TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Teresia Zadroga-Haase, Human Resources Director
SUBJECT:Title
Contract with AdminSure, Inc., for Third Party Administration Services in Support of the Self-Insured General Liability Program (Human Resources Director Zadroga-Haase).
APPROVE AND APPROPRIATE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council approve a three-year contract effective July 1, 2016, with two option years with AdminSure, Inc. (AdminSure) for third party administration (TPA) services in support of our self-insured general liability program and authorize City Manager to execute same (Attachment 1). The total estimated expenditure for the contemplated full five year contract period would be $124,203.
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FISCAL IMPLICATIONS:
The annual estimated value of the contract in years one and two is $24,107. Adequate funding for these services has been included in the proposed two-year budget for FY 2016-17 and FY 2017-18. The year three fee is set at $24,830. The maximum fee in year four, the first option year, would be $25,326. Year five, the final option year, would have a maximum fee of $25,833.
BACKGROUND:
The City administers a self-insured general liability program. Reserves are set aside to pay obligations related to general liability claims filed against City. In order to limit the financial exposure for these claims the City became a founding member of the Independent Cities Risk management Authority (ICRMA), a risk pooling joint powers authority (JPA), in 1980. The City maintains a self-insured retention (SIR) level of $500,000 per claim and ICRMA provides coverage for costs in excess of that amount in a pooled layer up to $5,000,000 and in an excess insurance layer above that amount up to a total of $30,000,000 in coverage.
Human Resources Risk Management staff provid...
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