HomeMy WebLinkAboutContract 28285STATE OF TEXAS
COUI�TTY OF TARRAI�'T
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AGREEIVIEI�IT FOR CO1V'SULTIl`TG SERVICES
FOR THE CITY OF FORT WORTH, TEXAS
GR4UP HEALTH AND LXFE Il�TSURANCE PROGRAlViS �
WHEREAS, The� City of Fort Worth recognizes the need and value of e�pert con5ulting
services in the increasingly complex and expensive health and Iife insUrance field in
order ta control costs and to provide the best possible program of coverages and
benefits to its active employees, retired emplayees and their eligible dependents; and
WHEREAS, the f rm of Effective Plan Managemetit, Inc. has previousl� provid�d excelle�t
and beneficial advice and services to the City in this f eld and offers to cantinue the
provision of advice and services a:s more fuIly set out be�ovv,
NOW, THEREFORE, KNOW ALL BY TI-�SE PRESENT5:
�
1. PARTIES
The parties to this agr�ement are the City afFort Worth, Texas ("City"), a home-rule
municipal corporatian wl�ose authnrized signatory is Cha.rles Boswell, Assistant City
Manager, and Effective Plan Management, Inc. ("EPM"), a Texas corporation whose
aufhorized signatary is Jim C. MosIey, President.
Z. TERM
This agreement shail become effeetive ar� 7anuary Ist, 2003 un#il December 31st,
200� ut�less sooner terminated as set out in paragrap� 6 of the Agreement.
3. CONSIDERATTON
Tn cettrrn for s�rvices rendered by EPM purs�ant to this Agreement, the City wi�l pay
EPM th� sum of $b,000 ger month in advance.
In the avent that no funds or insuf�cient funds are collected,. appro�riated and
budgetad ar funds are ot�envise unavailable for payment of amounts due hereund�r
by City to EPM, �ity sha�l notify EPM and this agr�ement shall terminate on fihe last
day o#'the fiscal period for which ap�ropriations were made without penalty or
ex��nse to City af any kind whatsoever, axcEpt as to tl�e payment of amaunts due
and payabl� for which appr.opriations have been made for said fiscai period.
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4. SERVTCES T� BE RENDERED
EPM agrees to provide general consuIting servicas for the Gity' s group health and life
insurance programs involving acti�e employees,, retired employees and their eligible
dap�ndents. EPM's services will include but will not necessazily be limite� to the fallawing:
1. Confer with City designees as needed regarding health care and Iife insurance
pragrams.
2. Represent the interests of the City in the health car� field.
2. Assist in the review of health care pro�rams ta deterrnine their cost
effectiveness.
4. Assist in the generai management a�the health care plans.
5. . Develop bid specifications �or propasal reque�ts as desired by the City.
6. Work with potential bidders during the Request For Proposal (RFP) process �o
answer any question� regarding the RFP in order to assure their complete understanding
of the City's intent.
7. Evaluate bids and/or progosals received an� affer recommendations.
S. Assist, as needed, with the transition betwe�n vendors if tha RFP results in a change of
vendors.
9. Examine reports of exposures, expenses and paid losses at app�opriate intervals to �
determine patterns of risk and to assur� conforrnity of the vendor to its propasal(s).
I0. Act as contact betw�en insurance agents and representatives ofHMOs,
PPOs and ir�surance companies who make inqu'sries regarding benefits
affered by or through the Ciiy.
11, Review per�ormance of the vendor and, iF requested by the City, negotiate
contract renewal rates iar the health care plans in a manner calcula#ed to be acceptable ta
the City. .
�2. Assist with drafting or redrafting of�the health care plan's Plan Dacument or
its Summary Plan Descripiion.
13. Assist the Employe� Committee in reviewi�.g optiona� benefits available
through payr�ll deductxon at tha empIoyee's sole cost.
14. Assist in d�v�lapment of specifications and discussions with vendars as
selection of a plan for optionat long term disability insurance becomes
availabie.
15. Assist with the preparation of any reparts which the Treasury Department
might require o�the City.
16. �,ssist with the expansion ofthe City's IRC Sec. I25 Plan at the City's request.
17. Attend and participate in scheduled meetings of IGR Committee, designees from City
Manager's office, Doctors for Excell�nce �nd United Healthcare of Texas, Inc, which
are to be conducted to assure pragress toward M/WBE and Petfarmance G�arantee goaFs
for the 2003 Plan Year and the 200�4 Plan Year.
