SR-602-008 (2)
F:\PERSON\MISC\COUNCIL\STAFFRPT\COUNCIL68 Hartford.doc
June 8, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Modification to Contract #8041 with Harford Life Insurance for Employee
Insurances
INTRODUCTION
This report recommends that the City Council authorize a one-time increase of $30,000 for
Fiscal year 2003-2004 to Contract #8041 (CCS) with Hartford Life Insurance Company,
which provides City employees? life insurance and long-term disability insurance.
BACKGROUND
The City currently provides most of its employees with life and long-term disability
insurance benefits in accordance with negotiated contracts and memorandums of
understanding. When the City entered into an agreement with Hartford Life Insurance
Company in January of 2002 to provide these benefits, Hartford provided a guaranteed
rate for three years, with a total savings of $165,000 over the previous carrier. The
contract stipulated that the total amount of the agreement would not exceed $615,000 for
each year of the contract. The cost of premiums are, in part, based on eligible employees?
earnings and on the number of employees in each bargaining unit covered. Since 2002,
the City?s employee census and earnings have changed, with a corresponding increase in
premiums. In order to provide continued coverage for life and long-term disability
insurance benefits for employees, the Human Resources Department is requesting a one-
time increase of $30,000 to the agreement with Hartford Life.
BUDGET/FINANCIAL IMPACT
Funds have already been included in the FY2003-2004 budget for life and long-term
disability insurance coverage for City employees.
RECOMMENDATION
It is recommended that the City Council authorize a one-time increase of $30,000 for
FY 2003-2004 to contract #8041 (CCS) with Hartford Life Insurance Company.
Prepared by: Karen Bancroft, Director of Personnel