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HomeMy WebLinkAboutContract 29292 CONSULTANT SERVICES FOR EMPLOYEE BENEFITS AGREEMENT NO. 03-0084 CITY SECRETARY ! �� ONTRACT NO Q� This Agreement is made and entered into by and between The City of Fort Worth ("the City"), and AON Consulting,Inc.,authorized to do business in the State of Texas,hereinafter referred to as the Consultant. Section 1: TERM OF AGREEMENT The term of this Agreement shall begin the date this contract is executed by both parties, and shall end on December 31, 2004,unless renewed pursuant to the provisions hereof. Section 2: TIME OF BEGINNING AND COMPLETION The Consultant shall begin the work outlined in the "Scope of Work" section("the Work")upon receipt of written notice to proceed from the City. The City will acknowledge in writing when the Work is complete. Time limits established pursuant to this Agreement shall not be extended because of delays for which the Consultant is responsible, but may be extended by the City, in writing, for its convenience or for conditions beyond the Consultant's control. Section 3: SCOPE OF WORK The Scope of Work of this Agreement is as follows: Core Basic Services: Consultant's assignment will be to assist the City in developing a benefits strategy in managing of the City's employee and retiree health plans. Specifically,Consultant will provide City with on-going professional benefit advisory services and expertise relative to maintaining a well-managed and efficient program. The services will include the following: Financial Manaeement 1. Review vendor performance and negotiate renewals 2. Analyze premium and claims experience and revenue projections 3. Evaluate utilization patterns 4. Project future renewals and cost for budget purposes 5. Evaluate and develop contribution strategies 6. Evaluate and present alternate plan designs 7. Provide methodology to determine expense allocation between the City and the employees and retirees 8. Evaluate and advise of new health care trends,both in financial and non-financial areas 9. Conduct claims lag study and evaluation of terminal claim liabilities as necessary 10. Determine the financial impact of plan design changes as it relates to the current plan structure and vendors 11. Provide benchmark comparisons relative to plan design 12. Calculate premium equivalents,COBRA rates,IBNR and three-year expense projections on an annual basis Compliance/Communications 1. Update staff on legislative activities affecting employee benefits 2. Provide advice on the interpretation of state and federal regulations o__ = 3. Annually review health care Plan Document and SPD for completeness, accuracy and co � �vi ►; C , legal and regulatory requirements gp� py 4. Assist in the preparation of Federal and State agency reports if needed. �q 5. Review of the City's communication materials for accuracy, completeness and legal req enlfe4t " ��� , Agreement No.03-0084 Page 1 AONcontract.doc General Services 1. Provide a report on the state of the current plan,which includes an executive and financial summary each year(Stewardship Report) 2. Assist with administration and claim problems 3. Keep the City informed of any changes and trends in benefits,tax issues and government regulations, including,but not limited to,TEFRA,COBRA,DEFRA,ERISA,HIPAA,USSERA 4. Act as liaison between the City and insurance carriers when requested. 5. Confer with the City as needed regarding its health care program 6. Represent the interests of the City in the health care field 7. Attend meetings at the City's request to discuss claims experience and benefit changes 8. Evaluate vendors' administrative performance,provide benchmark comparisons and help establish a system to enable the city to monitor all healthcare vendors. 9. Provide research and technical expertise at the City's request 10. Act as a contact between insurance agents and representatives who make inquiries regarding health plan benefits offered through the City 11. Provide access to Research&Technical Services(RTS) MarketingBidding 1. Work with the City to set procurement objectives 2. Collect and review data elements required for procurement purposes 3. Work with the City to develop procurement specifications 4. Analyze procurement results and meet with the City to review these results and offer recommendations 5. Conduct finalist meetings, if necessary and complete negotiations with selected medical vendors 6. Assist in the transition between current and new vendors in the event of a change in vendors Our Respective Responsibilities To meet mutual expectations, Consultant and City will coordinate closely on all aspects of the assignment. Consultant will apply whatever resources are needed to meet project specifications. In turn,City will: • Provide access to all necessary data to perform on-going account management services or additional requested services. This includes, but is not limited to, census information, expense figures, plan design and historical information • Provide Consultant with authorization to work with vendors on City's behalf. Payments During the course of this assignment, Consultant will be paid for its services on the following basis: For completing the assignment outlined in this contract(Core Basic Services),Consultant will charge the City an annual amount of$58,500,billed as a monthly retainer of$4,875. Consultant will generate an invoice by the first working date of each