AgdaPkt 2002-01-28 - Laserfiche WebLink

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IREPORT ~To the Honorable Mayor and ?ty Council From the city Manager 1-28-02 Subject Interim Third Party Administrator (TPA) for worker's compensation administration services. Recommendation Authorize staff to enter into an agreement with Claims Management Inc. (CMl) to act as third party administrator for the City's self-insured workers' compensation program effective 2-1 -O2. Background The City of Redwood City is a self-insured employer under the Worker's 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 govern the Worker's Compensation Program. Since July, 1993 the City has contracted with Association of Bay Area Government (ABAG) for its TPA services. Unfortunately, ABAG unexpectedly gave notice that they would no longer provide TPA services. The short notice given to the City by ABAG did not allow for a complete competitive bidding process. Although, the City will participate in a thorough request for proposal (RFP) to receive competitive bids for TPA services, the process will not take place for a few more months. To ensure the City's Worker's Compensation obligations are met uninterruptedly and until the bid is awarded, the City searched for an interim TPA. Staff looked for providers that met the following three critical criteria: 1) conversion experience with ABAG's data system, 2) customer service, and 3) cost-effective. The one provider that met the identified criteria is Claims Management Inc. (CMl). CMl will provide the City with a smooth conversion from ABAG's particular data system, Iow examiner caseload, solid case management and web-enabled systems for reporting and tracking purposes. The City recommends entering into a five month agreement with CMl commencing February 1,2002 through June 30, 2002 or until the RFP process has been successfully completed, whichever comes first. Attached A represents the full agreement between the City and CMl. Alternative Enter into agreement with another provider at a higher cost to the City and with the potential for conversion problems given that very few providers have experience with ABAG's data system.