Ann Arbor logo
Share to Facebook Share to Twitter Bookmark and Share
File #: 18-0775    Version: 1 Name: 6/4/18 CompOne Administrators--Workers Comp TPA Services
Type: Resolution Status: Passed
File created: 6/4/2018 In control: City Council
On agenda: 6/4/2018 Final action: 6/4/2018
Enactment date: 6/4/2018 Enactment #: R-18-216
Title: Resolution to Approve a One-Year Professional Services Agreement with CompOne Administrators, Inc., for Third Party Administrative Services ($32,861.00 estimated)
Attachments: 1. Executed Contract.pdf

Title

Resolution to Approve a One-Year Professional Services Agreement with CompOne Administrators, Inc., for Third Party Administrative Services ($32,861.00 estimated)

Memorandum

The resolution before you is to approve a professional services agreement with CompOne Administrators, Inc. for third-party administrator (TPA) services related to workers’ compensation claims.  The City has an existing agreement with CompOne that expires on June 30, 2018.  Funding for this project is budgeted and available in the Risk Fund.

 

Staff recommends a one-year extension with CompOne.  For workers’ compensation, the TPA and insurance carrier must work closely together.  Additionally, the TPA must be approved by both the carrier and the State.  CompOne has had such approval from our carrier and the State since 2013.

 

We typically contract with the TPA for multiple years, and renew our insurance annually.  In 2017, our insurance carrier offered and we bound coverage for a very favorable 2-year policy, which overlapped the conclusion of our TPA contract by one year.  This extension will allow us to realign our insurance and TPA agreements. Sole/Best Source approval was granted on April 20, 2018.  The Board of Insurance Administration reviewed staff recommendations and approves of the contract with CompOne (see minutes of the April 26, 2018 Board of Insurance Administration meeting).

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 workers’ compensation third-party claims administration services;

 

Whereas, The City currently has a contract that expires June 30, 2018 for said services through CompOne Administrators, Inc.;

 

Whereas, CompOne Administrators, Inc. has provided a satisfactory one-year extension agreement with consistent pricing;

 

Whereas, The City desires to realign the expiration of its workers compensation insurance policy and its third-party administrator services agreement;

 

Whereas, The Insurance Board has reviewed staff recommendations and recommends selection of CompOne Administrators, Inc.; and

 

Whereas, CompOne Administrators, Inc. received human rights and living wage approval on March 28, 2018;

 

RESOLVED, That City Council approves the Professional Services Agreement with CompOne Administrators, Inc., and authorizes the expenditures not to exceed $35,000.00 for 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.