TO:Andrew P. Powers, City Manager
FROM:Jeanette D. Green, Human Resources Director
DATE:June 23, 2026
SUBJECT: Workers' Compensation Third Party Administrator RECOMMENDATION:
1. Award professional services agreement to AdminSure, Inc. (AdminSure) of Ontario, CA, for workers’ compensation claims administration services, in an amount not to exceed $250,000 for the period beginning July 1, 2026, through June 30, 2029, with two one-year extension options.
2. Approve Third Amendment to Professional Services Agreement Contract No. 12735-2021 with Sedgwick Claims Management Services, Inc. (Sedgwick) of Memphis, TN, for short-term coverage of Workers’ Compensation third party administration in the amount of $10,000, for a revised amount not to exceed $231,446, extending the term through August 31, 2026.
3. Authorize expenditure in FY 2026-27, in the amount of $55,000 ($45,000 for AdminSure and $10,000 for Sedgwick) from A/C #712-0520-686-5640 (Workers’ Compensation Fund - Management Fees).
4. 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. $60,000 is included in the Adopted FY 2026- 27 Workers’ Compensation Fund Budget. Budget for the remaining contract term will be requested during the next biennial budget process.
Workers' Compensation Third Party Administrator
June 23, 2026
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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 for Workers’ Compensation claims administration with Sedgwick under an agreement expiring on June 30, 2026.
DISCUSSION/ANALYSIS:
In accordance with Government Code section 4526 and Thousand Oaks Municipal Code section 3-10.401, the City issued a formal Request for Proposals/Qualifications (RFP/Q) in March 2026, for Workers’ Compensation Claims Administration services. Unlike the low bid requirements of the Public Contract Code, contracts for professional, management, general, or special services should only be awarded to firms or persons who have demonstrated an adequate level of experience, competence, training, credentials, resources, staffing, and other professional qualifications necessary for more than a satisfactory performance of the solicited services.
Staff received three proposals from third-party administrators (TPAs): Sedgwick Claim Management Services, Inc. (Memphis, TN), AdminSure (Ontario, CA), and Innovative Claim Solutions (San Ramon, CA). A review committee consisting of staff from the City Attorney’s Office, Public Works, and Human Resources evaluated and ranked the proposals. Evaluation criteria included presentations, services offered, quality, reputation, comparable client base, and cost.
Following committee interviews, AdminSure was selected as the recommended vendor. This recommendation was based on the committee’s assessment of AdminSure’s highly responsive, high-touch customer service model and demonstrated organizational stability, including low turnover among claims adjusters and supervisory staff. The committee also noted AdminSure’s reporting capabilities and client system access.
As part of its service model, AdminSure offers the AdminSureAssist platform to both claims adjusters and injured workers, allowing seamless communication and centralized access to claim information and resources. In addition, AdminSure’s reporting tools will support the City in making data-driven decisions for effective program management. The committee concluded that these features would help modernize the City’s workers’ compensation program and improve the overall customer service experience.
Workers' Compensation Third Party Administrator
June 23, 2026
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The committee also considered AdminSure’s extensive experience, noting that the company has provided Workers’ Compensation Claims Administration services for approximately 44 years. Based on information provided during the RFP/Q process, nearly all of AdminSure’s clients are California cities. This gives the firm strong expertise in state-specific laws and regulations affecting California municipalities, as well as experience with CalPERS retirement benefits. The committee determined this expertise would support the City in maintaining high standards of legal and regulatory compliance in administering its workers’ compensation program.
To support the transition to the agreement with AdminSure (Attachment #1), staff also recommends approving the Third Amendment to Professional Services Agreement Contract No. 12735-2021 with Sedgwick (Attachment #2), to increase the not-to-exceed amount by $10,000 and extend Sedgwick’s services from July 1, 2026 through August 31, 2026.
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) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
Workers' Compensation Third Party Administrator
June 23, 2026
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
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 – Professional Service Agreement - AdminSure Attachment #2 – Third Amendment - Sedgwick
HRD:180-50\lq\ H:\COMMON\StaffReports\2026\06232026 Workers' Comp TPA Agreement.docx