Memorandum

City of Lawrence

Administrative Service Department

TO:	David L. Corliss, City Manager
FROM:	Michael Bennett, Risk Manager
CC:	Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager
Date:	June 30, 2009
RE:	Computer Sciences Corporation – Riskmaster Annual Fee

Introduction

On or about February 20, 2009, Computer Sciences Corporation forwarded an invoice for the annual fee of the City’s Riskmaster program in the amount of $15,718.61. This invoice is now past due. This payment is due under the contract signed by the City on or about March 30, 2007, as an addendum to contract #992130-3

Background Riskmaster

The City is fully self-insured and self-administered for workers’ compensation and for general liability. Riskmaster is the computer system licensed by the City from Computer Sciences Corporation to administer all workers’ compensation and general liability claims. The City has been using this program since approximately 1999. This program is used instead of a third-party administrator for claims handling.

Last year the City paid a similar fee in the amount of $15,320.36. The increase is 3% as required by the contract.

Recommended Action

Staff recommends issuing a check in the amount of $15,718.61 for the annual fee required by the contract. In the absence of a third-party administrator, Riskmaster is essential in the handling of workers’ compensation and general liability claims. Should you have further questions, please do not hesitate to contact my office at 832-3009.