Explanation
Background Information:
This ordinance authorizes and directs the Director of the Department of Human Resources to modify and renew a contract with Brown & Brown of Massachusetts, LLC for employee benefit audits for the following lines of business: medical, pharmacy, dental and pharmacy market check. In addition, this ordinance authorizes the expenditure and establishes a maximum obligation liability of $145,000.00 to be paid from the employee benefits fund. This ordinance represents the second extension of the available two extensions under this contract or year five of the contract. Every year the contract renewal is subject to available appropriation and funding. This is the final available extension. The time period for this contract is August 1, 2024 through December 31, 2025. This contract is for seventeen (17) months to allow for the auditors to complete annual audit services, which is the basis for this modification and renewal legislation. At the time the contract was initially executed, pharmacy reconciliation files were available earlier in the year. At this time, pharmacy reconciliation files are not available until the fall of the following year (i.e., 2024 plan year reconciliations files will be available in the fall of 2025). The Department of Human Resources is going out to bid for audit services in 2025 and will set the new contract dates to line up with the service deliverables. Appropriations for this expense were approved under ordinance 3012-2023.
Previous contract and expenditure authority was provided under 1774-2020, 1239-2021, 1619-2022 (merger), 1861-2022 and 1313-2023.
The maximum fees for these services from August 1, 2020 through December 31, 2025 will not exceed
$684,500.00
Fiscal Impact: Funding for this contract totals $145,000.00 and is budgeted in the 2024 employee benefits fund budget. Every year, contract renewal is subject to available and adequate appropriation and funding. The appropriations for this expense were included in the 2024 Other Funds operating budget, Ordinance 3012-2023.
Title
To authorize the Director of the Department of Human Resources to modify and renew a contract with Brown & Brown of Massachusetts, LLC, for employee benefit audits for medical, pharmacy, dental and pharmacy market checks for the period August 1, 2024 through December 31, 2025; and to authorize the expenditure of $145,000.00 from and within the Employee Benefits Fund. ($145,000.00)
Body
WHEREAS, it is in the best interest of the City to have employee benefit audits performed on various insurance lines of business;
WHEREAS, it is necessary to authorize the expenditure of up to $145,000.00, or so much thereof as may be necessary to pay contract costs for employee benefit audits; and
WHEREAS, the contract with Brown & Brown is from August 1, 2024 through December 31, 2025; and
WHEREAS, it is necessary to modify the contract to provide for a seventeen (17) month final contract term to allow all audits to be completed; and
WHEREAS, funds for this appropriation are currently available in the Employee Benefits Fund 5502; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Human Resources Department is hereby authorized to enter into a contract renewal and modification with Brown & Brown of Massachusetts, LLC to perform employee benefit audits for medical, dental, pharmacy and pharmacy market checks.
SECTION 2. That the expenditure of $145,000.00, or so much thereof as may be necessary, is hereby authorized to be expended from the Employee Benefits Fund 5502 in object class 03 Services, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.