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positions allocated to Redwood City and 18 positions allocated to San <br />Carlos, the actual cost to San Carlos would be 21.69% of $1 million or <br />$216,900. <br />(3) Redwood City is currently making reasonable efforts to reduce <br />its workers compensation costs, though implementation of "best practices". <br />San Carlos acknowledges the efforts that Redwood City is currently making <br />to reduce workers compensation costs, including safety prevention and <br />early detection programs as well as early engagement and weekly <br />management of workers' compensation claims. San Carlos further <br />acknowledges that Redwood City may alter such efforts in its sole and <br />absolute discretion as dictated by the best interests of its program. <br />(4) San Carlos shall pay a two percent (2%) increase (from the <br />immediately preceding year) in the Supplies and Services costs associated <br />with providing the Services (which are included in Exhibit "C", Item E): <br />The payment shall be reconciled against actual costs at the end of the fiscal <br />year. Any payments by San Carlos in excess of actual cost shall be carried on <br />the books of Redwood City as a credit against the Supplies and Services costs <br />in the following fiscal year. Any shortfall in payment of actual cost shall be <br />added to the Supplies and Services costs in the following fiscal year and will <br />appear in the first quarterly invoice of that fiscal year. <br />(5) San Carlos shall pay the CalPERS Unfunded Liability associated <br />with providing the Services (which are included in Exhibit "C", Item F) as <br />set forth in the following "Unfunded Liability Schedule": <br />Year 1: 45% of the "Unfunded Rate" or its equivalent as <br />shall be provided by Ca1PERS <br />Year 2: 60% of the "Unfunded Rate" or its equivalent as <br />shall be provided by Ca1PERS <br />Year 3-5 To be determined by the Participating Agencies <br />through the process described in Section 2(b)(i)(7). <br />(6) San Carlos shall pay the other post -employment benefits (OPEB) <br />Unfunded Liability associated with providing the Services (which are <br />included in Exhibit "C", Item F) as set forth in the following "Unfunded <br />Liability Schedule": <br />Year 1: 45% of the "Unfunded Rate" <br />Year 2: 60% of the "Unfunded Rate" <br />Year 3-5: To be determined by the Participating Agencies <br />through the process described in Section 2(b)(i)(7). <br />(7) The Participating Agencies acknowledge and agree that San <br />Carlos commissioned an actuarial study in February 2018 to assess the <br />AM/AGR/2018/AMENDMENTS/AMEND NO.2 SAN CARLOS — RWC FIRE AGREEMENT <br />REV: 0417-18 JS <br />Page 3 of 32 <br />