HomeMy WebLinkAbout1985-058
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RESOLUTION NO.
85-58
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RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH WYATT COMPANY FOR CONSULTING
SERVICES ON CITY'S INSURANCE AND BENEFIT PROGRAMS.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is hereby
7 authorized and directed to execute on behalf of said City an
8 Agreement with Wyatt Company for consulting services on City's
9 insurance and benefit programs, a copy of which is attached
10 hereto, marked Exhibit "A" and incorporated herein by reference as
11 fully as though set forth at length.
12 I HEREBY CERTIFY that the foregoing resolution was duly
13 adopted by the Mayor and Common Council of the City of San
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Bernardino at a
meeting thereof, held on
reoular
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the
4th day of
, 1985, by the following vote,
Febrllnry
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AYES:
Council Members
Cn~rnnp.nn Rpi"y. Hp.rn~nn~ry.
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Marks Ollipl FrR7;pr ~rri,.k-lnr
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NAYS:
None
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ABSENT:
None
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,~#7?$./~
/' C1ty Clerk
The foregoing resolution is hereby ..;;JC"-. day
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of
, 1985.
Febrl1a,rv
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Approved as to form:
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/Z/;P-/J ~t!~~
City A't torney
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AGREEMENT
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(Consulting Services for Employees
3 Group Insurance and Benefit Programs)
4 THIS AGREEMENT is made and entered into this '-~~~ day
5 of J.,tw.,;f./, 19~ by and between the CITY OF SAN
6 BERNARDINO, a municipal corporation, hereinafter called "City",
7 and WYATT COMPANY , hereinafter called "Consultant".
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I. Recitals.
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A. Consultant represents that it possesses all consulting,
10 actuarial, and other professional qualifications necessary to
11 render the services to the City set forth herein, and City enters
12 into this Agreement in reliance upon Consultant's express
13 representations in regard thereto.
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B. City desires to retain Consultant to provide on-going
15 analysis, evaluation and assistance on City's insurance and
16 benefit programs, to prepare adequate specifications acceptable
17 for obtaining bids for employees' group insurance plans as set
18 forth herein, to assist in analyzing the bids that will be
19 received for employee health and life insurance coverage,
20 including dental and vision plans, and to provide a consulting
21 service for a one-year period on City health, life insurance, and
22 other benefit programs.
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C. Consultant represents that it is ready, willing and able
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to serve City on the terms and conditions of this agreement, and
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City enters into this agreement in reliance upon Consultant's
representations concerning its qualifications and capabilities.
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II. Employment of Consultant. City hereby employs
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Consultant to perform on-going analysis, to prepare
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specifications, and to assist the City in obtaining bids for
revised health and life insurance coverage, including dental and
vision plans. Consultant shall, at City's request and to the
satisfaction of the Personnel Director, perform the following
services and projects:
A. Annual On-going Services
1. An annual financial evaluation of plan results for
the past plan year which sets forth a complete accounting of all
employee benefit dollars spent. The maximum charge under this
paragraph 1. for all items is $5,000. The evaluation will
include, but not be limited to:
a. A breakdown of claims experience and benefit
payments, by plan, on an employee versus dependents basis.
b. An accounting of nonbenefit plan costs such
as:
(1.) Insurance premiums.
(2.) Special risk and pooling charges.
(3.) Claims administration charges.
(4.) Booklet, forms and printing costs.
(5.) Premiums taxes, where applicable.
c. An evaluation of plan expenses for claims and
nonbenefit costs compared with expected contribution rates and
premiums for the period.
d. Evaluation of rate and contribution levels to
support the plan(s) for the next plan year.
e. Development of cash versus accrual accounting
costs and the establishment of reserve levels necessary to
support the plan(s) and properly state plan liabilities at year
end.
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f. Comparisons of expected versus actual claims
experience results.
2. An evaluation of the adequacy of benefit levels and
plans provided by the City and in particular, how the City's
plans compare with those of other government agencies and
employees in the San Bernardino market area. The maximum charge
under this paragraph shall be $1,900.
