Title
Report regarding a resolution approving a Second Amendment to the Professional Services Agreement with Athens Administrators to extend the agreement for workers' compensation claims through June 30, 2024 and to increase the amount by $225,658 for a total amount not to exceed $1,065,866. (Leah Lockhart, HR Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving a Second Amendment to the Professional Services Agreement with Athens Administrators to extend the agreement through June 30, 2024, and to increase the amount by $225,658 for a total amount not to exceed $1,065,866.
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BACKGROUND/DISCUSSION
The City of South San Francisco is a self-insured employer for worker's compensation claims, up to a self-insured retention (SIR) of $500,000 per claim. In order to maintain an effective and compliant claims administration program, the City contracts with a third-party administrator for worker's compensation claims administration. On June 12, 2019, the City Council approved Resolution 19-497 to contract with Athens Administrations for a three-year term from July 1, 2019 through June 30, 2022. This agreement also contains an option for services agreement extension for up to two (2) additional one-year periods at a pre-agreed service fee for those years. On June 22, 2022, the City Council approved a first amendment (Resolution 22-331) extending the service agreement with Athens Administrators for a period of one year through June 30, 2023.
Staff recommends exercising the option to extend this service agreement for a second one-year period for the July 1, 2023 through June 30, 2024 term, at the rate guarantee provided by the original agreement. In addition to providing continuity of claims service for injured employees, Athens has provided satisfactory services and has been responsive to the City's needs, particularly in light of new regulatory requirements related to COVID-19 case reporting and c...
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