month. The invoice will be payable upon receipt and considered delinquent if not paid 30 days from the date of receipt. Consultant will not receive any brokerage fees or any form of commission from any vendors for any City business related to the City's benefit program. Renewal Terms The initial contract period will be from the date of execution until December 31,2004. The City may exercise annual renewal options for up to two additional years,unless the contract is terminated per the termination conditions stated in section 16. The Consultant guarantees the amount under Core Basic Services for each of these additional years beyond the initial contract period. Consultant will provide the City pricing for an additional 12 months of Core Basic Services,no less than 180 days prior to the end of the pricing guarantee period, assuming the scope of work for Core Basic Services remains as described in this contract. Agreement No.03-0084 Page 2 AONcontract.doc Special Services: Special services, which are not covered above, will be agreed upon between the parties in writing in advance of the work being performed and will be incorporated with this contract as individual work orders. Examples of special services not included in the retainer fee above include but are not limited to: 1. Aon technical and communication experts will provide a review of the Summary Plan Description's organization,readability,and develop a new Summary Plan Description when applicable for a fee of$5,200. 2. *AonMed-model plan changes and the potential impact on claims when cost-sharing features are increased or decreased such as deductibles,out-of-pocket limits,co-payments and changes in provider discounts or in network utilization. 3. *AonRx -model changes in plan design to help mitigate the rising increases in prescription drug costs. 4. *AonCDH-provide a three-year projection for consumer driven as an option within a menu of medical plan choices or as a full replacement plan for an existing medical program *The estimated fees to make plan design changes for medical and prescription drugs depend on the complexity of benefits, the number of current plans and the number of options required. Typical fees for up to 5 plan design changes would be in the range of$3,000-$6,000. The estimated fees for AonCDH options can start as low as$5,000-$10,000 depending on the scope of the project. We would need to discuss the scope in more detail before quoting a firm fee for the consumer driven pricing. These fees are based on 2004 project date. Delaying project date may require reconfirmation of fees from Consultant. 5. **Government Accounting Standard(GASB)Analysis "The estimated project fees for completing the analysis are$35,000 in the first year and$20,000 annually thereafter. This assumes that participant data will be provided electronically in a predeterminedformat. We have also assumed that we will receive claims and enrollment data electronically and that all data will be timely and accurate. These fees are based on 2004 project date. Delaying project date may require reconfirmation offees from Consultant. • Participant Data Collection Consultant will prepare a data request to gather post-retirement benefit plan data. This will include data for retired participants receiving benefits and active employees who may eventually be eligible to retire and receive benefits from the plan. In addition,we will also request plan-design information such as deductibles,copayments,out-of-pocket limits,etc. Data can be transmitted using almost any medium: FTP,CD,tape, diskette or even paper if necessary. • Claims Data Collection and Analysis Once the data is received from either the City or carrier,Consultant will analyze the data to develop estimated incurred claims cost tables for use in preparing the actuarial valuations. Consultant will assist in setting retiree contribution rates for the upcoming plan year. • Actuarial Valuation and Reporting Consultant will present the results of the actuarial valuation and year-end disclosure in a format that best meets your needs. The valuation report will typically include the current and prior valuation results,but can be customized to meet the City's needs. Consultant will respond to auditors'requests on behalf of the City. Agreement No.03-0084 Page 3 AONcontract.doc Section 4: ADDRESSES FOR NOTICES AND DELIVERABLE MATERIALS All official notices under this Agreement shall be delivered to the Project Managers as listed below(or such other individuals as either party may designate in writing): For the City: Bob Molloy Benefits Administrator City of Fort Worth 1000 Throckmorton Street Fort Worth,Texas 76102 For the Consultant: Lenee Goyette Assistant Vice President Aon Consulting,Inc. 301 Commerce Street Suite 2101 Fort Worth,Texas 76102 Section 5: MINORITY AND WOMEN BUSINESS ENTERPRISE REQUIREMENTS A. General Utilization requirements for Minority and Women Business Enterprises("MWBEs")shall apply to this Agreement. The minimum level of MWBE sub-consultant participation of 15%shall be required as a condition of receiving award of the contract. The Jenkins Agency is the named MWBE for this contract. The Jenkins Agency will provide Consultant with a monthly invoice and all payments to the Jenkins Agency within the Scope of Services under contract Consultant Agreement no. 03-0084 will be made by Consultant. Section 6: OTHER LEGAL REOUIREMENTS A. General Requirement: The Consultant,at