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 Standard Insurance, and to provide additional appropriation for the continuation of the Life insurance program. Additional appropriation is needed due to higher than projected life claims and labor negotiation changes.
In February 2005, $949,520.00 was appropriated to Standard Insurance; however, to date claim costs have exceeded $767,000.00 thereby necessitating addition appropriation to meet anticipated annual expenses. Total projected expense is $1.14 million, year to date $949,520.00 has been appropriated, and therefore an additional $200,000 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: 93-0242990
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend contract with Standard Insurance, to increase the maximum obligation liability, and to authorize the expenditure of $200,000 for Standard Insurance through January 31, 2006, and to provide additional appropriations for life insurance 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 $200,000 from within the unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Standard Insurance to provide all employees with life insurance coverage through January 31, 2006, and to authorize the expenditure of $200,000 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. ($200,000.00)
...
Click here for full text