Resolution 2016-17 - Reso. 2016-17 - Charter 14.14 & Stop loss insurance - 12-15-15 - 12/15/2015 it
RESOLUTION NO. 2016-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE CITY MANAGER TO APPROVE A CONTRACT WITH
GERBER LIFE FOR STOP LOSS INSURANCE COVERAGE IN THE AMOUNT OF
$259,557 AND INTERPRETING SECTION 14.14 OF THE CITY CHARTER AS TO THE
APPROPRIATENESS OF AWARDING STOP LOSS COVERAGE FOR A SELF
FUNDED HEALTH INSURANCE BENEFIT.
WHEREAS Section 14.14 of the City Charter states:
"The Council may award contracts only at regular meetings of the Council except in the
event of grave public emergency or calamity. It is further provided that from the date
of any City general election until the members of the Council elected at such election
have duly qualified and taken office, the Council shall not create, make, or enter into
any contract for the purchase of materials, supplies, land, or buildings, or for the
construction or repair of any public building or the carrying on of any public work, or
professional services requiring or authorizing any expenditure in excess of one
thousand dollars which creates or imposes on the City any obligation or liability of any
nature or character whatsoever, except in the event of grave public emergency or
calamity. It is specifically provided, however, that this provision shall not apply to
contracts lawfully authorized prior to any City general election or to contracts which
may hereafter be lawfully authorized by a vote of the qualified voters of the City, or to
contracts made for the purpose of continuing the normal functions of any regularly
established department of the City. Any and all contracts hereafter made by the City in
violation of the terms of this provision shall be void and shall not be enforceable in any
court of this State and the performance of same and the payment of any money there
under may be enjoined by any property tax paying citizen of the City."
WHEREAS The City of Huntsville, has conducted a procurement process for stop loss
coverage that meets State and Local requirements; and
WHEREAS Section 3.03 of the City of Huntsville City Charter states, the City shall have the
power to contract and be contracted with; and
WHEREAS Section 11.06 of the City of Huntsville City Charter states funds are appropriated
from the effective date of the budget, thereby lawfully making funds available for
the annual purchase of various road materials; and
WHEREAS Section 11.15 of the City of Huntsville City Charter sets forth guiding
procurement procedures for contracts to be executed, many of which are in
contrary to Section 14.14; and
WHEREAS The City Council finds it necessary and appropriate to award stop loss coverage
for the 2016 health insurance plan year•, and
WHEREAS Section 14.14 of the Charter does not specifically mention runoff elections; and
WHEREAS The Council believes the intent of Section 14.14 was not to prohibit general
operations of the City for a period of two months that affect health, safety and
welfare.
NOW THEREFORE, be it resolved by the City Council of the City of Huntsville Texas,
{
Section 1 The City Council of the City of Huntsville, TX finds it appropriate to interpret
City Charter Section 14.14 as not applicable in these circumstances and further
contrary to City Charter Sections 3.03, 11.06 and 11.15.
Section 2 The City Council approves awarding a contract for stop loss insurance to Gerber
Life in the amount of $259,557, and authorizes the City Manager to sign and
execute all associated contractual documents after approval by the City Attorney.
PASSED AND APPROVED this 15th day of DECEMBER, 2015.
R:
THE CITY OF HUNTSVILLE
Mac Woodwar , Mayor
ATTEST: APPR VEDAS TO FORM:
Lee oodward, City Secretary Leo and Schneider, City Attorney
a
i
S'
7
b
t
Bid Comparison
Stop Loss Coverage
City of Huntsville
Plan Year 2016
Effective January 1, 2016
4
Carrier Gerber Life Transamerican Berkley Life Voya Westport
Deductible $150,000 $150,000 $150,000 $150,000 $150,000
Aggregate Specific Deductible $100,000 $100,000 $100,000 $100,000 $100,000
Annual Premium $259,557 $276,756 $290,179 $362,587 $444,024
-fti
state
TML M �
12/15/2015
Julie O'Connell
City of Huntsville
1212 Avenue M
Huntsville, TX 77340
Re: Stop Loss Recommendation
Dear Ms. O'Connell,
TML IEBP recommends that City of Huntsville move to the Gerber Life $150,000 specific
deductible with $100,000 Aggregating Specific Deductible. This recommendation creates a
$147K in annual premium savings for the city. This option is net commissions/fees.
Gerber Life has an AM Best rating of A (Excellent) and is a very reputable stop loss carrier.
Sincerely,
Stephanie Chtata
Reinsurance Specialist
(512) 719-6754
Stephanie.chtata@tmliebp.org
s