DATE: June 17, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Human Resources Department
TITLE: AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ATHENS ADMINISTRATOR FOR THIRD-PARTY ADMINISTRATION OF WORKERS' COMPENSATION CLAIMS
RECOMMENDATION
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Staff recommends that the City Council approve an Amendment to Professional Services Agreement (PSA) with Athens Administrator for Third-Party Administration (TPA) of Workers' Compensation claims for an additional amount up to $37,500 for contract administration; and authorize the City Manager (or designee) to execute the agreement.
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BACKGROUND AND ANALYSIS
On May 20, 2026, the City Council authorized the City to enter into an agreement with Athens Insurance Service, Inc. for third-party administration of the City's Self-Insured Workers' Compensation Program. This is a three-year agreement with two optional years that will go into effect automatically unless terminated by either party. The not to exceed contract price approved by the City Council on May 20 is $596,330 for FY 26/27, $615,711 for FY 27/28, $635,722 for FY 28/29, $656,383 for the optional year 1 extension for FY 29/30, and $677,715 for the optional year 2 extension for FY 30/31.
Following City Council approval, the City was notified that the annual compensation amount presented for Athens' services inadvertently omitted the annual administrative fee of $7,500. The omission was administrative in nature and does not alter the scope of services or terms of the original agreement. However, the addition of the annual administrative fee to the total contract amount would be $37,500 over the entire five year term exceeds the $20,000 threshold outlined in City Administrative Directive 21, thereby requiring City Council approval of the amended agreement amount. The new per-year contract maximum is detailed in the table below.
FISCAL IMPACT
The Amendment to the PSA is in the amount of $7,500 annually for a total of 37,500 over the ...
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