2
Effective Plan Management, Inc. agrees to suhmit a written report not maxe than fifteen {I S)
caiendar days after the end of the calendar quar�er datailing its efforts an behal£ of the City
ofFort Worth and will prepare and submit a�l such other recommenda�ions and reports
necessary ta demanstrate its delivery o�the services outlined above or any subsequent work
requirements which may be hereafter mutua�ly agreed by Eif�ctive Plan Managemenf, Inc.
and City during the term �f this Agreement.
5. CITY aBLIGATTONS
Ci#y will provide such in£ormatian as is reasonable and necessary to EPM to aid in its
pesformance o£the Agreem�nt.
6. TERMINATION
The City may terminate this Agreement upon 90 days written notice ta Effective Plan
Management, Inc. whenever such terminatian is deemed to be in the C�ty's best interest or in
the evern ofEPM's default, inability or failure ta per�arm arto corriply with any material
term or condition o£this Agreement or far any other gaod cause.� Effective Plan
Management, Inc. may terminate this Agreement upon 90 days written notice to the City
whan such termination is deemed to be in EPM's best interest or an the event of the City' s
failure to pramptly pay amaunts due EPM'as described within this Agreement or%r any
ather goad cause.
Upon any such termination by aither party, any and aIl informatiQn accumulated by EPM
pursuant to this Agreement, in whatever medium stored or created, will become the property
af the City. Such property will be returned to �he City as expeditiausly as passible and tha
City agrees to resmburse EPM for any. and aIf reasonable expenses incurred in the r�trieval,
preparation and transfer of such property to the City.
7. N�N-ASS�GNIV�NT
EPM wilt not assign any partion oi its rights or �uties under this Agreement without prior,
writt�n approval of the City. Any purported assignment without such prior approval wi11 be
a breach of this Agreement and will be vaid in all respects.
8. INDEPEN!]ENT CONTRACT4R
EPM shal� operate h�reunder as an independent contractnr and not as an officer, ager►t,
servant ar empl�yee ofthe City. EPM shall have exclusive control and right to control the
details of its per�ormance under this Agreement and shall be solely responsible for the acts
and omissions of its officers, memk�ers and employees. The doctrine of respondent superior
shall not apply to any item af performance under this Agreement nor shail anything in this
Agreement be construed as creating a partnership or joint enter}�rise hetween EPM and the
City.
9. MISCELLANEOUS
The provisions o�the Agreement are severable and if, %r any reason, a clause, santence,
paragraph or any other part o£ this Agreement shall be deiermined to be invaIid by a court or
federal or state agency, board or commission having jurisdiction over the subject matter
thereof, such invalidity sha11 not affect ath�r provisions which can be given effect without
the invalid provision,
T�e failure of ti�e City to insis# upon the performance o�any term or provision of trie
Agreement or to exercise any right herein confened shall nat be construed as a waiver ar
relinq�ishment to any eartent o#'t�e Czty's right to assert or to rely upon such term or right on
any future occasion.
Should any action, whether real or asserted, at law or in equi#y, arise out of the execution,
perFormance, attempted performance ar nonperformance af the contract and agreemant,
venue for said action shall 1ie in Tanant Caunty, Texas.
This written instrument�and any exhibits attached hereta which are incorporated by
reference and made a part of this Agreement for aIl purposes, canstitute the entire agreement
between the parties hereto concerning the �vork and services to be per#'ormed hereunder and
any prior or contemporaneous, oral or written agreernent which purports to vary from the
terms hereoi shall be void. Any amendrnents ta the tezms of this Agreement must be in
�vriting and must be approved by both th� City and EPM.
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Ilv WITNE�S WHEREOF, the parties hereto have executed �'our {4) cogies of this
Agreement in Fort Worth, Tarrant County, Texas this ��.� day of �{�,�ar4F
, A.D. �00�: � . �
ATTEST:
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� City ecretary
CZTY OF FORT WORTH
BY: _ ll��
Char2es Boswell
Assistant City Manager
e
�F���'��.PLAN MANAGEMENT, INC.
ATTEST:
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� — - _ ,� � �, -� , .
