HomeMy WebLinkAboutCORRESPONDENCE - RFP - P682 WESTERN COSTS MANAGEMENT TRUSTAdministrative Services
Purchasing Division
City of Fort Collins
November 2, 2001
Mr. Lome Gale
Vice President of Administrative Services
National Health Systems, Inc.
155 Inverness Drive West
Suite 300
Englewood, CO 80112
Re: City of Fort Collins - Western Costs Management Trust
Dear Mr. Gale:
NOV 8 2001
The City of Fort Collins wishes to extend the agreement term for the above captioned proposal per
the terms and conditions outlined in your September 14, 2001 letter, with the following rate changes:
$10.55 per eligible employee per month and, $16.40 for the retiree administration.
The term will be extended for one (1) additional year, January 1, 2002 through December 31, 2002.
If the renewal is acceptable to your firm, please sign this letter in the space provided and return it
to the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO 85022, within the
next fifteen days.
If this extension is not agreeable with your firm, we ask that you send us a written notice stating that
you do not wish to renew the contract and state the reason for non -renewal.
If you have any questions regarding this matter, please contact Keith Ashby, CPPO, Buyer at (970)
416-2191.
S' ly,
J e B. O'Neill II, CPPO, FNIGP
D re or of Purchasing and Risk Management
cc: Vincent Pascale, Human Resources
Phil !GolWilliam er, Inc.
re Date
(Please indicate your desire to renew this program by signing this letter and returning it to
Purchasing Division within the next fifteen days.)
215 North Mason Street • 2nd Floor • P.O. Box 580 * Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
September 14, 2001
Mr. James B. O'Neill II, CPPO
Director of Purchasing and Risk Management
215 North Mason St 2"d Floor
PO Box 580
Fort Collins, Colorado 80522-0580
RE: City of Fort Collins — January 1, 2002 Renewal
Dear Mr. O'Neill:
On January 1, 2002, we will begin our ninth year of providing Third Party Administration services to
the City of Fort Collins. The past years have been a very positive experience for National Health
Systems, Inc. (NHSI). In response to your renewal request, we are submitting the following
information for your review.
NHSI incurs the following monthly administrative expense in administering the City Plan:
Postage
$1.22/EE
Telephone
$0.80/EE
Envelopes/Forms/Copies, etc.
$0.13/EE
TOTAL ADMINISTRATIVE EXPENSE/MONTH
$2.15/EE
As a result, our current fee after expenses is $7.90/EE/Month which is $0.70/EE/month less than our
other clients. Based upon this evaluation, we are requesting a modest renewal rate increase of 5% in
accordance with Section 2 of our contract. The 5% increase will change the fees from $10.05 to
$10.55 per eligible employee per month and from $15.60 to $16.40 for the retiree administration. Our
COBRA administration fees will remain the same.
If you have any questions regarding this information, please do not hesitate to call. We look forward
to the renewal and the continued relationship we have with the City of Fort Collins.
Sincerely yours,
Lome Gale
Vice President of Administrative Services
cc: Vincent Pascale
Phil Goldstein