Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.14 of the Columbus City Codes, four COBRA continuation insurance services bid responses were reviewed by the City's Evaluation Committee, comprised of five members.
Each proposal was evaluated on the following criteria as required by section 329.14: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. United Healthcare Insurance Company is recommended as the COBRA benefits administrator. United Healthcare Insurance Company has provided excellent services for the City of Columbus. The contract is effective February 1, 2014 until January 31, 2015, renewable annually with a two year renewal option. United Healthcare Insurance Company offers the ability to duplicate negotiated benefits.
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the COBRA continuation insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2012-13 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers.
Contract compliance number 41-1289245
FISCAL IMPACT: To modify and extend the existing contract with United HealthCare Insurance Company to establish the maximum obligation liability, and to authorize the expenditure of $10,000.00 for COBRA administrative services from February 1, 2014 through January 31, 2015. Funding is available in the 2014 budget for this contract.
Title
To authorize the Human Resources Director to enter into contract with United HealthCare Insurance Company to provide all eligible employees COBRA continuation insurance coverage from February 1, 2014 through January 31, 2015 and to authorize the expenditure of $10,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($10,000.00)
Body
WHEREAS, it is necessary to authorize the expenditure of up to $10,000.00 or so much thereof as may be necessary to pay contract costs for COBRA continuation insurance services;
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to pay these costs in order to avoid disruption in employee benefits 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 enter into contract with United HealthCare Insurance Company to provide COBRA continuation insurance to all eligible employees from February 1, 2014 through January 31, 2015.
SECTION 2. That the expenditure of up to $10,000.00, 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.