HomeMy WebLinkAboutRES 21-030RESOLUTION NO. 21-030
WHEREAS, on June 16, 2020, City Council of the City of Beaumont, Texas
approved Resolution No. 20-123 authorizing the City Manager to execute a three (3)
year contract with CIGNA in the estimated amount of $82,472.00 for Basic Life and
Accidental Death and Dismemberment (AD&D), Supplemental Life and Accidental
Death and Dismemberment and Dependent Life Insurance effective January 1, 2021;
and,
WHEREAS, a City of Beaumont audit of insurance coverage for Long Term
Disability, Supplemental and Dependent Life revealed that twenty-seven (27)
participants who elected LTD coverage, thirty-five (35) participants who elected
Supplemental Life, and fifty-nine (59) participants who elected Dependent Life were not
on Cigna's policy; and,
WHEREAS, the City requested Cigna to either refund the premiums or keep the
premiums paid and grandfather those participants; and,
WHEREAS, Cigna denied the request to grandfather coverage of those
participants and offered a partial refund of premiums paid; and,
WHEREAS, the City's benefits consultant, Holmes Murphy & Associates,
recommends that the City terminate the contract with Cigna and award the contract to
the next lowest bidder that replied to the original Request for Proposal; and,
WHEREAS, the next lowest bidder was The Standard Insurance Company which
has agreed to grandfather all participants at the same rates that CIGNA was charging;
and,
WHEREAS, the City Council is of the opinion that terminating the contract with
CIGNA and awarding the contract to The Standard Insurance Company for a three (3)
year contract with an option for two (2) one (1) year renewals in the estimated amount
of $82,472.00 for Basic Life and Accidental Death and Dismemberment (AD&D),
Supplemental Life and Accidental Death and Dismemberment and Dependent Life
Insurance is in the best interest of the City of Beaumont and its citizens;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
THAT the City Manager be and he is hereby authorized to terminate the three (3)
contract with CIGNA for Basic Life and Accidental Death and Dismemberment (AD&D),
Supplemental Life and Accidental Death and Dismemberment and Dependent Life
Insurance which was effective January 1, 2021 and award a contract to The Standard
Insurance Company for a three (3) year contract with an option for two (2) one (1) year
renewals in the estimated amount of $82,472.00 for Basic Life and Accidental Death
and Dismemberment (AD&D), Supplemental Life and Accidental Death and
Dismemberment and Dependent Life Insurance effective January 1, 2021.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of February,
2021.
RESOLUTION NO. 21-030-A
WHEREAS, on February 9, 2021, the City Council of the City of Beaumont,
Texas, approved Resolution No. 21-030 authorizing the termination of the contract with
CIGNA and awarding the contract to The Standard Insurance Company for a three (3)
year contract with an option for two (2) one (1) year renewals in the estimated amount
of $82,472.00 for Basic Life and Accidental Death and Dismemberment (AD&D),
Supplemental Life and Accidental Death and Dismemberment and Dependent Life
Insurance effective January 1, 2021; and,
WHEREAS, it is necessary to amend Resolution No. 21-030 to include Long
Term Disability (LTD) coverage; and,
WHEREAS, it is also necessary to amend Resolution No. 21-030 to reflect an
effective date of March 1, 2021 for Basic Life and Accidental Death and
Dismemberment (AD&D), Supplemental Life and Accidental Death and
Dismemberment, Dependent Life Insurance, and Long Term Disability coverage;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
THAT Resolution No. 21-030 is hereby amended to include Long Term Disability
(LTD) coverage and an effective date of March 1, 2021 for Basic Life and Accidental
Death and Dismemberment (AD&D), Supplemental Life and Accidental Death and
Dismemberment, Dependent Life Insurance, and Long Term Disability coverage.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 9th day of
March, 2021.
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