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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 6/13/2022 | | DEPARTMENT: | HR | | DIRECTOR: | LaShon Ross, Deputy City Manager | | AGENDA ITEM: | Modification to Benefits Consulting and Risk Management Broker Contract | | RECOMMENDED ACTION: | Approval of Contract Modification |
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| | | | | | | | ITEM SUMMARY To approve an expenditure for the purchase of Employee Benefits Broker and Consulting Services and Risk Management Broker Services for five (5) additional automatic one-year renewals in the estimated annual amount of $275,000 from Hays Companies for Human Resources and Risk Management Department; and authorizing the City Manager to execute all necessary documents. (Contract No. 2017-0019-C, Modification No. 1) Approved |
| | | | | | | | PREVIOUS ACTION/PRESENTATION On November 13, 2017, City Council awarded a contract for Employee Benefits Broker and Consulting Services and Risk Management Broker Services to Hays Companies. |
| | | | | | | | BACKGROUND The City currently has a contract with Hays Companies to perform Employee Benefits Broker and Consulting Services and Risk Management Broker Services. Because Hays Companies continues to provide excellent services and to ensure there is no gap in these services, the City is requesting a modification to this contract to add five (5) additional automatic one-year renewals.
The annual expenditures related to the Employee Benefits Broker and Consulting Services is $120,000 and the annual expenditures pertaining to the Risk Management Broker Services for the City is $155,000, which Hays has agreed to hold constant for the extension.
If not approved, the impact of this contract not being extended would be that the City would be without a benefits consultant and risk management broker. Specific items that would be impacted would be the City’s ability to obtain insurance policies for the City as well as providing data to guide decisions on the City’s health plan and other benefits.
The City is exempt from the competitive bid process for this purchase as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(4). (City of Plano Internal Contract No. 2017-0019-C) |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This item approves an extension to a contract for Employee Benefits Broker and Consulting Services and Risk Management Broker Services for an additional five (5) automatic one-year renewals. Funding for this contract will be made through the Health Claims Fund, 115 Other Postemployment Benefits Trust Fund and Risk Fund within approved budget appropriations. The anticipated future cost is $1,397,917 if all renewal years are exercised ($229,167 in FY 2022-23, $275,000 per year in FY 2023-24 through FY 2026-27, and $68,750 in FY 2027-28).
Approval of this item supports the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government. |
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