R2023-11 Resolution Authorizing City Manager to Execute Contract Extension with First Mid Insurance Group DBA JL Hubbard Insurance and Bonds Agency for Employee Benefit Broker and Advisory Services

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LETTER to the DECATUR CITY COUNCIL Finance Department DATE: February 1, 2023 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Gregg D. Zientara, City Treasurer& Director of Finance SUBJECT: Resolution Authorizing City Manager to Execute Contract Extension with First Mid Insurance Group dba JL Hubbard Insurance and Bonds Agency for Employee Benefit Insurance Broker and Advisory Services SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution authorizing the City Manager to execute a two-year contract extension with First Mid Insurance Group dba JL Hubbard Insurance and Bonds Agency, whereas, First Mid/JL Hubbard will continue to provide the city with broker and advisory services on employee benefit matters, including healthcare, dental, vision, life insurance, disability insurance, and others. BACKGROUND: In early 2015, in preparation of the healthcare benefit broker and advisory contract termination between the City and AJ Gallagher/Behnke&Company)on December 31, 2015, the city engaged in a request for proposal process. A committee was formed to review, evaluate and to make a recommendation to the city council of the broker / advisor to be selected. The committee was comprised of Councilman Larry Foster, Assistant City Manager Jerry Bauer, Risk Manager Scott Clark and City Treasurer and Director of Finance Gregg Zientara. JL Hubbard Insurance and Bonds was unanimously recommended by the committee, which was received and approved by the City Council, with JL Hubbard Insurance and Bonds commencing services as the broker and advisor to the city in employee benefit insurance matters effective June 1, 2015. The contract provided for a two-year term covering the period June 1, 2015 to May 31, 2017, with the provision for period extension exercised at the option of the city. The original agreement was extended to May 31, 2020, by action of the City Council in Council Resolution R2017-74 dated June 5, 2017 (Extension 1). The city extended the agreement for three (3) years for the period June 1, 2020 to May 31, 2023, by action of the City Council in Council Resolution R2020-75 dated May 18, 2020 (Extension 2). This action will affect a contract extension for two (2) years for the period June 1, 2023 to May 31, 2025 (Extension 3).