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HomeMy WebLinkAboutWILLIAM M MERCER - CONTRACT - RFP - P751 BENEFITS CONSULTANTPROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City" and WILLIAM M. MERCER, INCORPORATED, a Delaware Corporation, hereinafter referred to as "Professional'. WITNESSETH: In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of eight (8) pages incorporated herein by this reference. 2. Contract Period. This Agreement shall commence June1, 2000, and shall continue in full force and effect until May 31, 2001 unless sooner terminated as herein provided. In addition, at the option of the City, the Agreement may be extended for additional one year periods not to exceed four (4) additional one year periods. Pricing changes shall be negotiated by and agreed to by both parties in good faith. Written notice of renewal shall be provided to the Service Provider and mailed no later than ninety (90) days prior to contract end. 3. Early Termination by ity. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent PSA 10/97 Attachment A City of Fort Collins Eligibility Classified and Unclassified Management: (1,150 employees) Medical Dental Vision Flexible Spending Accounts Life Insurance Long Term Disability (excludes fire and police) Employee Assistance Program 457 Deferred Compensation Plan 401(a) Money Purchase Plan Defined Benefit Pension Plan Dental Reimbursement Plan Contractual: (40 employees) Medical Dental - Vision Flexible Spending Accounts Life Insurance Employee Assistance Program Seasonals: - must work minimum of 30 hours/week at least six months out of year.) (200 employees) Medical (HMO only) Retirees: (39 employees currently) Medical only This Request For Proposal (RFP) only includes consulting services for medical, dental, dental reimbursement, vision, prescription drug, flexible spending accounts, life insurance, stop loss, utilization review/case management, and long term disability. It does NOT include consulting services for the Employee Assistance Program, 457 deferred compensation plan, 401(a) money purchase plan, or defined benefit plan. 0 Revised Appendix D: Project Tasks "In Scope" Health & FVeNre Retainer Tasks: Financial Analysis ❑ Quarterly statistical report of income and expenses ❑ Review of historical claim and utilization experience ❑ Annual comparison of prior year's projections vs. actual performance ❑ Analysis of and recommendations regarding various funding approaches ❑ Utilization review of experience vs. norms and vs. historical performance ❑ Premium and COBRA rate development for all self-fimded plans each year ❑ Development of contribution strategy options and review of implications ❑ Annual cost projections ❑ Analysis of cost implication of various plan design changes ❑ Annual reserve calculation for each line of benefits (as necessary) ❑ Underwriting and actuarial support ❑ Recommendations about current plan design and potential changes Vendor Interface ❑ Annual review and negotiation of renewal rate action for all plans ❑ Ongoing interface for problem resolution ❑ Review of carrier contracts prior to signature Bidding Services (one time during five year engagement) ❑ Strategy development session ❑ Value weighting discussion (for use in RFP) ❑ Design and production of custom Request for Proposal ❑ Solicitation of bids for medical, dental, vision, life, disability and FSA coverages ❑ Interface with carriers during bidding process \\dennvfsO 1 \data\practice\h&g\cilyftc\admin\ievised.doc William M. Mercer, Incorporated CITY OF FORT COLLINS ❑ Discussion of and potential solicitation of bids for other employee -paid benefits ❑ Summary report and meeting with the City to discuss results ❑ One half day of carrier "finalist interviews" ❑ Guidance and strategy relative to new plan installation Medical Plan Administrative Support ❑ Interface (as needed) on specific claim problems ❑ Review of SPDs regarding benefit language ❑ Review of quarterly and annual utilization and cost reports from carriers ❑ Discussions with the City relative to new plan communication process ❑ Review of the employee communication pieces drafted by the City Compliance and Legislative Issues ❑ Ongoing general legal support (includes advice on technical questions and updates on changing laws, regulations and administrative or judicial rulings as they relate to benefits) O1 ❑ Initial review of plan documents to ensure compliance with appropriate laws and regulations ❑ Answer all questions pertaining to Section 125, COBRA, HIPPA and ERISA ❑ Update the City on pertinent Medicare changes or issues ❑ Monitor state and federal mandated benefits and inform the City about any pertinent implications to the organization o Answer questions regarding 5500s and discrimination testing ❑ Provide weekly GRIST highlights via e-mail (see Appendix F) ❑ One Restatement of Health, Dental and FSA plan documents (as indicated in proposal) ❑ Future amendments to plan documents Trends in Benefit Design ❑ Marketplace information ❑ Annual review of current plan designs and potential changes ❑ Strategy development regarding benefit objectives and goals MennvtsO t ldata\practicakh&g1cityftc\admin\revised.doc William M. Mercer, Incorporated CITY