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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 agree...
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