HomeMy WebLinkAboutContract 44760 (2)CITY SECRETARY
CONTRACT NO. 1L17 1, v
NETWORK ACCESS AGREEMENT
This NETWORK ACCESS AGREEMENT ("Agreement") is made and entered into by and
between the CITY OF FORT WORTH ("City"), a home rule municipal corporation with its principal
location at 1000 Throckmorton Street, Fort Worth, Texas 76102, organized under the laws of the State of
Texas and situated in portions of Tarrant, Denton and Wise Counties, Texas, and Aetna Life Insurance
Company, Inc., a Connecticut corporation with its principal location at 151 Farmington Ave, Hartford
Connecticut, ("Contractor").
1. The Network. The City owns and operates a computing environment and network (collectively
the "Network"). Contractor wishes to access the City's network in order to provide on -site health plan
assistance to City of Fort Worth employees and retirees. In order to provide the necessary support,
Contractor needs access to Internet.
2. Grant of Limited Access. Contractor is hereby granted a limited right of access to the City's
Network for the sole purpose of providing on -site health plan assistance to City of Fort Worth employees
and retirees using Aetna's system. Such access is granted subject to the terms and conditions forth in
this Agreement and applicable provisions of the City's Administrative Regulation D-7 (Electronic
Communications Resource Use Policy), of which such applicable provisions are hereby incorporated by
reference and made a part of this Agreement for all purposes herein and are available upon request.
3. Network Credentials. The City will provide Contractor with Network Credentials consisting of
user IDs and passwords unique to each individual requiring Network access on behalf of the Contractor.
Access rights will automatically expire one (1) year from the date of this Agreement. If this access is being
granted for purposes of completing services for the City pursuant to a separate contract, then this
Agreement will expire at the completion of the contracted services, or upon termination of the contracted
services, whichever occurs first. This Agreement will be associated with the Services designated below.
• Services are being provided in accordance with City Secretary Contract No. TBD - M&C C-25660.
❑ Services are being provided in accordance with City of Fort Worth Purchase Order No.
❑ Services are being provided in accordance with the Agreement to which this Access Agreement
is attached.
❑ No services are being provided pursuant to this Agreement.
4. Renewal. At the end of the first year and each year thereafter, this Agreement may be renewed
annually if the following conditions are met:
4.1 Contracted services have not been completed.
4.2 Contracted services have not been terminated.
4.3 Within the thirty (30) days prior to the scheduled annual expiration of this Agreement, the
Contractor has provided the City with a current list of its officers, agents, servants, employees or
representatives requiring Network credentials.
Notwithstanding the scheduled contract expiration or the status of completion of services, Contractor shall
provide the City with a current list of officers, agents, servants, employees or representatives that require
Network credentials on an annual basis. Failure to adhere to this requirement may result in denial of
access to the Network and/or termination of this Agreement.
5. Network Restrictions. Contractor officers, agents, servants, employees or representatives may
not share the City -assigned user IDs and passwords. Contractor acknowledges, agrees and hereby gives
its authorization to the City to monitor Contractor's use of the City's Network in order to ensure
Contractor's compliance with this Agreement. A breach by Contractor, its officers, agents, servants,
employees or representatives, of this Agreement and any other written instructions or guidelines that the
City provides to Contractor pursuant to this Agreement shall be grounds for the City immediately to deny
Contractor access to the Network and Contractor's Data, terminate the Agreemmat,-ancl-pufaide-aftrottrfir
remedies that the City may have under this Agreement or at law or in equity. s P
�UtIO tl §(211. 01
Vendor Network Access Agreement RtC IVED AUG 2 7 2013
6. Termination. In addition to the other rights of termination set forth herein, the City may terminate
this Agreement at any time and for any reason with or without notice, and without penalty to the City.
Upon termination of this Agreement, Contractor agrees to remove entirely any client or communications
software provided by the City from all computing equipment used and owned by the Contractor, its
officers, agents, servants, employees and/or representatives to access the City's Network.
7. Information Security. Contractor agrees to make every reasonable effort in accordance with
accepted security practices to protect the Network credentials and access methods provided by the City
from unauthorized disclosure and use. Contractor agrees to notify the City immediately upon discovery of
a breach or threat of breach which could compromise the integrity of the City's Network, including but not
limited to, theft of Contractor -owned equipment that contains City -provided access software, termination
or resignation of officers, agents, servants, employees or representatives with access to City -provided
Network credentials, and unauthorized use or sharing of Network credentials.
