BY COUNCILOR KRAUSE:
RESOLVED, that the proper city officials are hereby authorized to execute the addendum to the administrative services agreement with RTW, Inc., substantially in the form of that on file in the office of the city clerk as Public Document No. ______________, to continue third party administration of the city’s self-funded workers’ compensation program effective February 1, 2008; payable from Fund 605, Agency 036, Organization 1651, Object 5441.
STATEMENT OF PURPOSE: This addendum continues the third party administrative services by RTW relative to the city’s self-funded workers’ compensation claims. Under the addendum, the administrative fee remains unchanged, the fee to handle reported claims increased by approximately 3% and the fee to handle claims occurring prior to February 1, 2006 decreased by $2,000 each year. The overall estimated cost is $225,000. Since RTW’s administration, the average cost per claim has decreased from $4,965 to $1,786.