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ITEM 25

City Council Memorandum Human Resources Memo No. N/A

Date:

October 14, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Rae Lynn Nielsen, Human Resources Director

From:

Fernanda Acurio, Benefits & Compensation Manager

Subject:

Agreement No. 4802, Employee Benefits Consulting Services

Proposed Motion:

Move City Council approve Agreement No. 4802, with The Segal Company (Western States), Inc., for employee benefits consulting services, in an amount not to exceed $120,000, for the period of one year, beginning January 1, 2025, through December 31, 2025, with the option of up to four one-year extensions.

Background/Discussion:

The city has historically employed the services of a benefits consultant to assist with the administrative provider management of all group and voluntary insurance plans including health and pharmacy, life, dental, vision, flexible spending, and employee assistance. The consultant assists the city in defining and continuously validating long-term benefit strategies that align its needs with those of the plan participants. The consultant is involved in claims and utilization analysis, actuarial analysis of the self-insured plans, plan performance reviews, compliance adherence, competitive solicitation analysis, and negotiations. Additionally, the consultant advises staff of legislative and regulatory changes that impact the city's benefits programs and works with the Health Benefits Trust Board and the city's Employee Healthcare Taskforce to review plan design strategies to reduce healthcare costs while still providing a competitive benefits package. Staff recommends the extension of the Agreement for the term of January 1, 2025, through December 31, 2025.

Evaluation:

The Segal Company (Western States), Inc., has been providing employee benefits consulting and actuary services to the City of Chandler since January 2014. The Segal team has deep knowledge with respect to the city, the Healthcare Benefits Trust Board, the city's benefits plans, the city's plan participants, and the culture of the city, and has established themselves as reliable experts with staff and the Healthcare Benefits Trust Board. Staff has reviewed the specific qualifications and experience offered by Segal and its team of consultants and actuaries and finds the company to be uniquely qualified.

Staff has reviewed the rates offered by The Segal Company and found them to be competitive; there is no cost increase to this agreement. The term of the agreement is January 1, 2025, through December 31, 2025, with the option of up to four one-year extensions.

Financial Implications:

Account No.

Fund Name

Program Name

Dollar Amount

CIP Funded Y/N

741.1290.5219

Other Professional Services

N/A

$120,000

Fiscal Impact

Account No.

Fund Name

Program Name

Dollar Amount

CIP Funded Y/N

741.1290.5219.0.0.0

Medical Self Insurance

N/A

$120,000

Attachments

4802 Agreement