Explanation
BACKGROUND:
Funding for dental insurance is necessary to ensure continuation of the city’s dental insurance program. Insurance programs must be maintained in accordance with the negotiated labor contracts. The Department of Human Resources initially contracted with Delta Dental Plan of Ohio, Inc. for three years with the option of two - one-year renewals. The contract originated on February 1, 2021. The Department of Human Resources requests to contract with Delta Dental Plan of Ohio, Inc. through an extension and to provide funding from February 1, 2026 through December 31, 2026 for this program.
In February of 2024 the Department of Human Resources went out to bid for Medical, Rx, COBRA, and Tobacco Cessation programs under RFP026722. On August 13, 2024, RFP026722 was cancelled. the Department of Human Resources reissued this RFP under RFP030095. Due to the resources required for this project, the Department of Human Resources is requesting to extend the Delta Dental Plan of Ohio, Inc. through December 31, 2026. The Department of Human Resources will go out to bid in 2026 for a third-party administrator for dental insurance.
Cost estimates for 2026 claims and administrative fees are based on 2023, 2024 and 2025 benefit fund expenditures using an average of actual city utilization, expected changes due to union negotiations, contract terms and input from the City's employee benefits consultant.
Emergency action is requested to ensure the dental insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding for this contract is budgeted and available in the 2026 Employee Benefits Fund. This ordinance is contingent on the passage of the 2026 insurance appropriation ordinance 3195-2025.
Title
To authorize the Director of the Department of Human Resources to contract with Delta Dental Plan of Ohio, Inc. to provide all eligible employees dental insurance coverage from February 1, 2026 through December 31, 2026; to authorize the expenditure of $8,760,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary, to pay the costs of said contract; to waive the competitive bidding provisions of Columbus City Codes; and to declare an emergency. ($8,020,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to contract with Delta Dental Plan of Ohio, Inc. to provide all eligible employees dental insurance from February 1, 2026 through December 31, 2026; and
WHEREAS, it is necessary to authorize the expenditure of up to $8,020,000.00, or so much thereof as may be necessary, to pay contract costs for dental insurance services; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Human Resources in that it is immediately necessary to modify and extend the contract with Delta Dental Plan of Ohio, Inc. to ensure the dental insurance program for city employees is able to commence as soon as contractually possible and for the immediate 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 Director of the Department of Human Resources is hereby authorized to enter into contract with Delta Dental Plan of Ohio, Inc. to provide dental insurance to all eligible employees from February 1, 2026 through December 31, 2026.
SECTION 2. That the expenditure of $8,020,000.00 or so much thereof as may be necessary, for dental insurance coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550205 | Program: RM005 | Amount: $320,000.00 (Dental Admin)
Department: 4602 | Fund: 5502 | Subfund: 550205 | Program: RM006 | Amount: $7,700,000.00 (Dental 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 finds it to be in the best interests of the City to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes and does hereby waive the same.
SECTION 5. 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.