TITLE
Consider a memorandum/resolution approving the renewal of a professional services contract with Lockton Dunning Benefits for self-funding consulting services in an amount not to exceed $95,000.
SUMMARY
DATE: July 6, 2021
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: PROFESSIONAL SERVICES AGREEMENT WITH LOCKTON DUNNING BENEFITS FOR SELF-FUNDING CONSULTING SERVICES
BACKGROUND AND FINDINGS:
Last year, staff utilized the Request for Qualification (RFQ) process to select a qualified, innovated consultant to provide effective services in transitioning to a self-insured employee health insurance platform. The City of Killeen accepted a contract with Lockton Dunning Benefits. The contract is effective August 1, 2020 for fourteen (14) months.
This year, as we transition into self-insured healthcare, staff is requesting approval to extend the contract with Lockton Dunning Benefits for FY 2022 since Lockton has been a great partner in assisting with the transition to self-insured.
In spring of FY 2022, after this transition year, staff will issue a Request for Qualifications again to identify and select a qualified benefits consultant.
THE ALTERNATIVES CONSIDERED:
Alternatives considered: (1) to not approve renewal with Lockton Dunning Benefits for consulting services and transition to self-insured healthcare; (2) approve renewal with Lockton Dunning Benefits for consulting services and transition to self-insured healthcare for the City of Killeen.
Which alternative is recommended? Why?
Staff recommends alternative two (2) because Lockton Dunning Benefits has been a great partner in assisting with the transition to self-insured healthcare.
CONFORMITY TO CITY POLICY:
Yes
FINANCIAL IMPACT:
Funding for these services ($95,000) are available in account 010-2305-418.47-01 upon Council approval of the FY 2022 Budget.
What is the amount of the expenditure in the current fiscal year? For future years?
$95,000 for FY 2022
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes, upon approval of the FY 2022 Budget.
RECOMMENDATION:
It is recommended that City Council approve renewal of a professional services contract with Lockton Dunning Benefits as the provider for employee healthcare consultant services, effective October 1, 2021, with total expenses not to exceed $95,000 and authorize the City Manager or designee to execute any and all change orders in accordance with state and local law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
N/A