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6.B. - Page 2 of 6 <br />ANALYSIS <br />Human Resources staff prepared a Request for Proposal (RFP) for workers' compensation TPA services <br />and the RFP was issued on January 27, 2020. The City received four proposals and panel interviews had <br />been scheduled for the week of March 16, 2020. On March 12, 2020, due to the COVID-19 health <br />pandemic, the City Council proclaimed a local emergency and on March 17, the San Mateo County Health <br />Officer issued a countywide Shelter in Place Order Following the Shelter in Place Order, which directed <br />the City to cease non-essential operations at physical locations and all employees were directed not to <br />enter City facilities to work unless they were engaged in carrying out essential government business <br />and/or services. Human Resources canceled the panel interviews and subsequently rejected all bids. This <br />decision was based on the Department's necessity to address preparedness and response to the COVID- <br />19 pandemic. It is in the City's best interest to have an effective TPA to assist with the workers' <br />compensation claims administration. Accordingly, staff recommends extending by one year the 5 -year <br />Third Party Administration Service Agreement between the City of Redwood City and Sedgwick Claims <br />Management Services, Inc. for a not to exceed amount of $387,293. The total contract amount would be <br />$2,199,026. <br />FISCAL IMPACT <br />Funding for this one-year extension is included in the FY 2020-21 Recommended Budget in the Workers' <br />Compensation Self -Insurance Fund; no additional budget appropriation is required. <br />ENVIRONMENTAL REVIEW <br />This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA <br />Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably <br />foreseeable indirect physical change in the environment. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />ALTERNATIVES <br />The City Council could direct staff not to extend the current contract; however, doing so will leave the City <br />without a TPA administrator. This option is not recommended at this time as it is in the best interest of <br />the City to have continuity in effective claims administration. <br />Page 2 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />qC <br />