HomeMy WebLinkAboutContract 45199 kCITY SEC OMY
CONTRACT h0l.
PROFESSIONAL SERVICES AGREEMENT FOR
BENEFIT T C NS "SING SERVICES
This PROFESSIONAL SERVICES AGREEMENT FOR BENEFIT CONSULTING
SERVICES ("'Agreement") is made and entered -into by and between the CITY OF FORT
WORTH the "City"), � ., a
���� �.�� � .� ���. ��r�+�rat�c�n :� �� Mate �` �T`��,a.s, acting by and
through its duly authorized Assistant City Manager, and GALLAGHER BENEFIT
SERVICES, INC. ("Consultant"),,, a Delaware corporation acting by and trough its duly
authorized Area President , Central Texas. For purposes of this Agreement, City and Consultant
may each he referred to individually as a"party" and collectively as the "parties."
I. SCOPE OF SERVICESS
Consultant hereby agrees in good faith and with ww due diligence to provide the City with
professional advising and consulting services related to the benefit programs and offerings for
the City's current and former employees. Consultant shall provide certain consulting and
advising services on. an ors-going basis for a set annual fee ("Care Basic Services"). In addition,
Consultant shall provide other specialized consulting and advising services, on an as requested,
fee-for-service basis "Special Services"'). Attached hereto and incorporated for all purposes
incident to this Agreement is Exhibit "A," Statement of Work, which more specifically
describes the services to be provided hereunder, bath in terms of Core Basic Services and Special
Services..
2, TERM,
This Agreement shall govern and encompass all services provided by Consultant to City during
an initial three-year period, beginning January 1 2014 and expiring December 31, 2016 the
"Initial Term"), unless terminated earlier in accordance with -the provisions of this Agreement.
This Agreement may be extended for up to two additional one-year periods by signed, written
mutual agreement of the parties (each a Renewal Term").
,31. COMPENSATION.
As full and com, lete compensation for Core Basic Services provided auring the Initial Term, the
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It shall p ;� consultant Once Hundred Thirty-Two Thousand, F"ve hundred Dollars
.
($132,500.00), per Contract Year, which equates t o Tree Hundred Ninety- 'even Thousand Five
Hundred Dollars ($397,500)) for the entire Initial, Term.
In addition, for all Special Services provided during the Initial Terrn, the City shall pay
Consultant an amount not to exceed One Hundred and Fifty Thousand Dollars 50,000.00).
Fees for Special Services shall he imposed on a per services basis in accordance with the terms
of the Fee Schedule, which is attached hereto as Exhibit "B" and incorporated herein for all
purposes as though it were set forth at length.
For the entire Inifial Term, the City's total monetary obligation NItant shall rat
CITYSECRETARY
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exceed Five Hundred "or even Thousand Five Hundred Doll r o SA Benefits consulting
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City shall not be liable for any additional payment to Consultant unless such additional
amount is agreed to in writing in the or of an executed amendment to this Agreement or
a separate contract between the parties,
For purposes of this provision, a "Contract Year" shall be a twelve month pleriou "oeg,inning on
January 1 and ending on December 3 L
In the event this Agreement is extended for one or more Renewal, Tern-is, the parties agree that
the City shall pay Consultant One Hundred Forty Four '11ousand Four Hundred and Fift y
Dollars ($144,450.00) per Renewal Term as full and complete compensation for Core Basic
Services. As part of the renewal process, the parties will negotiate and agree to a not-to-exceeld
mnount for Special Services to be provided during each Renewal Term.
4. TERMINATION.
4.1. Written Notice.
Either party may terminate this Agreement at any time with or without cause, by providing the
other party with 30 days' written notice of termination.
4.2 Non-appWriation of Funds.
In the event no funds or insufficient funds are appropriated by the City in any fiscal period for
any payments due hereunder, City wIll notify Consultant of such occurrence, and this Agreement
shall terminate on the last day of the fiscal period for which appropriations, were received
without penalty or expense to the City of any kind whatsoever, except as to the portions of the
payments here n agreed upon for which funds shall have been appropriated.