no expense to the City,shall comply with all applicable laws of the United States and the State of Texas;the Charter and ordinances of The City of Fort Worth;and rules, regulations,orders,and directives of their administrative agencies and the officers thereof. Without limiting the generality of this paragraph,the Consultant shall specifically comply with the following requirements of this section. B. Licenses and Similar Authorizations: The Consultant,at no expense to the City, shall secure and maintain in full force and effect during the term of this Agreement all required licenses,permits,and similar legal authorizations,and comply with all requirements thereof. C. Americans with Disabilities Act: The Consultant shall comply with all applicable provisions of the Americans with Disabilities Act of 1990(ADA)in performing its obligations under this Agreement. Failure to comply with the provisions of the ADA shall be a material breach of,and grounds for the immediate termination of,this Agreement. Section 7: INDEMNIFICATION The Consultant does hereby release and shall defend,indemnify,and hold the City and its employees and agents harmless from all losses, liabilities,claims,costs(including attorneys' fees),actions or damages of any sort whatsoever to the value of this Agreement arising out of Consultant's performing the services contemplated by this Agreement to the extent attributable to the negligent acts or omissions, willful misconduct or breach of this Agreement by Consultant, its servants,agents,and employees. The indemnification provided for in this section shall survive any termination or expiration of this Agreement. If any action is brought against the City by any employee of Consultant,the indemnification obligation of Consultant set forth in this section shall be limited by a limit on the amount or type of damages,compensation or benefits payable by or for Consultant under RCW Title 51, the Industrial Insurance Act. Agreement No.03-0084 Page 4 AONcontract.doc Section 8: CONTRACTUAL RELATIONSHIP The relationship of the Consultant to the City by reason of this Agreement shall be that of an independent contractor. This Agreement does not authorize the Consultant to act as the agent or legal representative of the City for any purpose whatsoever. The Consultant is not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of the City or to bind the City in any manner or thing whatsoever. Section 9: NO CONFLICT OF INTEREST The Consultant confirms that neither the Consultant nor any principals of Consultant have a business interest or a close family relationship with any City officer or employee who was,is,or will be involved in the consultant selection,negotiation,drafting,signing,administration,or evaluating the Consultant's performance. As used in this section,the term"Consultant"shall include any employee of the Consultant who was,is,or will be involved in the negotiation,drafting,signing,administration,or performance of the Agreement. As used in this section,the term "close family relationship"refers to the following:spouse or domestic partner;any dependent parent,parent-in-law, child,son-in-law,or daughter-in-law;or any parent,parent-in-law,sibling,uncle,aunt,cousin,niece or nephew residing in the household of a City officer or employee described above. Section 10: ERRORS&OMISSIONS: CORRECTION The Consultant shall be responsible for the professional quality,technical accuracy,and the coordination of all designs,drawings,specifications,and other services furnished by or on the behalf of the Consultant under this Agreement. The Consultant,without additional compensation,shall correct or revise any errors or omissions in the designs,drawings,specifications,and/or other Consultant services immediately upon notification by the City. The obligation provided for in this section with respect to any acts or omissions during the term of this Agreement shall survive any termination or expiration of this Agreement. Section 11: ERRORS&OMISSIONS LIABILITY COVERAGE Consultant will maintain Professional Liability Insurance in excess of$2,000,000. Section 12: RIGHT TO AUDIT Consultant agrees that the City shall,until the expiration of three(3)years after final payment under this Agreement,have access to and the right to examine any directly pertinent books,documents,papers and records of the Architect 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 workspace 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 its subcontracts hereunder a provision to the effect that the subconsultant agrees that the City shall,until the expiration of three(3)years after final payment under the subcontract,have access to and the right to examine any directly pertinent books,documents,papers and records of such subconsultant,involving transactions to the subcontract,and further,that City shall have access during normal working hours to all subconsultant facilities,and shall be provided adequate and appropriate work space,in order to conduct audits in compliance with the provisions of this article. City shall give subconsultant reasonable advance notice of intended audits. Consultant and subconsultants agree to photocopy such documents as may be requested by the City. The City agrees to reimburse Consultant and Subconsultant for the costs of copies at the rate published in the Texas Administrative Code. Agreement No.03-0084 Page 5 AONcontract.doc If the audit discloses overcharges of any nature by Consultant, in excess of 5% or the total contract cost, the Consultant shall pay the reasonable cost of the City's audit. Section 13: CONFIDENTIALITY Title II of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Standards for Privacy established by the Department of Health and Human Services require the City of Fort Worth to obtain satisfactory assurances from its Business Associate that the Business Associate will appropriately safeguard the protected health information it receives or creates on behalf of the covered entity. Definitions for this Section Only Catch-all definition: Terms used, but not otherwise defined, in this Agreement shall have the same meaning as those terms in the Privacy Rule. Specific definitions: a. Business Associate. "Business Associate"shall mean AON Consulting,Inc.