Title
Correction to Funding Amount in Ordinance S-45874 for Health and Benefits and Actuarial Consulting Services (Ordinance S-46590)
Description
Request to authorize the City Manager, or his designee, to correct payment authority for Contract 142138 with Mercer Health and Benefits, LLC, in the amount of $1.4 million with a revised aggregate value of $2.5 million, to provide health and benefits, and actuarial consulting services to the Human Resources Department. Further request authorization for the City Controller to disburse all funds related to this item. There is no impact to the General Fund. The costs for these services are paid by the Health Care Benefits Trust Fund.
Report
Summary
On June 26, 2019, Ordinance S-45874 authorized the City Manager to amend the contract by increasing funding and expanding the scope of work to provide consulting services. The ordinance increased the payment authority in an amount not to exceed $1.4 million. The intent of the Human Resources Department was to request an additional $1.4 million. The funds are needed for Data Warehouse Wellness Initiative, Request for Proposals support, Employee Benefits Microsite Management, benefits claims audit, and a Health Care Benefits Trust Fund reserves study, all of which are anticipated to produce cost savings for the employees and the Health Care Trust Fund.
Procurement Information
In accordance with Administrative Regulation 3.10, a Request for Proposals was conducted in 2015 and Contract 142138 began Jan. 5, 2016. The contract expires Jan. 4, 2021, and the Human Resources Department will conduct a Request for Proposals for a new contract in the summer of 2020.
Contract Term
The original contract term was for a three-year period, beginning on Jan. 5, 2016, with two, one-year extension options exercised by the City.
Financial Impact
Upon the approval of the correction to Ordinance S-45874 for an amount of $1.4 million, the revised aggregate value will be $2.5 million through the term of Jan. 4, 2021. There is no impact to the General Fund. The costs for these services are paid by the Health Care Benefits Trust Fund.
Concurrence/Previous Council Action
Contract 141100 was approved by Formal Council action on June 3, 2015.
Department
Responsible Department
This item is submitted by Deputy City Manager Toni Maccarone and the Human Resources Department.