Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 11/26/2012
- TITLE
- One Year Health Insurance Consulting Services Contract with Gallagher Benefit Services, Inc.
- PRESENTED BY:
- Patrick M. Weber, Finance Director
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City’s current Health Insurance Consulting Services contract with Gallagher Benefit Services, Inc. expires on the 31st day of December, 2012. The contract is for a period of five (5) years commencing on the 1st day of January, 2008, and ending on the 31st day of December, 2012. The parties mutually desire to extend the end date for the contract by one year to the 31st day of December, 2013.
The Health Insurance Committee has been engaged with Gallagher the last two years to stop the use of reserves in the Health Fund. The City believes that changing consultants in the middle of this process would be detrimental to the City and its employees. The reserves have increased ~$1.1 million in the last nine months.
The Health Insurance Committee has been engaged with Gallagher the last two years to stop the use of reserves in the Health Fund. The City believes that changing consultants in the middle of this process would be detrimental to the City and its employees. The reserves have increased ~$1.1 million in the last nine months.
ALTERNATIVES ANALYZED
The Council may:
• Approve the one year extension; or
• Not approve the one year extension.
• Approve the one year extension; or
• Not approve the one year extension.
FINANCIAL IMPACT
The one year extension will cost $50,750, an increase from calendar year 2012 of $1,500.
RECOMMENDATION
Staff recommends Council approve the one year extension of the Health Insurance Consulting Services contract with Gallagher Benefit Services, Inc.