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7.1.E. - Page 2 <br /> ANALYSIS <br /> The one-year extension with Athens will provide for continued claims administration for <br /> fiscal year 2014-2015 at a cost of $170,900 and under other terms as established in the <br /> current agreement. This cost represents a 10% increase over the current premium. <br /> Premium increases are generally based on a number of factors that influence claims <br /> administration service needs, such as workforce size, average number of claims, and <br /> claim severity. The primary driver of the increase in claims administration cost for the <br /> City is the volume of our indemnity claims. <br /> In addition to evaluating service providers, the City is in the process of developing <br /> enhanced programs related to employee wellness and injury and illness prevention in <br /> an effort to promote health and safety and reduce future claims. <br /> ALTERNATIVES <br /> 1. Direct staff to enter agreement with Athens for additional years. <br /> 2. Direct staff to utilize alternative claims administration services while the City <br /> conducts an RFP process. <br /> FISCAL IMPACT <br /> The contract cost of $170,900 is included in the 2014-2015 Workers' Compensation <br /> budget. <br /> ENVIRONMENTAL REVIEW <br /> This activity is not a "project" within the meaning of the California Environmental Quality <br /> Act ("CEQA") as defined in CEQA Guidelines, section 15378, because it has no <br /> potential for resulting in either a direct or foreseeable physical change in the <br /> environment. (Public Resource Code § 21065: Guidelines §15378) <br /> LEAH LOCKHART <br /> HUMAN RESOURCES MANAGER <br /> / . <br /> LI <br /> AUDREY SEYMOUR RAMBERG <br /> ASSISTANT CITY MANAGER <br />