Board of Estimate & Contract:
RESOLVED, that an ordinance adopted by the City Council on August 14, 2024, and signed by the Mayor on August 15, 2024, authorizing the Mayor to Enter Into a Contract with Gallagher Bassett for Third-Party Administrator Services ($271,595.00, to be funded from Insurance Premiums Budget Code A.1910.487), be and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE MAYOR
TO ENTER INTO A CONTRACT WITH
GALLAGHER BASSETT FOR THIRD-PARTY
ADMINISTRATION SERVICES
Whereas, by letter dated August 6, 2024, the Corporation Counsel has requested legislation authorizing the Mayor to enter into a contract with Gallagher Bassett to provide third-party administration services for the City’s legal claims; and
Whereas, on June 12, 2024, the City Council of Mount Vernon approved the specifications for the City's proposal for a third-party administrator; and
Whereas, in response to this solicitation, the City received a proposal from Gallagher Bassett (GB), which was opened at the July 2, 2024, Board of Estimate meeting; and
Whereas, upon reviewing GB's proposal and consulting with the City’s insurance broker and Comptroller, the Board of Estimate accepted GB's proposal at its July 16, 2024, meeting; and
Whereas, the services provided by GB will enhance the Law Department's ability to monitor cases, manage its relationship with the third-party administrator and excess carrier, and provide more accurate cash reserves and reports on open cases and trends; and
Whereas, the total anticipated cost for the recommended services is $271,595.00, to be funded from Insurance Premiums Budget Code A.1910.487; Now, Therefore, Be It Resolved That
The City of Mount Vernon, in City Council convened, does hereby ordain, and enact:
Section 1. Authorization. The Mayor is authorized to contract with Gallagher Bassett to provide third-party administration services for the City's legal claims.
Section 2. Compensation. The total anticipated cost for the services provided by Gallagher Bassett shall be $271,595.00.
Section 3. Funding Source. Funds for this contract shall be available in the Insurance Premiums Budget Code A.1910.487.
Section 4. Responsibilities. The Law Department shall oversee the implementation and management of the contract with Gallagher Bassett, ensuring that the services provided enhance the department's ability to monitor and manage legal claims effectively.
Section 5. Definitions.
• Third-Party Administrator (TPA): An external organization contracted to manage legal claims on behalf of the City.
• Excess Carrier: An insurance company providing coverage beyond the limits of the primary policy.
Section 6. Effective Date. This ordinance shall take effect upon its approval by the Board of Estimate & Contract.