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County Administrator's Report 10. 19.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning Approval to Issue Fiscal Year 2018-2019 Purchase Orders Totaling $50,000 or Greater - Eric Kleinert, Human Resources Department Director
That the Board approve the issuance of three additional Fiscal Year 2018-2019 Purchase Orders and/or Blanket Purchase Orders from previously awarded or approved annual requirement Contracts or Contractual Agreements for the Human Resources Department:
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Vendor/Contractor
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Not-To-Exceed Amount |
Contract |
| A. |
The Lincoln National Life Insurance Company
(Jan – Sep 2019)
Vendor # 425648
Life Insurance
Cost Center 150110 |
$266,619
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| B. |
Stop Loss Insurance Service, Inc.
(Jan – Sep 2019)
Vendor # 425652
Health Insurance
Cost Center 150108
Stop Loss Insurance |
$650,000
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| C. |
USI Southwest, Inc.
Vendor #424847
Consulting/Broker Services
Cost Center 150108 |
$120,000 |
PD 16-17.094 |
[Funding: Fund 501, Worker’s Compensation, Health and Life Funds]
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| BACKGROUND: |
The Human Resources Department has three additional Purchase Orders that, during the course of the Fiscal Year, equal or exceed $50,000 to support the employee benefits. Issuance of these Purchase Orders is essential to ensure continuity of benefits for employees and retirees.
USI went out to bid for life insurance in 2018 for the County and received a 2-year premium guarantee, reducing our basic life insurance and AD&D insurance premiums to December 2020. The Purchase Order that is being approved in this Board action is to finish the remainder of Fiscal year January 2019 – September 2019.
With our new Contract, our basic life is $.081 per thousand and our present cost for basic life is $.099 per thousand. With the new Contract, AD&D is $.018 per thousand with our present cost at $.02 per thousand.
We provide both $40,000 basic life and AD&D insurance to all eligible employees, along with the additional $10,000 coverage for those employees that do not take our health insurance. Retirees receive $5,000 basic life insurance through the County.
The total cost to the County is approximately $74,840 and the remaining portion of the Purchase Order pays for supplemental life that employees have elected for themselves and their dependents.
Life insurance savings for the County will be approximately $20,463 per year for two years.
Health Insurance - USI went out to bid for health insurance in 2018 for the County and we finalized our rates for Stop Loss fees. The Purchase Order on this Board action will pay for the Stop Loss premiums from January 2019 to September 2019. Last year, our Stop Loss premiums ran approximately $940,552. Estimated cost for this year will be approximately $804,000. Approximate savings for moving our Stop Loss for the year will be $232,133.
Benefits/Consultant - The County signed a three year Contract with USI starting April 1, 2018 for $150,000 for the first year of the Contract and then $120,000 for the next two years with the guarantee that they would provide a cost savings in the first year of the Contract of at least $150,000 and if they did not meet the savings they would reduce their fees for the next year by $75,000.
It was directed by management not to include this line item in the budget. If they met their goal the savings would be available in the fund 501. As of November 26, our savings for the Contract year was $282,577. The total savings for the life of the Contracts is $354,453. We have confirmed with budget that the money is available to support this transaction.
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| BUDGETARY IMPACT: |
Funding for the above Purchase Orders is through Fund 501, Worker’s Compensation, Health and Life Fund.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
This is in accordance with Florida Statutes 112.09 and 112.0801.
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| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
County Ordinance, Chapter 46, Article II, Section 46-64 providing for Board approval of Contracts of $50,000 or greater.
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| IMPLEMENTATION/COORDINATION: |
Upon Board approval, the Human Resources Department will generate a Purchase Order as an instrument for placing orders and making payments to provide services. The Human Resources Department will coordinate with the Office of Purchasing.
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