� �'� ! •
'�J1m C, Mosley
� President
C; � � �13�_�._ _ _ _ _
Cont�a�t 14utho�i��ti.on
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APPROVED AS TO F�RM AND LEGALITY:
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ity A orney
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Date:
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C`ity o, f �'o�t �o�th, Texas
[�i1�y�r �r�d Cour�cil �o�r�u�i��-t�o�
DATE REFERENCE NUMBER LOG NAME
� z�� oia2 **C�193�6
14EPM
PAGE
1 of 2
SUBJECT CONTRACT WITH �FF��TIV� PLA��i f�1Af��4�EAr1EN�, I�v�, �FOR GROUP BENEF'IT
CONSULTING SERVICES
RECOMMENDATION:
It is recommended that the City Council autharize the City Manager to execute a cantract with Effective
Plan Management, 1nc. (EPM) to prouide group benefit cansulting services far ihe City an a fee basis of
$6,pfl0 per month beginning January 1, 2003, and ending no later than December 31, 2003.
1�7�Y�II��y[�]�E
Since 1991, the City has contracted wiih EPM to provide consulting services for the City's benefit
programs co��ring employees and retirees and their e[igible dep�ndents. These services also includ�
representation of the City in the health care field and assis#ance in reviewing programs to ensure their
cost effecti�eness. EPM has pro�ided �aluable exper�ise in this �ery complicated fi�ld, but as health
benefits become a majar component of the City's tofal compensation package, and as the cost of such
ben�fits are rising, it is prudent to evaluate the consulting services available in th� field at this time. ln
addition, EPM I�as indicated that there is a possibility they will not provide consultant services for the
City's benefit programs beyond December 31, 2003.
Staffintends fo search for a new consultant during FY2002-2aa3. EpM's current cantract with the City
expires December 3�, 20Q2. In order to provide suffic�ent time to evaluate and select a consultant, it is
propase� that a contract with EPM be approved until a new consultan# is selec#ed and a contract
executed. Staff estimates that this pracess will be complete� by October 2003, but recommends that
the contract with EPM be authorizad thraugh December 31, 2003, to ensure that sufficient time is
pro�ided. At such time as a cflnsultant is sefected, the contract with EPM wil� be cancelled (assuming
EPM is not ihe consultanf selected).
The scope of wor�t fn ihis contract with EPM will include:
� Assist in the administration and revi�w of #he City's current henefit prograrns; and
� Audit expasures, expenses, and paid losses ta ensure contract compliance of the City's benefit
providers; and
� Monitor the City's group p�an I�sses with recommendations to obtain such losses; and
+ Act as a primaty contact for all insurance agen#s and representatives of cam��nies offering
s�rvices to the Cify and/or mak�ng in�uiries reEated to the City's benefits; and
• Review performance and, if requested, negotiate cantract renewa) rates for plans subject to
terms agreeable to ihe City; and
�`ity of Fo�i W'or�h, T'exas
��yor �nd Go�an�i[ Corr�mu�Ec��i�r�
QATE REFERENCE NUMBER LOG NAME PAGE
121101�2 **�o� 93�6 1�EPM 2 of 2
SUBJECT CONTRACT WITH EF�ECTIVE PLAN MANAG�MENT, fNC. FOR GROUP BENEFIT
CONSULTING SERV[CES
� Assist in �rafting or redrafting the City's benefit plan documents or summary plan descriptians;
and
o Serve as a resource to th� Health Benefit Advisary Committee; and
+ Assist �he Employ�e's Insurance and Benefits Committee in reviewing optional benefits available
through payroll deductions at the employee°5 50If; COSt.
EPM will continue to provide consultation on the self-insured plan with United HealthCare. EPM will
also work closely with City staff to monit�r plan perfarmance and recomm�nd actions designed to
assure the plan meets financial and �erformance targets.
F15CAL INFORhIIATI�NICERTIFiCATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated,
of the Health and L9fe Insurance Fund.
CB:k
3ubmit�ed far City Mana�er's
Ofiice by:
Charles Baswell
Driginating Deparfinent Head:
Linda Cohb
Additional Informat[on Contact:
Linda CobU
� �vr�n � �cco�rrT �
� (to)
�
6183 I
�
7783 I {from)
F�85 53120D
�
7783 I
C�NTER
014851D
I AMOUNT
$54,000.00
CITI' S�CRETARY
APPROVED 12/10/02