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File #: 1774-2020    Version: 1
Type: Ordinance Status: Passed
File created: 7/17/2020 In control: Administration Committee
On agenda: 7/27/2020 Final action: 7/30/2020
Title: To authorize the Director of Human Resources Department to enter into contract with Claims Technology Inc. for employee benefit audits for medical, dental, pharmacy, pharmacy rebates, short term disability and pharmacy market checks; to authorize the expenditure of $174,500.00 from and within the Employee Benefits Fund; and to declare an emergency. ($174,500.00)
Attachments: 1. Attachment Ord 1774-2020 CTI
Explanation
Background Information: This legislation authorizes the Director of Human Resources to enter into contract with Claims Technology Incorporated for employee benefit audits for the following lines of business: medical, dental, pharmacy, pharmacy rebates, short term disability and pharmacy market checks. The annual contract is in the amount of $174,500.00. This ordinance represents the first of a three year contract, from August 1, 2020 through July 31, 2021. Following the third year, the contract allows for two additional one year extensions if all parties are in agreement. Every year the contract renewal is subject to available appropriation and funding.
The City underwent a Request for Proposal process (RFQ015629) to select a vendor to provide employee benefit audit and market check services. Eight vendors responded and, following a rigorous evaluation process, Claims Technology Incorporated was recommended as the service provider. In addition to being the highest ranked bidder, Claims Technology Incorporated has the resources, expertise and technology to meet the needs of Employee Benefits Program at the most reasonable cost. The contract will be for a three-year period, subject to annual appropriation, with the option for two additional one year extensions.
In 2020, the City will request the following audits begin: medical ($42,500), dental ($23,000), pharmacy ($52,000 - 2 audits: one for 2019 and one for 2020), pharmacy rebates ($47,500 - one for 2019 and one for 2020), and pharmacy market check ($9,500). The short term disability audit will begin mid-2021 and funding for that will be legislated at that time.
The maximum fees for these services from August 1, 2020 through July 31, 2021 will not exceed $174,500.00.
Fiscal Impact: Funding for this contract totals $174,500.00 and is budgeted from and within the 2020 Department of Human Resources' Employee Benefits Fund budget specifically for this purpose. As stated above, this is the firs...

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