4.31 Duties and-Obligations, of the Parties.
In, the event that this Agreement is terminated prior to its expiration, the City shall pay
Consultant for services actually rendered up to the effective date of termination and Consultant
shall continue to provide the City with services requested by the City and in accordance with this
Agreement up to the effective date of termination.
5. DISCLOSURE, OFCONFLICTS AND CONFIDENTIAL INFORMATIONO
Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any
existing or potential conflicts of interest related to Consultant's services under this Agreement.
In the event that any conflict of interest arises following execution of this Agreement, Consultant
shall immediately make full disclosure to the City in writing.
Consultant, for itself and its officers, agents, and employees, further agrees that it shall treat all
information provided to, it by the City ("City Information") as confi dential and shall not disclose
I
any such infori-nation to, a mird party without the prior written approval, of the City, provided,
however,that written,approval, shall not be required for the use of aggregate or de-identified City
PSG—Benefitts Consulting Page 2 of 14
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Information 'in connection with providing services, including, but not limited to, providing such
information to third parties in connection with a Req nest for Proposal as outlined in the Scope of
Services. Consultant shall store and maintain City Information in a secure manner and shall not
allow unauthorized users to access, modify, delete or otherwise corrupt City Info rnBat ion in any
way. Consultant shall notify the City immediately if the security or integrity of' any City
Information has been compromised or isbeheved to have been compromised.
6. RIGHT TO AUDIT,
Consultant agrees that the City shall, until the expiration of three (3) years after final payment
under this Agreement and at no additional cost to the City, have access to and the right to
examine at reasonable times any directly pertinent books, documents, papers and records of the
Consultant involving transactions relating to this Agreement. Consultant agrees that the City
shall have access during normal working hours to all necessary Consultant facilities and shall be
provided adequate and appropriate work space in order to conduct audits, 'in compliance with the
provisions, of this section. The City shall give Consultant reasonable advance notice of intended
audits.
Consultant further agrees to include in all Consultant's subcontractor agreements hereunder a
provision to the effect that the subcontractor agrees that the City shall, until expiration of three
(3) years after final payment of the subcontract, have access to and the right to examine at
reasonable times any directly pertinent books, documents, papers and records of such
subcontractor involving transactions related to the subcontract, and further that City shall have
access during normal working hours to all subcontractor facilities and shall be provided adequate
and appropriate work space in order to conduct audits in compliance with the provisions of this
paragraph. City shall give subcontractor reasonable notice of intended audits.
7. INDEPENDENT CONTRACTOR.,
It is expressly understood and agreed that Consultant shall operate as an independent contractor
as to all 'rights and privileges granted herein and not as agent, representative or employee of the
City. Subject to and in accordance with the conditions and provisions of this Agreement,
Consultant shall have the exclusive right to control the details of its operations and activities, and
be solely res onsib ffl
le for the acts and omissions of its oicers, agents, servants, employees,
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contractors, and subcontractors. Consultant ackjiowledges that the doctrine of respondeat
superior shall not apply as between the City, its officers, agents, servants, and employees and
Consultant, its officers, agents, employees, servants, contractors, and subcontractors. Consultant
ftirther agrees that nothing herein shall be construed as the creation of a partnership or joint
enterprise between City, and Consultant.
