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File #: AM No. 21-151   
Type: Consent Item Status: Passed
File created: 9/22/2021 In control: City Council
On agenda: 10/5/2021 Final action: 10/5/2021
Title: Approval of a Consultant Agreement with Arthur J. Gallagher & Co. for Healthcare Broker Services in the Amount of $110,000 Per Year
Attachments: 1. Agenda Memo, 2. Attachment A: General Services Agreement, 3. Exhibit D, Modifications

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