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Home My WebLink AboutCORRESPONDENCE - RFP - P751 BENEFITS CONSULTANTAdministrative Services Purchasing Division City of Fort Collins February 24, 2003 William M. Mercer, Incorporated Attn: Mr. Thomas R. Pung, FSA, MAAA 370 17`h Street Ste 4000 Denver, CO 8020 Re: Renewal, #P-751 Benefits Consultant Dear Mr. Pung, MAR 0 3 7003 The City of Fort Collins wishes to extend the agreement for the above captioned proposal signed December 3, 2000 and revise the renewal term to January 1, 2003 through December 31, 2003 with (1) one additional year renewal option. The rate will be as proposed in the above referenced agreement, Exhibit "B" page 1; total cost not to exceed $41,000. If the renewal is acceptable to your firm, please sign this letter in the space provided and return it to the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO.85022, within the next fifteen days. If this extension is not agreeable with your firm, we ask that you send us a written notice stating that you do not wish to renew the contract and state the reason for non -renewal. If you have any questions regarding this matter, please contact James B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management. Sincerely, Jam B. O'Neill Il, CPPO, FNIGP ctor of Purchasing and Risk Management Encl: Exhibit "B" page 1 cc: Vincent H. Pascale, Jr. Benefits Administrator Proposal #P-751 c2117g 3 SigWatuFel Date (Please indicate your desire to renew Proposal #P-751 by signing this letter and returning it to Purchasing Division within the next fifteen days.) 215 North Mason Street - 2nd Floor - P.O. Box 580 - Fort Collins, CO 80522-0580 - (970) 221-6775 - FAX (970) 221-6707 Proposed cost of basic duties: The length of the contract will be for a period of one year plus up to four additional one-year periods. It is expected that the firm will provide all of the Scope of Services described in Section I1. The proposed fees should include all costs (i.e., miscellaneous administrative, travel, etc.). State an annual cost for each of the contract years, the maximum annual consulting cost for the proposed services (Do not respond with hourly rates.) Mercer typically works with our clients on a time and expense basis. Based upon your request to provide a "maximum" annual cost, we have segregated the scope of services into a "base" consulting fee and estimated additional components that would not be charged on a year over year basis. Based upon the Scope of Services outlined in your RFP and our subsequent discussions with the City, our fees will not exceed those shown below. Additionally, we have the ability to receive reimbursement through commission arrangements with your various carriers if that arrangement would be more acceptable to the City. Our experience has shown that commissions can offset a great deal of the fees. Total Cost not to exceed: "Retainer" Fees Special Services* Total June 2000 — May 2001 $35,000 $13,000 $48,000 June 2001— May 2002 $37,000 $30,000 $67,000 June 2002 — May 2003 $39,000 $39,000 June 2003 — May 2004 $41,000 $41,000 June 2004 — May 2005 $43,000 $43,000 * Special Services: We have assumed that the review of and restatement of plan documents would be conducted in year one and that "bidding" services (as outlined in App6ndix E) would be performed in year two and. While not required to happen in these years, the costs would only apply in the year in which the service was rendered. lldennvfsO 11data\practiceXh&glcityflcladmin\revised.doc William M. Mercer, Incorporated t CITY OF FORT COLLIN5 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 March 2 2 3 4 5 8:30 AM 7 8 March 18th 10 AM 11 AM Meeting Prelim Agenda March 11th Day Review 5PM Review Study Session March 18th Staff Review Item Deadline Distribute 6 PM Council March llth Meeting Study Session 9 10 11 12 13 14 15 3PM Noon March 18th Leadership 6 PM Study Final Agenda Team/Key Staff Session Review Distribute 5PM Review March 25th March 18th 5PM Print March 18th Study Session Agenda Item Deadline 16 17 ,. Saint 18 19 20 8:30 AM 21 22 Patrick's April 1st Day 11 AM Meeting Prelim Agenda Day Review 5PM Review 10 AM April 1st March 25th Item Deadline Distribute Study Session 6 PM Council April 25th Staff Review Meeting Study Session 23 24 25 26 27 