Explanation
BACKGROUND:
To maintain insurance programs in accordance with the negotiated labor contracts, additional funding for COBRA administrative services is necessary. The Human Resources Department requests to modify and extend the existing contract with Chard Snyder and to provide for funding February 1, 2019 through January 31, 2020, for the City’s COBRA program.
Cost estimates were based on 2017-18 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 third year.
Emergency action is requested to ensure the COBRA administrative services for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
Contract compliance number 31-1239992
FISCAL IMPACT: To modify and extend the contract with Chard Snyder to establish the maximum obligation liability, and to authorize the expenditure of $7,000.00 for COBRA administrative services from February 1, 2019 through January 31, 2020. Funding is available in the 2019 budget for this contract. This ordinance is contingent on the passage of the 2019 insurance appropriation ordinance 0013-2019.
Title
To authorize the Human Resources Director to modify and extend the contract with Chard Snyder to provide all eligible employees COBRA continuation insurance coverage from February 1, 2019 through January 31, 2020 and to authorize the expenditure of $7,000.00 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. ($7,000.00)
Body
WHEREAS, it is necessary to authorize the expenditure of up to $7,000.00, or so much thereof as may be necessary, to pay contract costs for COBRA continuation insurance services; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Human Resources in that it is immediately necessary to modify a contract with Chard Snyder in order to allow it to commence as soon as contractually possible, thereby maintaining continuity of service;
Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Human Resources Director is hereby authorized to modify and extend the contract with Chard Snyder to provide COBRA continuation insurance to all eligible employees from February 1, 2019 through January 31, 2020.
SECTION 2. That the expenditure of $7,000.00 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550206 | Program: RM003
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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.