Title
Recommendation to Authorize the City Attorney to Execute a Three Year Agreement With the Option to Extend for Two Additional Years, with LWP Claims Solutions, Inc. for Professional Services as the Third Party Administrator (TPA) of the City of Alameda's Self-Insured Workers' Compensation Program in an Amount Not to Exceed $1,145,879 for Five Years, Plus Related Charges, and Authorize Budget Amendments for the Fiscal Years (FYs) 2021-22 and 2022-23 Biennial Operating Budget by Increasing the Workers' Compensation TPA Services Line Item by $25,000 for FY 2021-22 and $30,450 for FY 2022-23. (City Attorney 711)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City of Alameda (City) has contracted with Sedgwick Claims Management Services, Inc. (Sedgwick) for services to administer the City's self-insured workers' compensation program since 2012. The current agreement will end June 30, 2021. Following a competitive selection process, staff is recommending that the City Council authorize the City Attorney to execute an agreement with LWP Claims Solutions, Inc. (LWP) for professional services as the TPA of the City's self-insured workers' compensation program for the period from July 1, 2021 through June 30, 2024, with two additional one-year options at the City's discretion to exercise. The proposed annual claims administration fee for Fiscal Year (FY) 2021-22 are $218,000, $223,450 for FY 2022-2023 and $229,036 for FY 2023-2024. The annual claims administration fee for years four and five, if the City opts in, would be $234,762 and $240,631, respectively.
BACKGROUND
Workers' compensation, which is mandated by the State Labor Code, provides medical treatment coverage, temporary and permanent disability payments, survivor's death benefits, and total disability pension benefits for employees, officers and elected officials suffering from an industrial injury or illness. The City self-insures for workers' compensation and cont...
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