PRESENTER: Presenter
Debbie Kimball, Contract Administrator
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SUBJECT: Title
Approval to renew the following annual contracts, as allowed for by their contract language: Administrative Services for Healthcare-Dental, Administrative Services for Healthcare-Medical and Pharmacy, Stop Loss Insurance, Healthcare Consulting Services, Supply and Service of Portable Toilets, Landscape Services-Parks & Facilities, Landscape Services-Undeveloped Flood Properties and ROW, EMS Medical Billing Cost Recovery Services and Litter Removal Services - Parks.
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
On November 14, 2016, the City Council provided consent for a quarterly review and approval of renewals for various annual contracts that occur throughout the course of a fiscal year which are routine in nature and in accordance with the terms and conditions of the associated awarded contracts (which were originally approved by City Council). Quarterly approvals manage staff resources more efficiently as well as ensure compliance with the contracts’ terms and conditions. Contract renewals that have any requested modifications, such as a significant increase or decrease in services or costs, will continue to be presented to City Council for individual consideration as needed.
The City Council has previously reviewed and approved the following annual contracts for various goods and services utilized for City operations; the contracts described below require Council authorization for contract renewal. All goods and services have been competitively vetted, and contracts have subsequently been executed on various dates in previous years. All awarded contractors have provided satisfactory performance during the term of their associated contract.
Renewal of Annual Contract for Administrative Services for Healthcare - Dental
City Department: Finance
Awarded Contractor: Cigna Dental Health of Texas, Inc.
Modified Contract Expiration Date: September 30, 2022
Annual Cost of Services During Renewal Period: Cigna Dental is a voluntary, fully insured product supported by employees. Dental premiums increased this year and said increase was not passed on to employees. An increased cost of $4,000 per month are paid through the City’s Self Insurance Fund.
Renewal of Annual Contract for Administrative Services for Healthcare - Medical and Pharmacy
City Department: Finance
Awarded Contractor: UnitedHealthcare
Modified Contract Expiration Date: September 30, 2022
Annual Cost of Services During Renewal Period: The administrative fee cost is $2.92 per employee. Annual spend will be dynamic each month based on the total number of employees enrolled in the plan. Anticipated annual cost to range between $20,253-$22,250.
Renewal of Annual Contract for Stop Loss Insurance
City Department: Finance
Awarded Contractor: UnitedHealthcare
Modified Contract Expiration Date: September 30, 2022
Approximate Annual Cost of Services During Renewal Period: Actual health claim costs vary; however, the estimated annual contract cost will be $863,601.36 based on 578 employees. Costs are paid through the City’s Self-Insurance Fund.
Renewal of Annual Contract for Healthcare Consulting Services
City Department: Human Resources
Awarded Contractors: Alight Solutions Inc.
Modified Contract Expiration Date: September 30, 2022
Approximate Annual Cost of Services During Renewal Period: Cost for services is $5.00 per beneficiary per month. Cost will vary depending on number of participants.
Renewal of Annual Contract for Supply and Service of Portable Toilets
City Department: Citywide
Awarded Contractors: Big John Site Services and Texas Disposal Systems
Modified Contract Expiration Date: September 30, 2022
Approximate Annual Cost of Services During Renewal Period: Estimated $30,000, factors such as number of events scheduled throughout the year may affect the total cost, but subsequent cost to the City is itemized in contract language.
Renewal of Annual Contract for Landscape Services - Parks & Facilities
City Department: Parks and Recreation
Awarded Contractors: Landscape Commander, LLC
Modified Contract Expiration Date: September 30, 2022
Approximate Annual Cost of Services During Renewal Period: Estimated spend of $190,000; factors such as weather may affect the frequency of services and subsequent cost to the City if adding newly built facilities.
Renewal of Annual Contract for Landscape Services, Undeveloped Flood Properties & ROW
City Department: Parks and Recreation
Awarded Contractors: Landscape Commander, LLC
Modified Contract Expiration Date: September 30, 2022
Approximate Annual Cost of Services During Renewal Period: Estimated spend of $190,000; factors such as weather may affect the frequency of services and subsequent cost to the City if adding new properties.
Renewal of Annual Contract for EMS Medical Billing Cost Recovery Services
City Department: Fire
Awarded Contractor: Change Healthcare Technology Enabled Services LLC
Modified Contract Expiration Date: November 30, 2022
Approximate Annual Cost of Services During Renewal Period: Ambulance billing nets about $1.8 million annually to the City to help offset the cost of providing emergency response services. The Contractor will net 4.25%. Therefore, their compensation depends on their ability to collect on billings and accounts receivables.
Renewal of Annual Contract for Litter Removal Services - Parks
City Department: Parks and Recreation
Awarded Contractor: Pristine Texas Rivers Inc.
Modified Contract Expiration Date: November 30, 2022
Approximate Annual Cost of Services During Renewal Period: The estimated annual cost is $150,000 per year.
ISSUE:
Strategic Priorities: Maintain fiscal stability of City operations
FISCAL IMPACT:
Funding for all expenditures and contracts described above have been incorporated into the appropriate FY 2022 departmental/fund budgets. Therefore, sufficient funds are available.
Recommendation
RECOMMENDATION:
Staff recommends approval to renew the following annual contracts, as allowed for by their contract language: Administrative Services for Healthcare-Dental, Administrative Services for Healthcare-Medical and Pharmacy, Stop Loss Insurance, Healthcare Consulting Services, Supply and Service of Portable Toilets, Landscape Services-Parks & Facilities, Landscape Services-Undeveloped Flood Properties and ROW, EMS Medical Billing Cost Recovery Services and Litter Removal Services - Parks.