March 17, 2026
Human Resources
DATE: March 17, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager – Internal Services
Sharrone Taylor, Director of Human Resources
Subject:
Contract with Excel ADR for Alternative Dispute
Resolution Consultation Services
FINANCIAL IMPACT: The proposed contract is not to exceed $252,000 for a three-year period. The first-year cost of $84,000 is
included within the approved fiscal year 2025–2026 Risk Management Insurance Fund budget and will be
budgeted in subsequent years (Account String:
50182216-400201).
PREVIOUS COUNCIL
ACTION:
December 6, 2022
STATEMENT OF THE
ISSUE:
As an alternative to the traditional Workers’
Compensation process, an Alternative Dispute
Resolution (ADR) or “carve-outs” is a proven and efficient way workers can get the treatment they need, through a
much less adversarial process. ADR administration and
consultation services are necessary to develop,
establish, and administer the program.
RECOMMENDED ACTION:
APPROVE a contract with Excel ADR in an amount not
to exceed $252,000 to administer Alternative Dispute
Resolution (ADR) consultative services for Public Safety Worker’s Compensation Cases with a term from
December 6, 2025, to December 6, 2028 – Human
Resources Department (Nickie Mastay/Sharrone Taylor
510-620-6602).
AGENDA
REPORT
March 17, 2026
DISCUSSION:
Alternative Dispute Resolution (ADR), also known as “carve-outs,” is a statutorily authorized approach for delivering Workers’ Compensation benefits through alternative dispute resolution methods. When a “carve-out” is used, statutory benefits such as temporary disability, permanent disability, and medical treatment for workplace injuries remain unchanged
On December 6, 2022, the City approved a contract with Excel ADR to provide these services after a standard Request for Proposals process. Since then, Excel ADR has assisted Local 188 employees who opted for this alternative process for workers’ compensation claims. However, Local 188 and the City of Richmond have since dissolved the Alternative Dispute Resolution program, meaning no new cases can be referred.
Under the proposed agreement, Excel ADR will continue managing the existing cases as they progress through the system. Currently, Excel ADR oversees forty cases, and once these are resolved, the program will fully conclude. Although the original contract lapsed on December 5, 2025, it is essential for the vendor to continue managing the Workers’ Compensation claims enrolled in the program. Therefore, the staff would like the City to maintain contractual services with Excel ADR for these cases. Continued oversight is vital to maintain consistency and effective claims management. Over the past three years, Excel ADR has established strong relationships with medical providers and employees, fostering trust and efficient communication.
Ongoing involvement from Excel ADR is critical to ensure that all claims are resolved in line with established protocols, legal requirements, and our obligation to have these cases matriculate through the ADR process. This provides stability for all parties and preserves the integrity of the claims process.
Excel ADR has reduced its monthly rate over the past three years. The rate initially reflected the cost of administering the full program and was subsequently reduced when the program was discontinued. The current rate is $7,000 per month ($84,000 annually), which reflects the cost of administering the remaining caseload of approximately 40 claims.
The Risk Management Division is seeking approval to enter into a contract with Excel ADR, which will enable them to continue overseeing forty (40) existing cases.
DOCUMENTS ATTACHED:
Attachment 1 – Contract