3. On-going advice concerning government legislation
impacting employee benefits and compliance procedures, at no
charge.
4. Assistance with plan contracts, amendments and the
salary negotiation process, for a maximum charge of $600.
5. Assistance in updating employee communications,
booklets and plans documents to support both the insured and
self-funded plans, at a maximum charge of $750.
6. Assistance and advice concerning problem claims,
claims audits and administrative procedures, at a maximum charge
of $500.
7. Meetings with City staff, providers and carriers,
as needed during the plan year, for a maximum charge of $700.
8. Annual plan financial analysis, which will include
a full written report of results as well as findings and
recommendations for future improvements, at a maximum charge of
$650.
B. Special Projects.
The development of new plans, bid specifications, spread
sheet analysis of carrier and provider proposals, risk analysis
and special studies, at a maximum charge of $4,700.
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III. Personnel. Consultant represents that it has, or will
secure at its own expense, all personnel required to perform the
services called for under this agreement. Consultant shall at
all times be and remain an independent contractor, and such
personnel as may be employed by Consultant shall not be employees
or agents of City for any purposes.
IV. Time of Performance. Services of Consultant are to
commence as soon as practicable after the execution of this
agreement. Consultant shall promptly perform work and duties
required hereunder and complete same in time to permit City to
implement Consultant's recommendations relating to plan rate
changes on or before November 1, 1985, and to implement
Consultant's recommendations for new or additional plans on or
before August 1, 1985.
V. Compensation. City shall pay to Consultant a sum not to
exceed a total of fourteen thousand eight hundred dollars
($14,800.00> for all work including the maximum charges set forth
under paragraph A, subparagraphs 1-8 hereinabove and for services
involved in providing the work set forth in paragraph B. City
will only be charged for and will only pay for these services
specifically requested by the City. Consultant shall be paid for
services in accordance with the maximum fee schedule set forth
herein, said sum to constitute full and complete compensation for
all Consultant's services rendered. There shall be no other
compensation payable to Consultant hereunder, and Consultant
shall be solely responsible for paying the expenses for all
services rendered to the City pursuant to this agreement.
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VI. Method of Payment. Prior to commencement of a project,
Consultant and the Personnel Director shall define the work to be
performed and the amount to be charged. Consultant shall present
itemized billings describing work completed to the Personnel
Director, not more often than on a monthly basis, as the work
progresses, and upon approval by the Personnel Director, City
shall promptly pay approved billings within the period of time
normally used by City for making such payments. Consultant shall
bill City only for actual expenses incurred and actual time
expended. A final payment of $3,000.00 to be made by City shall
not be made until such time as the Consultant has finally
performed all work required hereunder.
VII. Warranties of Consultant. Consultant specifically
warrants and represents its skill and expertise to be adequate
and competent for the completion of the assignment hereunder in a
good and professional manner, and the representations set forth
in Recitals A and C hereinabove are incorporated in this
paragraph by reference.
VIII. Assi9nability. The experience, skill and expertise
of Consultant is of the essence of this agreement. Consultant
shall not assign (whether by assignment or novation) this
agreement or delegate the duties or any right or interest
hereunder in whole or in part without the prior written consent
of City. Any assignment or attempt to assign this agreement
without such prior written consent or by operation of law shall
be void and shall constitute cause for termination.
IX. Interest of Consultant. Consultant covenants that it
presently has no interest and shall not acquire any interest,
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direct or indirect, which would conflict in any manner or degree
with the performance of services required to be performed under
this agreement. Consultant further covenants that in the
performance of this agreement no person having any such
conflicting interest shall be employed.
X. Findin9s Confidential. Any reports, information or data
given to or prepared or assembled by Consultant under this
agreement which City requests to be kept confidential shall not
be made available to any individual or organization by Consultant
without the prior written approval of City.
