Laserfiche WebLink
Department Approval <br />�� ,�: �� <br />Item Description <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 1/12/09 <br />Item No.: 7.e <br />City Manager Approval <br />� / <br />Approve an Agreement with SFM Risk Solutions for Workers Compensation <br />Third-Party Administrator Services <br />BACKGROUND <br />The City's Workers Compensation Program has been self-insured by the City since it's inception in 1980. <br />Since 2000, the City has contracted with Serkley Risk Administrators, LLC - a third party administrator <br />that works on the City's behalf to administer claims. The decision to have a third party administrator is <br />based on the complexity of the laws governing workers compensation claims as well as the need for <br />medical expertise to determine the appropriate medical treatment for employees injured on duty. <br />Staff recently entertained proposals for third party administrator services. Sased on these proposals, Staff <br />is recommending that the City switch from Serkley to SFM Risk Solutions (SFM) . While the total cost for <br />these services is based on the number of claims administered, it is estimated that SFM's cost will be <br />approximately $14,500 annually. This is nearly $10,000 less than it would be with Serkley. <br />POLICY OBJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />The Agreement with SFM is expected to cost approximately $14,500 annually. Funding will come from <br />the City's Workers Compensation Self Insurance Fund — an internal service fund that receives allocations <br />from other City funds on a proportionate basis. <br />STAFF RECOMMENDATION <br />Staff recommends the Council authorize City Staff to enter into an agreement for services with SFM to <br />provide third-party adminstrator services for the City's Workers Compensation Program. <br />REQUESTED COUNCIL ACTION <br />Motion to authorize City Staff, upon final review of the City Attorney, to enter into an agreement for <br />services with SFM to provide third-party adminstrator services for the City's Workers Compensation <br />Program. <br />Prepared by: Chris Miller, Finance Director <br />Attachments: A: SFM Agreement <br />Page 1 of 1 <br />