(AON). b. Covered Entity. "Covered Entity" shall mean City of Fort Worth. c. Individual. "Individual" shall have the same meaning as the term "individual" in 45 CFR § 164.501 and shall include a person who qualifies as a personal representative in accordance with 45 CFR§ 164.502(g). d. Privacy Rule. "Privacy Rule" shall mean the Standards for Privacy of Individually Identifiable Health Information at 45 CFR Part 160 and Part 164,Subparts A and E. e. Protected Health Information. "Protected Health Information" shall have the same meaning as the term "protected health information" in 45 CFR § 164.501, limited to the information created or received by Business Associate from or on behalf of Covered Entity. f. Required By Law. "Required By Law" shall have the same meaning as the term"required by law" in 45 CFR§ 164.501. g. Secretary. "Secretary" shall mean the Secretary of the Department of Health and Human Services or his designee. Consideration Covered Entity is obligated under federal law to secure from Business Associate the representations and covenants, as set forth herein, in order to continue Covered Entity's business relationship with Business Associate. The parties to this Agreement acknowledge, therefore, that the continuation of the business relationship in compliance with federal law constitutes good and valuable consideration for this representations and covenants contained herein. The parties acknowledge that any pre-existing agreements between the parties is not superseded by or merged into this contract. To the extent that this Business Associate Contract conflicts with the terms of any other agreement between the parties,the terms of this Business Associate Contract control. Obligations and Activities of Business Associate a. Business Associate agrees to not use or disclose Protected Health Information other than as permitted or required by the Agreement,the Privacy Rule,or as Required By Law. b. Business Associate agrees to use appropriate safeguards to prevent use or disclosure of the Protected Health Information other than as provided for by this Agreement. Agreement No.03-0084 Page 6 AONcontract.doc c. Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of Protected Health Information by Business Associate in violation of the requirements of this Agreement. d. Business Associate agrees to report to Covered Entity any use or disclosure of the Protected Health Information not provided for by this Agreement of which it becomes aware. e. Business Associate agrees to ensure that any agent, including a subcontractor, to whom it provides Protected Health Information received from, or created or received by Business Associate on behalf of Covered Entity, agrees to the same restrictions and conditions that apply through this Agreement to Business Associate with respect to such information. f. Business Associate agrees to provide access, at the request of Covered Entity, and in the time and manner as negotiated for general consulting services, to Protected Health Information in a Designated Record Set, to Covered Entity or, as directed by Covered Entity, to an Individual in order to meet the requirements under 45 CFR§ 164.524. g. Business Associate agrees to make any amendment(s) to Protected Health Information in a Designated Record Set that the Covered Entity directs or agrees to pursuant to 45 CFR § 164.526 at the request of Covered Entity or an Individual,and in the time and manner as negotiated for general consulting services. h. Business Associate agrees to make internal practices,books,and records, including policies and procedures and Protected Health Information, relating to the use and disclosure of Protected Health Information received from, or created or received by Business Associate on behalf of, Covered Entity available to the Covered Entity, or to the Secretary, in a time and manner as negotiated for general consulting services or designated by the Secretary, for purposes of the Secretary determining Covered Entity's compliance with the Privacy Rule. i. Business Associate agrees to document such disclosures of Protected Health Information and information related to such disclosures as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45 CFR§ 164.528. j. Business Associate agrees to provide to Covered Entity or an Individual, in time and manner as negotiated for general consulting services, information collected in accordance with provision (i) above to permit Covered Entity to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45 CFR§ 164.528. Permitted Uses and Disclosures by Business Associate: General Use and Disclosure Provisions Business