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Posted: December 26, 2019
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF123119 06

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Agreement with Risk Administration Services, Inc. to Administer the City’s Workers’ Compensation Program

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
12/31/2019
City Council Hearing Date:
01/06/2020
Staff Contact:
Jessica Rogers, Assistant City Attorney
Agenda Item Summary:
This is a one-year agreement to take over the City’s workers’ compensation claims administration. Risk Administration Services’ response to our request for proposals had the lowest pricing on fixed charges, they are the only South Dakota company to respond, and they are the only respondent willing to help the City allocate costs based on claims per department, rather than standard risk factors. This change will help incentivize individual departments to decrease work comp claims, whereas the current system does not. Berkley Risk, our current claims administrator, has notified us that they will terminate our contract if we switch administrators. This is not something we anticipated (nor did RAS), so we will need to negotiate fees for RAS to also take over our existing work comp claims, sometime within the next 90 days.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

pdf LF123119 06 RAS-Contract DRAFT

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