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ji ±Loon[ Prospcc-t <br />Village of Mount Prospect <br />Mount Prospect, Illinois <br />INTEROFFICE MEMORANDUM <br />v r <br />TO: DAVID STRAHL, ACTING VILLAGE MANAGER l <br />FROM; FINANCE DIRECTOR <br />DATE: DECEMBER 9, 2014 <br />SUBJECT: GENERAL AND AUTO LIABILITY THIRD -PARTY CLAIMS <br />ADMINISTRATION <br />PURPOSE: <br />To present a recommendation for renewal of the annual service agreement for third - <br />party liability claims administration for the period January 1, 2015 - December 31, 2015. <br />BACKGROUND: <br />To assist in the administration of general and auto liability claims the Village has <br />contracted out the service to a third -party administrator. The Village's current <br />agreement for claims administration expires on December 31, 2014. A new agreement <br />is needed at this time for the current provider to continue to service the Village. <br />DISCUSSION: <br />Gallagher Bassett (GB) is the current service provider for general and auto liability <br />claims administration. The agreement for 2015 contains no changes to the terms and <br />conditions from the prior year. Below is a summary of fees for the prior year and 2015. <br />Service..................._2014 <br />Rates._....._ <br />2014RatesClmaims..Administrati.on <br />.....................................................................1......0.8.2....._ <br />......................................1�......._......1..25.. <br />............_..._.........................._......_.............................................. <br />SIMMS Bankinq Fee <br />:��.. <br />410 <br />...... <br />434 <br />M i n i m u.m...An..�.....������� .�m........ ........m................. <br />nual Fee <br />8..............................,..... <br />....................�..... <br />.m..... ...... <br />w........w®..................�.m.�m.000 8m 000 <br />.....................__.....................Tota.L...Fee.................................._� <br />........ ..........._W.......... $�.9._4.92........................................................... <br />$9....,55.9.... <br />The claims administration fee increased 4.0% ($43) from the prior year's program. The <br />SIMMS Banking fee is an annual flat fee assessed for maintaining the escrow and <br />processing and making payment on claims. This service relieves the Village from <br />having to process payments internally. The SIMMS fee increased 5.9% ($24) from the <br />prior year's program. <br />