Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Chapter 329 of the Columbus City Code, three short-term disability insurance bid responses were reviewed by the City’s Evaluation Committee, comprised of five members.
Each proposal was evaluated on the following criteria: 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. Dearborn National is recommended as the short term disability insurance administrator. Dearborn National offers the ability to duplicate negotiated benefits. The short term disability insurance administration rate of $2.75 per employee per month is effective February 1, 2017 until January 31, 2018. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the first year.
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the short term disability insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2015-16 trust fund expenditures using a two year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers.
Emergency action is requested to ensure the short term disability program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
Contract compliance number is 36-2598882
FISCAL IMPACT: To enter into contract with Dearborn National to establish the maximum obligation liability, and to authorize the expenditure of $3,240,000 for short term disability administrative and claims services from February 1, 2017 through January 31, 2018. Funding is available in the 2017 budget for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated...
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