8. LIABILITY AND INDEMNIFICATION. CONTRACTOR SHALL BE LIABLE AND RESPONSIBLE
FOR ALL DAMAGES THAT THE CITY MAY INCUR DIRECTLY ON ACCOUNT OF ANY BREACH OF
THIS AGREEMENT BY CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES.
THE CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, SHALL NOT BE LIABLE FOR
ANY DAMAGES THAT CONTRACTOR MAY INCUR AS A RESULT OF THE CITY'S RESTRICTIONS
TO OR DENIAL OF ACCESS TO CONTRACTOR'S DATA ON ACCOUNT OF ANY BREACH OF THIS
AGREEMENT BY CONTRACTOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES, OR FOR
ANY REASONABLE SECURITY MEASURES TAKEN BY THE CITY. IN ADDITION, CONTRACTOR
SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY
DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, AND ALL CLAIMS, DEMANDS AND
JUDGMENTS THEREFOR, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR
OMISSION(S) OR INTENTIONAL MISCONDUCT OF CONTRACTOR, ITS OFFICERS, AGENTS,
SERVANTS AND/OR EMPLOYEES. CONTRACTOR, AT CONTRACTOR'S OWN COST OR
EXPENSE, HEREBY AGREES TO INDEMNIFY, DEFEND AND HOLD HARMLESS THE CITY, ITS
OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES FROM AND AGAINST ANY CLAIM,
LAWSUIT, DEMAND OR OTHER ACTION TO THE EXTENT THAT THE SAME ARISES FROM THE
NEGLIGENT ACT(S) OR OMISSION(S) OR INTENTIONAL MISCONDUCT OF CONTRACTOR, ITS
OFFICERS, AGENTS, SERVANTS OR EMPLOYEES.
9. Confidential Information. Contractor, for itself and its officers, agents, employees, and
representatives, agrees that it shall treat all information provided to it by the City as confidential and shall
not disclose any such information to a third party without the prior written approval of the City. Contractor
further agrees that it shall store and maintain City Information in a secure manner and shall not allow
unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. Contractor
shall notify the City immediately if the security or integrity of any City information has been compromised
or is believed to have been compromised.
10. Right to Audit. Contractor agrees that the City shall, during the initial term, any renewal terms,
and until the expiration of three (3) years after termination or expiration of this contract, have access to
and the right to examine at reasonable times any directly pertinent books, data, documents, papers and
records, both hard copy and electronic, of the Contractor involving transactions relating to this
Agreement. Contractor agrees that the City shall have access during normal working hours to all
necessary Contractor 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 Contractor
reasonable advance notice of intended audits. Contractor further agrees to include in all its
subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City
shall, during the initial term, any renewal terms, and until expiration of three (3) years after termination
or expiration of the subcontract, have access to and the right to examine at reasonable times any
directly pertinent books, data, documents, papers and records, both hard copy and electronic, 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
Vendor Network Access Agreement 2
Aetna Life Insurance Company, Inc., a Connecticut corporation Rev. C
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.
11. Aareement Cumulative. This Agreement is cumulative of and in addition to any written
contracts, agreements, understandings or acknowledgments with the City signed by Contractor. This
Agreement and any other documents incorporated herein by reference constitute the entire
understanding and Agreement between the City and Contractor as to the matters contained herein
regarding Contractor's access to and use of the City's Network.
12. Amendments. The terms of this Agreement shall not be waived, altered, modified,
supplemented, or amended in any manner except by written instrument signed by an authorized
representative of both the City and Contractor.
13. Assignment. Contractor may not assign or in any way transfer any of its interest in this
Agreement. Any attempted assignment or transfer of all or any part hereof shall be null and void.
14. Severabilitv. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or
impaired.
15. Force Maieure. Each party shall exercise its best efforts to meet its respective duties and
obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in
performance due to force majeure or other causes beyond their reasonable control (force majeure),
including, but not limited to, compliance with any government law, ordinance or regulation, acts of God,
acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor
restrictions by any governmental authority, transportation problems and/or any other similar causes.