8. LIABILITY AND INDEMNIFICATION,
CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL
PROPERTY LOSS, PROPERTY DAMAGE, ANDIOR PERSONAL INJURY, INCLUDING'
DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER
REAL OR' ASSER TED, TO THE EXTENT CA USED B Y THE NEGLIGENT A CT(S) OR
PSA—Benefits Consulting Page 3 of'l 4
OMZSSION(S) MALFEASANCE, OR' INTENTIONAL MISCONDUCT OF CONSULTANT,
ITS OFFICERS,A GEMS, S R VA NTS, OR E P YEES.,
CONSULTANT COVENANTS AND AGREES TO, AND DOES HEREBY IN E NIF
L LESS, ANDD EFEND THE CITE' ITS OFFICERS, AGENT SERVANTS,
AND EMPLOYEES, FROM AND AGAI STANY.AND ALL CLAIMS OR LA WSUITS FOR
EITHER PROPER Y DA GE R LOSS (INCL INN ALLEGED DA MA OR LOS
TO ANY BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR PERSONAL
IN S'Y, INCLUDING DEA. , TO ANY AND ALL PERSONS, OF ANY KIND OR
CH CI' "R, HE I'.IIER REAL O ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THIS A EE EN TO THE EXTENT CAUSED BY THE
NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE, R INTENTIONAL
MISCONDUCT OF CONS UL TA , ITS OFFICERS, AGENTS, S► R A TS, OR
Notwithstanding any other term or provision of this Agreement, Consultant shall not be
liable for punitive damages.
9. ASSIGNMENT AND SUBCONTRACTING.
Consultant shall not assign or subcontract any of its duties, obligations, or rights under -this
Agreement without the prior written consent of the City. any attempted pted or purported assignment
or subcontract entered into without the City's consent shall be void.
If the City grants consent to an assignment, the assignee shall execute a written agreement with
the City and the Consultant under which the assignee agrees to be bound by the duties and
obligations of Consultant under -his Agreement. The Consultant and Assignee shall be jointly
liable for all obligations under-this Agreement prior to the assignment. If the City grants consent
to a subcontract, the subcontractor shall execute a written agreement with the Consultant
referencing this Agreement under which the subcontractor shall agree to he bound by the duties
and obligations of the Consultant under this Agreement as such duties and obligations may
apply. The Consultant, shall provide the City with a dully executed copy of any, such subcontract.
10. INSURANCE.
Consultant shall provide the City with certificate(s) of insurance documenting policies of the
following minimum coverage limits that are to be in effect prior to commencement of any work
pursuant to this s Agreement
10.1 Coverage and Limits.
(a) Commercial General Liability
$1 � , � . O Each Occurrence
$2,000,0001.00 aggregate
(b) automobile Liability
P A Benefits Consulting Page 4 of 1
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$1 �,000.00 Each accident on a combined single limit basis
or,
$250,000.00 Bodily iijjury per person
$500,00:0.0,0 Bodily injury per occurrence
$100,000-00 Property damage
Coverage shall be on any vehicle used by the Consultant its employees, agents, or
4,
representatives 'in the course of the providing services under this Agreement. "Any
vehicle" shall be any vehicle owned, hired, and non-owned.
(c) Workers' Compensation
Statutory limits
Employer's liability
$100,000.00 Each accident/occurre!nce
$100,000.00 Disease - per each employee
$500,,000.00 Disease - policy limit
7"his coverage may be written as follows,,-
I
Work Compensation anti Compensati anci trnployers' Liability coverage with limits consistent, with
statutory benefits outlined in the Texas Workers' Compensation Act (Tex. Gov't Code
§§ 401,001 et. seq.) and minimum 'policy limits for Employers" Liability of$100,000.00
each accident/occurrence, $500,000.00 bodily iql*ury disease policy limit and ,$100,000.00
per disease per employee
(d)� ' rofessional Liability (Errors & Omissions)
.P 1 1
$1,000,000.00 Each Claim Limit
$1,000,000.00 Aggregate Limit
Professional Liability coverage may be provided through an endorsement to the
Commercial General Liability (CGL) policy or a, separate policy specific to Professional
E&O. Either is acceptable if coverage meets all other requirements. Coverage shall be
Written on a claims-made basis and be maintained for the duration of this Agreement and
for one (1) year following completion of services. An annual certificate of insurance
shall be submitted to the City to evidence coverage.
10.2.Certificates.
Certificates of tnsurance evidencing that the Consultant has obtained all required insurance shall
be delivered to the City prior to Consultant proceeding with any work pursuant to this
Agreement. Any commercial general liability insurance policies required under this Agreement
shall be endorsed to name the City as an additional insured the�reon, as its interests may appear.
