ITEM TITLE:
Approval of Professional Services Agreement with Parker, Smith, Feek for Employee Benefits Consulting Services in the amount of $55,000.
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $55,000
Unencumbered Balance: n/a
Funding Source: pro-rated by department in Benefits cost code, 41300
RECOMMENDATION:
Approve Professional Services Agreement with Parker, Smith, Feek for Employee Benefits Consulting Services in the amount of $55,000.
SUMMARY STATEMENT:
• This contract reflects the award to one of two respondents to a recently published RFP. Please see the attached staff report from the December 19, 2017 Council meeting for additional background.
• The broker contract reflects a $17K increase over the incumbent broker’s proposal. While this fee is above budgeted 2018 figure, it is a component of a $5MM plan, and staff anticipates that the plan renewal will contain efficiencies to more than offset this increased broker/consultant fee.
• The Health Plan renews on April 1, 2018. Staff will present renewal figures to Council in March, and will keep participants and stakeholders apprised via the health insurance review committee in the weeks leading up to the renewal proposal.
• Contract costs are pro-rated to each department’s Benefits line item, which are then remitted via payroll process to the City’s Health Insurance Fund. For this reason, the unencumbered balance and funding source information is not specified in the agenda statement.
• The Health Insurance Fund has an unencumbered balance of approximately $3.5MM.
• The contract and appendices have been reviewed by the City Attorney and are approved as to form.
Attachments: Health Insurance Broker-Consultant PSF PSA FINAL
Staff Report 12-19-2017