Explanation
BACKGROUND:
To maintain insurance programs in accordance with the negotiated labor contracts, additional appropriation and funding for COBRA administrative services is necessary. The Human Resources Department requests to modify and increase the existing contract with Chard Snyder, the COBRA program vendor, to provide additional appropriation and funding for the third year of the contract, February 1, 2019 through January 31, 2020, for the City’s COBRA program.
Cost estimates were initially 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. No change is being made to the term of the contract. Due to the increase in utilization of the City’s COBRA services, an additional $5,000.00 is required.
The previous legislation to modify the third contract period was passed via ordinance 0015-2019 and increased by $7,000.00.
Contract compliance number 31-1239992
FISCAL IMPACT:
To modify and increase the contract with Chard Snyder to establish the maximum obligation liability, and to authorize the additional expenditure of $5,000.00 for COBRA administrative services from February 1, 2019 through January 31, 2020. This brings the total cost of this contract to $12,000.00 for 2019. The total obligation under the original contract and all modifications is $35,000.00. Funding is available within the Employee Benefits Fund, medical subfund for this contract modification.
Title
To authorize the Human Resources Director to modify and increase the existing 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 appropriation and expenditure of an additional $5,000.00 from the Employee Benefits Fund, medical subfund or so much thereof as may be necessary to pay the costs of ...
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