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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/19/2013 - SECOND READING OF ORDINANCE NO. 038, 2013, EXTENDIDATE: March 19, 2013 STAFF: Jim O’Neill Doreen Kemp AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT Second Reading of Ordinance No. 038, 2013, Extending the Contract of the City’s Employee Wellness Program Software Provider. EXECUTIVE SUMMARY The City has contracted with the Mayo Foundation for Medical Education and Research (Mayo) to provide services associated with the assessment and management of existing and potential health risks of City employees. These services allow the City of Fort Collins Human Resources Department to collect and analyze data and support efforts to manage rising healthcare costs. Services provided by Mayo include employee health risk assessments, health information and education, support for behavior modification, and disease management. These services are an integral part of the City’s wellness and employee health benefit programs. Additionally, some organizations are integrating these services with an Onsite Employee Medical Clinic. There may be possible cost savings, efficiency and effectiveness benefits associated with this model. As the first step toward evaluating costs, benefits and options associated with a possible Onsite Employee Medical Clinic, the City will release a Request for Proposal (RFP) in the spring of 2013. Vendors will be asked to respond to the City’s interest in evaluating proposals that incorporate these services into the clinic model. This Ordinance, unanimously adopted on First Reading on March 5, 2013 will extend the City’s contract and allow time to evaluate options associated with a clinic while continuing usage of services provided by Mayo. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - March 5, 2013 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: March 5, 2013 STAFF: Jim O’Neill Doreen Kemp AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT First Reading of Ordinance No. 038, 2013, Extending the Contract of the City’s Employee Wellness Program Software Provider. EXECUTIVE SUMMARY In 2008, the City of Fort Collins utilized a competitive bid process and contracted with the Mayo Foundation for Medical Education and Research (Mayo) to provide services associated with the assessment and management of existing and potential health risks of City employees. These services allow the City of Fort Collins Human Resources Department to collect and analyze data and support efforts to manage rising healthcare costs. Services provided by Mayo include employee health risk assessments, health information and education, support for behavior modification, and disease management. These services are an integral part of the City’s wellness and employee health benefit programs. Additionally, some organizations are integrating these services with an Onsite Employee Medical Clinic. There may be possible cost savings, efficiency and effectiveness benefits associated with this model. As the first step toward evaluating costs, benefits and options associated with a possible Onsite Employee Medical Clinic, the City will release a Request for Proposal (RFP) in the spring of 2013. Vendors will be asked to respond to the City’s interest in evaluating proposals that incorporate these services into the Clinic model. This extension will allow the City to evaluate options associated with a Clinic while continuing usage of services provided by Mayo. BACKGROUND / DISCUSSION Mayo provides an online portal where employees enter personal health information, access healthcare, nutrition, exercise information, and track behavior modifications. Health data is gathered, reported to employees, aggregated and analyzed by Human Resources staff to assess employees’ current and potential future health risks. Additional services provided by Mayo include an educational website designed specifically for City employees and one-on-one coaching programs designed to help manage or prevent disease. Some organizations are incorporating these services into an Onsite Employee Medical Clinic. There are possible benefits (consolidation of health risk data, additional cost savings, coordinated care) associated with this integrated model. In an effort to consolidate services and enhance program effectiveness, the City will be requesting information from vendors interested in providing clinic services as well as those offered by Mayo. Vendors will be asked to respond to the City’s interest in evaluating proposals that incorporate these services into the Clinic model. Extending the contract for one year will allow continued usage of services provided by Mayo while staff assesses costs, benefits, services and other options associated with an Onsite Employee Medical Clinic and how possible vendors incorporated health risk assessment services into the Clinic. FINANCIAL / ECONOMIC IMPACTS Funds are currently included in the 2013 and 2014 budget to cover the cost of this contract. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 038, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS EXTENDING THE CONTRACT OF THE CITY’S EMPLOYEE WELLNESS PROGRAM SOFTWARE PROVIDER WHEREAS, the Mayo Foundation for Medical Education and Research, a Minnesota nonprofit corporation (the “Service Provider”) was selected by a competitive process to provide Health Risk Assessment software for the City’s wellness program commencing on April 1, 2008; and WHEREAS, the City has contracted with the Service Provider for the last five years and the Service Provider has satisfactorily performed under that agreement; and WHEREAS, Section 8-186 of the City Code limits contracts for services, including renewals, to no longer than five years, unless authorized by ordinance; and WHEREAS, the current contract with the Service Provider expires March 31, 2013; and WHEREAS, the City begins its annual health assessment campaign in March, 2013; and WHEREAS, the City will release a Request for Proposal in spring, 2013, as the first step in assessing the viability of an Employee Onsite Clinic Services; and WHEREAS, City staff believes there is a possibility of consolidating the gathering of Health Risk Assessment data with the same vendor of Employee Onsite Clinic Services; and WHEREAS, there are possible cost savings, efficiencies, and effectiveness associated with consolidating the two activities; and WHEREAS, extending the current contract with the Service Provider will allow staff to analyze how the Health Risk Assessment may be incorporated with various Employee Onsite Clinical models; and WHEREAS, the City also desires to extend the term of the agreement with the Service Provider for an additional one-year period beyond the current five-year limit in order to permit sufficient time to conduct a competitive process for a 2014 agreement; and WHEREAS, because of the time and resources required to complete a competitive process, the Purchasing Agent has determined that a competitive process cannot reasonably be used prior to the expiration of the current agreement with the Service Provider and, if used, would result in substantially higher cost to the City and may result in the impairment of the City’s administrative functions, and the Purchasing Agent has submitted the requisite justification for this determination to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved the justification for this contract extension. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Purchasing Agent is hereby authorized to enter into an extension of the wellness program software services agreement with the Mayo Foundation for Medical Education and Research from April 1, 2013 through and including March 31, 2014. Introduced, considered favorably on first reading, and ordered published this 5th day of March, A.D. 2013, and to be presented for final passage on the 19th day of March, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of March, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk