Explanation
BACKGROUND:
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding for life insurance is necessary to insure continuation of the life insurance program. The Human Resources Department requests to modify and extend the existing contract with Dearborn National Life Insurance Company and to provide for funding February 1, 2018 through January 31, 2019, for the City’s life insurance program.
Cost estimates were based on 2016-17 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 and from the City's employee benefits consultant. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the second year.
Emergency action is requested to ensure the life insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
Contract Compliance number: 36-2598882
FISCAL IMPACT: To modify and extend the contract with Dearborn National Life Insurance Company to establish the maximum obligation liability, and to authorize the expenditure of $1,000,000 for life insurance services from February 1, 2018, through January 31, 2019. Funding is available in the 2018 budget for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts. Contingent on the passage of ordinances 0004-2018.
Title
To authorize the Human Resources Director to modify and extend the contract with Dearborn National Life Insurance Company to provide all eligible employees life insurance coverage from February 1, 2018, through January 31, 2019, and to authorize the expenditure of $1,000,000.00 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. ($1,000,000.00)
Body
WHEREAS, ...
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