All policies shall contain a Waiver of Subrogation for Athe benefit of the City of Fort. Worth.. The
P'SA—Benefits Consulting fl age 5 of 14
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term City shall include its employees, of icers, officials, agent, and volunteers in respect to the
contracted services,. Any failure on the part of the City to request required 'insurance
documentation shall not constitute a waiver of the insurance requirement. Consultant shall notify
City as soon as reasonably practicable upon receipt of any notice of cancellation or reduction in
limits, of coverage for any insurance policy required under this Agreement. On receipt of such
noitice, Consultant shall acquire additional or alternate insurance to ensure that all types and
amounts of coverage required herein remain in place at all times and shall promptly provide City
with certificates for any such additional or alternate insurance. In addition to any notice required
under Section 13,, all insurance-related notices shall be sent to the Risk Manager, City of Fort
Worth', 10010 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the
same address.
11, COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS.,
Consultant agrees to comply with all applicable federal, state, and local laws, ordinances, rules,
and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules,
or regulations, Consultant shall immediately desist from and correct the violation.
12. NON-DISCRIMINATION COVENANT.
Consultant, for itself, its personal representatives, assigns, subcontractors, and successors in
interest, as part of the cons,*1 derat loin herein, agrees that in the performance of Consultant's duties
and obligations hereunder, it shall not discriminate in the treatment or employment of any
individual or group of individuals on any basis prohibited by law. If any claim arises from an
alleged violation of this non-discrimination covenant by Consultant, its personal representatives,
assigns, subcontractors,, or successors in interest, Consultant agrees to assume such liability
and to indemnify and defend the City and hgild the City harmless from such claim.
13. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be conclusively determined
to have been delivered when (1) hand-de li vered to the other party, its agent, employee, servant,
or representative, (2), delivered by facsimile with electronic confirmation of the transmission, or
(3) received by the other party by United States Mail, registered, return receipt requested,
addressed as follows:
To CITY.* To CONSULTANT.
City of Fort Worth Gallagher Benefit Services, Inc.
Attn: Asst. City Mgr for Human Resources Attn,- P. Todd Dorton
1000, Throckmorton Street 45,47 Lakeshore Drive
Worth'TX 76102-6311 Waco Texas 76710
Facsimile: (817) 3912-81654 Facsimile: (254) 756-4200
With copy to
Law Department at same address Law Department at Gallagher:
Benefit Services, Inc. Itasca Illinois,
PSA—Benefits Consulting Page 6 of 14
14. SOLICITATION OF EMPLOYEES.
Neither the City nor Consultant (each a "Hiring Party") shall, during the Initial or Renewal
Terms of this Agreement and additionally for a period of one year after its termination,, solicit for
employment or employ, whether as employee or independent contractor, any person (1) who is or
has been employed by the other party during any term of this Agreement and (11) with who the
Hiring Party had contact during any term, of this Agreement, without the prior written consent of
the person's employer.
With regard to Consultant,, this provision shall only apply to individuals located in Consultant's
Austin rexas, and Waco, Texas, offices. further, this provision shall not prohibit either party
from hiring an individual who is employed by the other party and who responds to a general
solicitation or advertisement of employment.
15. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City does, not waive or
surrender any of its governmental powers.
16. NO WAIVER,
The failure of either party to insist upon the performance of any term or provision of this
Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or
Consultant's respective right to insist upon appropriate performance or to assert any such right on
any future occasion.
17. GOVERNING LAW/VENUE.
This Agreement shall be governed by and construed in accordance with -the internal laws of the
State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis
of this Agreement, venue for such action shall lie ln state courts located in "I"arrant, County, Texas
or the United States District Court for the Northern District of Texas, Fort Worth Division.
18. SEVERABILITY.,
If any portion, or provision sion of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining portions and provisions shall not in any
way be affected or impaired.
