Westminster City Council
SUBJECT
Title
Award of Contract for City of Westminster’s Third-Party Administrator for Workers’ Compensation.
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From: Jodie Griner, Human Resources and Risk Management Director
Requested by: Administration
Prepared by: David Facterman, Management Analyst
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RECOMMENDED ACTION
Recommendation
Approve and authorize the City Manager, or her designee, to execute a Professional Services Agreement with Athens Insurance Service Inc. of Concord, California, for third-party administration and training services for workers’ compensation claims, for a three-year term with two one-year renewal options, in the total amount of $490,844.
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BACKGROUND
In accordance with California workers' compensation laws, the City operates as a self-insured entity and manages its workers' compensation program through a third-party claims administrator (TPA). The TPA is responsible for overseeing claims and disability status, authorizing medical treatments, and processing medical bills. Additionally, the TPA ensures adherence to industry best practices and compliance with the regulations set forth by the State of California Division of Workers' Compensation.
On January 24, 2025, the City issued a request for proposals (RFP) for workers’ compensation claims administration services, seeking to evaluate both cost and service options across the industry. City staff reviewed four qualified proposals submitted by TPAs. Evaluation criteria included each firm's experience managing workers' compensation programs for municipalities and other California clients, the qualifications of assigned personnel and medical examiners, the scope and quality of safety and training programs for supervisors, the competitiveness of proposed fees, and the clarity and organization of the submitted proposals.
City staff from the Human Resources department reviewed the submitted proposals and three firms advanced to a second round which included interviews. After thorough evaluation, Athens Insurance Service, Inc. was selected as the firm best equipped to deliver comprehensive service in claims management, technology (including access, data reporting, and real-time service), program oversight for the City’s workers’ compensation, and supervisor education and training.
Amongst these, the City interviewed four (4) qualified firms, including the City’s existing service provider.
FISCAL IMPACT
No budget adjustment is requested. Appropriations for these services will be included in the Fiscal Year 2025-26 Budget in the Workers Compensation Fund 740 Program 14326. The Agreement has a total not-to-exceed amount of $276,287 over three years and two (2) one-year terms may be exercised at the City’s sole discretion for up to an additional $214,557. The total recommended expenditure authorization for Athens Insurance Service, Inc., is $490,844. The consultant will be compensated for the scope of work at the approved billing rates, as outlined in the Agreement.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
City staff recommends that the City Council approve an agreement with Athens Insurance Service, Inc.,
ATTACHMENTS
1. City of Westminster Agreement and Addendum with Athens Insurance Service, Inc.
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager