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1 `. <br />Request for Council Action <br />Date: 8/19/02 <br />Item Number: �j� D <br />Department Approval Manager Approval Agenda Section <br />Organizational Business <br />Item Description: <br />Long Term Disability (LTD) Insurance Contract Renewal <br />Background <br />The current LTD contract expires in October, 2002. The last time the City requested proposals for LTD <br />coverage was 1997. Fortis was awarded the City's contract and has been the carrier ever since. The City, on <br />July 16, 2002, according to Minnesota bid law statue 471.6161, advertised for proposals for the Long Term <br />Disability (LTD) Insurance plan coverage. The City, in cooperation with Ochs Inc., the City's LTD broker of <br />record, sent out five requests for proposals. <br />As shown by the attached summary of bids, only two carriers out the five proposals sent actually submitted <br />bids. The other three declined for various reasons as shown. <br />Financial <br />The cost for the City's LTD program is currently .45 x$100 of covered payroll and would remain the same for <br />the upcoming contract of 10/1/2002 — 12/13/2004 (note: we will negotiate a 26 month contract so that future <br />renewal dates will coincide with Union contract renewal dates.) <br />Staff Recommendation <br />Staff recommends approval of the Fortis Benefits Long Term Disability Contract. <br />Council Action Requested <br />Motion to approve a twenty-six month contract with Fortis Benefits for Long Term Disability Insurance for City <br />staff at a cost of .45 per $100 of covered payroll. <br />