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TO: Mayor Richard C. Irvin
FROM: Alex G. Alexandrou, Chief Management Officer
DATE: March 21, 2024
SUBJECT:
A Resolution Authorizing a Contract with Cannon Cochran Management Services, Inc. (CCMSI) to Provide Third-Party Administrative Services for the City's General & Auto Liability Claims and Workers' Compensation Claims as of April 15, 2024.
PURPOSE:
To obtain approval of a three (3) year contract, with an optional three (3) year extension with CCMSI to provide third-party administrative services for the City's general & auto liability claims and for Workers' Compensation claims.
BACKGROUND:
The City had used the same general and auto liability and worker's compensation claims third-party administrator for over twenty years. At the end of 2023, the City put RFP 23-106 out to market and had five responses to the RFP. Staff reviewed each response and evaluated the responses with the current needs of the City and its insurance and risk management program and found CCMSI to be the most responsive bidder to the RFP.
DISCUSSION:
CCMSI is a third-party administrator that has many governmental entities as clients and is familiar with municipal operations and working with outside counsel in handling and resolving a variety of often complex and time-consuming liability and workers compensation claims and litigation. CCMSI will provide a cloud-based claims management tracking system accessible to city staff, unlike the current carrier, which will assist in monitoring and processing all claims. CCMSI will also provide monthly loss run reports, pay bills at the City's direction, investigate and handle claims timely and accurately and conduct periodic claim review with staff and outside counsel to monitor status and discuss all pending claims. CCMSI will also provide loss prevention services at the city's direction across all city operations as needed.
The initial contract is for three (3) years beginning in April until March 30, 2027. Unless the agreement is terminated as set forth in the contract, an automatic renewal will occur for an additional three-year term. The schedule of services, fees and payments due that staff negotiated are attached in the contract and describe the fees for new and transfer workers' compensation and general liability/auto claims from our current third-party administrator, as well as for new workers compensation and general and auto liability claims. A one-time account set-up fee will be assessed at the beginning of the contract as well as a one-time data conversion fee. As part of this contract, the City will have access to the CCMSI dashboard which will allow for up-to-date information, notes, documents, etc. of a current claim. This will assist our various staff in claims management.
IMPACT STATEMENT:
This contract will provide critical access to data for processing workers' compensation, general and auto liability claims and provide informational loss runs on an easy-to-use dashboard. This will allow various departments to close out all claims, notice trends, manage city liability and risk and access other services to address any upticks in certain areas that need to be addressed.
RECOMMENDATIONS:
That the proposed resolution be adopted.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing a Contract with Cannon Cochran Management Services, Inc. (CCMSI) to Provide Third-Party Administrative Services for the City's General & Auto Liability and Workers' Compensation Claims as of April 15, 2024.
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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 & auto liability claims and workers' compensation claims to support its insurance and risk management program;
WHEREAS, the City published a RFP for a third-party administrator and five responsive bids were received;
WHEREAS, after evaluating all the bids, the City desires to enter into a three-year contract, with an automatic additional three-year renewal (unless terminated according to the contract) with Cannon Cochran Management Services, Inc. ("CCMSI") as of April 15, 2024 to serve as the third-party administrator of the City's general and auto liability claims and its workers' compensation claims.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Chief Management Officer, or his designee, is authorized to sign and execute the attached three-year third-party administrator contract with CCMSI.