AUTHORIZATION TO ENTER INTO AN AGREEMENT WITH THE HAYS GROUP, INC., DOING BUSINESS AS HAYS COMPANIES, FOR EMPLOYEE BENEFITS CONSULTING SERVICES
Staff Contact: Jim Brown, Director, Human Resources and Risk Management
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into an agreement with The Hays Group, Inc., doing business as (DBA) Hays Companies, for Employee Benefits Consulting Services for one (1) year with the option to renew four (4) additional years in one year increments.
Background
During FY2015-2016, the City had been utilizing The Segal Company for benefits consulting services. That agreement was set to expire on June 30, 2016. In April 2016, we began the RFP process for a benefits consulting firm. The evaluation committee comprised of employees from Human Resources and the Benefits and Wellness Committee reviewed the proposals for a benefits consultant. The Hays Company was ultimately selected as the vendor that best matched the needs of the City.
Analysis
It is critical that we provide quality health care benefits to our employees that not only control the employee's cost but are also fiscally sustainable for the City in the future. As we move forward, the City must determine the best strategy for health care cost containment. An employee benefits consultant will provide expertise in assisting the City with financial analysis and multi-year strategic planning, ongoing strategic analysis of medical and pharmacy plan design changes, modeling contribution strategies for active employees and retirees, analysis of claims dollars being spent, wellness initiatives to assist with cost containment and provide ongoing guidance to remain in compliance with the Patient Protection and Affordable Care Act. These consulting services will allow us to continually monitor the performance of our health care plan, develop a strategic plan for the future and ultimately assist in co...
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