AgdaPkt 2010-06-21 - Laserfiche WebLink

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6.18 Page 1 REPORT To the Honorable Mayor and City Council From the Cit Mana er June 21, 2010 SUBJECT Renewal of agreement with Athens Administrators to serve as the City's Third Party Administrator (TPA) for workers' compensation services. RECOMMENDATION By motion, authorize the City Manager to execute the renewal of the agreement between the City of Redwood City and Athens Administrators to act as the TPA for the city's self-insured workers' compensation program for $141,000 for fiscal year 2010- 2011 and $146,000 for fiscal year 2011-2012. BACKGROUND The City of Redwood City is a self-insured employer under California Workers' Compensation laws. In order to administer the self-insured program, the City retains the services of a TPA to ensure the City is in compliance with the various regulations and procedures that govern a self-insured workers' compensation program. Last fiscal year, the City partnered with the City of San Mateo and conducted a successful Request for Proposals (RFP) for a new TPA. Athens Administrators was rated number one by both cities, and Council authorized the city to enter into an agreement between the City of Redwood City and Athens Administrators. Athens Administrators has served as the City's TPA for one year and staff has worked collaboratively with Athens to ensure a smooth transition of case files and legal documentation from the previous TPA. Staff is satisfied with Athens Administrators' proactive approach to case management that has proven to be effective. In one year, Athens has been able to successfully negotiate the closure of 72 long-standing claims and manage new and existing cases effectively and efficiently. Claims file review meetings are conducted quarterly between Athens, Human Resources, and departments. Management and employees have expressed their satisfaction with Athens Administrators performance and claims management. Based on the above factors, staff is requesting that Council authorize the renewal of Athens Administrators agreement for TPA services for $141,000 for fiscal year effective July 1, 2010 through June 30, 2011 and $146,000 for fiscal year effective July 1, 2011 through June 30,2012. ALTERNATIVES Council could direct the Human Resources department to initiate a Request for Proposals for TPA services. Based on the city's pOSitive results with Athens Administrators and the desire to have continuity in effective claims management, this option is not recommended at this time.