12-10-15-2g - Resolution - 12/10/2015RESOLUTION NO. 12-10-15-2g
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS (CITY), AUTHORIZING THE CITY MANAGER TO EXECUTE AND APPROVE
ALL CONTRACT DOCUMENTS AND APPROVE ALL EXPENDITURES FOR ALL
EMPLOYEE BENEFITS FOR FY 2016.
WHEREAS, the City of College Station strives to offer employees comprehensive and
competitive health benefits; and
WHEREAS, the City of College Station's health plan is self. -funded and provides medical, dental
and prescription coverage to eligible employees, retirees and dependents including a high
deductible plan offered to offset rising health care costs; and
WHEREAS, The City of College Station offers voluntary vision insurance, short-term disability,
basic & voluntary life and AD&D, medical & dependent care flex spending accounts, critical
illness & accident insurance and an employee assistance program (EAP) to eligible employees;
and
WHEREAS, The City of College Station contracts with McGriff, Seibels & Williams (McGriff),
as the sole broker of record according to Texas Local Government Code § 252.024, for benefits
and insurance consulting; and
WHEREAS, The City of College Station contracts with Blue Cross and Blue Shield of Texas to
administer health claims and provide stop loss reinsurance; and
WHEREAS, the City of College Station works with McGriff to stay current with best practices,
maintain compliance with local, state and federal health regulations and laws. The annual health
plan review process involves Human Resources working with McGriff and Finance to fiscally
align City needs with available funds utilizing a Request for Proposal process when necessary; and
WHEREAS, the City Council of the City of College Station desires to make health plan benefits
contract management more efficient by authorizing the City Manager to approve and execute the
health plan contracts and to approve subsequent budgeted expenditures related to the health plan
contracts; now, therefore,
Resolution No. 12-10-15-2g Page 2 of 3
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That the City Council has approved the budgeted funds in fiscal year 2016 for all
health plans as shown in Exhibit A.
PART 2: That the City Council hereby authorizes the City Manager to approve and execute
the health plan contracts and approve including, but not limited to, applications,
policies, amendments, termination notices, and any and all other communications or
documents that may be required by the health plan contracts, on behalf of the City.
PART 3: That the City Council hereby authorizes the City Manager to approve those
expenditures related to the health plan contracts provided that such expenditures are
appropriated from available funds, approved from the annual budget and are
consistent with state and local laws.
PART 4: That the City Council hereby finds that the above described authorization will make
health plan contracts administration and management more efficient for the City.
PART 5: That the City Council hereby finds that granting such authority to the City Manager
in no way precludes the Mayor from executing health plan documents and contracts
on behalf of the City if required by law or as a condition of the health plan contracts
or as otherwise determined by the City Council in its discretion.
PART 6: That the City Council further finds that granting such authority to the City Manager
shall not otherwise modify or change the City procedures for processing contracts.
PART 7: That this resolution shall take effect immediately from and after its passage.
ADOPTED this 10th day of December, 2015.
ATTEST:
APP OVED:
Ci ` Attorney
$598,407 1
Resolution No. 12-10-15-2g
EXHIBIT A
Executive Summary
Projected Program Costs for Administrative Fees, Claims and Voluntary Benefits
01-01-2016 to 12-31-2016
Average Monthly Employees on Health Plan 851
Administration
PEPM* Annual Expense
Medical (including wellness) $39.73
Dental $3.72
Pharmacy $0.00
EAP (12 month) $1.43
Specific Stop Loss $63.28
Aggregate Stop Loss $5.52
Basic Life & ADD Insurance rate = .004% payroll volume
Basic AD&D rate = .003% payroll volume
Flexible Spending Acct*' $5.50
$405,723
$37,989
$16,207
$646,215
$56,370
$41,372
$30,241
$14,109
!Total Fixed Costs $122.23
$1,248,226
Claims
Medical
Dental
Pharmacy (Opt 1 & 2)
PEPM*
$546.37
$50.81
8171.60
Annual Expense
$5,579,530
$518,872
$1,752,379
!Total Claims
8768.78
$7,850,781
!Total Projected Cost
$891.01
$9,099,007
*Per Employee Per Month
**Based on a projected — 213 employees participating
Voluntary Benefits***
Vision
Short Term Disability
Long Term Disability****
Accident Insurance
Critical Illness
Supplemental & Dependent Voluntary Life & ADD Insurance
Annual Expense
$88,836
$69,122
$5,062
$100,636
$90,224
$244,527
!Total Voluntary Costs
***Voluntary benefit premiums are deducted through payroll, but pooled and paid by the City.
****Based on a projected — 280 employees partidpating (new benefit)
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