POLICY REPORT
                                HUMAN RESOURCES


                                                                1995 July 4

   TO:       Vancouver City Council

   FROM:     General Manager, Human Resource Services, in consultation
             with the Director of Legal Services

   SUBJECT:  Execution and Administration of Health and Benefits'
   Carrier Contracts


   RECOMMENDATION:

        A.   That the General Manager of  Human Resource Services
             and  Director  of  Legal Services  be  authorized to
             execute  contracts required  to  provide health  and
             welfare  benefits  to  City  of  Vancouver employees
             pursuant   to   collective   agreements  (or   other
             agreements)  which  have  been ratified/approved  by
             Council; and

        B.   That the  General Manager of Human Resource Services
             be   authorized   to   make   minor   administrative
             adjustments to executed contracts, subject to review
             by the Director of Legal Services.

   COUNCIL POLICY

   There is no applicable Council policy.

   PURPOSE

   This report seeks Council's approval to  grant to the General Manager of
   Human  Resource Services and the Director of Legal Services authority to
   execute and administer health and welfare benefits' carrier contracts.

   BACKGROUND

   The City  of Vancouver is obligated  to provide certain benefits  to its
   employees pursuant  to collective agreements ratified  by Vancouver City
   Council or by Council's approval of benefits for exempt employees.   For
   many  years, some of the benefits' carriers were named in the collective
   agreements and were then part of  the ratification process.  Some  years
   ago the City achieved the right to select the carriers.  


   DISCUSSION

   With Council ratifying collective  agreements with the identification of
   benefits' carriers, executing and  administering benefits contracts  was
   automatic.   Now that the  selection of benefits'  carriers resides with
   the City, it  is necessary  to have appropriate  authorization to  enter
   into such agreements.

   Even though there are a limited  number of benefits' carriers from which
   to choose, it is important  to have a process  that ensures the City  is
   receiving  value for  the  money it  spends.   The  benefits which  have
   carriers   are  life  insurance,   extended  health,  dental,  long-term
   disability, and accidental death/dismemberment.  These contracts are for
   the administration of the  benefit (as compared to  being on an  insured
   basis) as the cost  of the premiums is  determined by the usage  plus an
   administrative fee.  

                                       2

   On a regular  3-year cycle,  the City would  use a  request-for-proposal
   approach   to   select  and   retain  the   carriers.     It   would  be
   administratively  cumbersome  and time-consuming  to  do  this any  more
   frequently than 3 years.  Council would be informed of the results.

   In  addition to  the  main  contract,  there  are  minor  administrative
   adjustments  from time to time.  These adjustments would include matters
   such as the inclusion of another employee group to the  main contract or
   the  manner in which  premiums are remitted.   Such adjustments would be
   executed by  the  General  Manager  of  Human  Resource  Services  after
   discussion with the Director of Legal Services.