Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: April 20, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or their designee,
to execute a Confidentiality and Non-Disclosure Agreement for external auditing services of the City’s
health plan claims between the City, United HealthCare Services, Inc., and BMI Audit Services, LLC;
providing for a severability clause; and providing for an effective date.
INFORMATION/BACKGROUND
In 2020, the City of Denton completed an internal audit on the City’s health plans’ processes and
procedures, including health claims processed by the City’s third-party administrator, United Healthcare
(“UHC”). As a result of the audit, the City’s Internal Auditor recommended that an external audit be
performed on the City’s health plan claims. The Risk Management department has retained the services of
BMI Audit Services, LLC (“BMI”) to complete a full audit of the City’s health plan to review medical and
prescription claims and ensure compliance with the plan’s contracts and other applicable measures.
To perform the audit, BMI must access information from UHC, including claims data containing Protected
Health Information (“PHI”) and other information that UHC considers proprietary and confidential. In this
regard, BMI has requested that the City of Denton execute a Confidentiality and Non-Disclosure
Agreement as a prerequisite to initiating the claims audit.
RECOMMENDATION
Staff recommends approval of a non-disclosure agreement between the City and BMI Audit services,
LLC.
PRINCIPAL PLACE OF BUSINESS
BMI Audit Services, LLC
South Bend, IN
ESTIMATED SCHEDULE OF PROJECT
This contract will expire January 31, 2022.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
FISCAL INFORMATION
These services will be funded from the account General Fund Operating Budget.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Contract
Exhibit 3: LLC Members
Exhibit 4: Ordinance and Non-Disclosure Agreement
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Deby Skawinski, 940-349-7810.
Legal point of contact: Marcella Lunn at 940-349-8333.