Associate may use or disclose Protected Health Information to perform functions, activities, or services for, or on behalf of, Covered Entity as specified in this Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by Covered Entity or the minimum necessary policies and procedures of the Covered Entity. Permitted Uses and Disclosures by Business Associate: Specific Use and Disclosure Provisions a. Except as otherwise limited in this Agreement, Business Associate may use Protected Health Information for the proper management and administration of the Business Associate or to carry out the legal responsibilities of the Business Associate. b. Except as otherwise limited in this Agreement, Business Associate may disclose Protected Health Information for the proper management and administration of the Business Associate, provided that disclosures are Required By Law, or Business Associate obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and used or further disclosed only as Required By Law or for the purpose for which it was disclosed to the person, and the person notifies the Business Associate of any instances of which it is aware in which the confidentiality of the information has been breached. Agreement No.03-0084 Page 7 AONcontract.doc c. Except as otherwise limited in this Agreement, Business Associate may use Protected Health Information to provide Data Aggregation services to Covered Entity as permitted by 42 CFR§ 164.504(e)(2)(i)(B). d. Business Associate may use Protected Health Information to report violations of law to appropriate Federal and State authorities,consistent with§ 164.5020)(1). Obligations of Covered Entity: Provisions for Covered Entity to Inform Business Associate of Privacy Practices and Restrictions a. Covered Entity shall notify Business Associate of any limitation(s) in its notice of privacy practices of Covered Entity in accordance with 45 CFR § 164.520, to the extent that such limitation may affect Business Associate's use or disclosure of Protected Health Information. b. Covered Entity shall notify Business Associate of any changes in, or revocation of, permission by Individual to use or disclose Protected Health Information, to the extent that such changes may affect Business Associate's use or disclosure of Protected Health Information. c. Covered Entity shall notify Business Associate of any restriction to the use or disclosure of Protected Health Information that Covered Entity has agreed to in accordance with 45 CFR § 164.522, to the extent that such restriction may affect Business Associate's use or disclosure of Protected Health Information. Permissible Requests by Covered Entity Covered Entity shall not request Business Associate to use or disclose Protected Health Information in any manner that would not be permissible under the Privacy Rule if done by Covered Entity. Term and Termination a. Term. The Term of this Agreement shall be effective as of the date of execution of this Agreement, and shall terminate when all of the Protected Health Information provided by Covered Entity to Business Associate, or created or received by Business Associate on behalf of Covered Entity, is destroyed or returned to Covered Entity, or, if it is infeasible to return or destroy Protected Health Information, protections are extended to such information,in accordance with the termination provisions in this Section. b. Termination for Cause. Upon Covered Entity's knowledge of a material breach by Business Associate, Covered Entity shall either: 1. Provide an opportunity for Business Associate to cure the breach or end the violation and terminate this Agreement if Business Associate does not cure the breach or end the violation within the time specified by Covered Entity; 2. Immediately terminate this Agreement if Business Associate has breached a material term of this Agreement and cure is not possible;or 3. If neither termination nor cure is feasible, Covered Entity shall report the violation to the Secretary. c. Effect of Termination. 1. Except as provided in paragraph(2) of this section, upon termination of this Agreement, for any reason, Business Associate shall return or destroy all Protected Health Information received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. This provision shall apply to Protected Health Information that is in the possession of subcontractors or agents of Business Associate. Business Associate shall retain no copies of the Protected Health Information. Agreement No.03-0084 Page 8 AONcontract.doc 2. In the event that Business Associate determines that returning or destroying the Protected Health Information is infeasible, Business Associate shall provide to Covered Entity notification of the conditions that make return or destruction infeasible. Upon event of return or destruction of Protected Health Information is infeasible, Business Associate shall extend the protections of this Agreement to such Protected Health Information and limit further uses and disclosures of such Protected Health Information to those purposes that make the return or destruction infeasible, for so long as Business Associate maintains such Protected Health Information. Miscellaneous a. Re ulatory References.A reference in this Agreement to a section in the Privacy Rule means the section as in effect or as amended. b. Amendment. The Parties agree to take such action as is necessary to amend this Agreement from time to time as is necessary