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 United Healthcare Insurance Company, and to provide additional expenditure authority for the continuation of the medical insurance program.
Ordinance 0132-2009 authorized the Department of Human Resources to modify and extend the contract with United Healthcare Insurance Company to provide all eligible employees medical insurance coverage from February 1, 2009 through February 28, 2009 and authorized the expenditure of $7,240,000.00 from the Employee Benefits Fund. This ordinance authorizes the Department of Human Resources to modify and extend the contract with United Healthcare Insurance Company through March 31, 2009 and authorizes up to an additional $7,240,000.00 from the Employee Benefits Fund.
Contract compliance number: 31-1142815
FISCAL IMPACT: To modify and extend contract with United Healthcare Insurance Company to establish the maximum obligation liability, and to authorize the expenditure of up to $7,240,000.00 to provide additional expenditures for medical insurance expenses through March 31, 2009. Funding is available for this modification in the 2009 budget. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
Title
To authorize the Human Resources Director to modify and extend the contract with United Healthcare Insurance Company to provide all eligible employees with medical insurance coverage through March 31, 2009, and to authorize the expenditure of $7,240,000.00 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. ($7,240,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract to provide all eligible employees medical insurance through March 31, 2009; and
WHEREAS, it is necessary to authorize the expenditure of $7,240,00.00; or so much thereof as may be necessary to pay contract costs for medical insurance; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to modify and extend the contract with United Healthcare Insurance Company to allow continuous medical insurance coverage 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 contract with United Healthcare Insurance Company, to provide all eligible employees medical insurance coverage through March 31, 2009.
SECTION 2. That the expenditure of up to $7,240,000.00, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Subfund 208, Department of Human Resources 46-01, OL1 -03, OL3-3362, OCA 460007, Amount $240,000.00; and Department of Human Resources 46-01, OL1 -03, OL3-3363, OCA 460004, Amount $7,000,000.00.
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.