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File #: 24-1208    Version: 1 Name: 7/1/24 Resolution to Approve a Three-Year Professional Services Agreement with CompOne Administrators, Inc., for Third Party Administrative Services ($89,274 estimated)
Type: Resolution Status: Passed
File created: 7/1/2024 In control: City Council
On agenda: 7/1/2024 Final action: 7/1/2024
Enactment date: 7/1/2024 Enactment #: R-24-265
Title: Resolution to Approve the Second Amendment to the Service Contract between CompOne Administrators, Inc. and the City, dated July 1, 2019, to Continue Services for an Additional Three Years ($89,274.00)
Attachments: 1. City of Ann Arbor - 7-1-2024 Insurance and TPA renewal proposal.pdf, 2. CO-2024 Contract Amendment Renewal Ann Arbor - CORRECTED.pdf, 3. 2019 CompOne Executed Contract.pdf

Title

Resolution to Approve the Second Amendment to the Service Contract between CompOne Administrators, Inc. and the City, dated July 1, 2019, to Continue Services for an Additional Three Years ($89,274.00)

Memorandum

This resolution is to approve the Second Amendment to the Service Contract between CompOne Administrators, Inc. and the City, dated July 1, 2019 (the Contract), to extend the Contract for an additional three years at an estimated cost of $89,274.00 (the Amendment).  Pursuant to the Amendment, CompOne Administrators, Inc. will continue to provide third-party administrator (TPA) services related to workers’ compensation claims for the City. Funding for these services is budgeted and available in the Risk Fund.

 

Staff recommends this three-year extension with CompOne to continue these critical services. For effective management of workers’ compensation, the TPA must be closely integrated with both the insurance carrier and the City’s administrative frameworks. CompOne has maintained approval from our insurance carriers and the State since 2013, consistently demonstrating high performance and reliability.

 

This three-year agreement will ensure continuity and stability in our workers’ compensation management, aligning with the City’s strategic goals for risk management.

Staff

Prepared by:  Crystal Allen, Deputy Treasurer

Reviewed by: Michael J. Pettigrew, City Treasurer

 Michelle Landis, Senior Assistant City Attorney

 Marti Praschan, Chief Financial Officer

Approved by: Milton Dohoney Jr., City Administrator

Body

Whereas, The City entered into a Service Contract between CompOne Administrators, Inc. dated July 1, 2019 for the provision of workers’ compensation third-party claims administration services (the Contract);

 

Whereas, The Contract is set to expire on June 30, 2024;

 

Whereas, The City requires continuing dependable workers’ compensation third-party claims administration services and aims to maintain effective management of workers’ compensation claims with a reliable and approved TPA;

 

Whereas, CompOne Administrators, Inc. has proposed a satisfactory Second Amendment to the Service Contract between CompOne Administrators, Inc. and the City, providing for a three-year extension to the Contract with an estimated annual fee of $29,758.00, totaling an estimated $89,274.00 for the three-year term (the Amendment);

 

Whereas, Staff has reviewed and recommends approval of the Amendment; and

 

Whereas, CompOne Administrators, Inc. complies with all applicable non-discrimination and living wage requirements;

 

RESOLVED, That the City Council approves the Second Amendment to the Service Contract between CompOne Administrators, Inc. and the City dated July 1, which extends the Contract for an additional three years at an estimated cost of $89,274.00;

 

RESOLVED, That the City Council authorizes expenditure of a ten percent (10%) contingency, subject to availability in the Risk Fund and approval of the City Administrator;

 

RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Amendment after approval as to substance by the City Administrator and approval as to form by the City Attorney; and

 

RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this Resolution, including execution of any further amendments to the Contract that do not exceed the amounts authorized herein, and termination of the Contract pursuant to its terms, if deemed necessary.