information
Memorial Day closure

Most City of Portland offices will be closed Monday, May 27, in observance of Memorial Day.

191697

Emergency Ordinance

*Amend contracts related to employee health and welfare administration and begin formal solicitation for employee benefit plan consulting services as administratively required and on behalf of the Bureau of Human Resources (amend Contracts 30006926, 30006927, 30006928, 30006929, and 30007784)

Passed

The City of Portland ordains:

Section 1.  The Council finds:

  1. This Ordinance supports the City of Portland’s Core Values of Anti-Racism, Equity, Transparency, Communication, Collaboration and Fiscal Responsibility. 
     
  2. The Office of Management and Finance, Bureau of Human Resources requires the continuing provisions of employee health and welfare administration.
     
  3. In order to maintain third-party administrative services for the City’s self-insured medical and dental plans on behalf of employees, retirees, COBRA and other self-pay participants and their eligible dependents, it is deemed appropriate and necessary to authorize a contract extension with Moda Health Plan, Inc. and Oregon Dental Service, dba Delta Dental Plan of Oregon effective July 1, 2024 in a form substantially similar to the attached Exhibit A.
     
    1. This contract shall expire, unless otherwise terminated, on June 30, 2029.
       
    2. Additional compensation in the amount of $550,000,000.00 is required to pay contractor for administrative services and claims for the City’s self-insured medical and dental plans. The original not-to-exceed amount of the original $400,000,000.00 contract will increase by $550,000,000.00 to a new total contract not-to-exceed amount of $950,000,000.00 over the period of the contract.
       
  4. In order to maintain managed healthcare services on behalf of employees, retirees, COBRA and other self-pay participants and their eligible dependents, it is deemed appropriate and necessary to authorize a contract extension with Kaiser Foundation Health Plan of the Northwest effective July 1, 2024 in a form substantially similar to the attached Exhibit B.
     
    1. This contract shall expire, unless otherwise terminated, on June 30, 2029.
       
    2. Additional compensation in the amount of $300,000,000.00 is required to pay contractor for medical, dental and vision services. The original not-to-exceed amount of the original $42,000,000.00 contract was increased previously to $210,000,000.00 and will again increase by $300,000,000.00 to a new total contract not-to-exceed amount of $510,000,000.00 over the period of the contract. 
       
  5. In order to maintain vision care services on behalf of employees, retirees, COBRA and other self-pay participants and their eligible dependents, it is deemed appropriate and necessary to authorize a contract extension with Vision Service Plan Insurance Company effective July 1, 2024 in a form substantially similar to the attached Exhibit C.
     
    1. This contract shall expire, unless otherwise terminated, on June 30, 2029.
       
    2. Additional compensation in the amount of $6,000,000.00 is required to pay contractor for administrative services and claims on behalf of the City’s self-insured vision plan. The original not-to-exceed amount of the original $4,500,000.00 contract will increase by $6,000,000.00 to a new total contract not-to-exceed amount of $10,500,000.00 over the period of the contract. 
       
  6. In order to maintain life and long-term disability services on behalf of employees, retirees, COBRA and other self-pay participants and their eligible dependents, it is deemed appropriate and necessary to authorize a contract extension with Standard Insurance Company effective July 1, 2024 in a form substantially similar to the attached Exhibit D.
     
    1. This contract shall expire, unless otherwise terminated, on June 30, 2029.
       
    2. Additional compensation in the amount of $32,000,000.00 is required to pay contractor for life and long-term disability services. The original not-to-exceed amount of the original $25,000,000.00 contract will increase by $32,000,000.00 to a new total contract not-to-exceed amount of $57,000,000.00 over the period of the contract. 
       
  7. In order to maintain fertility, family expanding, menopause and low testosterone supportive services on behalf of employees and their eligible dependents, it is deemed appropriate and necessary to authorize a contract extension with Carrot Fertility, Inc. effective July 1, 2024 in a form substantially similar to the attached Exhibit E.
     
    1. This contract shall expire, unless otherwise terminated, on June 30, 2027.
       
    2. Additional compensation in the amount of $300,000.00 is required to pay contractor for fertility, family expanding, menopause, and low testosterone supportive services. The original not-to-exceed amount of the original $350,000.00 contract will increase by $300,000.00 to a new total contract not-to-exceed amount of $650,000.00 over the period of the contract. 
       
  8. In order to maintain benefit consultative service to the City and its benefit program administration, it is it is deemed appropriate and necessary for Procurement to begin a formal solicitation for employee benefit plan consulting services for a new contract effective July 1, 2025.
     
  9. The Health Operating Fund and the Payroll Clearing Fund have sufficient appropriation in support of the service contracts as identified above.  

NOW, THEREFORE, the Council directs:

  1. The Chief Human Resources Officer or Chief Procurement Officer is authorized to execute the amendments in a form substantially similar to Exhibits A, B, C, D, and E.
  2. The Chief Human Resources Officer or Chief Procurement Officer is authorized to begin the formal solicitation referenced above on behalf of the Bureau of Human Resources, Benefits Office.

Section 2.  The Council declares that an emergency exists in order to execute the contracts and continue providing the services mentioned in section 1; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council

Auditor of the City of Portland
Simone Rede

Impact Statement

Purpose of Proposed Legislation and Background Information

The purpose of this legislation is to authorize the Chief Human Resources Officer or Chief Procurement Officer to enter into a five-year contract and contract extension with Moda Health, Kaiser Health Plan of the Northwest, Vision Service Plan, Standard Insurance, and Aon Consulting on behalf of the Bureau of Human Resources, Benefits Office, beginning July 1, 2024.

Financial and Budgetary Impacts

The contract increase amounts are as follows to cover the cost of each contract for a period of five years. The Health Fund Budgets for FY 2024-25 has sufficient appropriation in support of the benefit.  

  • $550,000,000.00 for Moda Health Plan, Inc. and Oregon Dental Service
  • $300,000,000.00 for Kaiser Foundation Health Plan of the Northwest 
  • $6,000,000.00 for Vision Service Plan 
  • $32,000,000.00 for Standard Insurance Company 
  • $550,000.00 for Aon Consulting 

Community Impacts and Community Involvement

 This action is largely internal to City government processes.

100% Renewable Goal

Not applicable. 

Budget Office Financial Impact Analysis

This ordinance authorizes contract extensions with Moda  Health, Kaiser Health, Vision Service Plan, Standard Insurance, Carrot Fertility Inc, and allows for solicitation of consulting services. The contract increase amounts are as follows to cover the cost of each contract for five years: $550 million for Moda Health Plan and Oregon Dental Service, $300 million for Kaiser Health, $6 million for Vision Service Plan, $32 million for Standard Insurance, and $550,000 for Aon Consulting. The Health Fund budgets for FY2024-25 have sufficient appropriation.

Agenda Items

337 Regular Agenda in April 24-25, 2024 Council Agenda

Passed

  • Commissioner Dan Ryan Yea
  • Commissioner Rene Gonzalez Yea
  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Yea
  • Mayor Ted Wheeler Yea

Introduced by

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date
Time Requested
30 minutes (2 of 2)