HomeMy WebLinkAboutAgreement - Innovative Claims Solutions, Inc. - Signed: 2026-07-01City of Gilroy
Agreement/Contract Tracking
Today’s Date:
June 30, 2026 Your Name: LeeAnn McPhillips
Contract
Type:
Services over $5k - Consultant Phone Number: 408-846-0205
Contract Effective Date:
(Date contract goes into effect)
7/1/2026
Contract Expiration Date: 6/30/2028
Contractor / Consultant Name
and Address:
Innovative Claims Solutions, Inc.
Contract Subject:
(no more than 100 characters)
Workers Compensation Third Party Claims Administrator Services
Contract Amount:
(Inclusive of Orig. and all
amendment amounts)
517668
By submitting this form, I confirm
this information is complete:
☒ Procurement method per City Purchasing Policy followed
(including Special Policies such as Local Vendor Preference and
Wage Theft)
☒ AB339, Bargaining Group was notified on N/A_______________
(Write ‘N/A’ if not applicable)
☒ Item is budgeted in Org/Obj___6052510-52520_____________
☒ Terms of the agreement (start date and completion dates or “until
project completion”, cap of compensation to be paid)
☒ Scope of Services, Terms of Payment, Milestone Schedule and
exhibit(s) attached
☒ W-9 (Taxpayer ID or SS#) and Contractor License # if applicable
☒ Insurance (Certificate and Endorsement Pages)
☒ Contractor/Consultant signature, name and title
☒ City Administrator or Department Head Name, City Clerk (Attest),
City Attorney (Approved as to Form)
Routing Steps for Electronic Signature
Department Head
Risk Manager
City Attorney Approval As to Form
City Administrator (if needed)
City Clerk Attestation
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
Term
3-Quote Form
Request for Proposal (RFP)
Bid
Cooperative Contract
Piggyback
Single Source
Sole Source
Public Works *
Only one supplier exists for this good or service. How will I justify the purchase from this supplier?
New construction, alteration, major repair or improvement of any public structure, building, road or other public
improvement including drainage, water, sewer systems, lighting and signaling systems. Excludes maintence
required to preserve public improvement .
Definition
What is the best price I can find by soliciting three different quotes?
Here is what we wish to accomplish, the qualifications, specifications, time frames, and other requirements. How
would you complete the job for us and at what price?
Here is exactly what we need to have done, the qualifications, specifications, time frames, and requirements that
must be met. What is the price?
Is there an existing contract that has been awarded as the result of a competitive procurement process that can
meet our needs?
Using another agency's already negotiated pricing and terms to purchase goods/service
There are multiple suppliers for this, but how can I justify purchasing from just one that I select without competition
required by the municipal code?
Dollar Threshold $0 - $4,999 $5,000 - $49,999 $50,000 - $99,999 $100,000 +under $220K
over $220K or
Design/Build
projects over
$1 mil
Purchasing Authority Staff Department Head City Adminstrator City Council City Council City Council
Procurement Method
quote is not needed
but dept is
encouraged to price
shop
3-quote form,
Informal RFP,
Cooperative,
Piggyback
Informal RFP,
Cooperative,
Piggyback
Formal BID,
RFP,
Cooperative,
Piggyback 3-quote form
Formal BID,
RFP, RFQ/P
Documentation needed Vendor invoice 3-quote form Informal RFP
Formal BID,
RFP 3-quote form
Formal BID,
RFP, RFQ/P
Obtain Bid, RFP, RFQ #
from Purchasing no no yes yes no yes
Advertisement required no no City website
City website
and newspaper no
City website and
newspaper
Lowest bid or best value
lowest bid or best
value with
justification
lowest bid or best
value with
justification best value lowest bid
lowest bid or
best value with
justification
lowest bid
(best value can
be used for
Design/Build)
Payment method
Pcard or check
request PO or Contract PO or Contract PO or Contract PO or Contract PO or Contract
Contract splitting into smaller components to determine a different purchase authority is NOT ALLOWED.
