Madison, WI Header
File #: 86063    Version: 1 Name: Authorizing a non-competitive service contract with Wisconsin Municipal Mutual Insurance Company (WMMIC) for third party administration of the City’s workers’ compensation claims.
Type: Resolution Status: Report of Officer
File created: 11/13/2024 In control: FINANCE COMMITTEE
On agenda: 12/10/2024 Final action:
Enactment date: Enactment #:
Title: Authorizing a non-competitive selection contract with Wisconsin Municipal Mutual Insurance Company (WMMIC) for third party administration of the City’s workers’ compensation claims.
Sponsors: Yannette Figueroa Cole
Attachments: 1. Service Agreement.pdf, 2. 2025-2030 POS Contract.pdf, 3. 2020-30 non-competitive form.pdf

Fiscal Note

The proposed authorizes a 5-year non-competitively bid contract with the Wisconsin Municipal Mutual Insurance Company to administer the City’s worker compensation fund. The annual cost of the contract is $160,000. Funds for this contract are included in the Mayor’s 2025 Executive Budget.

Title

Authorizing a non-competitive selection contract with Wisconsin Municipal Mutual Insurance Company (WMMIC) for third party administration of the City’s workers’ compensation claims.

Body

WHEREAS, the City transferred the third party administration of its worker's compensation claims to Wisconsin Municipal Mutual Insurance Company (WMMIC) in March, 2004, as a result of a competitive RFP; and

 

WHEREAS, the City and WMMIC have had a successful working relationship in the administration of the City’s worker's compensation claims; and

 

WHEREAS, the City and WMMIC have agreed upon the conditions and terms of payment to WMMIC for a five year agreement from January 1, 2025 through January 1, 2030; and

 

WHEREAS, the City is an equity owner of WMMIC; and

 

WHEREAS, after examining the costs and benefits of considering a switch in providers for this service through a new RFP and the exceptional service provided by WMMIC under the existing contract, the City finds it advantageous to continue with a new contract with WMMIC; and

 

WHEREAS, after checking with other WMMIC members not using not using WMMIC as their workers’ compensation TPA, we find that WMMIC’s renewal rates are more competitive than what others are paying; and

 

WHEREAS, continuing with WMMIC gives the City stability in costs and service, while any change in TPA may not provide such advantages, and would inherently involve significant direct and indirect transitional costs; and

 

WHEREAS, MGO 4.26 requires Common Council approval of service contracts of $50,000 or more if the contractor was not selected through a competitive selection process, and the reasons for selecting this contractor are set forth above and in the attached Noncompetitive Selection Request Form;

 

NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Clerk are authorized to execute a service contract with WMMIC for the above described services for five- year term.