TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Human Resources |
Cathryn Laird |
425-556-2125 |
DEPARTMENT STAFF:
|
Human Resources |
Nicole Bruce |
Sr HR Analyst/Benefits Administrator |
TITLE:
title
Approval of a Consultant Agreement with Arthur J. Gallagher & Co. for Healthcare Broker Services in the Amount of $110,000 Per Year
OVERVIEW STATEMENT:
recommendation
The City of Redmond provides a comprehensive benefits program to our employees. Our Healthcare Broker is an integral part of offering these benefits. The Healthcare Broker assists with benefits strategy and actuarial analysis, plan compliance, negotiation of rates and plan changes with benefit vendors, benefit education communication tools, eligibility management, and COBRA administration.
body
☐ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
Council must approve any contracts $50,000 and over.
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
Approval of a broker contract will allow Human Resources staff to continue to partner with our broker to ensure the City has a competitive benefits package for employees that is compliant, cost effective and sustainable for employees and their families.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
The broker contract is anticipated to cost $110,000 per year. The contract is for two years with the ability to have two additional two-year renewals at the same cost per year for all six years.
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
N/A
Budget Priority:
Responsible Government
Other budget impacts or additional costs: ☐ Yes ☒ No ☐ N/A
If yes, explain:
N/A
Funding source(s):
Medical Self Insurance Fund (511)
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
9/28/2021 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
The current broker contract will expire at the end of September 30, 2021 and we will want the new contract to go into effect October 1, 2021.
ANTICIPATED RESULT IF NOT APPROVED:
We will not have a contract with a benefits broker who can assist us with benefit renewals and vendor negotiation for the 2022 plan year.
ATTACHMENTS:
Attachment A: General Services Agreement
Exhibit A: Scope of Work
Exhibit B: Work Schedule
Exhibit C: Payment Schedule
Exhibit D: Modifications