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Page 1 of 2 <br />Item #10 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />June 16, 2026 <br />Human Resources <br /> <br />TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL <br />SERVICES AGREEMENT WITH INNOVATIVE CLAIM SOLUTIONS, INC., TO <br />PROVIDE THIRD-PARTY ADMINISTRATION OF THE CITY'S WORKERS' <br />COMPENSATION PROGRAM, FOR A THREE-YEAR TERM THROUGH JUNE 30, <br />2029, WITH THE OPTION TO RENEW FOR TWO SUCCESSIVE ONE-YEAR <br />TERMS, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $1,399,579 OVER FIVE <br />YEARS <br /> <br />SUMMARY <br />The City of Pleasanton currently uses a third-party administrator, Innovative Claim Solutions <br />(ICS), to help manage and process claims and meet reporting and compliance requirements <br />for the City's workers' compensation program. The City entered into a three-year agreement <br />with ICS, which was subsequently extended via amendments; the current amendment is set to <br />expire June 30, 2026. <br /> <br />Per the City's Purchasing Policy, when a professional services agreement reaches five years, <br />the City must issue a request for proposals (RFP). The City's agreement with ICS has reached <br />this threshold. Therefore, the City issued an RFP for third-party administrators to provide <br />services for the City's workers' compensation program beginning July 1, 2026. Six vendors <br />submitted proposals. The City's review committee evaluated all responses and selected ICS's <br />proposal. <br /> <br />RECOMMENDATION <br />Authorize the City Manager to enter into a professional services agreement with Innovative <br />Claim Solutions, Inc., to provide third-party administration of the City's workers' compensation <br />program, for a three-year term through June 30, 2029, with the option to renew for two <br />successive one-year terms, for a total not-to-exceed amount of $1,399,579 over five years. <br />Renewals will be mutually agreed upon by both parties. <br /> <br />BACKGROUND <br />The administration of a workers' compensation program is complex due to numerous legal <br />mandates and other requirements for processing claims. Errors can result in penalties to <br />employers, increased financial liability, and strained employer-employee relations. As a result, <br />smaller and midsize cities typically rely on qualified third-party administrators with experienced <br />and certified staff to manage workers' compensation claims and compliance requirements. <br /> <br />DISCUSSION <br />Per the City's Purchasing Policy, when a professional services agreement reaches five years, <br />the City must issue a request for proposals (RFP). The City issued an RFP for a third-party <br />administrator to manage the City's workers' compensation program, effective July 1, 2026. <br /> <br />Docusign Envelope ID: 3D604DF4-2C2C-861D-8285-1B6425D792A9