HomeMy WebLinkAbout031443 RES - 05/22/2018 Resolution authorizing negotiation and execution of four, three-year
service agreements to provide third-party administration of the City's
self-funded employee benefits for a total estimated cost of
$127,400,000, with two one-year renewal options, subject to City
Council approval.
WHEREAS, third-party administration of the City's employee benefits is required;
WHEREAS, the City issued Request for Proposal No. 1484 ("RFP") on January
15, 2018, requesting proposals for administration of the City's various employee benefit
plans;
WHEREAS, the City evaluated the proposals under the RFP and determined that
Blue Cross and Blue Shield of Texas, a division of Health Care Service Corporation
("BCBSTX"), of Richardson, Texas, will provide the best value to the City for the
administration of the City's medical, dental, and COBRA plans;
WHEREAS, the City evaluated the proposals under the RFP and determined that
CAREMARKPCS HEALTH, L.L.C. ("CVS") of Northbrook, Illinois, will provide the best
value to the City for the administration of the City's pharmacy plans;
WHEREAS, the City evaluated the proposals under the RFP and determined that
Dearborn National Life Insurance Company("Dearborn"), of Lombard, Illinois,will provide
the best value to the City for the administration of the City's life insurance, including ADD,
--- - - -- --optional-and supplemental plans;
WHEREAS, the City evaluated the proposals under the RFP and determined that
Ochs, Inc., on behalf of Madison National Life Insurance Company, Inc. ("Ochs"), of
Madison, Wisconsin, will provide the best value to the City for the administration of the
City's long-term disability plans;
WHEREAS, in the event that any of the above listed proposers fails to execute an
agreement for any of the awarded items, the City Manager or designee may negotiate
and execute agreements with other proposers, who participated in the RFP, so long as
the additional estimated cost under such agreement is no more than 10% greater than
the estimated cost listed in this resolution for the specific award items.
Be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council specifically finds that the foregoing statements included in
the preamble of this resolution are true and correct and adopts such findings for all intents
and purposes related to the authorization of this procurement.
Section 2. The City Manager, or designee, is authorized to negotiate and execute a three-
year service agreement with BCBSTX, with two one-year extensions, subject to City
Council approval, for the third-party administration of the City's medical, dental, and
COBRA benefit plans, with an estimated cost of$97,860,000 during the three-year term.
Section 3. The City Manager, or designee, is authorized to negotiate and execute a three-
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031443 INDEXED
year service agreement with CVS, with two one-year extensions, subject to City Council
approval, for the third-party administration of the City's pharmacy benefit plans, with an
estimated cost of $26,800,000 during the three-year term.
Section 4. The City Manager, or designee, is authorized to negotiate and execute a three-
year service agreement with Dearborn, with two one-year extensions, subject to City
Council approval, for the third-party administration of the City's insurance, including ADD,
optional and supplemental benefit plans, with an estimated cost of $2,060,000 during the
three-year term.
Section 5. The City Manager, or designee, is authorized to negotiate and execute a three-
year service agreement with Ochs, with two one-year extensions, subject to City Council
approval, for the third-party administration of the City's long-term disability benefit plans,
with an estimated cost of $680,000 during the three-year term.
Section 6. Furthermore, in the event that BCBSTX, CVS, Dearborn, or Ochs fails to
execute the contract for the awarded items, the City Manager, or designee, is authorized
to negotiate and execute a contract with any proposer, who participated in the RFP, so
long as the additional estimated cost under such agreement is no more than 10% greater
than the estimated cost listed in this resolution for the specific award items.
ATTEST: CITY OF CORPUS CHRISTI
\-z -( (41 LCo--7AA- -
Re ecca Huerta Joe McComb
City Secretary Mayor
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Corpus Christi, Texas
a day of � _k_/-
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The above resolution was passed by the following vote:
Joe McComb !
Rudy Garza '
Paulette Guajardo /� I
Michael Hunter (,R-�', ,, t1".
Debbie Lindsey-Opel (110,42-IAA-
BenMolina4
Everett Roy (,1,(,
Lucy Rubio C
Greg Smith 0 yr
i1314 /.S Page 3 of 3
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly
authorized representative), hereby certify to the City Council and other appropriate officers that
the money required for the current fiscal year's portion of the contract, agreement, obligation
or expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: May 22, 2018 Legistar Number: 18-0558
Agenda Item:
Resolution authorizing negotiation and execution of four, three-year service agreements to
provide third-party administration of the City's self-funded employee benefits for a total estimated
cost of $127,400,000, with two one-year renewal o ti n with the following comp nies:
• Blue Cross Blue Shield of Texas (BCBSTX), a Division of Health Care Service
Corporation a Mutual Legal Reserve Company, of Richardson, Texas, for medical, dental
and cobra plans with an estimated value of $97,860,000.
• Caremark PCS Health, L.L.C. (CVS), of Northbrook, Illinois, for pharmacy benefits with
an estimated value of $26,800,000.
• Dearborn National Life Insurance Company, of Lombard, Illinois for life insurance
including ADD, optional and supplemental plans with an estimated value of $2,060,000.
• Madison National Life Insurance Company, Inc. (Ochs), of Madison, Wisconsin for
long term disability with an estimated value of $680,000.
Amount Required: $ 127,400,000
Fund Name Accounting Unit Account Activity No. Amount
N .
5608, 5609, 5610 misc. misc. n/a $122,250,000
Health Funds
5614 Other EE Benefits 40610 misc. n/a $ 5,150,000
Total $127,400,000
x Certification Not Required
Director of Financial Services
Date: MAY 2 1 2018