XI. Publication. Reproduction and Use of Material. No
material produced in whole or in part under this agreement shall
be subject to copyright in the United States or in any other
country. The final report furnished by Consultant to City shall
become the sole property of City, and City shall have
unrestricted authority to publish, disclose, distribute and
otherwise use, in whole or in part, any reports, data, or other
materials prepared under this agreement.
XII. Termination of Contract for Cause. If for any cause
Consultant shall fail to fulfill in a timely and proper manner
its obligation under this agreement, or if Consultant shall
violate any of the covenants, agreements or stipulations of this
agreement, City shall thereupon have the right to terminate this
agreement by giving written notice to consultant of such
termination and specifying the effective date thereof at least
five (5) days before the effective date of such termination. In
that event, all finished and unfinished documents, data, studies,
surveys, drawings and reports or other material prepared by
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Consultant under this agreement shall, at the option of City,
become its property, and Consultant shall be entitled to receive
just and equitable compensation for any satisfactory work
completed on such documents and other materials.
Notwithstanding the above, Consultant shall not be relieved
of liability to City for damages sustained by City by virtue of
any breach of this agreement by Consultant, and City may withhold
any payments to Consultant for the purpose of set-off until such
time as the exact amount of damages due City from Consultant is
determined.
This agreement may not be terminated if the failure to
perform arises from unforeseeable cause beyond the control and
without the fault or negligence of Consultant.
XIII. Termination for Convenience of City. City may
terminate this agreement at any time by giving written notice to
Consultant of such termination and specifying the effective date
thereof at least fifteen (15) days before the effective date of
such termination. In such event, all finished and unfinished
documents and other materials as described in paragraph XII above
shall, at the option of City, become its property. If the
agreement is terminated by City as provided herein, Consultant
will be entitled to be paid all compensation for work performed
to the the date of termination. If termination is due to the
fault of persons other than Consultant, Consultant will be
entitled to be paid all compensation for work performed to the
date of termination. Should this agreement be terminated due to
default of Consultant, paragraph XII hereof relative to
termination shall be applicable.
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XIV. Chan~es. Should City require changes in the scope of
the services of consultant to be performed hereunder, such
changes, including any corresponding increase or decrease in the
amount of Consultant's compensation which shall be mutually
agreed upon by City and Consultant, shall be incorporated in this
agreement only by written amendments hereto.
Xv. Consultant to Hold Harmless. Consultant hereby agrees
to, and shall, hold City, its elective and appointive boards,
commissions, officers, agents and employees harmless from any
liability for damage or claims for damage for personal injury,
including death, as well as from claims for property damage which
may arise from Consultant's operations under this agreement,
whether such operations be by Consultant or by anyone or more
persons directly or indirectly employed by or acting as agent for
Consultant. Consultant agrees to and shall defend City and its
elective and appointive boards, commissions, officers, agents and
employees from any suits or actions at law or in equity for
damages caused, or alleged to have been caused, by reason of any
of the aforesaid operations.
XVI. Workers Compensation. Consultant shall provide proof
of workers compensation insurance coverage for all its employees
employed pursuant to this agreement. Evidence of such insurance
shall be furnished to City's Risk Manager prior to commencement
of work.
XVII. Time of the Essence. Time is of the essence with
respect to Consultant's performance under this agreement.
XVIII. Notice. All notices herein required shall be in
writing and delivered in person or sent by certified mail,
postage prepaid, addressed as follows:
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1
Cill
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Director of Personnel
City of San Bernardino
300 N. "D" Street
San Bernardino, CA 92418
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Consultant
Wyatt Company
Suite 220
3366 North Torrey pines Curt
La Jolla, CA 92037
XIX. ~. This agreement shall be effective for the
period J
, 198~-, through t"..!2'/Jaj7.y/ , 198~.
WHEREOF, the parties hereto have executed this
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agreement on the date first hereinabove written.
ATTEST:
~f~4.60
City Clerk
Approved as to form:
/~IU,J //-~
City }(ttorney
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TilE iV7ffT7" U,M'p/?.-eJy
(Consultant)
BY~.1J.~
Title ~hm..:I