STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: October 23, 2019
COUNCIL DISTRICT(S): All
DEPARTMENT: Office of Procurement Services
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
Title
Authorize Supplemental Agreement No. 3 to the consultant contract with Holmes Murphy & Associates, LLC to provide benefits consulting services and auditing services of medical and pharmacy benefit plans and to extend the term from November 1, 2019 through June 30, 2020 - Not to exceed $168,750.00, from $1,125,000.00 to $1,293,750.00 - Financing: Employee Benefits Fund
Body
BACKGROUND
This consulting contract provides the City with benefits consulting services and auditing services of medical and pharmacy benefit plans. This extension of the contract term will continue to provide the City with assistance in maximizing employee benefit services and to offer advice on options to mitigate costs. The consultant is also responsible for keeping the City's Plan Administrators and City Attorney's Office informed of best practices and advising on any pending legislation that can impact the benefits plan. Additionally, the consultant will perform tasks such as:
• Conduct audits of the medical and pharmacy vendors
• Conduct annual plan evaluations
• Develop funding strategies
• Project plan costs
• Review proposals and provide recommendations
• Conduct benchmark studies and surveys
• Conduct required Governmental Accounting and Standards Board actuarial valuations
The City offers medical, dental, and vision coverage to approximately 22,000 participants. These plans are administered through the Benefits Division of the Human Resources Department.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On November 12, 2014, City Council authorized a three-year service contract, with two, one-year renewal options, to provide benefits consulting services and auditing services of medical and pharmacy benefit plans with Holmes Murphy & Associates by Resolution No. 14-1877.
On September 27, 2017, City Council authorized Supplemental Agreement No. 1 to exercise the first of two, one-year renewal options to the consultant contract with Holmes Murphy & Associates to provide benefits consulting services and auditing services of medical and pharmacy benefit plans by Resolution No. 17-1542.
On December 12, 2018, City Council authorized Supplemental Agreement No. 2 to exercise the second of two, one-year renewal options to the consultant contract with Holmes Murphy & Associates to provide benefits consulting services and auditing services of medical and pharmacy benefit plans by Resolution No. 18-1762.
FISCAL INFORMATION
Employee Benefits Fund - $168,750.00
M/WBE INFORMATION
In accordance with the City’s Business Inclusion and Development Plan adopted on October 22, 2008, by Resolution No. 08-2826, as amended, the M/WBE participation on this contract is as follows:
|
Contract Amount |
Category |
M/WBE Goal |
M/WBE % |
M/WBE $ |
|
$168,750.00 |
Other Services |
23.80% |
23.82% |
$40,200.00 |
|
• This contract exceeds the M/WBE goal. |
|
• Supplemental Agreement No. 3 - 10.06% M/WBE participation |
OWNER
Holmes Murphy & Associates, LLC
Dan Keuogh, President
Chris Boyd, Vice President
Ellen Willadsen, Chief Financial Officer
Chris Nelson, Secretary