19. FORCE MAJEURE.
The City and Consultant shall exercise their best efforts to meet their respective duties and
obligations as set forth in this Agreement. If either party is unable, either in whole or part, to
fulfill its obligations under this Agreement due to acts of God; strikes, lockouts, or other
industrial disturbances,- acts of public enemies, wars'; blockades; insurrections*, riots'; epidemics;
PSA—Benefits Consulting Page 7 .1
public health crises; earthquakes, fires, floods, restraints or prohibitions by any court, board,
department, commission, or agency of the United States or of any state; declaration of a state of
disaster or of emergency by the federal, state, county, or City government in accordance with
applicable law-, iss,uance of a Level Orange or Level Red Alert, by the United States Department
of Homeland Security* any arrests and restraints, civil, disturbances- or explosions- or some other
reason beyond the plarty's reasoinablle control each a "Force Mature ent"), the obligations so
affected by such, Force Majeure Event will be suspended only i Ev during the continuance of such
event.
20. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are tbr reference purposes only and shall not be
deemed a part of this Agreement.
21. REVIEW OF COUNSEL.
The parties acknowledge that each party and its counsel have had the opportunity to review and
revise this Agreement and that the normal rules of construction to the effect -that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or any exhibit hereto.
22, AMENDMENTS/MODIFICATIONS/EXTENSIONS,
No extension,, modification, or amendment of this Agreement shall be binding upon a party
01
hereto unless such extension, modification, or amendment is set forth in a written, instrument,
which is executed by an authorized representative and delivered on behalf of such party.
23., ENTIRETY OF AGREEMENT.
This written instrument (together with any exhibit, attachment, or schedule attached hereto and
any documents incorporated herein by reference) contains and constitutes the entire
understanding and agreement between the City and Consultant, their assigns, and successors in
interest, as to the matters contained herein. Any prior or contemporaneous oral or written
agreement is hereby declared, null and void to the extent in con-I'lict with any provision of this
Agreement.
24. SIGNATURE AUTHORITY,
The person signing this Agreement hereby warrants that he/she has the legal authority to execute
ve party, and that such blinding authority has been
this Agreement on behalf of the respective
granted by proper order, resolution, ordinance or other authorization of the entity. The other
party is fully entitled to rely on this warranty and representation in entering into this Agreement.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
PSA—Benefits conSLIlting Page 8 of 14
IN WITNESS WHEREOF 'the planes he'reto luave executed this Agreement in multiples this
18th day of November, 2013.
CITY OF FORT WORTH.- GALLAH HE N FIT
SERVICES
...........
e0I �esf¢jl
By: By:
Susaii Al ' is P. Todd Dorton
Assistan"I City Manager Area President-- Central, Texas
Date.- Date-
ATTEST:
I
By: I0 B
j i, "'Il 1111 0000 y
Mary"j. dayser,
City Secretary A� 0
APPROVED AS TO FORN1
AND LE,GALIT
kiA I
By:
Denis C. McElroy
V
Assistant City At to y
CONTRACT' AUTHORIZATION:
M&C*-
(012 61
Date Approved. - ... .........
fOFFICIAL RE'CORD
CITY SECRETARY'
I
C
FT.,WORTH,TX
PSA Benefits Consulting,
EXHIBIT A
STATEMENT OF WORK
Core Basic Servikes
Each Contract Year during the Initial Term of this Agreement and any Renewal Term thereof, Consultant
shall provide the City with the following Core Basic Services in exchange for the annual fee addressed in
the Agreement-.
1. General consulting and advising services requested by the City, regarding its benefit programs.
2. Assistance with on going review and assessment of the Clity's, health and welfare benefit
programs and their cost effectiveness, including suggesting innovative solutions as iSSUes evolve.
3. Assistance in the general. management of the City's benefit plans, including, but not limited to,
assistance in developing and monitoring administrative processes to ensure performance by the
vendors)providing,benefits and/'or associated administrative services.
4. Evaluation of benefit trends and conduct of City-specific benchmark surveys and market surveys
as requested by the City or deemed advisable by Consultant in its exercise of its reasonable
professional discretion.
