Year 2010 temporary budget to make available the ... - Jersey City

EXTRAORDINARY UNSPECIFIABLE SERVICE CERTIFICATION
DATE: December 16, 2009
TO: Municipal Coun~il
FROM: Brian O'Reilly, Business Administrator.
RE: Contract to provide stop gap insurance for
Active Employees and Retirees
This is to request your approval of a resolution authorizing a
contract to be executed as follows:
Firm:
Cost:
Period:
Purpose:
Reliastar Life Insurance Company
$1,780,000.00
January 1, 20010 Thru December 31, 2010
To provide a stop gap insurance policy for
active employees and retirees of the City
of Jersey City
This is to request an award of a contract without receipt of formal
bids as an Extraordinary, Unspecifiable Service (N.J.S.A. 40A:11-
5(1) (a) (ii) and N.J.A.C. 5:34-2.3(b). I do hereby certify to the
following:
1. Provide a clear description of the nature of the work to
be done.
Reliastar Life Insurance Company will provide a stop gap
insurance policy for all active employees and retirees in the
event that medical bills for an individual surpass $200,000.00
in a given plan year. This is an umbrella policy that
protects the City from catastrophic claims.
2. Describe in detail why the contract meets the provisions
of the statute and rules:
The contract is to provide stop gap insurance coverage for
City non-management employees. N.J.S.A. 40A:11-5(m) states
that contracts for insurance may be awarded in accordance with
the regulations applicable to extraordinary, unspecifiable
service contracts.
3. The service is of such a
nature that the performance
reasonably described by written
specialized and qualitative
of the service cannot be
specifications because:
It is insurance that is coupled with the Horizon health
insurance and a necessity with a group the size of the City of
Jersey City for claims protection in the. event of any
catastrophic incidents.
4. Describe the informal solicitation of quotations:
The following solicitations were obtained by Frenkel & Co.,
Inc. Each provider gave a monthly premium.
Relistart
$148,000.00
Peri co
$446,475.00