16. Governing Law / Venue. This Agreement shall be construed in accordance with the 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 in state courts located in Tarrant County, Texas or the United
States District Court for the Northern District of Texas, Fort Worth Division.
17. Signature Authority. By affixing a signature below, the person signing this Agreement hereby
warrants that he/she has the legal authority to bind the respective party to the terms and conditions in this
agreement and to execute this agreement on behalf of the respective party, and that such binding
authority has been 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.
[SIGNATURE PAGE TO FOLLOW]
Vendor Network Access Agreement 3
Aetna Life Insurance Company, Inc., a Connecticut corporation Rev. C
ACCEPTED AND AGREED:
CITY OF FORT WORTH:
By:
Musa Alanis
Assistant City Man er
Date: 1 �� 5
ATTEST:
By:
Mary J. K ys-`r r
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant Ity Att94' eyIA C, Mcel,(s`1
M & C: n ne reauired
Aetna Life Insurance Company, Inc.:
By:
Name: �A� �►{,` S
Title: Lir,jtrr►f .r..S
Date:
ATTEST:
By:
Name: 'l (, v - 61.5Dn (-H:
Title: `x l htese'10 .-Pr) Pu_k-Cc,
L4 t r) Sect
Vendor Network Access Agreement 4
Aetna Life Insurance Company, Inc., a Connecticut corporation Rev. C
�1i3 )a��
OFFICIAL RECORD
CITY SECRETARY 'i
FT. WORTH, TX
M&C Review
Page 1 of 3
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 6/12/2012
DATE: 6/12/2012 REFERENCE NO.: C-25660 LOG NAME:
CODE: C TYPE:
Official site of the City of Fort Worth, Texas
FORT WORTFI
14HEALTH
BENEFITS PLAN
NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of Agreement with Aetna Life Insurance Company for Administration
of the City's Health Benefits Plan in an Amount of $3,498,591.00 for the First Year (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an Agreement with
Aetna Life Insurance Company for administration of the City's self funded group medical and
pharmacy benefit program including COBRA, Flexible Spending Accounts, Employee Assistance
Program and Disease Management and Wellness Programs effective January 1, 2013, with an initial
three year term and two one year renewal options.
DISCUSSION:
The purpose of this Mayor and Council Communication is to seek authorization from the City Council
to enter into a new Agreement with Aetna Life Insurance Company (Aetna) for administrative services
related to the City's health benefits program. The City of Fort Worth's program is self -funded and
utilizes a third party administrator to process claims. Aetna has been providing these administrative
services since January 1, 2005 under its previous Agreement with the City. That contract expires
December 31, 2012.
Having worked with the same administrator 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 June 9, 2011, a
Request for Proposal (RFP) was issued requiring interested vendors to submit proposals by
September 8, 2011. The RFP was designed to solicit proposals for the following services individually
or in combination with each other: 1) Third Party Administrator (TPA) for the City's self -funded
medical plan, 2) Pharmacy Benefit Management (PBM), 3) Flexible Spending Account (FSA)
administration, 4) Disease Management and Wellness Program coordination and 5) COBRA
administration.
In October 2011, an Ad Hoc Selection Committee was formed and included representation from
Human Resources, Police, Fire, Water, Planning and Development, Finance, Parks and Community
Services, Transportation and Public Works and retirees. The Committee was active in the analysis of
the proposals, on site visits and follow up meetings with potential vendors. Human Resources Staff
and the City's benefits consultant, Aon Hewitt, facilitated the RFP review and vendor meetings.
Twenty-two vendors were solicited from the Purchasing database system, twenty vendors responded
representing 45 proposals. Vendors submitted individual or multiple responses based on the services
they could provide.
The Committee considered several factors in evaluating the proposals, including price
competitiveness, the organization's ability to administer plans with various plan designs, provider
networks, qualifications of the organization's staff, customer satisfaction and complaint records,
M/WBE participation and responsiveness to customer service issues.