284, 29 Noon 3 PM Leadership 6 PM Study April 1st 5PM Team/Key Staff Session Final Agenda Distribute April 8th Review Review April 1st Study Session April 1st Agenda Item Deadline 5PM Print 30 31 1 2 4 3 4 5 April 8th 11 AM Meeting 8:30 AM Study Session Day Review 5PM April 15th CANCELLED April 15th Prelim Agenda (Election Day) Item Deadline Review 6 PM Council Meeting MERCER Human Resource Consulting February 17, 2003 Mr. Vincent H. Pascale, Jr. Benefits Administrator City of Fort Collins Human Resources P.O. Box 580 Fort Collins, CO 80522-0580 Subject: Effective Date for Contract Renewal Dear Vincent: 370 17th Street, Suite 4000 Denver, CO 80202-5619 303 376 0800 Fax 303 376 0087 www.mercerHR.com { Mercer would like to request that the term of the contract between the City of Fort Collins (the City) and Mercer Human Resource Consulting (Mercer) be revised to be a calendar -year contract. As you know, when the City extended their RFP for consulting services the contract was designed to begin June 2000 and was renewable for up to four additional one-year periods assuming a June 1 though May 31 contract year. It is my understanding that this contract timing supported the City's budget process and renewal/procurement activities as they had traditionally been performed. Mercer was pleased to work with the City and provided pricing and renewal services during the second half of 2000 as had traditionally been the practice. Changes in the City's budgeting process and a desire by the City Manager to announce, on June 1, 2001, any changes that would be effective for January 1, 2002, required them to push some of their pricing activities up into early 2001, rather than waiting until after mid -year which had been their typical practice. To this end Vincent, in early February 2001, you authorized Mercer to begin work and to bill for work that would normally have commenced on or about June 1, 2001. In essence, this change in the City's budget timeline, to first and second quarter in 2001, resulted in us performing our services consistent with a calendar -year contract. This was also the case in January 2002 when we started the pricing and procurement process over and cycled into a new contract year for fees. It is my understanding that the City intends to continue addressing their budget and procurement activities before mid -year. If that is true, it seems appropriate to document the fact that the fees will be used on a calendar -year rather than a fiscal year basis. Would you please confirm how the City would like to proceed? If we will again be working on a calendar -year basis, please advise MW Marsh & McLennan Companies MERCER Human Resource Consulting Page 2 February 17, 2003 Mr. Vincent H. Pascale, Jr. City of Fort Collins what actions need to be taken to document this fact and/or amend our contract to reflect what is actual practice, since the City's 2001 change in budget timing. Thank you so much for helping us clarify this issue. Please do not hesitate to give me or Jerry Rueschhoff a call if we have misunderstood the City's intent or if you would like to discuss this matter further. Sincerely, Thomas R. Pung, FSA, MAAA LLM:TRP:Ikb Copy: Mr. Jerry Rueschhoff g:\practice\h&g�cityftc\misc\2003\wntract yr change request Itr.dac Cost of additional services: The City recognizes that at times various projects and services may develop that are not part of the proposed Scope of Services. State the current hourly billing rates for each level of employee that may be involved in conducting additional services. If any projects or services that are not addressed in this proposal were required in the future, the scope of the project, the staff that would be involved and a total project budget would be provided to the City and discussed prior to any work being undertaken. Below are the hourly rate ranges for the various levels of employees that might be involved in a future project. The level of employee that would be involved would be leveraged in a way so that project costs are kept to a minimum. Employee Level Hourly Rate Administrative and Clerical Staff No charge Analyst $115 - $140 Junior Consultant $150 - $195 Senior Consultant $220 - $425 William M. Mercer, Incorporated lbennvls011dala\pradice\h&g\cilyflc\adminVevised.doe CITY OF FORT COLLINS