for Covered Entity to comply with the requirements of the Privacy Rule and the Health Insurance Portability and Accountability Act of 1996,Pub. L.No. 104-191. c. Survival. The respective rights and obligations of Business Associate under Section C of this Agreement shall survive the termination of this Agreement. d. Interpretation.Any ambiguity in this Agreement shall be resolved to permit Covered Entity to comply with the Privacy Rule. Section 14: EXTRA WORK The City may desire to have the Consultant perform work or render services in connection with this project other than that expressly provided for in the "Scope of Work"section of this Agreement. This will be considered extra work,supplemental to this Agreement, and shall not proceed unless authorized by in writing with a reference to this section and approved by the Assistant City Manager. Any costs incurred due to the performance of extra work prior to execution of written authorization will not be reimbursed. . Section 15: KEY PERSONS The Consultant shall not transfer or reassign any individual designated in this Agreement as essential to the Work, without the express written consent of the City,which consent shall not be unreasonably withheld. If,during the term of this Agreement,any such individual leaves the Consultant's employment,the Consultant shall present to the City one or more individual(s)with greater or equal qualifications as a replacement,subject to the City's approval, which shall not be unreasonably withheld. The City's approval shall not be construed to release the Consultant from its obligations under this Agreement. Section 16: DISPUTES Any dispute or misunderstanding that may arise under this Agreement concerning the Consultant's performance shall first be resolved through amicable negotiations,if possible,between the Consultant's Project Manager and the City's Project Manager,or if necessary shall be referred to the Director of Human Resources and the Consultant's senior executive(s). If such officials do not agree upon a decision within a reasonable period of time,the parties may pursue other legal means to resolve such disputes, including but not limited to alternate dispute resolution processes. Section 17: TERMINATION A. For Cause: The City may terminate this Agreement if the Consultant is in material breach of any of the terms of this Agreement,and such breach has not been corrected to the City's reasonable satisfaction in a timely manner. Agreement No.03-0084 Page 9 AONcontract.doc B. Notice: Notice of termination pursuant to this section shall be given by the party terminating this Agreement to the other not less than sixty(60)business days prior to the effective date of termination. C. Actions Upon Termination: In the event of termination the Consultant shall be paid for the services properly performed prior to termination,together with any reimbursable expenses then due,but in no event shall such compensation exceed the maximum compensation to be paid under the Agreement. The Consultant agrees that this payment shall fully and adequately compensate the Consultant and all sub- consultants for all profits,costs,expenses,losses,liabilities,damages,taxes,and charges of any kind whatsoever(whether foreseen or unforeseen)attributable to the termination of this Agreement. Upon termination for any reason,the Consultant shall provide the City with the most current design documents,contract documents,writings and other product it has completed to the date of termination, along with copies of all project-related correspondence and similar items. The City shall have the same rights to use these materials as if termination had not occurred;provided,however,that the City shall indemnify and hold the Consultant harmless from any claims,losses or damages to the extent caused by modifications made by the City to the Consultant's work product. Section 18: MISCELLANEOUS PROVISIONS A. Amendments: No modification of this Agreement shall be effective unless in writing and signed by an authorized representative of each of the parties hereto. B. Binding Agreement: This Agreement shall not be binding until signed by both parties. The provisions, covenants and conditions in this Agreement shall bind the parties,their legal heirs,representatives, successors,and assigns. C. Applicable LawNenue: This Agreement shall be construed and interpreted in accordance with the laws of the State of Texas. The venue of any action brought hereunder shall be in the appropriate court for Tarrant County,Texas. D. Remedies Cumulative: Rights under this Agreement are cumulative and nonexclusive of any other remedy at law or in equity. E. Captions: The titles of sections are for convenience only and do not define or limit the contents. F. Severability: If any term or provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable,the remainder of this Agreement shall not be affected thereby,and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. G. Waiver: No covenant,term or condition or the breach thereof shall be deemed waived,except by written consent of the party against whom the waiver is claimed,and any waiver of the breach of any covenant, term or condition shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other covenant,term or condition. Neither the acceptance by the City of any performance by the Consultant after the time the same shall have become due nor payment to the Consultant for any portion of the Work