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<br />REPORT <br /> <br />6.1D <br />Page 1 <br /> <br /> <br />June 15, 2009 <br /> <br />SUBJECT <br />Agreement for Third Party Administrator (TPA) for workers' compensation <br />administration services. <br /> <br />RECOMMENDATION <br />By motion, authorize the City Manager to enter into an agreement between the City of <br />Redwood City and Athens Administrators to act as Third-Party Administrator for the <br />City's self-insured workers' compensation program effective July 1, 2009 through June <br />30, 2010. <br /> <br />BACKGROUND <br />The City of Redwood City is a self-insured employer under California Workers' <br />Compensation laws. In order to administer the self-insured program, the City retains the <br />services of a TPA to ensure the City is in compliance with the various regulations and <br />procedures that govern a self-insured workers' compensation program. <br /> <br />The City has contracted with Claims Management Inc. (CMI) for TPA services since <br />2002. CMI's contract will expire June 30, 2009. Staff felt that since the City has retained <br />CMI for several years, it was time to conduct a Request for Proposals (RFP) for TPA <br />services. <br /> <br />In order to make the RFP process cost-effective the Redwood City Human Resources <br />Department partnered with the City of San Mateo Human Resources Department to <br />conduct an RFP process. A successful RFP was conducted in February 2009. Both <br />cities received a total of eight proposals. Of the eight proposals received, four TPA's <br />were invited to participate in an interview process. Proposals were received as follows: <br /> <br />Third-Party Administrator Proposed <br />Name Fee not to <br /> Exceed: <br />Athens Administrators $137,000 <br />Acclamation Insurance Management $ 97,000 <br />Services (AIMS) <br />Tristar Inc. $134,200 <br />Claims Manaaement Inc. (CM!) $124,000 <br /> <br />Among the TPA's interviewed, Athens Administrators was rated number one by both <br />cities. In evaluating the proposals, the City used the following TPA criteria to make a <br />selection decision. <br /> <br />. TPA has a verifiable track record of effective claims management. <br /> <br />. TPA partners with workers' compensation attorneys in developing effective <br />litigation strategies when needed. <br />