Public Works *Goods and Services (General and Professional)
City of Gilroy Procurement Quick Reference
Services with a value of $10,000 or more requires a written contract on City template.
This is not a substitute for the full Purchasing Policy
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
-1- 4845-8215-5540v1
MDOLINGER\04706083
FIRST AMENDMENT TO WORKERS COMPENSATION THIRD PARTY CLAIMS
ADMINISTRATION AGREEMENT BETWEEN THE CITY OF GILROY AND INNOVATIVE
CLAIMS SOLUTIONS, INC.
WHEREAS, the City of Gilroy, a municipal corporation (“City”), and Innovative Claims Solutions,
Inc. entered into that certain agreement entitled Agreement for Services – Workers Compensation Third
Party Claims Administration, effective on July 1, 2024, hereinafter referred to as “Original Agreement”; and
WHEREAS, City and Innovative Claims Solutions, Inc. have determined it is in their mutual interest
to amend certain terms of the Original Agreement.
NOW, THEREFORE, FOR VALUABLE CONSIDERATION, THE PARTIES AGREE AS
FOLLOWS:
1. Article 1. Term of Agreement of the Original Agreement shall be amended to read as follows: This
amendment will become effective on June 30, 2026 and will continue in effect through June 30, 2028, unless
extended by addendum or unless terminated in accordance with the provisions of Article 7 of the Original
Agreement.
2. Exhibit B – Scope of Services is amended to add Medical Provider Network (MPN) services
provided via CONTRACTOR.
3. Exhibit D – Payment Schedule is amended to officially add Year 3 and Year 4 to this Agreement as
well as the Medical Provider Network (MPN) access and services. The cost for Year 3 and Year 4 were
already included in the dollar amount of the original Agreement. MPN services will be paid through normal
claims processing via the City’s trust account similar to medical bill review and utilization review services.
3. This Amendment shall be effective on June 30, 2026.
4. Except as expressly modified herein, all of the provisions of the Original Agreement shall remain in
full force and effect. In the case of any inconsistencies between the Original Agreement and this
Amendment, the terms of this Amendment shall control.
5. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the dates set
forth besides their signatures below.
CITY OF GILROY INNOVATIVE CLAIMS SOLUTIONS, INC.
By: By:
[signature] [signature]
Matt Morley Dan Greco
[employee name] [name]
City Administrator Vice-President, Client Services
[title] [title]
Date: Date:
6/23/2026
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
7/1/2026
-2- 4845-8215-5540v1
MDOLINGER\04706083
APPROVED AS TO FORM: ATTEST:
City Attorney City Clerk
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
7/1/2026 7/1/2026
-3- 4845-8215-5540v1
MDOLINGER\04706083
EXHIBIT “B”
SCOPE OF SERVICES
Workers Compensation Third Party Claims Administration Services. The proposal submitted to the City of
Gilroy by Innovative Claims Solutions, Inc. for Workers Compensation Third Party Claims Administration
Services is attached and incorporated to this agreement and describes the services that shall be rendered
under this agreement. Changes from the original proposal that have been agreed upon by the parties are
stated in this agreement.
Additional agreed upon items within the scope of services that Innovative Claims Solutions, Inc. will provide
to the City of Gilroy include:
* Annual training for managers and supervisors - Workers Compensation 101
* Quarterly file review meetings to discuss open claims.
* Quarterly updates to inlcude legal updates, workers compensation process updates, strategy discussions for
closing claims, review of forms for compliance with workers comp regulations, etc.
* Increased geneal claim support from ICS so there is less reliance and costs associated with legal counsel
and other services like Nurse Case Managers.
* Specific reocmmendations and timelines for informaiton and/or decisions on claims; avoiding last minute
requests without sufficient time to respond.
* Annual reports to include a five year history for the various topic areas to show trends versus just
comparison of the prior year.
* Recommendations on ways to reduce program and claims costs.
* Medical Provider Network (MPN) Services - ICS shall provide Medical Provider Network (MPN)
administration services for the City's workers' compensation program, including:
1. Network Access and Maintenance
a) Provide access to a California workers' compensation Medical Provider Network
comprised of credentialed physicians, hospitals, clinics, and ancillary medical providers.
b) Maintain provider contracts and network relationships to ensure continued
availability of medical treatment resources for injured employees.
