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TO: Mayor Robert J. O’Connor
FROM: Alex Alexandrou, Chief Administrative Services Officer
DATE: December 6, 2016
SUBJECT:
A Resolution Authorizing Renewal of Third Party Administrative Services With Broadspire Services, Inc. For The City’s General Liability, Auto Liability Claims And Workers’ Compensation Claims For The Period of January 1, 2017 through December 31, 2019.
PURPOSE:
To obtain approval of a three (3) year renewal agreement with Broadspire Services, Inc. for third-party administrative services for the City’s general & auto liability claims and for workers’ compensation claims.
BACKGROUND:
Broadspire has been the City’s third-party administrator for general and auto liability claims since January 1, 2002 and workers compensation claims since August 15, 1999. The expiring contract was for a three-year term approved in 2014. Their key services have included the processing of claim payments, assisting in negotiating and resolving liability and workers compensation claims within applicable City guidelines and authority granted by the City of Aurora for support and administration of its self-insured liability and workers compensation programs.
DISCUSSION:
Broadspire has been an effective and efficient third-party administrator in all areas of claims management. Unlike some TPA’s that experience high turnover in claims supervisory and adjuster positions, Broadspire has maintained the same team of supervisors and adjusters for the City of Aurora. They are very familiar with City operations and have worked very well with City staff as well as outside defense counsel in handling and resolving a variety of often complex and time consuming claims and litigation against the City. They provide monthly loss run reports, pay bills, investigate and handle claims timely and accurately and conduct quarterly claim reviews with staff and outside counsel to monitor status and discuss all pending claims.
Because of our longstanding partnership and the desire for continuity and consistency of claims handling operations, a three-year deal (2017-2019) has been proposed with a 3.0% increase for 2017 ($109,487) and no rate increase in 2018 or 2019.
The 2017 City Budget provides $109,487 for this item in accounts 601-0000-410-40-11 and 601-0000-410-40-41.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
Place on the Finance Committee calendar (12/13/2016) for approval to City Council.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Renewal of Third Party Administrative Services With Broadspire Services, Inc. For The City’s General Liability, Auto Liability Claims And Workers’ Compensation Claims For The Period of January 1, 2017 through December 31, 2019.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora is in need of an outside firm to provide third-party administrative services for its general and auto liability claims and its workers' compensation claims; and
WHEREAS, the City desires to enter into a renewal contract with Broadspire Services, Inc. for third-party administrative services related to the City's general & auto liability and its workers' compensation claims; and
WHEREAS, the 2017 City Budget provides $109,487 for this item in accounts 601-0000-410-40-11 and 601-0000-410-40-41.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that a renewal contract based on the attached summary for third-party administrative claims services for three (3) years beginning January 1, 2017 and ending on December 31, 2019, is hereby approved and the Director of Procurement is authorized to execute said contract.