AgdaPkt 2004-06-28 - Laserfiche WebLink

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(� . f -- �' . i PORT To the Honorable Mayor and City Council From the City Manager June 28, 2004 Subject Contract extension with Third Party Administrator (TPA) for worker's compensation administration services, Claims Management Inc. (CMI) for the period of July 1, 2004 through September 30, 2004. Recommendation Authorize staff to extend agreement with Claims Management Inc. (CMI) to act as third party administrator for the City's self-insured worker's compensation program for the period of July 1, 2004 through September 30, 2004 Background The City of Redwood City is a self-insured employer under the Workers' Compensation laws of the State of California. In order to fulfill our obligations as a self-insured employer, the City retains the services of a third party administrator (TPA) to ensure the City is in compliance with the various laws and procedures that govem the Worker's Compensation Program. Over the past few year's the City's workers' compensation program has gone through finro significant changes: 1) Change in Third Party Administrator from ABAG to Claims Management Inc. (CMI). The City's long time TPA suddenly terminated their services. 2) Joining a JPA to gain affordable coverage for excess insurance. After many years of increasing premiums the City was able to gain economies of scale by joining Bay Cities Joint Powers Insurance Authority. Some of the services that we benefit from by being part of the pool are claim oversight of our third party administrator. In an effort to better manage this process the JPA has asked the City to participate in an RFP process for TPA services and the City has agreed. The RFP process will be taking place in July and therefore we are requesting an extension of our current contract so that we can participate in this process and thoroughly evaluate options for third party administrators. Over the past two years CMI has proven to be very effective in providing workers' compensation administrative services. CMI will be participating in this RFP process and given the outcome of the previous RFP process we anticipate CMI will rank among the top. CMI has agreed to provide the City with a 3-month contract extension, addendum to the contract is attached. Alternative Council could direct the Human Resources Department to enter into a new contract with the City's current third party administrator, CMI, and not participate in the RFP process.