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County Administrator's Report 11. 22.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	01/07/2016
Issue: Cobra Administration
From:	Thomas Turner
Department:	Human Resources
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Cobra Administration - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board take the following action concerning the County's Cobra Administration:

A. Award a Contract to WageWorks for three years, from January 1, 2016, to December 31, 2018, to administer the County Cobra Services; and

B. Authorize, subject to Legal review and sign-off, the County Administrator to sign the WageWorks Order Form.

[Funding Source: 501, Internal Service Fund, Cost Center 140609, Object Code 54501]

BACKGROUND:

Presently, our COBRA administration is administered by Ceridian through an Agreement with Florida Blue. As of January 1, 2016, Florida Blue stopped offering this arrangement and they offered to administer Cobra for plans covered under their company. The County has five programs that require COBRA administration and only one of the programs is covered with Florida Blue. Due to the cost of administering the program (estimated $11,000 to $15,000 annually), the Human Resources Department Benefits Section solicited quotes and received four offers to provide Cobra services. Upon review, it was determined that WageWorks (who has acquired Ceridian) provided the lowest cost and uses the same platform as we are presently using to provide the County COBRA administration needs.

WageWork has offered the County a three year rate guarantee for Cobra Administration. Upon legal review and negotiation with WageWorks, legal requested that we advise the Board of the Termination for Convenience clause (in the addendum) which states “If the County terminates early for convenience, you shall be required to pay an early termination fee to WageWorks in an amount equal to the average of three months’ fees multiplied by the number of months remaining in the term.” A month’s premium for the services in question is estimated at $600.

BUDGETARY IMPACT:

Funds are available in Fund 501, Internal Service Fund, Cost Center 140609, Object Code 54501.

LEGAL CONSIDERATIONS/SIGN-OFF:

This is in accordance with Florida Statutes 112.09 and 112.0801.

PERSONNEL:

The Human Resources Division and all appointing authorities (payrolls) will have to make the appropriate adjustments to their
payroll systems.

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

A Purchase Order will be the instrument utilized for making payment against the Contract. The Human Resources Division will
coordinate with Legal and the Office of Purchasing.

Attachments
WageWorks Order Form 010716