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BACKGROUND The administration of a workers' compensation program is complex due to numerous legal mandates and other requirements for processing claims. The consequences of errors are the imposition of penalties on employers, increased financial responsibility and poor employer-employee relations. Thus, smaller, and midsize cities typically use the services of a qualified third-party administrator that employs experienced and certified staff to manage their workers' compensation challenges and compliance requirements. DISCUSSION Per the City's Purchasing Policy, after a professional services agreement has reached five years, the City must issue a request for proposals. The City issued a request for proposals for vendors to provide the services of a third-party administrator to help manage the City's workers' compensation program, beginning July 1, 2021. Six vendors submitted proposals. The City's review committee evaluated all responses to the RFP. Based on its evaluation, the City's review committee invited three vendors (LWP Claims Solutions, Acclamation Insurance Management Services, and ICS) to provide a 15-minute presentation and participate in a 30-minute question and answer session with the City's review committee. The City's review committee considered the following criteria when evaluating the proposals, presentation, and question and answer session: demonstrated experience in the workers' compensation and risk management field; demonstrated relationships with medical providers; innovative approach to reducing claims; demonstrated competent, knowledgeable and sufficient staffing levels; familiarity with the City and its Council goals, priorities, etc.; prior experience with the City and/or similar cities workers' compensation third-party administrator; quality and thoroughness of the proposal, quality and thoroughness of the interview; references; and cost. Based on the vendors' presentations and responses during the question and answer session, the review committee found that ICS best matched the selection criteria and awarded the contract to ICS. In conclusion, staff recommends approval of a professional services agreement with ICS for three years, with the option to renew for two successive one-year terms. Renewals will be mutually agreed upon by both parties. Submitted by: Reviewed by: Approved by: " it-11/ Debra Gill Tina Olson Nelson Fialho Director of Human Director of Finance City Manager Resources and Labor Relations Page 2 of 3