R2017-74 Contract Extension with JL Hubbard Insurance for Employee Benefit Insurance Broker Services

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Item Coversheet Page 1 of 2 in Financial Management DATE: 5/8/2017 MEMO: Letter to the Decatur City Council Financial Management Department Letter#2017-04 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance SUBJECT: Resolution Authorizing City Manager to Execute Contract Extension with JL Hubbard Insurance and Bonds 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 JL Hubbard Insurance and Bonds,whereas,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 city now desires to affect a contract extension of two(2)years for the period June 1,2017 to May 31,2019,with the option to further extend the agreement by an additional two(2)year period to be determined at a later date and exercised at the option of the city. Additional Commentary The two year relationship between JL Hubbard Insurance and Bonds and the City of Decatur has been successful and has, from a city point of view,surpassed our original expectations. The city engaged JL Hubbard at a time when the city was seeking advisory services that could assist and guide the city through a re-engineering process that included the development of a plan to review,rationalize, consolidate and leverage employee benefit coverage offerings to seek insurance coverage that provided the maximum of benefits to city employees,at a minimum cost to the city. In addition, the city desired the development and implementation of a "Wellness" program, intended to provide city employees with increased healthcare opportunities in an environment that encouraged participation,leading to improved employee health awareness and eventual outcomes. Key results achieved by the city since the engagement with JL Hubbard,include,but are not limited to: • Consolidation of broker / advisor services into one provider allowing the leveraging of offerings to secure maximum coverage at leveraged price points • Implementation of new dental/vision offerings to employees,with same coverage,at less cost • Guided the city in the creation of the"wellness program" https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1149 6/5/2017