Title
Resolution to Increase the Purchase Order for Hylant Administrative Services, LLC, for Third-Party Claims Administration Services from $35,000/Year to $50,000/Year
Memorandum
This resolution increases the yearly purchase order that is authorized for Hylant Administrative Services, LLC to provide third-party claims administration services for the City from $35,000/Year to $50,000/Year. Funding for this project is budgeted and available in the FY2021 Risk Fund and will be budgeted in future years.
The City currently contracts for these services with Hylant Administrative Services, LLC. The agreement includes a fee structure for services, which consists of a per claim fee of $575 for general liability claims, $300 for property claims, and $50 for non-investigated claims.
The City has experienced a significant increase in the number of claims received over previous years. Through January 30, 2021, we have processed 46 claims totaling $22,250 for FY2021. For FY2020, we processed 54 claims totaling $26,250.
Staff recommends increasing the purchase order for this Agreement to $50,000 for FY2021 and future years under the Agreement, to cover such claims, payable from the Risk Fund.
Staff
Prepared by: Michael J. Pettigrew, City Treasurer
Reviewed by: Matthew Horning, Interim CFO and Financial Services Area Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The City currently has a contract to provide third party administrative services through the Hylant Administrative Services, LLC;
Whereas, Resolution 18-0774 limited the annual expenditure with Hylant Administrative Services, LLC to $35,000/year; and
Whereas, The City has experienced a significant increase in the number of claims received in FY2021 and expects this trend to continue in future years under the contract;
RESOLVED, That City Council approve increasing the purchase order for this Agreement from $35,000 to $50,000 for FY2021 (payable from the Risk Fund) and for future...
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