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M&C Review Page 2 of 3
After a lengthy review process, the Committee unanimously agreed that Aetna provided the best
overall quality of service and pricing. In its presentation to the City, Aetna emphasized ways to reduce
claims cost through enhanced disease management through Institutes of Quality designated
hospitals for certain care, such as heart, muscular and skeletal and Bariatric, networks of physicians
and facilities that meet quality of care and cost metrics and Premium Designated Doctors. In
addition, although the issue was not a part of the evaluation process, Aetna's continued performance
as TPA means that plan members may remain with their current doctors and hospitals.
The associated cost and fees are as follows:
A. Administration of Medical and Pharmacy Claim:
$32.29 per subscriber per month for active employees and Non Medicare eligible retirees for the
period of January 1, 2013 through December 31, 2013.
$25.08 per subscriber per month for Medicare eligible retirees for the period of January 1, 2013
through December 31, 2013.
$2.50 per subscriber per month for Disease Management and Wellness - provide disease
management and lifestyle behavior change programs and coordinate with existing City programs.
Coordination will allow for more thoroughly developed data that can be used to measure results for
various disease states and chronic conditions such as diabetes, asthma and cardio vascular
diseases.
Total Estimated Annual Cost - $3,324,666.00
B. COBRA Administration:
$0.084 per employee per month - provide COBRA new hire notification, qualifying event notices
and manage COBRA continuants billing and payments.
Total Estimated Annual Cost - $5,629.00
C. Employee Assistance Program:
$1.29 per employee per month - provide minimum of six face to face visits to assist employees in
addressing personal issues, make referrals to qualified professionals for specialized issues such as
financial planning, elder care, child care and include welcome packet for all employees and 16 one
hour on site seminars.
Total Estimated Annual Cost - $85,991.00
D. Flexible Spending Accounts:
$1.234 per employee per month - manage Medical Expense Reimbursement Plan (MERP) for
allowable medical, dental and vision benefits and dependent child care for participating eligible
employee.
Total Estimated Annual Cost - $82,305.00
NOTE - Annual totals are based on anticipated enrollment of 5,555 active employees, 1,434 Non
Medicare eligible retirees and 1,352 Medicare eligible retirees.
The benefit plan operates on a plan calendar year basis and the expected overall total administrative
costs are $3,498,591.00 for calendar year 2013, which represents a savings of $313,698.00 per year
from the current contract.
In addition to these savings, Aon Hewitt estimates $2.2 million in savings on pharmacy claims and
fees and $961,900.00 savings through pharmacy rebates with this contract. Also, Aetna has agreed
to provide the City with a one time amount of $125,000.00 that can be used for the Wellness
programs and $25,000.00 each year for the next three years for employee communications.
Additionally, Aetna has set aside $180,000.00 each year for open enrollment support for the next
three years using a M/WBE vendor. Prices will remain flat for the base three years.
The following is a summary of expected administrative costs from Aetna for nine months from
January 1, 2013 through the end of the Fiscal Year ending September 30, 2013:
Administration of Benefits
11 $2,493,500.00
II
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M&C Review Page 3 of 3
COBRA Administration 1 $4,222.00
Employee Assistance
Program
Flexible Spending Accounts
$64,493.00
$61.729.00
Total $2,623,944
It is anticipated that the Health Benefit Advisory Committee will make a recommendation to the City
Manager on premium contribution rates, plan design and a Medicare supplement plan by July 2012.
Open enrollment for the 2013 medical plan is scheduled to begin October 1, 2012. The City
Manager's budget proposal for Fiscal Year 2012-2013 will include a recommendation to fund this
contract through September 2013. Authority for the remaining fiscal years that are encompassed by
the Agreement will be requested annually as part of the overall budget process and the contract will
include a standard fiscal funding out clause that would comply with state law requirements by
allowing the City to terminate the Agreement without penalty, if in the future, the Council elects not to
appropriate funds for the contract to continue.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above
recommendations, and upon the adoption of the Fiscal Year 2012-2013 Budget by the City Council to
include the above recommended item(s), funds will be available in the Fiscal Year 2013 operating
budget, as appropriated, of the participating funds.
TO Fund/Account/Centers
FROM Fund/Account/Centers
FE85 534830 0148520 $1.869.770.00
FE85 534830 0148540 $754.174.00
Submitted for Citv Manager's Office bv: Susan Alanis (8180)
Originating Department Head: Karen Marshall (7783)
Additional Information Contact: Margaret Wise (8058)
ATTACHMENTS
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