2. Provider Network Management
a) Coordinate with the MPN vendor regarding provider recruitment, credentialing,
contract maintenance, and network adequacy requirements.
b) Facilitate access to participating providers throughout California.
3. MPN Compliance Support
a) Assist the City in maintaining compliance with California Medical Provider
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
-4- 4845-8215-5540v1
MDOLINGER\04706083
Network regulations.
b) Provide required employee notices, provider information, and MPN-related
administrative support as required by applicable laws and regulations.
4. Provider Directory Access
a) Provide access to current MPN provider directories and assist injured workers and
supervisors in locating participating providers.
5. Medical Bill Processing and Network Savings
a) Apply contracted provider network discounts and PPO reductions, where
applicable, to eligible medical bills.
b) Track and report network savings achieved through contracted provider
arrangements.
6. Reporting and Program Support
a) Provide periodic reporting regarding network utilization, provider participation, and
savings generated through the MPN.
b) Assist with identifying opportunities to improve provider utilization and enhance medical
cost containment outcomes.
7. Customer Service and Issue Resolution
a) Serve as liaison between the City, injured workers, treating providers, and the MPN
vendor regarding network access, provider selection, and administrative issues related
to MPN participation.
Docusign Envelope ID: 1444D63C-8C12-8C6E-826E-EF9034EA6AEF
-5- 4845-8215-5540v1
MDOLINGER\04706083
EXHIBIT “D”
PAYMENT SCHEDULE
CONSULTANT’S Claims Administration fee shall be as follows:
Fiscal Year Annual Fee Agreement/Option
7/1/24 - 6/30/25 $97,505 payable monthly at
rate of $8,125.42
Agreement - Year One
7/1/25 - 6/30/26 $100,430 payable monthly at
rate of $8,369.17
Agreement - Year Two
7/1/26 - 6/30/27 $103,443 payable monthly at
rate of $8,620.25
Agreement Addendum – Year
Three
7/1/27 - 6/30/28 $106,547 payable monthly at
rate of $8,878.92
Agreement Addendum – Year
Four
7/1/28 - 6/30/29 - Optional
Renewal
$109,743 payable monthly at
rate of $9,145.25
Option to Add Year Five
The Claims Administration fees are payable monthly in advance by the City of Gilroy upon receipt of
CONTRACTOR’S invoice.
The City of Gilroy shall establish, maintain, and reconcile the workers compensation trust/bank
account as such there will be no charge from CONTRACTOR for these services.
The City of Gilroy shall be responsible for all Managed Care Services and Loss Adjustment
Expenses. Managed Care Services shall include medical bill review, utilization review, and medical case
management. Costs for such services are documented in Exhibit B; however, bill review services shall be
billed at a rate not to exceed $30.00 per bill. Loss Adjustment Expenses shall include all reasonable
expenses necessary to the adjustment of a claim in accordance with the Service Agreement, including, but
not limited to, fees for engaging defense counsel, court reporters, expert witnesses and field investigators,
incurred on behalf of the City of Gilroy.
Effective July 1, 2026, the City of Gilroy has added a Medical Provider Network (MPN) service
offered through CONTRACTOR. The City of Gilroy is responsible for the MPN Administration Fee as
follows:
• $8.00 per bill processed for an MPN network provider. Bills payable to providers outside of
the MPN are not subject to this fee.
• 20% of Savings of all PPO Reductions.
MPN services may be terminated by either party at any time during the term of this Agreement, with
or without cause, upon providing the other party one hundred and twenty (120) days prior written notice.
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MDOLINGER\04706083
On behalf of the City of Gilroy, Innovative Claims Solutions, Inc. will perform all workers
compensation claims reporting services required by the Medicare, Medicaid, and SCHIP Extension Act
(MMSEA) Section 111 Mandatory Reporting to the Centers for Medicare & Medicaid Services (CMS) for
the periods stated above.
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