5. Service as a central point of contact for insurance agents and representatives who rnake inquiries
regarding the health and welfare benefits offered by and/or through the City.
6. Review of vendor performance for the City's health and welfare benefit plans, and offerings and
negotiation of renewal rates.
7. Assistance in reviewing and revising the Plan Document and Summary Plan Description for the
C
it I
i s, self-funded medical plan, with such services to be provided in conjunction with City legal
counsel and/or, staff, if applicable. (NOTE - Core Basic Services does not include development
of a new or wholly restated Summary Plan Description or Summary of Material Modifications.
Fees for such services would be negotiated and agreed to separately.)
8. Attendance and presentations at meetings of the City's, Benefits Advisory Committee for benefit-
related issues.
9. Attendance, participation, and presentations at meetings of the City Council and/or its
Committees as requested by the City.
101. As requested by the City, performance of actuarial studies addressing the long-term cost/savings
of the City's benefits and proposed revisions or enhancements thereto including the making of
presentations on study findings.
I L Development of effective benefit coins-nunication plans and materials for benefit recipients.
e-1
12. General consulting and advisory services related to voluntary benefit products, health and welfare
benefits, and wellness program incentives.
PSA—Benefits Consulting Page 10 of'l 4
13. Assistance with preparation of Federal and State agency reports in conjunction with City legal
counsel and/or staff.,
14. Information and advice regarding current and proposed Federal and State statutes, rules, and
,regulations applicable to the City and impacting benefit plans.
15. Preparation and subtnission of an annual Strategy and Stewardship Report regarding City
benefits, with such report to be provided to the City on or before January 31 st of each year.
1 . Provision of the following services related to financial management of the City's benefits,—
a. Annual preparation and submission of a five-year budget projection for the healthcare
ft
b. Annual preparation and submission of a report on the incurred-but-not-reporte!d (IBNR)
liabilities associated with the City's benefit offerings
c. Annual preparation and submission of healthcare-plan financial reporting required for the
completion of the City's comprehensive annual financial report and audit(CAFR)
17. Benefit modeling as requested by the City or as deemed advisable by Consultant in its exercise of'
its reasonable professional discretion.
18. Benchmarking against similar cities as identified by Consultant and City.
19. Assistance with, insurance marketing and renewal negotiation for the following City benefits:
Calendar Year 20,14
a. Dental—3-year contract witti 2, 1 year renewal,options
b. Life/AD&D -3-year contract with 2, 1-year renewal options
c. Supplemental Life & A - 3-year contract with 2, 1-gear renewal options,
d. Long Term Disability- 3-year contract with 2, 1-year renewal options,
Annual Renewals
e., Stop Loss
f. Medicare Plans
g. Healthcare Plans
20. Serving as project lead on negotiation and implementation of benefit contracts.
21. Attendance at the City's Open Enrollment meetings as requested.
22. Serving as,project lead on development of an annual Open Enrollment strategy.
231. Assistance with the review and revision of Summary Plan Descriptions for City benefits other
than the self-funded medical plan, with such benefits to, Include, but not be limited to, dental, life
insurance/AD&DI, supplemental life, long-term disablili,ty, health savings account", and flexible
spending account, with such service to be provided in conjunction with City legal counsel and/or
third party legal counsel. (OTE - Core Basic Services does not include development of'a new
or wholly restated Summary Plan Description or Summary of Material, Modifications., Fees for
such services would be negotiated and agreed to separately.)
24. Development of all benefit-related notices for benefit recipients as requested by the City.,
PSA—Benefits Consulting Page I I of 1 4
25. Development of customized communications for open enrollment and other benefit-related
purposes as requested by the City.
26. Consulting and advisory services, related to the City's wellness and disease management
programs, including, but not limited to, assistance and advice with development and
implementation of a near-site clinic.
27. General assistance with employee and family advocacy for issues related to benefits that have
been escalated or that require escalation to the level of an Assistant Director a manager in the
Benefits Division of the City's Human Resources Department. (NOTE: Core Basic Services do
not include general day-to-day employee and family advocacy issues. The nature and scope of
such services and the associated fees would be negotiated and agreed to separately).
