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<br /> IC~ <br /> 103 <br /> <br /> - Mayor Billy G. Moore and <br /> 0: City Council Members <br /> FROM:Mark B. Taylor~ <br /> City Attorney <br /> SUBJEAward of Contract for Employee Life Insurance <br /> DATE: June 18, 1996 <br /> As stated in a separate memo regarding a contract award for health insurance, State <br /> . <br /> statutes have changed recently to require competitive sealed bidding for the purchase of <br /> insurance by cities the size of San Marcos. <br /> The contract to be approved for this agenda item was negotiated with the Fortis Benefits <br /> Insurance Company after bids were submitted and Fortis was determined to be the lowest <br /> responsible bidder. In the usual sealed bid process, all terms and conditions for the <br /> purchase of the goods or services are contained in the City's bid documents, and contract <br /> negotiations are not undertaken after bid award. <br /> I <br /> I We have been advised by our consultants, th'e Romine Group, that while insurance <br /> - companies are amenable to the submission of premium information in a bid process, they <br /> each use their own coverage documents (policy contracts), which are filed with the Texas <br /> Life and Health Guaranty Association as a condition of doing business in Texas. Strict <br /> compliance with sealed bidding requirements for this purchase, which would consist of <br /> having all bidders submit their bids based on the City's prescribed coverage document, is <br /> therefore not possible. <br /> The Romine Group will have the finalized contract ready for distribution to you at the <br /> Council Meeting Monday. <br /> cc: Larry D. Gilley, City Manager <br /> Linda Spacek, Risk Benefits Safety Manager <br /> Cheryl Pantermuehl, Director of Purchasing <br /> MBT:js <br />