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 Aetna Life Insurance, and to provide additional appropriation for the continuation of the dental insurance program. Additional appropriation is needed due to higher than projected dental insurance claims.
In February 2007, $5 million was appropriated to Aetna Life Insurance; however, to date claim costs have exceeded $4.8 thereby necessitating additional appropriation authority to meet anticipated annual expenses. Total projected expense is $5.95 million, year to date $5 million has been appropriated, and therefore an additional $950,000.00 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: 06-6033492, Expires 2/21/08
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend a contract with Aetna Life Insurance, to increase the maximum obligation liability, and to authorize the expenditure of $950,000.00 for Aetna Life Insurance through January 31, 2008, and to provide additional appropriations for dental claims 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 $950,000.00 from within the unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Aetna Life Insurance to provide all employees with dental insurance coverage through January 31, 2008, and to authorize the expenditure of $950,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergen...
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