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  County Administrator's Report     17. 26.    
BCC Regular Meeting Budget & Finance Consent  
Meeting Date: 10/20/2016  
Issue:    Approval to Issue Fiscal Year 2016-2017 Purchase Orders Totaling $50,000 or Greater
From: Thomas Turner
Department: Human Resources  
CAO Approval:

RECOMMENDATION:
Recommendation Concerning Approval to Issue Fiscal Year 2016-2017 Purchase Orders Totaling $50,000 or Greater - Thomas G. "Tom" Turner, Human Resources Department Director

That the Board approve the issuance of eight Fiscal Year 2016-2017 Purchase Orders and/or Blanket Purchase Orders from previously awarded or approved annual requirement Contracts or Contractual Agreements, as provided, for the Human Resources Department.
 
[Funding:  Fund 501, Worker’s Compensation, Health and Life Funds]


 
BACKGROUND:
The Human Resources Department has eight Purchase Orders that, during the course of a Fiscal Year, equal or exceed $50,000 to support the employee benefits. Issuance of these Purchase Orders during October 2016 is essential to ensure continuity of benefits for employees and retirees. 
 
Dental - The County went out to bid for its dental insurance in this year and received a 3 year premium guarantee to December 2019.  
  • We are self funded and at least once a year we look at what our Administrative Services Only (ASO) fees should be and we have not adjusted them in the last 7 years.  
  • We were able to maintain our administrative cost and keep a network that services the majority of the employees.  
  • As of October 1, 2014, we have 857 active employees that have elected low coverage and 791 active elected the high coverage. We offer a discount rate for employees that do not carry our health insurance and we have a total of 111 employees that elected coverage. Employee premiums come to $373,340 per year to offset our claims and administrative services cost.
  •  We have 402 retirees that have our dental coverage and they are responsible for all of the ASO fees for dental coverage. This comes to $150,790 in premiums per year.  
  • We receive in total $543,216 in premiums to support the dental program. 
  • This year we budgeted $830,000 for claims and $80,000 for administrative fees. We are running approximately $856,500 in claims and $79,000 in administrative services. The average number of dental insurers on the Contract has increased by over 100.    
  • Considering the number of employees and retirees that we have on our plan and if each of employees maxed out on the plan, we could spend roughly 2.7M. This does not include dependents and orthodontic coverage. 
Life - The County went out to bid for its life insurance in 2016 and received a 3 year premium guarantee to December 2019.
  • During this bid cycle, we reduced our basic life insurance premium from $.185 per thousand to $.099 per thousand and AD&D was reduced from $.022 per thousand to $.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 care coverage.
  • Retirees receive a $5,000 basic life insurance policy through the County.  
  • Total cost to the County is approximately $120,000 and the remaining portion of the Purchase Order pays for supplemental life that employees have elected for themselves and their dependents.  
Health Insurance - The County went out to bid for its health insurance in 2015. We are starting our second year of self funding and our intentions are to look at health design for the County and other ways to provide competitive health plans for our employees and retirees. 
 
The County’s employee health clinic Contract went out to bid in 2010 and was awarded in 2011 to Concentra Medical Center. In 2016, AON Hewitt conducted a visibility study and the Board determined that the County would sign a new Ccontract until 2018.  
 
The County signed a three year Contract with AON Hewitt as a benefit consultant to provide the County assistance in the health care areas, such as self funding reviews, including filing documents to the State, Affordable Care Act advice and other assistance needed in relation to benefits. 
 
 
BUDGETARY IMPACT:
Funding for the above Purchase Orders is through Fund 501, Worker's Compensation, Health, and Life Fund.
LEGAL CONSIDERATIONS/SIGN-OFF:
This is in accordance with Florida Statutes 112.09 and 112.0801.
PERSONNEL:
N/A
POLICY/REQUIREMENT FOR BOARD ACTION:
County Ordinance, Chapter 46, Article II, Section 46-64, providing for Board approval of Contracts $50,000 or greater.
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.

Attachments
Purchase Orders $50000 or Greater

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