGL.Ari AUTOMAT. JAI C0MPANY
Pogr 4.of 5 pages
m.
mm
TV. TERMS AND CONDITIONS
Aveernent No
14428
Upbh the expiration of the initial otte (1) ye
ar processing corranittment
the City of Miami will have the option to enter into a paid -up license
agreement for the WCTS and Interim GCRS Systems at the following paid -
up license fees: WCTS ($65,000).
MCAUTO reserves the right to change the aforementioned licenses
othirty
(30) days after the expiration of the initial one (1) year
MCAUTO will treat as confidential, information so designated in writ-
ing by the City of Miami and will make the same effort to safeguard
such information as it does in protecting its own proprietary data.
MI MCAUTO shall not be liable for failure to provide services if due to
any cause or conditions, such as Acts of God, that are beyond MCAUT3's
reasonable control.
IN NO EVENT WILL MCAUTO BE LIABLE FOR CONSEQUENTIAL DAMAGES EVEN IF
MCAUTO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAY -AGES.
Billings will be rendered monthly. Terms are thirty (30) days net fro:.. *.m
date of invoice. Other sections of this Agreement notwithstanding,
MCAUTO reserves the right to discontinue services to Customer in the
event of bankruptcy (voluntary or involuntary), insolvency or non-
payment for services on the part of Customer.
Services requested in addition to those set forth herein will be fur-
nished, subject to the availability of facilities and!or personnel at
MCAUTO's standard rates in effect at the time.
MCAUTO shall not be liable for failure to provide services i_F due to
any cause or conditions beyond MCAUTO's reasonable control.
The initial term of this Agreement will be for twenty-four (24) months
from the execution date thereof. Either party may terminate the Agree-
ment after the initial term by providing the other party with thirty
(30) days written notice. Upon termination, the City of Miami agrees
to pay all charges for the work performed up to the termination date.
MCAUTO will retain all ownership rights and exclusive marketing rights
to all software systems provided to the City of Miami.
iiiimiiiniiui■ii.■ii■■i 1
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i
MCboNNIEt. L. be VGLAS AUUTOM//"ION COA?PAN1V
Page 5. bf --.J.pages
ArettfilePit NO. 14428
MCAUTO shall be responsible for the professional competence of the
irdividuals assigned to this project, but it is understood that MCAUTO
shall not be deemed to be a guarantor of any project or program for which
the City of -Miami is purchasing said services. •
If the City of Miami shall at any time commit any breach of any covenant,
warranty c,; agreement herein contained, and shall fail to remedy any such
thirty (30) days after written notice thereof, MCAUTO may at
its option, and in addition to any other remedies that it may be entitled to,
cancel and terminate this agreement by notice in writing to such effect.
Any changes in the Scope of Work as set forth herein, which would affect
The t!r'e schedule and/or fixed prices will be documented and submitted
for the City of Miami's approval prior to performing the work.
�n auuition Lc, stipulated service charges, the City of Miami will pay, to the
extent incuic d by MCAUTO hereunder: (1) out-of-pocket expenses such as
!cm,: *elephone charges, postage, shipping and (2) sales, use,
Pxcise ann rersonal property taxes.
•
MCAUTO will, at its expense, correct any data processing errors which are
scl€l.: either to malfunction of MCAUTO controlled machines, MCAUTO
operators, programmers or MCAUTO-owned programs. MCAUTO shall have
no further liability to the City of Miami or third parties with respect to data
processing services provided hereunder, and the City of Miami will accept
the results including correction if applicable as complete and satisfactory
performance.
During the period of this agreement and for a period of one year thereafter,
the City of Miami agrees not to solicit for employment any MCAUTO employe
who is assigned to perform work under this agreement, and likewise,
MCAUTO agrees not to solicit for employment any City of Miami employes
contacted by MCAUTO during the performance of this agreement.
All dates specified herein are contingent upon the City of Miami executing
this agreement on or prior to 1 August 1978.
11 'e100 INEL/ 00001-AS AUTOMA77 7N COMPANY
Page A of 6..-. pages
Agreement No. 4428
tit initiation of processing of the City of Miami claims as set forth
herein, the City of Miami shall be deemed to have accepted the Interim
Group Claims Reporting System, Workers Compensation System, and
Liability System provided by MCAUTO.
This Agreement, plus any schedules -attached hereto, constitutes the entire
Agreement between the parties and shall take precedence over any
inconsistent provisions contained in any Purchase Order issued by the
City of Miami. This Agreement shall not be varied by any oral agreement
or representations or by other than by an instrument in writing of subsequent
date hereto, executed by both parties by their duly authorized representatives.
The Agreement shall be governed by Missouri law.
Customer
MCDONNELL DOUGLAS AUTOMATION COiviPAN� Y
Signature na ture .) 'QSignature g 2_a'V'\,()J
Name
Title
Date Date 21 July 1978
ACF 380A 00 FEB 73)
Name Ronald T. Edwards
Title Branch Manager -Atlanta