Explanation
The Human Resources Director requests to modify and extend the existing contract with Vision Service Plan for one year and to provide funding from February 1, 2021 through January 31, 2022, for this program. Additional funding of the vision insurance program is necessary to insure continuation of the vision insurance program in accordance with the negotiated labor contracts.
The vision insurance program was put out for a RFP, however, due to an administrative oversight, the evaluation committee for the Vision PPO third party administrator project lacked the requisite number of city employees. The Department of Human Resources has therefore concluded that it is in our best interest that the City cancel the project. The Department will rebid the Vision PPO third party administrator later in 2021. Therefore, a 1 year extension on the current VSP Vision contract is requested.
Cost estimates for 2021 are based on 2019-20 benefit 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.
EMERGENCY DESIGNATION: Emergency action is requested to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available within the 2021 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2021 insurance appropriation ordinance 0020-2021.
Title
To authorize the Human Resources Director to modify and extend the contract with Vision Service Plan to provide all eligible employees vision plan administration from February 1, 2021 through January 31, 2022; to authorize the expenditure of $1,076,000.00 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. ($1,076,000.00)
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