Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

Agenda Item # 3





Columbus Consolidated Government

Council Meeting

July 22, 2014



Agenda Report # 08





TO: Mayor and Council



SUBJECT: Benefits Manager Contract



INITIATED: Human Resources Department



Recommendation: Approval is requested to approve a one year extension of the

annual contract for benefits manager with Northwestern Benefits Corporation of

Georgia, beginning June 1, 2014 through May 1, 2015.



Background: The three year contract with Northwestern Benefit Corporation ended

May, 2014. After consultation with the City Manager, the Human Resources

Director requested to extend the contract one additional year, rather than

administering a new RFP at this time. There are several reasons for requesting

the one year extension:



1. The City was just getting the Health and Wellness Center started and

Northwestern was intimately involved in the process. We did not want to lose

this continuity.

2. The City was working diligently to control spiraling health insurance costs,

and Northwestern was again intimately involved in redesigning our healthcare

plan.

3. Major changes were happening with the Affordable Care Act (ACA) that

impacted health insurance. Again, Northwestern was involved in assisting the

City to be compliant with the recent ACA laws.

4. The former Human Resources Director, Tom Barron, retired in March 2013,

which would have been the time to begin working on the new specifications for

an RFP. Due to the personnel transition, it was not a good time to conduct an

RFP.

For these reasons, and for stability of the City's healthcare plan, it was

determined that extending the contract one year was in the City?s best interest.

Analysis: The City has invested significant productive resources in

transitioning responsibilities to a benefits manager that continues to

strengthen control over our multi-million dollar benefits investment.

Northwestern has performed well during the past three years of the contract.

They have provided excellent benefits management service to the CCG, our

employees and retirees and to the Retirees? Health Benefits Committee. During

the past three contract year periods, Northwestern has performed well in all

areas, improving our open enrollment processes, maintaining tighter controls

over our benefits carriers, provided timely information about benefits issues,

provided an improved on-line benefits enrollment and management system,

assisting with implementation of employee Health and Wellness Center, and

provided guidance on healthcare reform implementation.



Financial Considerations: There is no additional cost to the City for

contracting with Northwestern, as payment for services will continue to be from

commissions.



Projected Annual Fiscal Impact Statement: Although an exact number cannot be

calculated, continuing to utilize a benefits manager is expected to generate a

continued positive financial impact.



Legal: Authorization of Council to extend the contract with Northwestern is

required.



Recommendation/Actions: The City Manager, Human Resources Director, Finance

Director and Internal Auditor recommend the proposed contract extension with

Northwestern.



A RESOLUTION

NO._____





A RESOLUTION AUTHORIZING A ONE-YEAR EXTENSION OF THE ANNUAL CONTRACT FOR

BENEFITS MANAGER WITH NORTHWESTERN BENEFIT CORPORATION OF GEORGIA, BEGINNING

JUNE 1, 2014 THROUGH MAY 31, 2015.



WHEREAS, the three year contract with Northwestern Benefit Corporation ended

May, 2014. After consultation with the City Manager, the Human Resources

Director requested to extend the contract for one additional year, for various

reasons, in the best interest of the City; and,



WHEREAS, during the past three contract year periods, Northwestern has

performed well in all areas, improving our open enrollment processes,

maintaining tighter controls over our benefits carriers, provided timely

information about benefits issues, provided an improved on-line benefits

enrollment and management system, assisting with implementation of employee

Health and Wellness Center, and provided guidance on healthcare reform

implementation.



NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:



That the City Manager is hereby authorized to extend the annual contract for

benefits manager with Northwestern Benefits Corporation of Georgia, for (1) one

additional year, beginning June 1, 2014 through May 31, 2015.

________________________



Introduced at a regular meeting of the Council of Columbus, Georgia, held the

_________ day of ____________, 2014 and adopted at said meeting by the

affirmative vote of ________ members of said Council.





Councilor Allen voting _______________.

Councilor Baker voting _______________.

Councilor Barnes voting _______________.

Councilor Davis voting _______________.

Councilor Henderson voting _______________.

Councilor Huff voting _______________.

Councilor McDaniel voting _______________.

Councilor Thomas voting _______________.

Councilor Turner Pugh voting _______________.

Councilor Woodson voting _______________.





_____________________________ _________________________

Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor

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