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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />~~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />May 23,2005 <br /> <br />Agenda Item 6.B. <br /> <br />TO: <br /> <br />Honorable Mayor and City Council Members <br />Michelle Wolfe, City Administrator <br /> <br />Schawn Johnson, Assistant to the City Administrator~ <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Recommend the Appointment of Financial Concepts, Inc. as the City of <br />Arden Hills New Health/Insurance Broker <br /> <br />Backl!:round <br />In March, City staff began the search for a new health/insurance broker and mailed out eighteen <br />requests for proposals (RFP's), Out of the eighteen RFP's that were mailed out, ten health <br />insurance brokers expressed interest in this contract In order to narrow down the field of <br />potential candidates, the City Administrator, Finance Director, and Assistant to the City <br />Administrator asked each of the ten potential brokers to give a verbal presentation on the <br />services that their company provides, After meeting with the potential brokers, City staff <br />contacted the different references that were submitted by each of the ten individual brokers, <br />After reviewing and discussing the interview process, reference checks, and bid proposals, City <br />staff believes that Financial Concepts, Inc. of Minnetonka is the company that would best serve <br />the health and insurance needs of the City and its staffmembers. <br /> <br />Why did City Staff initiate this Process? <br />The City of Arden Hills has been with the same health and insurance broker (TC Fields) for over <br />ten years, We also have a second broker for life insurance and long-term disability policies. We <br />rccently discovered some overlaps in coverage's that we receive from the two brokers, which <br />caused us concern about the current level of scrvices. Staff felt that perhaps we would be better <br />served by consolidating all of our policies under one broker. In addition, staff believes it is <br />generally a good practice to check the market periodically to review professional services <br />contracts. <br /> <br />As part of this review, City staff had the opportunity to review different insurance benefit <br />packages, wellness programs, and internet-based information that is currently available. <br />Throughout this process, City staff has also become more aware of additional services that are <br />available through tJle broker's commission fees that would be new, beneficial, and potentially a <br />cost savings to the City, For example, Financial Concepts would assist City staff with COBRA <br /> <br />\\Ea11h\AdminIAssistant City AdministratorlMemo's and Letters\2005\Financial Concepts. Inc-CC Memo,DOC <br />