SR-600-002 (2)
F:\PERSON\MISC\COUNCIL\STAFFRPT\COUNCILAON2004 Santa Monica, California
Council Meeting: December 14, 2004
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Agreement with AON Consulting to Provide Services Relating to Employee
Benefits
INTRODUCTION
This report recommends that the City Council authorize the City Manager to extend the
City?s contract with AON Consulting for an amount not to exceed $50,000 per year for
Fiscal Years 2004-2006.
BACKGROUND
The Human Resources Department currently uses AON for ongoing full service consulting
with regard to employee benefit plans, including: renewal negotiations with carriers;
contract review; claims/service assistance with vendors; legislative updates and
interpretation; client meetings; vendor interface (correspondence and meetings); plan
design; employee benefits strategic planning; financial analysis; claims experience
analysis and reporting; plan marketing and other services related to City employee benefit
plans.
An example of their work is the recent negotiation of a second three year contract with the
Hartford Insurance Company to provide life insurance and long term disability insurance
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coverage to City employees, at a savings of $191,000 per year, for a total savings of
$573,000 over a three year period.
BUDGET/FINANCIAL IMPACT
Funds are available in budget account number 01274.555060 for FY2004-05.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to extend the City?s
contract with AON Consulting for an amount not to exceed $50,000 per year for Fiscal
Years 2004-2006.
Prepared by: Karen Bancroft, Director of Human Resources
Reference Amendment to Contract No. 7495 (CCS).
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