Title
Increase Expenditure Authority for Life Insurance Services (Ordinance S-46544)
Description
Request to authorize the City Manager, or his designee, to authorize additional payment authority for Contract 141100 with Minnesota Life Insurance Company, in the amount of $150,000 with a revised aggregate value of $4,980,000, to provide occupational accidental death and dismemberment insurance benefits for sworn Police and Fire personnel. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The additional amount is needed due to the increase of occupational accidental death and dismemberment insurance benefits for sworn Police and Fire personnel pursuant to A.R.S. 23-901.01(B). The definition of Line of Duty death has been expanded to include death manifested due to inhalation of smoke or chemical substance while in the course of occupation for sworn Police and Fire personnel.
Procurement Information
In accordance with Administrative Regulation 3.10, a Determination Memo citing the amendment to the contract and needed funds was approved on March 31, 2020. The contract was awarded through a competitive process consistent with the City's procurement processes, as set forth in the Phoenix City Code, chapter 43. The contract expires Dec. 31, 2020 and the Human Resources Department is currently conducting a Request for Proposals for a new contract to be effective Jan. 1, 2021.
Contract Term
The original contract term was for a three-year period, beginning on Jan. 1, 2015, with two, one-year extension options exercised by the City. The City Council approved adding a third one-year option to the contract on June 29, 2019.
Financial Impact
Upon the approval of the additional payment authority of $150,000, the revised aggregate value will be $4,980,000 through the term of Dec. 31, 2020. Funds are available in department’s budget.
Concurrence/Previous Council Action
Contract 141100 was approved by Formal Council action on Oct. 10, 2014.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.