Agenda

Return

City Council Regular Meeting

Meeting Date:

08/24/2021

BACKGROUND

In 2018, The City released a Request for Proposals (RFP) for these health insurance broker services, and six proposals were received. Proposals were reviewed and scored based on criteria including qualifications and experience, company operational information, cost, reputation, capability, resources, and project design and strategy.

After evaluation and review of all proposals, staff recommended contracting with Arthur J Gallagher (AJG), the highest ranked firm, for broker services.

By partnering with Gallagher, the City has been able to:

participate in the Texas Pharmacy Collaborative to help combat the rising cost of prescription drugs,
communicate directly with compliance attorneys, analysts, actuaries, and clinicians to allow staff to provide the best and most cost-effective benefit plan to City employees,
run monthly reports that allows staff to be proactive versus reactive, and
utilize a global firm that can leverage their extensive experience and size when engaging with carriers for our annual renewal.

Gallagher has been a very capable and responsive partner, and their broad band of resources makes them an invaluable asset to the City. For this reason, the City desires to continue this partnership. The initial term of the currently executed agreement expires September 30, 2021 and provides for two additional one (1) year extensions with mutual agreement by the City and Gallagher.

GOAL

Continue partnership with Gallagher for insurance broker services.

COMMUNITY BENEFIT

City employees and retirees will continue to receive high-quality service and assistance in selecting and utilizing their health insurance. Contracting with Arthur J Gallagher and Co has facilitated the design of innovative health plans and alignment of benefits with changes in the City’s workforce, healthcare industry changes and increasing employee benefit costs.

SUMMARY OF RECOMMENDED ACTION

Staff recommends Council approval of Resolution 21-R-90 authorizing the City Manager to renew the agreement with Arthur J Gallagher for broker services.

FISCAL IMPACT

The annual cost to contract with Gallagher is $75,000. They have agreed to maintain this rate for the next two years.

Funds have been budgeted and approved for broker services.

RECOMMENDATION

Staff recommends Council approval of Resolution 21-R-90 authorizing the City Manager to renew the agreement with Arthur J Gallagher for broker services.

Attachments
AJG Renewal
21-R-90