Agenda Item # 1
Columbus Consolidated Government
Council Meeting
April 12, 2011
Agenda Report # 624
TO: Mayor and Council
SUBJECT: Benefits Manager Contract
INITIATED: Human Resources Department
Recommendation: Approve a resolution authorizing negotiations for a 1-year
benefits manager contract with Northwestern Benefits Corporation of Georgia.
Background: The City entered a 2-year contract with the current benefits
manager effective June 1, 2009 and expiring on May 31, 2011. The contract
allows annual extensions for up to three (3) additional one (1) year terms,
unless either party gives written notice to the other at least sixty (60) days
before the expiration of the initial or any subsequent term.
Although the contract with the current benefits manager will not be renewed,
the original RFP contains a provision allowing contract negotiations with the
second highest rated proposal. That proposal was submitted by Northwestern.
During the initial contract period, the benefits manager concept has
demonstrated a capability to provide savings and services not otherwise
available to the City. Although we have experienced significant savings to
date, we believe that the real value from having a benefits manger will occur
over the next several years as we address more difficult issues including cost
containment and cost sharing strategies, value-based benefits design, employee
accountability (wellness, care management, culture change, etc.) and
cost/benefit analysis of a possible employee/retiree clinic.
Analysis: Starting with the Benefits Manager RFP process, the City has
invested significant productive resources in transitioning responsibilities to
the benefits manager that continues to strengthen control over our
multi-million dollar benefits investment. If we don?t contract with another
benefits manager, we will be required to invest significant unproductive
resources in the recovery of data, functions and contract administration
currently outsourced to the benefits manager.
CCG full time employment has increased by 180 full time employees since January
2008, with no corresponding increase in Human Resources staffing. The benefits
manager concept was developed as a means of outsourcing what was becoming an
unmanageable workload created by our growing employee population in a manner
that would also improve the efficiency and effectiveness of our benefits
management at little to no cost. Without a benefits manger, additional HR
staffing is urgently needed to enable reabsorbing the outsourced benefits
management functions.
Northwestern maintains a customer service center in Atlanta and a local office
located at 5820 Veterans Parkway. In addition to their local presence,
Northwestern has a confirmed reputation for providing excellent benefits
management services to many other clients, including several Georgia counties
and cities.
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. Managing benefits internally will create
necessary but recurring annual expenses for employee salaries, operating
expenses and consultant fees.
Legal: Authorization of Council to negotiate a contract with Northwestern is
required.
Recommendation/Actions: The City Manager, Human Resources Director, Finance
Director and Internal Auditor recommend the proposed contract negotiations with
Northwestern.
A RESOLUTION
NO.________
A RESOLUTION AUTHORIZING NEGOTIATIONS FOR A ONE-YEAR BENEFITS MANAGER CONTRACT
WITH NORTHWESTERN BENEFITS CORPORATION OF GEORGIA.
WHEREAS, the City entered into a two-year contract for benefit management
services on June 1, 2009, that will expire on May 31, 2011; and,
WHEREAS, the contract with the existing benefits manager will not be renewed,
the original RFP contains a provision allowing contract negotiations with the
second highest rated proposal; and,
WHEREAS, the second highest rated proposal was received from Northwestern
Benefits Corporation of Georgia.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to enter into negotiations for a one
(1) year benefits management contract with Northwestern Benefits Corporation of
Georgia.
______________________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
on the_______ day of ________________, 2011 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 Washington, Clerk of Council Teresa Pike
Tomlinson, Mayor
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