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Home My WebLink AboutContract 29292-A2 CITY SECRETARY- a a a_ AD, CONTRACT N0. STATE OF TEXAS § SECOND AMENDMENT TO § CITY SECRETARY CONTRACT COUNTY OF TARRANT § NO. 29292 This SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 29292 ("Second Amendment") is made and entered in to by and between THE CITY OF FORT WORTH ("City"), a home-rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant City Manager, and AON CONSULTING, INC. ("Consultant"), a New Jersey corporation authorized to do business in the State of Texas, acting by and through its duly authorized Vice President of Legal. WHEREAS, in 2003 City and Consultant entered in to an agreement for advisory services related to the City's health benefits plan, the same being City Secretary Contract No. 29292 ("Contract"); and WHEREAS, in June 2010, City and Consultant entered in to a First Amendment to the Contract (City Secretary Contract No. 29292-A1) to extend the term through December 31, 2011 and to address provision of additional benefits advisory services; and WHEREAS, on November 15, 2011, the Fort Worth City Council approved M&C C- 25270, authorizing an amendment to the Contract to extend the term through December 31, 2013. NOW, THEREFORE, City and Consultant, agree to renew and extend City Secretary Contract No. 29292, as amended by City Secretary Contract No. 29292-A1, as follows: 1. Section 1, "Term of Agreement," of City Secretary Contract No. 29292, as amended by City Secretary Contract No. 29292-A1, is deleted in its entirety and replaced with the following: Second Amendment to Contract No. 29292 O� FFICIAL RECORD Page I of 3 CITY SECRETARY FT, WORTH TX , Section 1: TERM OF AGREEMENT This Agreement shall encompass all Core Basic Services included in the Scope of Work and rendered by Consultant to or on behalf of the City for a period beginning on November 18, 2003 and ending on December 31, 2013, unless terminated sooner in accordance with Section 17. Notwithstanding anything in the Agreement to the contrary, during 2012 and 2013, the term"Core Basic Services" shall include assisting City staff in the process of awarding and negotiating one or more new agreements related to the administration of the City's health benefits plan. To the extent City wishes to engage Consultant to perform benefits-related services that fall outside the Scope of Work (including but not limited to, pharmacy benefits review, dependent eligibility verification audits, and design of high deductible health plans and health savings accounts), City and Consultant shall execute separate contracts setting forth the terms pursuant to which such additional services are to be provided. 2. The "Payments" Subsection of Section 3, "Scope of Work," of City Secretary Contract No. 29292, as amended by City Secretary Contract No. 29292-A1, is further amended to add the following: Under no circumstances shall the total cost for Core Basic Services, Special Services, and Additional Services during the period January 1, 2012 through December 31, 2012 exceed a combined total of Two Hundred Thousand Dollars ($200,000.00). Under no circumstances shall the total cost for Core Basic Services, Special Services, and Additional Services during the period January 1, 2013 through December 31, 2013 exceed a combined total of One Hundred and Thirty-Two Thousand Dollars ($132,000.00). 3. FOFFIC iALRECORD Second Amendment to Contract No. 29292 Y SECRETARY { Page 2 of 3 �� FT. WORTH, TX All other provisions of City Secretary Contract No. 29292, as amended by City Secretary Contract No. 29292-A1, that are not expressly amended herein shall remain in full force and effect throughout the term of this Second Amendment and any renewals thereof. Executed on this the a01"day of '(J(L-C�h , 2012. CITY OF FORT WORTH AOlPre * LILTING,INC: By: ' By: Susa nis John Assistant City Manager Vice t of Lega l �0�) a ATTEST: 00l �� /y/�1►d°000 000�j/0�� o,A 0 City Secretary o p x a ° a o° C ROV D AS TO FORM: G0000O0000 Assis nt Ci ttorney Contract Au orization Original Agreement—M&C C-19816 First Amendment-M&Cs C-22583 & G-16780 Second Amendment—M&C C-25270 Second Amendment to Contract No. 29292 ; — ——� Page 3 of 3 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORTVORTI!�� COUNCIL ACTION: Approved on 11/15/2011 .ra.,.ray.u',w.r,,wo-x,',,...+n�ar:rm^rm..uusn::mrm+r.a:?..r.�mrre r .^s„^raxa.r;ws=.::sumac aesuiw*w�,a:G.`xa=aa?; ,sr»-wx++;.s�w .: nresariaa;wwu,��+uswuwamrcrvwr:iassvaw,. ' *rsxaasaw DATE: 11/15/2011 REFERENCE NO.: **C-25270 LOG NAME: 14AONAMEND.13 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Amendment of City Secretary Contract No. 29292, with Aon Consulting, Inc., for Group Health Benefits Consulting Services, Cost-Saving Review and Implementation, and Actuarial Analysis, to Extend the Term Through 2013 for Total Cost of$332,000.00 (ALL COUNCIL DISTRICTS) :$n. a."f'QF4."dMA,'0&'Rd4S.'xp`nr SWdiM4w }ry';SFfid"a>v'w3nrMacwCNMM uXrtN1Rti+#Mw 51:.'.M.K'M1'.i.MiNwln4fWa.WMekvw.vYAe...p y rl.,§bm ,x Pri".Sti..+113:�;'JrvAi'� .C:2'R9Y �xiWFR'... Ma',yAU " MIX4PIaaYRiFiVIMI�y'Sitltlgi6RimIMUPMNAfe F RECOMMENDATION: It is recommended that the City Council authorize amendment of City Secretary Contract No. 29292, with Aon Consulting, Inc., for group health benefits consulting services, assistance with the development and implementation of cost-saving measures, and actuarial analysis for benefit scenarios, to extend the term through 2013, cost not to exceed $332,000.00. DISCUSSION: Since 2003, Aon Consulting, Inc., (Aon) has served as the City's consultant for issues related to its Health Benefits Plan (CSC No. 29292 and No. 29292-A1, M&C C-19816, M&C C-22583 and M&C G- 16780). Under its current terms, the Agreement will expire on December 31, 2011. Staff recommends that the City Council approve a contract amendment to extend the term through December 31, 2013. Extending the existing contract will provide continuity in consulting services as the City goes through the process of awarding and negotiating new Agreement(s) for administration of the City's Health Benefits Plan. Aon worked with the City to develop a Request for Proposal (RFP) seeking one or more plan administrator(s) for the various elements of the City's health benefits plan. The RFP was released on June 9, 2011, and responses were due on September 8, 2011. Aon is currently working with City Staff to evaluate the proposals and will advise and assist the City during the selection and implementation phase. The effective date for the new health benefits plan is January 2013. During the extended term, Aon will continue to provide the consulting services and actuarial updates that the City has required year after year. The cost of the two year contract will include fees for Aon's regular consulting services and special projects for a cost not to exceed $332,000.00. The break down for the two year contract: $200,000.00 is budgeted for 2012 and $132,000.00 is budgeted for 2013. M/WBE —Aon is in compliance with the City's M/WBE Ordinance by committing to 15 percent MNVBE participation annually on this amendment. The City's M/WBE goal on this amendment is 15 percent. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Group Health Insurance fund. Funding for the balance of the extended term of the Agreement will be requested as part of the Fiscal Year 2013 budget process. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14962&councildate=11/15/2011 3/1/2012 TO Fund/Account/C enters FROM Fund/Account/Centers FE85 531200 0148510 $200.000.00 Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Karen Marshall (7783) Additional Information Contact: Margaret Wise (8058) ATTACHMENTS 14AONMEND Prowected Cost - CFW2012.xls http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14962&councildate=11/15/2011 3/1/2012