28. Coordination and conducting of online surveys of benefit recipients as requested by the City or as
deemed advisable by Consultant in its exercise of its reasonable professional discretion.
291. Review and report regarding the FIRAdvantage Handbook.,
30. Oversight of certified fraud examiners.
Special Services,
Each Contract Year during the Initial Term of this Agreement and any Renewal Term thereof,, Consultant
shall provide the City with the following Special Services as requested in exchange for the associated fee-
for-service amount addressed in the Agreement and detailed in Exhibit B:
1. Dependent Eligibility Verification Audit(DEVA) of Hea,ith/Denta,l Plans
Review and inspection of the enrolled population a City-identified benefit plan to: ensure eligibility
of all enrolled dependents; identify ineligible dependents; ensure the City's benefits continue to be for
the exclusive benefit of eligible plan participants; reduce costs; and meet fiduciary obligations. The
methodology and scope, of each requested DEVA shall be agreed in advance in writing by Consultant
and City.
2. Full GASB Reporting and Roll Forward GAS.B Reporting
Preparation of reports regarding the City's other-post-employment-benefit(OPEB) liability and other
liabilities about which the City is required to report in order to meet standards and rules promulgated
by the Governmental Accounting, Standards Board (GASB,).
3. GASP Scenarios
Evaluation of how proposed changes to City benefits in scope, type, or amount would be anticipated
to affect the City's, other-post-employment-benefit (OPEB) liability or other liabilities about which
PSA-Benefits Consulting Page 12 of 14
the City is required to report in order to meet standards and rules promulgated by the Governmental
Accounting,Standards Board (GASH).
4. Customized Assessment and Audits
Performance of specialized Human Resources assessments or audits per rued by HR-Advantage
related to the City's current and potential benefit offerings and changes thereto, with the scope of
each assessment or audit to be devel ed in consultation with the City Manager's Office and the
C'ity's Human Resources Department.
PSA—Benefits Consulting Page 1 3 of 14
-W r
ExHIBIT 13
FEE SCHEDULE
In exchange for services, provided in accordance with the terms of the Agreement and Exhibit A, Consultant
shall be compensated as follows:
Core Basic Servi'ces*.
Core Basic Services shall be compensated by payment of an annual, fee of
(i) One Hundred Thirty Two Thousand Five Hundred Dollars ($132,500.00) per Contract
Year during the Initial Term arid,
(ii) One Hundred" Forty-Four Thousand Four Hundred arid Fifty Dollars ($1,44,450.00) per
Contract Year during any Renewal Term.
Special Services.
Special Services shall be compensated on a fee-for-service basis as follows:
(i) Dependent Eligibility Verification Audit $50,000.00 per audit
(iii" GASB, Reporting and Roll Forward GAS B Reporting $18,000.00, per report
(iii) GAS B Scenarios $1`,200.00 per scenario
Div) Customized Human Resources Assessments and Audit To Be Determined but
Not to, Exceed
$10,000.00 per
assessment or audit
PSA- Benefits Consulting Page 14 of 14
M&C Review Page I o 2
Official Site of tte City of ForL Worth,'Texas
CII iiiiiii'l Cu`LUNCIL AGENDA FO RT WO RT I if
ROSIN,N1g,,,,,ffi)1'N,�,"I'mitaii",��"mw wom"T
COUNCIL ACTION: Approved on 12/10/2013
DATE: 12/10/20,13 REFERENCE **C-216585 LOG NAME: 14GALLAGHERCONSULTING
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT.- Authorize Execution, of an Agreement with Gallagher Benefits Services, Inc., for Advisory
Services for Issues Related to the City's Benefit Programs for an Annual Amount of
$1821500-00, (ALL COUNCIL DISTRICTS)
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RECOMMENDATION,-,
1 11
It is recommended that the City Council authorize an Agreement with Gallagher Benefits Services,
Inc., for advisory consull"Ang services for the City's benefit programs in the amount of$182,500.00 per
year.
