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7.1.C. - Page 2 <br /> with the City's strategic priorities of effective government operations and fiscal <br /> sustainability. The subject of this report is approval of a new TPA agreement. Staff will <br /> provide a further update on the City's workers' compensation program during the 2015- <br /> 16 budget adoption process. <br /> ANALYSIS <br /> After researching best practices and gathering input from City departments regarding <br /> their needs, Human Resources staff developed an RFP for workers' compensation TPA <br /> services. This RFP included specfic performance expectations and several <br /> enhancements to ensure a higher level of service than currently being provided. In <br /> particular, the RFP called for dedicated claims adjusters, advanced claims management <br /> software technology and accountability measures, such as documented supervisory <br /> audits. Staff issued the RFP in February 2015 and received a total of five proposals. <br /> Proposals were received as follows: <br /> Third-Party Administrator Proposed <br /> Name Fee not to <br /> Exceed: <br /> Northern Claims Management $232,315 <br /> Tristar $237,155 <br /> Innovative Claims Services $250,819 <br /> Athens Administrators $257,368 <br /> York Risk Services Group $347,463 <br /> Of the five proposals received, one was not responsive to the RFP requirements. The <br /> remaining four TPAs were invited to participate in a panel interview process consisting <br /> of both Human Resources staff and representatives from departments with extensive <br /> workers' compensation claims experience. In evaluating the proposals, the panel used <br /> the following criteria: <br /> • Qualification of claims examiners and prior experience. <br /> • Demonstrated ability to work effectively with management, employees, employment <br /> organizations and legal counsel. <br /> • Firm's customer service philosophy and claims management approach <br /> • Pricing and flexibility in pricing options. <br /> • References <br /> Among the TPAs interviewed, York Risk Services Group (York) was ranked first by the <br /> selection committee panel members, by a significant margin over the other proposers. <br /> The selection committee identified a number of advantages in the York proposal and <br /> staff checked references to confirm high degrees of satisfaction among York's clients. <br /> York has more than 28 years of public entity experience in the State of California and is <br /> rated number #1 of all TPAs audited by the California Division of Workers' <br /> Compensation. The firm's only focus is to service public entities which makes them <br />