TO:Andrew P. Powers, City Manager
FROM:Jeanette D. Green, Human Resources Director
DATE:June 24, 2025
SUBJECT: Third Party Workers’ Compensation Claims Administration RECOMMENDATION:
1. Approve Second Amendment to Contract No. 12735-2021 with Sedgwick Claims Management Services, Inc. Third Party Administrator (Sedgwick) to extend the period of the agreement for an additional twelve months (new term: July 1, 2025 – June 30, 2026) in the amount of $46,060 with a new not-to-exceed amount of $221,446.
2. Authorize expenditure in the amount of $46,060 for FY 2025-26 from A/C #712- 0520-686-5640 (Workers’ Compensation Fund Management Fees).
3. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time required to prepare the report is included in the Adopted FY 2024-25 General Fund Budget. $46,060 is included in the Adopted FY 2025-26 Workers’ Compensation Insurance Fund Budget for this contract amendment.
BACKGROUND:
The City is self-funded for Workers’ Compensation insurance and has a comprehensive and robust safety program for City employees. The City currently contracts with Sedgwick Claims Management Services, Inc., for worker’s compensation claims administration. In May 2021, City staff issued a Request for Proposal for Workers’ Compensation Claims Administration. Following an evaluation process conducted by Human Resources, Finance, and Public Works
Third Party Workers’ Compensation Claims Administration June 24, 2025
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staff, Sedgwick was identified as the finalist. On June 21, 2021, City Council approved an agreement with Sedgwick for a term of July 1, 2021, through June 30, 2024. This agreement included the option for two one-year extensions. On June 18, 2024, City Council approved the first amendment to the contract, for a one-year extension through June 30, 2024, with a new not-to-exceed amount of $175,386.
DISCUSSION/ANALYSIS:
Sedgwick, through its acquisition of York Risk Services Group, Inc. and its subsidiaries, has served as the City’s Workers’ Compensation third party administrator since July 1, 2016. Sedgwick is familiar with the City’s workers’ compensation claims program and organizational structure. Sedgwick assists in managing the City’s workers’ compensation claims, provides updates on the status of our employees, and assists with claims administration, which is essential for the City to remain in compliance with applicable law.
The proposed Second Amendment (Attachment #1) would extend the term of the existing contract by one year, allowing the City’s Workers’ Compensation claim administration program to continue to be administered by Sedgwick. This would be the second and final extension of the current agreement. The proposed Second Amendment would also increase the compensation provided under the agreement by $46,060 for a new total not-to-exceed amount of $221,446. This increase will cover the fees for Sedgwick’s services for the additional year.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) Third Party Workers’ Compensation Claims Administration June 24, 2025
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to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Linda Quezada, Assistant HR Analyst
Attachments:
Attachment #1 – Second Amendment to Contract No. 12735-2021 HRD:180-50\LW\H:\COMMON\StaffReports\2025\062425 Sedgwick 2nd Amendment Staff Report.docx