Title
Proposed Amendment No. 1
Contract No. 2101048/SCN-0000394
Third Party Claim Administration
O&M
Body
Agenda of: July 22, 2026
Item No.: 2026-261
Amount: Original Contract Price $1,630,000.00
Proposed Amendment No. 1 650,000.00
Contract Total $2,280,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 30, 2026
RE: Proposed Amendment No. 1
Contract No. 2101048/SCN-0000394
Third Party Claim Administration
Vendor: PMA Management Corporation
Status: Amendment/Change Order
MOTION
Upon recommendation of William M. Wolfson, Deputy Chief Executive Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. 2101048/SCN-0000394, Proposed Amendment No. 1, “Third Party Claim Administration” with PMA Management Corporation, for an increased cost of $650,000.00 for a total cost not to exceed $2,280,000.00 and an increased duration of 365 days for a total duration of 2,190 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
PMA Management Group has managed GLWA’s Third Party Claims Administration contract for the last five (5) years. PMA Management Corporation performs all services required to supervise and administer a self-insured workers’ compensation program for GLWA, and to act as GLWA’s representative in matters relating to GLWA’s obligations under the workers’ compensation laws of the State of Michigan.
This contract also includes administration of GLWA’s general liability, automobile claims and other insurance claims handling.
JUSTIFICATION
PMA Management Corporation has over a century of experience and are among the most experienced in Third Party Administration in the United States. They have been our trusted partner for the past five (5) years.
By engaging PMA Management Corporation, GLWA will benefit from more than administration of workers’ compensation, general liability and auto liability claims.
For example, GLWA will have:
• Access to claims investigations, subrogation, loss control, and safety programs
• Access to a Risk Management Information System (RMIS) and analytical summary reports.
• Access to a variety of clinical programs and networks such as bill review, utilization review, nurse case management, pharmacy benefit management, Medicare Set-Aside services, surveillance services, and subrogation services.
This contract amendment is requested to add additional funds in the amount of $650,000.00 and a time extension of one (1) year. This increase covers increase in claim costs including job injury medical.
PROJECT MANAGEMENT STATUS
Original Contract Time 1,825 days (01/01/2021 - 12/31/2026)
Proposed Amendment No. 1 365 days (01/01/2027 - 12/31/2027)
New Contract Time 2,190 days (01/01/2021 - 12/31/2027)
PROJECT ESTIMATE
Original Contract Price $1,630,000.00
Proposed Amendment No. 1 650,000.00
New Contract Total $2,280,000.00
FINANCIAL PLAN IMPACT
Summary: The financial plan will be adjusted accordingly during the FY 2028 budget preparation to accommodate the proposed contract amount.
Funding Source: Operations & Maintenance (O&M) Budget
Spend Category: Employer Workers Compensation
Cost Center: Employee Benefits (603102)
Estimated Cost by Year and Related Estimating Variance: See table below.
Fiscal Year Amount
FY 2022 Budget (Prorated) $163,000.00
FY 2023 Amended Budget 288,900.00
FY 2024 Amended Budget 303,400.00
FY 2025 Amended Budget 318,600.00
FY 2026 Amended Budget 394,700.00
FY 2027 Budget 351,200.00
FY 2028 Financial Plan (Prorated) 289,200.00
Financial Plan Forecast $2,109,000.00
Proposed Contract Amount $2,280,000.00
Variance (positive/ (negative)) ($ 171,000.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 8, 2026.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.