shall constitute a waiver by the City of the breach or default of any covenant,term or condition unless otherwise expressly agreed to by the City, in writing. H. Entire Agreement: This document,along with any exhibits and attachments,constitutes the entire agreement between the parties with respect to the Work. No verbal agreement or conversation between any officer,agent,associate or employee of the City and any officer,agency,employee or associate of the Consultant prior to the execution of this Agreement shall affect or modify any of the terms or obligations contained in this Agreement. I. Negotiated Agreement: The parties acknowledge that this is a negotiated agreement,that they have had the opportunity to have this Agreement reviewed by their respective legal counsel,and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof. Agreement No.03-0084 Page 10 AONcontract.doc J. Insurance Requirements per RFP 1. Professional liability $1,000,000 Per occurrence $2,000,000 Aggregate 2. Workers'Compensation Statutory Limits Employer's Liability $100,000 Each accident/occurrence $500,000 Disease—policy limit $100,000 Disease—per each employee 3. Automobile Liability $1,000,000 Each accident on a combined single limit Or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence IN WITNESS WHEREOF,in consideration of the terms,conditions,and covenants contained herein,or attached and incorporated and made a part hereof,the parties have executed this Agreement by having their representatives affix their signatures b ow. A CON TI ,I\ THE CITY OF FORT WORTH l By By b� i afore Dat S nature bate David J.Piendak Richard Zavala Type or Print Name Senior Vice President Interim Assistant City Manager Title AP OVED J Date 0 F APID LEC,ALITY: n)� 1 contract Authorisation ATTESTED BY Date 9 Agreement No.03-0084 Page 11 AONcontract.doc City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/21/2003 DATE: Tuesday, October 21, 2003 LOG NAME: 14AON REFERENCE NO.: **C-19816 SUBJECT: Award of Contract to AON Consulting, Inc. for Group Medical Benefits Consulting Services RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a contract with AON Consulting, Inc. (AON) to provide group medical benefits consulting services for the City on a fee basis up to $100,000. The proposed agreement will contain three (3) one-year options to renew. DISCUSSION: Since 1991, the City has contracted with Effective Plan Management, Inc. (EPM) to provide consulting services for the City's benefit programs covering employees and retirees and their eligible dependents. These services also include representation of the City in the health care field and assistance in reviewing programs to ensure cost effectiveness. Because the cost of health care continues to rise and EPM has indicated that it will not provide services beyond December 31, 2003, a Request for Proposals for consulting services (RFP No 03-0084), was issued in March 2003. Ten companies submitted proposals. The ten companies were: AON Consulting, Inc., Benefit Partners, Benefit Source, Buck Consultants, Cambridge Financial Services Group, CBIZ Benefits, CSG/Hull Benefits, Inc., Hay Group, Smith &Associates Consulting and The Segal Company. During the months of May to August 2003, an ad-hoc selection committee of the Health Benefit Advisory Committee consisting of Jim Keyes (Finance Department), John Kerr (Police Department), Don Westmoreland (Fire Department) and Mark Washington (Human Resources Department) evaluated all proposals and unanimously recommended AON as the first choice. Some of the services performed by AON will include: a) Conferring with the City on health care programs; and b) Representing the interests of the City in the health care field; and c) Reviewing health care programs and their cost effectiveness and suggesting innovative solutions; and d) Assisting in the general management of health care plans, including but not limited to developing and monitoring administrative processes to assure performance by selected vendor(s); and e) Performing monthly analysis of paid claims, losses and revenue projections; and T ,�,........., . 1 A A nAT f) Evaluating health care trends and conducting benchmark surveys and market surveys as needed; and g) Developing bid specifications and evaluating bids/proposals received and offer recommendations; and h) Assisting as needed in the transition between vendors if the RFP results in change of health care providers; and i) Examining reports of exposures, expenses and paid losses in order to determine patterns of risk; and j) Acting as contact between insurance agents and representatives who make inquiries regarding benefits offered through the City; and k) Reviewing performance and negotiating contract renewal rates for health care plans; and 1) Evaluating and preparing Summary Plan Descriptions; and m) Developing actuarial studies; and n) Assisting in compliance with Financial Accounting Standards. M/WBE - AON is in compliance with the City's M/WBE Ordinance by committing to 15% M/WBE participation. The City's M/WBE goal on this project is 10%. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Group Health and Life Insurance Fund. TO Fund/Account/Centers FROM Fund/Account/Centers FE85 531200 0148510 $100,000.00 Submitted for City Manager's Office by. Richard Zavala (Acting) (6222) Originating Department Head: Anthony Snipes (Acting) (6123) Additional Information Contact: Mark Washington (8058) 7 in nlIAT