HomeMy WebLinkAboutItem 06 - Insurance Consultant ServicesMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: FEBRUARY 18, 2025
SUBJECT: APPROVAL OF CONTRACT FOR INSURANCE CONSULTANT
SERVICES FOR BENEFITS
RECOMMENDATION: City Council to consider the approval of a three-year contract for
insurance consultant services with Lockton Dunning Benefits.
FUNDING SOURCE: Funds are available in the General Fund (Risk Management) in the
estimated amount of $110,000.
BACKGROUND: The consultant assists with insurance placement for medical, dental,
vision, life, disability, and stop -loss insurance coverage. The consultant
also ensures that benefits, designs, and marketing are consistent with
strategic benchmarks, provides compliance tools and legislative updates,
and provides data analysis on plans and performance.
City Staff conducted a Request for Qualifications and reviewed four
responses. Lockton was selected for their financial management and
reporting, account management expertise, and excellent references. As
benefits consultant, Lockton will provide advisory services and objective
analysis of the available market solutions and cost -control mechanisms.
This includes contract negotiations, plan design for medical and RX, and
in-depth financial reporting for budget.
The flat fee of $110,000 will be reduced by commissions from employee
paid voluntary products. Voluntary Life, Short Term Disability, Critical
Illness, and Accident Insurance currently provided by Mutual of Omaha.