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 Standard Insurance, and to provide additional appropriation for the continuation of the Life insurance program. Additional appropriation is needed due to higher than projected life premium and labor negotiation changes.
In February 2006, $1.18 million was appropriated to Standard Insurance; however, to date premium costs have exceeded $951,062.00 thereby necessitating addition appropriation to meet anticipated annual expenses. Total projected expense is $1.27 million, year to date $1.18 million has been appropriated, and therefore an additional $90,000 is needed. The additional appropriation and modification of contract does not require additional cash funding. Cash funding is available in the total Employee Benefits Fund from all insurance subfunds.
Contract compliance number: 93-0242990
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend contract with Standard Insurance, to increase the maximum obligation liability, and to authorize the expenditure of $90,000 for Standard Insurance through January 31, 2007, and to provide additional appropriations for life insurance premium expenses. Funding is available for this modification in the Employee Benefits Fund. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
To authorize the City Auditor to appropriate $90,000 from within the unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Standard Insurance to provide all employees with life insurance coverage through January 31, 2007, and to authorize the expenditure of $90,000 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. ($90,000.00)
Title
To authorize the City Auditor to appropriate $90,000 from within the unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Standard Insurance to provide all employees with life insurance coverage through January 31, 2007, and to authorize the expenditure of $90,000 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. ($90,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract to provide all eligible employees life insurance through January 31, 2007; and
WHEREAS, it is necessary to authorize the expenditure of $90,000 ; or so much thereof as may be necessary to pay contract costs for group life insurance coverage; and
WHEREAS, it is necessary to authorize the appropriation of $90,000 ; or so much thereof as may be necessary to pay contract costs for life insurance coverage from the unappropriated balance of the Employee Benefits Fund; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary for aforementioned purpose to ensure continued coverage for employees 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 City Auditor is hereby authorized and directed to appropriate the sum of $90,000 to the Employee Benefits Fund, from the unappropriated funds in the Employee Benefits Fund and all monies estimated to come into said fund from any and all sources, and unappropriated for any other purpose.
SECTION 2. That the Human Resources Director is hereby authorized to modify and extend the contract with Standard Insurance (DL 011627-01), to provide all eligible employees life insurance coverage through January 31, 2007.
SECTION 3. That the expenditure and appropriation of $90,000 , or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Subfund 203, Department of Human Resources 46-01, OL1 -03, OL3-3362, OCA 461000, Amount $90,000.00
SECTION 4. 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.