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7.1.E. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> June 9, 2014 <br /> SUBJECT <br /> Agreement with Athens Administrators for Workers' Compensation Claim Administration <br /> Services <br /> RECOMMENDATION <br /> By motion, approve and authorize the City Manager to execute a one-year extension of <br /> an existing agreement with Athens Administrators for Workers' Compensation Claim <br /> Administration Services. <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 <br /> the services of a Third-Party Administrator (TPA) to ensure the City is in compliance <br /> with the various regulations and procedures that govern a self-insured workers' <br /> compensation program. <br /> Athens Administrators has served as the City's TPA since 2009, and staff has built a <br /> collaborative relationship with Athens to approach and manage claims as proactively <br /> and expediently as possible. However, over the course of the last three years, the City <br /> has experienced a significant increase in claim costs, giving rise to the need to evaluate <br /> the workers' compensation program as a whole, including all service providers. To <br /> support this effort, the proposed 2014-2016 Budget includes a new staff position <br /> dedicated to the management of workers' compensation and safety programs to bring a <br /> focused and specialized expertise and skill set to more aggressively manage the City's <br /> workers' compensation costs. <br /> With this staffing in place, staff will conduct a Request for Proposals (RFP) for Third- <br /> Party Administrators as well as excess insurance carriers to evaluate options for the <br /> most cost-effective and proven successful service providers that may improve the City's <br /> ability to reduce claim costs. Staff recommends extending the existing contract with <br /> Athens for one year in order to maintain the service relationship and provide continuous <br /> care for injured employees while allowing time for the RFP and analysis process. <br />