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 Ceridian Benefits Service, and to provide additional funding for the continuation of the COBRA insurance program. Cost estimates were based on 2002-2003 trust fund expenditures trended on the basis of a three-year average of actual City utilization in conjunction with industry trends. The contract was awarded in 2002 as a result of an extensive RFP process. This contract is for a three-year period renewable annually, subject to annual appropriation; this ordinance represents the final renewal option.
Contract Compliance: 59-3424469
FISCAL IMPACT: To modify and extend the existing contract with Ceridian Benefits Services increase the maximum obligation liability, and to authorize the expenditure of $24,040.00 for Ceridian Benefits Services from February 1, 2004 through January 31, 2005. Rates are $32 per qualifying event and $1,000 annual renewal. Funding is available in the 2004 budget for this modification. 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 contract with Ceridian Benefits Services to provide all eligible employees COBRA continuation insurance coverage from February 1, 2004 through January 31, 2005 and to authorize the expenditure of $24,040.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($ 24,040.00 )
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with Ceridian Benefits Services to provide all eligible employees COBRA continuation insurance from February 1, 2004 through January 31, 2005; and
WHEREAS, it is necessary to authorize the expenditure of up to $ 24.040.00 ,or so much thereof as may be necessary to pay contract costs for group COBRA continuation insurance services; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is necessary to modify and extend the contract to ensure continued employee insurance coverage and to pay the associated contract costs 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 Ceridian Benefits Services to provide COBRA continuation insurance to all eligible employees from February 1, 2004 through January 31, 2005.
SECTION 2. That the expenditure of up to $24,040.00, or so much thereof as may be necessary for coverage from the Employee Benefits Funds 502, Department of Human Resources No. 46-01, Character 03, Minor Object 3362, Index No 461029, Subfund 208 is hereby authorized and directed.
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.