DEPARTMENT: Human Resources
DEPARTMENT HEAD: Lori Steward, Human Resources Director
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Employee Benefits Consulting Contract
SUMMARY:
This ordinance authorizes the City Manager or her designee to execute an amendment extending the term of the contract with Buck Consultants, LLC, for Employee Benefit Consulting Services on a month to month basis beginning January 1, 2016. The Benefits consultant services for active and retired employees and their dependents will include actuarial valuation analysis and accompanying reports, recommendations for meeting the IRS filing and distribution requirements, and recommendations for adherence to legislative updates impacting self-insured entities. Funding for this ordinance was authorized in Ordinance 2015-03-12-0200.
BACKGROUND INFORMATION:
Buck Consultants, LLC was contracted to provide benefits consulting services for active and retired civilian employees for the period from June 19, 2015 to December 31, 2015. This amendment will extend the terms of the contract on a month-to-month basis beginning January 1, 2016.
Benefit consulting services will include actuarial valuation analysis for compliance with GASB 45 regulations, considerations for modifications to existing Pre-65 retiree medical benefits, and recommendations for adherence to Federal and State regulations impacting the delivery of employee benefits plans.
Human Resources and the Purchasing division of the Finance Department jointly developed and issued a Request for Proposals (RFP) for a Benefits Consultant that is anticipated to be brought for Council action in February 2016. In order to bridge the gap between the end of the current Benefits Consultant contract and the effective date of a new contract, the Human Resources Department seeks to extend the Benefits Consulting contract with Buck Consultants, LLC, on a month to month basis beginning January 1, 2016 to the effective date of a new vendor contract or the exhaustion of remaining funds per the current contract whichever occurs first.
ISSUE:
This Ordinance will execute an amendment to extend the contract on a month-to-month basis with Buck Consultants, LLC, beginning January 1, 2016 for all ongoing benefits consulting needs for active and retired civilian employee plans.
ALTERNATIVES:
Should this contract not be approved, Human Resources would not have an Employee Benefits Consultant effective January 1, 2016 and would risk non-compliance with Federal and state regulations impacting the delivery of benefit programs to the employees, retirees and their dependents.
FISCAL IMPACT:
This Ordinance extends the duration of the contract with Buck Consultants, LLC on a month-to-month basis beginning January 1, 2016, but does not amend the agreed upon provision for services in an amount not to exceed $275,000 through the duration of the contract. Funding for remaining services is available in the FY 2016 Employee Benefits Insurance Fund Budget. No additional funding is authorized in this extension as this contract will terminate upon the effective date of a new vendor contract or the exhaustion of remaining funds per the current contract, whichever occurs first.
RECOMMENDATION:
Staff recommends approval of this ordinance to execute an amendment to extend the contract with Buck Consultants, LLC, on a month-to-month basis beginning January 1, 2016 to the effective date of a new vendor contract or the exhaustion of remaining funds per the current contract whichever occurs first.