HomeMy WebLinkAboutContract 44760 A`
0TY SECRETARY
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,.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 Throckm�orton Street, Fort Worth, Texas 761102, organ�ized 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 Farm,ingiton 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 solle 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 fofth in
th,i,s Agreement and applicable provisions of the City's, Administrative Regulation D-7 (Electronic
Communications Resource Use Policy), of which such applicabile provisions are hereby incorpor�ated 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 conslistilng of
user IlDs and, passwords, unique to each individual requiring Network access on behalf of the Contractor.
Access rig�hts will automatically expire one (1) year from the date of thii�s 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 w�ith City Secretary Contract No,. TBD - M&C, C-256610:.
Services are being provided in accordance with City of Fort Worth Purchase Order No,.
El Services are being provided in accordance with the, Agreement to which this Access Agreement
is attached.
EJ 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 it the following conditions are met:
4.1 Contracted services have not been completed.
4�.2 Contracted services have not been terminated.
41.3 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 exp,iratioln or the status of completion of services, Contractor shall
provide the City with a current list of' off i'cers, agents, servants, employees or representatives that require
Ne�twork, 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 Re,strictions. Contractor officers,, agenits,, servants, employees or representatives may
not share the City-assigned user IDs and passwords. Contractor acknow�ledges, agrees and hereby gives
its authorization to the City to mo,nlitor Contractor's use of the C,ity's Network in orde�r to ensure
Contractor's compliance with this Agreement. A breach by Contractorl its officers, agents, servants,
employees or representatives, of th,is Agreement and any other written instructions or gu,i,delines that the
City provides to Contractor pursuant to this Agreement shall be grounds for the City immediately to deny
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Contractor access to the Network and Contractor's Data, terminate the Agreem, nul,__,_�. 11. r
remedies that the City may have under th,is Agreement or at law or in equity. OFFICIAL RECORD
CITY SECRETARY
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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. Agreement CumulatIve. This Agreement, is cumulative of and i�n 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 Contracto,r's,access to and use of the City's Network.
12. Amendments. The terms of this Agreement shall not be waived, a,ltered, modified,
supplemented, or amended in any manner except by written instrument signed by an authoriz,ed
representative of both, the City,and Contractor.
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ON Assignment. Contractor may not assign, or in any way transfer any of its interest in th�is
Agreement. Any attempted assignment or;transfer,of all or any part hereof shall be, null and void.
14. Sever abill,ity., 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 aff ected or
impaired.
150, Force,MaLeure. 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,, we riots, material or labor
restrictions by any governmental authority,transportation, problems and/or any other similar causes.
10.0. Governinct-Law/Venue�. This Agre,ement 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 bads 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.
11. Signature Aut ori 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.
ACCEPTED AND AGREED:
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CITY OF RT WORTH. Aetna Life Inquran�ce Com1pany, Inc.:
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ATTEST: ATTEST:
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City Seas ry Title.- C
APPROVED Af%"PO RM AND LEGALITY.-,
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CITY SECRETARY
Vendor Network Xceess Ngre,ement 4 FT,4 WORTH,TX
Aetna Ulfe Insurance Company, Inc., a Connecticut corporation Rev.
M&C Review Page I of'3
Official site of the City of Fort Worth,Texas
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COUNCIL ACTION: Approved on 6/12/2012
14HEALTH
DATE. 6/12/201,2 REFERENCE NO.: C-25660 LOG NAME*. BENEFITS PLAN
NON— PUBLIC
CODE*- C TYPE. CONSENT HEARING: NO
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),
0
RECOMMENDATION,,
It is recommended that the City Council authorize the City Manager to execute an Agreement with
Aetna Life Insurance Coirripany,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 Wellniess Programs effective January 1, 20131, with an initial
three year term and two one year renewal options.
DISCUSSIO'No
The purpose of this Mayor and Council Communication is to seek authorization from the City Council
to enter into a new Agreement,with Aetna L,i�fe Insurance Company(Aetna)for administrati've services,
related to the City's health benefits program. The City of Fort Worth's program 'is self-funded and
utillizes a third party administrator to, process claims., Aetna has been providing these administrative
services since January 1, 2005 under its previous Agreement with'thel City. That contract expires
December 31, 2012.
Halving worked w�ilth the same administrator for several years, Staff determined it would be in the
City 11 s blest 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 ProposaI (RFP)was issued' requiring interested vendors to, submit proposals by
September 8, 2011-, The RFP was des,igneld to solicit proposals for the following services individually
or in combination with each other: 11) 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 repr,esenta,t,ion from
Human Resources,, Police, Fi�re, Water,, Planning and Development,,, Finance, Parks and Community
Services, Transportation and Public Works and retirees. The Committee was active in the anallys,is of'
the proposals, on site visifts and follow up meetings with potential vendors. Human Resources Staff
and the City's benefits consultant, Aon Hewitt, facilitated the RFP1 review and viendor meetings.,
Twenty-twol 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 pirov�ide.
