Title
Resolution to Approve a Three Year Contract with Hylant Administrative Services LLC for Property, Casualty and Automotive Third Party Claims Administration Services ($35,000.00/Year)
.Memorandum
The resolution before you is to approve a professional services agreement with Hylant Administrative Services LLC (Hylant) for property, casualty and automotive third party claims administration services. The City currently contracts for these services with Hylant. Funding for this project is budgeted and available in the Risk Fund.
Request for Proposals (RFP) #18-17 was issued March 30, 2018. Four responses were received. The four respondents were ASU Group (ASU), Broadspire, Hylant, and PMA Management Corp. A review panel consisting of the Treasurer and Deputy Treasurer reviewed the responses. Before opening and reviewing cost proposals, both reviewers scored Hylant the highest, followed by ASU.
Because both reviewers ranked Hylant the highest, only the Hylant cost proposal was opened. The cost proposal was consistent with our current pricing, and included a lower annual cap. The recommendation of the selection committee is to award the contract to Hylant on a per claim basis. The Insurance Board has reviewed the recommendation of staff and concurs with their conclusions (see minutes of the April 26, 2018, meeting of the Board of Insurance Administration).
The proposed agreement includes a fee structure for services (attached), which consists of a per claim fee of $575 for general liability claims, $300 for property claims and $50 for non-investigated claims.
Continuation of the contract for the two years after Fiscal Year 2019 will depend on the availability of funding. The contract includes an option to extend the agreement at the discretion of the City for two years at the conclusion of the initial three-year term.
Approval of the award of this contract to Hylant is recommended.
Staff
Prepared by: Matthew V. Horning, Treasurer
Reviewed by: Tom Crawford, Financial Services Area Administrator and CFO
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City must secure adequate property, casualty and automotive third party claims administration services;
Whereas, The City currently has a contract to provide said services through the Hylant Administrative Services LLC;
Whereas, The City issued RFP #18-17 and determined Hylant Administrative Services LLC to be the most qualified respondent;
Whereas, The Insurance Board has reviewed the RFP results and recommends selection of Hylant Administrative Services LLC; and
Whereas, Hylant Administrative Services LLC received human rights and living wage approval on April 30, 2018;
RESOLVED, That City Council approves the Professional Services Agreement with Hylant Administrative Services LLC and authorizes the expenditures not to exceed $35,000.00 per fiscal year for the life of the contract, subject to the availability of funding after Fiscal Year 2019;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the agreement 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 authorization and execution of the two-year option at the conclusion of the initial term.