Explanation
BACKGROUND:
Funding for runout of short-term disability claims and administrative fees is necessary to complete the requirements of the city’s short term disability program under the Hartford Life and Accident Insurance Company. The Department of Human Resources requests to contract with the Hartford Life and Accident Insurance Company and to provide funding from January 1, 2027 through December 31, 2027 for this program. Funding is requested for runout claims and administrative fees continuing through December 31, 2027. This contract was initiated on February 1, 2021.
In April of 2026, the Department of Human Resources, with assistance from Marsh & McLennan Agency, the City’s employee benefits and wellness consultant, went out to bid for a short-term disability third party administrator via RFP032768.
The RFP team interviewed 6 short term disability third party administrators as finalists. After careful consideration and evaluation, Metropolitan Life Insurance Co. was selected as being the lowest and best bid for short-term disability program services for the City. Due to this vendor change, runout claims and administrative fees need to be paid under existing contractual obligations.
The maximum obligation liability for short term disability program services for run out claims and administration fees under the Hartford Life and Accident Insurance Company is $225,000.00.
This ordinance is contingent on the passage of the 2027 insurance appropriation ordinance 2680-2026.
FISCAL IMPACT: Funding is available in the 2027 Employee Benefits Fund for this contract.
Title
To authorize the Director of the Department of Human Resources to enter into a contract with the Hartford Life and Accident Insurance Company and to provide all runout claims and administrative fees for the short term disability program from January 1, 2027 through December 31, 2027; to authorize the expenditure of $225,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes. ($225,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with the Hartford Life and Accident Insurance Company. to provide all runout claims and administrative fees for the short-term disability program from January 1, 2027 through December 31, 2027; and
WHEREAS, it is necessary to authorize the expenditure of up to $225,000.00, or so much thereof as may be necessary to pay contract costs for runout claims and administrative fees for the short-term disability program; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Human Resources to request contract and expenditure authority; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Human Resources is hereby authorized to enter into contract with the Hartford Life and Accident Insurance Company to provide all runout claims and administrative fees for the short-term disability program from January 1, 2027 through December 31, 2027.
SECTION 2. That the expenditure of $225,000.00 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550208 | Program: RM005 | Amount: $25,000.00 (STD Admin)
Department: 4602 | Fund: 5502 | Subfund: 550208 | Program: RM006 | Amount: $200,000.00 (STD Claims)
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That City Council hereby finds it to be in the best interests of the City of Columbus to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes and does hereby waive the same.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.