The Committee considered sev�era�l factors in evaluating the, proposals, Including price
competitiveness, the organization's ability to administer plans with various p�lan designs, provider
networks, qualifications of the organization's staff, customer satisfaction, and, complaint, records,
M/WBE participation and responsiveness to customer service issues.
httpi.Happis.cl'wnet.org/councl,l_packet/mc—revi'ew.asp9lD==I 69,37&,co-uncildate=61/12/201.2 8/5/20 13
M&C Review Page 2 olf 3
,After a lengthy review proce�ss, 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 costthrough enhanced disease management through Institutes of Quality designated
ho�spita,ls for certain caref 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, althiough the issue was, not a, part of the evaluation prociess, Aetna's continued performance
as T'PA 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 Pharma 1111almall
$32.29, per subscriber per month for active employees and Non, Medicare eligible retirees for the
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period oflanuairy 1, 2013 �through� December 31, 20131.
$125.,08 per subscriber per month, for Medicare elligible retirees for the period of January 1, 20113
through Decerriber 31, 2013.
$2.50 pier subscriber per month for Disease Management and W'ell�ness - provide disease
management and lifestyle blehav,ioir change, programs and coordinate with existi�ng City programs.
Coordination will allow for more thoroughly developed data that cain be used to measure results, for
various disease states and chronic coin,dit�ions such as diabetes, asthma, and cardio vascular
dislealses.
Total Estimated, Annual Cost- $3,324,666.00
B., COBRA Administratio'n':
$0.084 per employee per month - prov�ide COBRA new hire notification, qualifying event notices
and manage COBRA continuants billing and payments.,
Total Estimated Annual Cost- $151,612,91.00,
G. EmRloyee AssistanceEr ram:
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$1.29 per employee per month - provide minimum, of six face,to, face, visits to assist empiloye�e,s 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- $185,91911.1001
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Di. Flexible Spend"rig Accounts-.
$1.234 per employee pier month - mainage 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&010,
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N�OTE -Annual totals are based on anticipated enrollment of 51,,555 active, employees, 11,4,34 Non
Medicare eligible retirees and 1 1352 Medicare eligible retirees.
The benefit plain operates on a plan calendar year basis and the expected, overall total, administrative
0,
costs are $3,,498,591.00 for calendar year 2013, wh�ich 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 contraict�. Also, Aetna has agreed
to provide the City with a one time amount of$1,25,,00101.00 that can be used for the Wellness
programs,and $25,000.00 each yearfor the next three years,for employee communications.,
Additionally, Aetna has set aside $1,80,0001.00 each year for open enrollment support for the next
three years using a M/WBE, ve�ndor. Prices will rema:in flat for the base three years.
The following is a summary of expected administrative costs from,Aetna for nine months from
January 'l, 2,1013 through the end of the Fiscal Year ending September 30, 2013':
Administration of Benefits $2,49315,00.00
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C Revl*ew Page 3 of 3
COBRA Administration $41222. +
Employee Assistance
Program
IL
Flexible Spending Accounts �� ��
Total $2,623,9441
It 1's anticipated that the Health Benefit Advisory Committee will make a recommendation to the City
Manager on premium contribution rates, plea design and a Medicare su plemeot plea by duly 2012.
Open enrollment for the 2013 medical plea is scheduled to begin October 1, 2012. The City
Manager's budget proposal for Fiscal Year 2012-2013 rill include a recommendation fund this.
contract through September 2013. Authority for the remaining fiscal years that are encompassed by
the Agreement will he 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 ents y
allowing the City to terminate the Agreement without penalty, if ire the future, the Council elects not to
appropriate funds for the contract to continue.
FISCAL INFORM'" TION IERTI CATI N-0
The Financial Management t 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 2,013 operating
budget, as appropriated, of the participating funds.
TO Fund/Account/Centers FROM Fund/Acc,, unt/Centers
FE 85 534830 0148520 11,86%7701.00
F E 5 534830 0148540 X7 54,1�" . o
Submitted for City-�Lananer'� offic Susan Alanis 8180
Originating Department Head: Karen Marshall (7783)
Addit ional Information Contact Margaret Wise (8058)
ATTACHMENTS
iewas ' D 1 693 &oouno d to 6 f 2/20 t 2 8/5/2013
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