DISCUSSION,:
The purpose of this Mayor and Council Communication (M&C): is to approve an Agreement with
Gallagher Benefits Services, Inc. (Gallagher), for advisory consulting services for the City's benefit
programs. The proposed Agreement is for a three year period with two, one-year renewal
options. During the initial three year term, basic consulting services would be provided in the amount
of$132,500.00 per year with an additional amount of'$150,,000.,00,, allocated for the entire three year
term for special benefit-related projects such as dependent eligibil!ity audits and GASB analysis of
potential benefit changes.
Since 20013, Aon, Consulting, Inc.,, has served as the City"s consultant for issues related to its benefit
plans, (CSC No. 29292, as amended; M&Cs C-191816, C-22583, G-167810, and C-25270). The current
Agreement expires December 31, 2013.
Having worked with, the same consultant for several years, Staff determined it would be in the City's
best interest to ensure that it was getting the best overall product and price by going out to the market
and giving, all providers the opportunity to compete for the City's business. On April 24, 201!3, a
Request for Proposals (RFP),was issued, with responses required' by June 6, 2013. The RFP was
designed to solicit a provider for comprehensive, consulting services regarding the City's health and
welfare benefit plans beginning January 1, 2014.
Staff received seven proposals in response to the RF'P. An evaluation team with representatives
from the Human Resources Department, the Pur hosing Division, two members of Health Benefits
Advisory Committee, and the Law Department thoroughly reviewed proposals and evaluated them
based on five factors firm experience, firm or individual's qualifications and previous experience,
quality of proposal,,, compliance, with City's DBE requirement, end price. The evaluation team agreed
that, of all' the submissions, Gallagher's proposal offers the best overall, quality of service and pricing
by providing a broader range of'services at a cost that is equal' to or less than that of other proposers.
Under the proposed contract, Gallagher will provide consulting services and actuarial updates that
the City requires year after year. In addition, the City will be able, upon request, to engage Gallagher
to provide additional specialized services as needed, such, as dependent eligibility verification audits
and analysis of the GAS B impact of proposed changes, to the City's benefit offerings.
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M&C Review Page 2 oft
The total cost of the three year Agreement for both core consulting services and splecia�l projects will
not exceed the amount of$547,5 .00. The cost of each one-year renewal will be in the amount of
$144,450.001 for core services, plus an agreed amount for specialized services,. At this point, Staff
anticipates allocating between the amounts of$50,000.00 and $75,000.00 for specialized services,
during each renewal term, meaning that the total amount for all services should not exceed the
amount of$219,500.00 per renewal term.
Only nine months of service will be provided during the remainder of the current fiscal year, from
January 1, 2014 to September 30, 20,14,, with the cost for this period being in the amount of
$136,875.00. The balance of the;funds for the first year"s service will' be re�quested as part of the
Fiscal Year 2015 budget.
AGREEMENT TERIVIS - Upon City Council's approval, the Agreement will be effective on January 1,
2014, and will expire on December 31, 2016.
RENEWAL OPTIONS - This Agreement may be renewed for up to two, one,-year periods,at the City"s
option. This action does, not require, specific City Council approval provided that sufficient funds are
appropriated for the City to meet its obligations, dlur�ing the renewal pe iold.
M/WBE OFFICE - Gallagher is in compliance with the City's MBE Ordinance by,committee to a 10
percent African American, participlation annu�al�l�y. The City"s MBE goa�l on this Agreement is, 10
percent.
FISCAL INFORM ATION/GERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Group H�e,al!th and' Life, Insurance F'u�n,d.
TO Fund/Account/Centers FROM Fund/Account/Centers
IFE85 531200 O!148510 $136,875.00
Submitted for Cit Manager's Offlice b Susan Alanis (8180)
0rigin,a,t,jng Department 'Head: Harry Anderson (2632).
Additional! Information Co.n,tacts. Margaret Wise (80518)
ATrAC Vii'MENTS
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