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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