HomeMy WebLinkAboutIR 7045 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7045
'w the Mayor and Members wrthe City Cwumow '—g~~~ 20, ^~~~
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Subject: WORKER'S COMPENSATION CLAIMS ADJUSTING SERVICES,
STOP LOSS INSURANCE AND CATASTROPHIC REIN5||RANCE
On December 22, 1483 (M&C C-8137), after completing a competitive bid
Dr0C8Ss" the City Council approved the execution of d nine-month
contract ending on October l , 1984, which authorized Underwriters
Adjusting Company to provide Worker's Compensation claims adjusting
service for the City. The contract stated that Stop-Loss Insurance and
Catastrophic Reinsurance would be procured through the William Rigg and
Company Insurance Agency. On June 5, 1984 (M&C C-8416) , City Council
extended the contract for a period Of three months to expire OD January
l , 1985, and also provided for the option of two separate twelve-month
renewal periods from that date upon mutual agreement of the City and
UAC. Based OO satisfactory service by Underwriters Adjusting Company
and the William Kigg Agency, the City Council on December 18, 1984 (M&C
C~8778) authorized execution of a twelve-month renewal Of the contract
for these services and coverages. This Council action extended the
contract through January l , 1986.
The 1985 City Staff was asked by representatives Of Underwriters
Adjusting Company to ren0g0t1ate the contract and provide rate increases
for claims adjusting services during the current contract year and in
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evaluating the request, it was determined that Underwriters Adjusting
Company had been awarded the contract On the basis Of bids submitted
which included price quotations for each of the contract years.
Therefore, the City could not consider renegotiating the price structure
without violating the competitive bid process.
Subsequently, the City has been informed hv UAC that they do not WV0t to
extend the contract beyond January l , 1986 at the existing rates. In
order to insure continuity of Worker's Compensation Claims service,
aggregate stop-loss insurance, and catastrophic reinsurance beyond
January l , 1986, City staff has initiated action to request competitive
bids for these services and coverages.
Should you desire additional information on this matter, it will be
provided.
Douglas Hannan
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City Manager -�~-
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ����