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CITY COUNCIL <br />AGENDA ITEM 3C <br /> <br /> <br />STAFF ORIGINATOR: Karissa Henning, Human Resources Manager <br /> <br />MEETING DATE: May 22, 2017 <br /> <br />TOPIC: Appointment of Benefits Broker <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br />INTRODUCTION <br /> <br />The City Council is being asked to approve contracting with National Financial Partners for <br />benefit broker services. <br /> <br />BACKGROUND <br /> <br />In March, staff sent out Requests for Proposals (RPF) for benefit broker services to five brokerage <br />firms. Johnson McCann, Marsh & McLennan, National Financial Partners, and Arthur J. <br />Gallagher submit competitive proposals and were interviewed for further evaluation of their <br />services. <br /> <br />Through an in-depth review of services, National Financial Partners came in as the lowest bidder <br />based on services provided and the following percentage of premium costs: medical 2.4%, dental <br />10%, life 12% and long-term disability 12%. Inclusive of this cost is extensive assistance with <br />the City’s wellness program and free GASB valuations. <br /> <br />Switching to National Financial Partners will save the City around $2,500 annually for benefit <br />broker services alone, and an additional $3,500 with their free GASB valuation services. It should <br />also be mentioned that the wellness assistance being provided at no charge typically has a price <br />tag between $3,000 to $5,000 dollars from competitive vendors. Johnson McCann, the City’s <br />current benefit broker proposed the following percentage of premiums: medical 3%, dental 10%, <br />life 10%, long term disability 10%. This did not include wellness or GASB valuation services. <br /> <br />RECOMMENDATION <br /> <br />Staff recommends the City Council appoint National Financial Partners as the City’s benefit <br />broker. <br /> <br />ATTACHMENTS <br /> <br />None.