ACTION REQUESTED:
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Communication from the City Manager and Director of Human Resources with a Request to APPROVE a CONTRACT with COTTINGHAM & BUTLER for Health Care Consulting Services with the City and the Joint Labor/Management Health Care Committee with the Initial Contract Effective 5/9/2018 through 12/31/2020 at a Cost of $85,000.00 per year to include Actuarial and Governmental Accounting Standards Board (GASB) Services.
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BACKGROUND: In September of 2017, the Labor/Management Health Care Committee sent a Request for Proposal to 28 firms to secure services to provide health care consulting services and to advise the City and the Health Care Committee on a full range of health care issues.
The City received 6 proposals. Staff from the Human Resources Department, along with the Finance Director and the City Manager, selected 4 firms to be interviewed as finalists.
After the finalist interviews, it was the consensus of the interviewing staff to recommend Cottingham & Butler. The full Labor/Management Health Care Committee concurred with this recommendation.
The City has used the expertise of consultants in the health care field since the inception of the Health Care Committee. The consultant provides expert assistance to effectively address major challenges facing the City’s healthcare plan and budget. The primary focus of the consultant will be to perform detailed analysis of plan costs, critically review the City’s plan to address financial issues, inform the City of national and regional health care trends, review discounting arrangements of the City’s Third Party Administrator for medical and pharmacy benefits, explore an aggressive wellness program, and address lowering the City’s GASB liability.
In recommending Cottingham & Butler, the Health Care Committee has selected the firm that will best provide expert advice to explore plan options which will result in a positive impact on the City’s healthcare plan and budget. Cottingham & Butler has experience with municipality plans and extensive experience in fostering positive financial impacts on such plans. Cottingham & Butler did a preliminary review of the City’s plan and were able to provide an impressive interactive model that projected options for the City to lower plan costs both for the City and its participants.
FINANCIAL IMPACT: Annual contract of $85,000 which has been included in the City’s health care budget.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: The City will be provided with expert health care assistance and advice to review the City’s current healthcare plan and address major challenges.
IMPACT IF DENIED: The City will lose expert advice and assistance from a professional in the health care field.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: 03478-190630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Human Resources