HomeMy WebLinkAboutO-2003-2617
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ORDJlNANCE NO. 2003-,,~ /1'/
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE
CITY OF LA PORTE AND STANDARD SECURITY LIFE INSURANCE COMPANY OF
NEW YORK FOR A STOP LOSS MEDICAL INSURANCE CONTRACT EFFECTIVE
APRIL 1, 2003; APPROPRIATING NOT TO EXCEED $210,858.00, TO FUND SAID
CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE
SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the contract, agreement, or
other undertaking described in the title of this ordinance, of which the final document will be
attached hereto and incorporated herein by this reference. The City Manager is hereby authorized
to execute such document and all related documents on behalf of the City of La Porte. The City
Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all
. such documents. City Council appropriates the sum not to exceed $210,858.00 from the City of
La Porte Employee Health Services Fund Account No. 014-6144-515-6012 to fund said contract.
Section 2. The City Council officially finds, determines, recites, and declares that a
sufficient written notice of the date, hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the City for the time required by law
preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government
Code; and that this meeting has been open to the public as required by law at all times during which
this ordinance and the subject matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms such written notice and the contents
and posting thereof.
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ORDINANCE NO. 2002-
PAGE 2
Section 3. This Ordinance shall be effective from and after its passage and approval, and it
is so ordered.
PASSED AND APPROVED, this 24th day of March 2003.
CITY OF LA PORTE
By:
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Mayor
ATTEST:
~atdA-(j.AuDd
M a A. GIllett
City Secretary
?E;wd
KnoxVV.Asuns ~
City Attorney
~UEST FOR CITY COUNCIL tGENDA ITEM
Agenda Date Requested:
Appropriation
Requested By:
Source of Funds: Employee Health Fund
Department:
Account Number: 014-6144-515-6012
Report:
Resolution:
Ordinance:
x
Amount Budgeted: $210,858.00
Exhibits:
Ordinance
Amount Requeded" $230,000.00
Budgeted Item: ~ NO
Exhibit
"A" Memorandum from The Welch Company
Exhibit
"8"
Provider Distrihution Lid
Exhibit
"C"
Current Contract - 2002-2003
SUMMARY & RECOMMENDATION
Each year Council is asked to approve the City's Stop Loss medical insurance contract, which is due to renew this
year on Aprill, 2003. This insurance would cover payment of all claims for an individual employee or dependent
whose medical and prescription charges exceed $115,000.00 (deductible). The proposed contract includes an
aggregate amount so that if all claims for all employees and dependents exceed at least $3.7 million (the
anticipated attachment point), the insurance provider would cover 100% of all claims over that amount.
On January 31 2003, Requests for Proposals (RFP's) were mailed to eleven (11) providers of Stop Loss coverage.
On February 28, 2003, seven (7) RFP's were received and opened.
Negotiations are still in progress with the incumbent provider, Standard Security Life Insurance Company of New
York and another top offeror, Companion Life Insurance Company. Because there is a significant difference
between both providers in at least two (2) categories (the annual premium for specific coverage and the
attachment point), staff would like to make a final recommendation to Council at the Council meeting Monday
night since coverage ends March 31, 2002. If the City selects both individual and aggregate coverage for the new
contract year, the annual premium is expected to not exceed $230,000.00.
Overall, the City has had a positive record with minimal claims loss exceeding the deductible and has been
reimbursed $498,688.00 since fiscal year 200 I for claims paid.
The new policy contract essentially will follow similar terms and conditions as the current contract with Standard
Security Life Insurance Company of New York (Exhibit "C").
Staff Recommendation
Staff will recommend that Council adopt an ordinance for the contract that offers the most benefit to the
City at the most reasonable cost and authorize the City Manager to execute the final policy contract for
April l, 2003 through March 31, 2004.
Action Required bv Council:
Adopt an ordinance for the policy contract that offers the most benefit to the City at the most reasonable
cost and authorize the City Manager to execute the final policy contract for April I, 2003 through
March 31, 2004.
Approved for City Council Ae:enda
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Date