City of Columbus - File #: 0034-2006

• File #: 0034-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 12/30/2005
• In control: Administration Committee
• On agenda: 1/30/2006
• Final action: 2/1/2006
• Title: To authorize the Human Resources Director to modify and extend the existing contract with Aetna to provide all eligible employees short term disability insurance coverage from February 1, 2006 through January 31, 2007, and to authorize the expenditure of $2,975,555.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. (2,975,555.00)

Date	Ver.	Action By	Action	Result
2/1/2006	1	MAYOR	Signed
2/1/2006	1	CITY CLERK	Attest
1/30/2006	1	Columbus City Council	Approved	Pass
1/30/2006	1	COUNCIL PRESIDENT	Signed
1/19/2006	1	HR Drafter	Sent to Clerk's Office for Council
1/18/2006	1	HR Drafter	Sent for Approval
1/18/2006	1	CITY AUDITOR	Reviewed and Approved
1/18/2006	1	CITY AUDITOR	Reviewed and Approved
1/18/2006	1	CITY AUDITOR	Contingent
1/17/2006	1	HR Drafter	Sent for Approval	Pass
1/17/2006	1	ODI DIRECTOR	Reviewed and Approved
1/17/2006	1	CITY ATTORNEY	Reviewed and Approved
1/17/2006	1	EBOCO Reviewer	Reviewed and Approved
1/13/2006	1	HR Drafter	Sent for Approval
1/13/2006	1	FINANCE DIRECTOR	Reviewed and Approved
1/13/2006	1	Finance Reviewer	Reviewed and Approved
1/12/2006	1	HR Drafter	Sent for Approval
1/11/2006	1	HR DIRECTOR	Reviewed and Approved
12/30/2005	1	HR Drafter	Sent for Approval

Explanation

BACKGROUND:  To maintain the insurance programs in accordance with the negotiated labor contracts, it is necessary to modify and extend the existing contract with Aetna Insurance provide additional funding for the continuation of the short-term disability insurance program.  Cost estimates were based on 2004-2005 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and input from the City's employee benefits consultant.  The contract was awarded in 2005 as a result of an extensive RFP process.  The contract is for a three-year period, subject to annual appropriation; this ordinance represents the second renewal option.  

Contract compliance number is 06-6033492   

FISCAL IMPACT:  To enter into a contract with Aetna to establish the maximum obligation liability, and to authorize the expenditure of $2,975,555.00 for short term disability administrative and claims services from February 1, 2006 through January 31, 2007.  The administrative fee is $3.02 per employee per month.   Funding is available in the 2006 budget for this contract.  This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts.

Title

To authorize the Human Resources Director to modify and extend the existing contract with Aetna to provide all eligible employees short term disability insurance coverage from February 1, 2006 through January 31, 2007, and to authorize the expenditure of $2,975,555.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency.  (2,975,555.00)

Body

WHEREAS, it is in the best interest of the City of Columbus to modify and extend the existing contract with Aetna to provide all eligible employees short term disability insurance from February 1, 2006 through January 31, 2007; and

WHEREAS, it is necessary to authorize the expenditure of up to $2,975,555.00, or so much thereof as may be necessary to pay contract costs for short term disability insurance services; and

WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is necessary to enter into a contract and to pay the associated contract costs to maintain coverage without interruption for the preservation of the public health, peace, property, safety and welfare;

Now, Therefore,

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

SECTION 1.       That the Human Resources Director is hereby authorized to modify and extend the existing contract with Aetna Insurance to provide short term disability insurance to all eligible employees from February 1, 2006 through January 31, 2007.

SECTION 2.  That the expenditure of up to $2,975,555.00, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Department of Human Resources is hereby authorized and directed.  

Div. No.	OCA	OL1	Subfund	OL3	Amount	Type
46-01	460008	3	211	3362	154,000.00	Adm Fee STD
46-01	461042	3	211	3363	2,821,555.00	Claims STD
TOTAL					2,975,555.00

SECTION 3.      That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage, if the Mayor neither approves nor vetoes the same.