Council renews workers’ comp contract with Millennium Risk Management for $540,726.89

Summary

The council approved a one-year renewal of the city’s workers’ compensation administration contract with Millennium Risk Management at $540,726.89; staff said the amount is roughly $50,000 higher than the prior year due to payroll increases and larger claims, and the city discussed the consequences of uncapped claims costs.

Tuscaloosa City Council approved renewal of the annual contract with Millennium Risk Management to administer the city’s workers’ compensation claims for $540,726.89, covering Feb. 1 through Jan. 31.

A presenter for the contract said the increase—about $50,000 over last year—stems from payroll increases and some larger claims. The presenter described timing issues (the invoice arrived after the prior meeting) and apologized for the late submission. The city attorney and staff discussed alternatives for administering claims; the city attorney noted that certain catastrophic, longstanding claims can exceed millions of dollars and that the city’s current arrangements include no cap on lifetime costs, which affects the annual premium. The council approved the renewal by voice vote.

The contract renewal was presented as routine but with note of higher annual cost driven by payroll and claim history. Staff did not present a formal comparison tender or a roll-call vote in the provided transcript.