01-20-05 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting

Browse Search

(c) A local government that purchases goods and services under this section satisfies the requirement of the local government to seek competitive bids for the purchase of the goods and services. An additional advantage to procuring employee benefits through an Interlocal Agreement is that it relieves each participating entity of the requirement of seeking competitive bids or competitive proposals individually. This provides savings in two ways. The first way is very obvious. Each entity is relieved of the expense and staff time used in obtaining competitive bids or proposals. The second way is less obvious. Insurance companies can provide better rates because they have less expense involved in responding to one request for proposals than they do is they must respond to five or six proposals. For entities that are required to use the competitive bid process there is another advantage. Products or services procured through an Interlocal Agreement can use the competitive proposal process, which allows for negotiations and therefore produces better proposals. o 791.011. CONTRACTING AUTHORITY; TERMS. (d) An interlocal contract must: (1) be authorized by the ~overning body of each party to the contract unless a party to party to the contract is a municipally owned electric utility, in which even the governing body may establish procedures for entering into interlocal contracts that do not exceed $100,000 without requiring the approval of the governing body; (2) state the purpose. terms. rights. and duties of the contracting parties; and (3) specify that each party pavin~ for the performance of governmental functions or services must make those payments from current revenues available to the paving ~ (e) An interlocal contractual payment must be in an amount that fairly compensates the performing party for the services or functions performed under the contract. (f) An interlocal contract may be renewed annually. C-CBS has developed model Interlocal Agreements that meet all of the statutory requirements for an Interlocal Contract.