OF FORT COLLINS Sample "Out of Scope" health & Welfare Tasks: Financial Analysis ❑ FASB 112 or 106 valuation ❑ Review and/or negotiation of additional medical plans and rates Vendor Interface ❑ Bidding of any plans more than one time ❑ On -site vendor review ❑ Claim audits ❑ Audits of carrier performance standards reports ❑ Installation of any new plans Administrative Support ❑ Drafting or design of SPDs ❑ Voice Response system or support ❑ Internet/Intranet design and development ❑ Development and drafting of employee communications ❑ Employee meeting attendance Compliance and Legislative Issues ❑ Conducting discrimination testing ❑ Compliance audits ❑ Original drafting of legal documents ❑ Restatement of other than Health, Dental and FSA plan documents William M. Mercer, Incorporated \\dennvfs0l\dataloractice\h8y\cityftcladmin\revised.doc CITY OF FORT COLLINS W Trends in Benefit Design ❑ TREbase reporting ❑ Custom Mercer/FosterHiggins survey reports ❑ Benefit Value Alignment (BVA) studies ❑ Relative Value Index (RVI) studies and reports ❑ Custom competitive benefit surveys ❑ Specialty practice consulting services Wennvls0I \data\practice\h8y\cilyftc\ad min\revised. doc William M. Mercer, Incorporated CITY OF FORT COLLINS to the following addresses: Professional: City: With Copy to: WILLIAM M. MERCER, INCORPORATED Vincent Pascale James B. O'Neill II,CPPO 370 17TH Street, Suite 4000 Human Resources Director of Purchasing and Risk Denver, CO 80202 City of Fort Collins Management PO Box 580 City of Fort Collins Fort Collins, 80525 PO Box 580 Fort Collins, CO 80525 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall be the Professional's sole right and remedy for such termination. 4. Design, Project, Indemnity_and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to designs, plans, reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, to the extent arising directly or indirectly out of the Professional's negligence in the performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of $10,000,000. PSA 10/97 2 5. Compensation. In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay Professional on a total cost not to exceed according to the submitted fee schedule, attached hereto as Exhibit B, consisting of two (2) pages incorporated herein by this reference, with maximum compensation for the first year (for both Professional's time and reimbursable direct costs) not to exceed Forty Eight Thousand Dollars and no cents ($48,000.00). Monthly partial payments based upon the Professional's billings and itemized statements of reimbursable direct costs are permissible. The amounts of all such partial payments shall be based upon the Professional's City -verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable direct costs. Final payment shall be made following acceptance of the work by the City. Upon final payment, all designs, plans, reports, specifications, drawings and other services rendered by the Professional shall become the sole property of the City. 6. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. 7. Periodic Reports. Upon request, Professional is required to provide the City Representative with a written report of the status of the work with respect to the Scope of Services, Work Schedule, and other material information. Failure to provide any report promptly after request therefor may, at the option of the City, suspend the processing of any partial payment request. 8. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not PSA 10/97 3 be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 9. Personal Services. It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City. 10. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 11. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 12. Remedies. In the event a party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avaii himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non -defaulting party for the non -defaulting parry's reasonable attorney fees and costs incurred because of the default. PSA 10/97 4 13. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 14. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement. PSA 10/97 5 THE CITY OF FORT COL4S. CCLC) R,�,C BY: ifYl/x�" John F. F:sc�,Lach &2i; A,(j- City Manager By: G( I/ "_ J e)E7 II. CPPO Director f P Risk %lanagement DATE: ACity Clerk APPROVED AS TOE M: Assistant City Attorn WILLIAM M. MERCER INCLC)RPORAITED By a a l Y ` 11 -2� Principal LOW Date: 9 i 5 00 ATTEST: (Corporate Seal) Corporate Secretary P S A , ois-7 EXHIBIT "A" Scope of Services A. Ongoing 1. Self -Funded Health Plan a) Statistical analysis: Provide quarterly report which includes an analysis of income and expense for the prior quarter. Provide annual report which includes an analysis of income and expense for the prior year and a projection for the forthcoming year including projected adequate reserve levels for plan. Establish annual premium rates, including COBRA, hourlies, and retirees. b) Policy analysis: Provide general guidance on trends in benefits offered and eligibility requirements. Recommend plan changes based on these trends. Advise and consult on methods for improving cost containment and claims administration. For above, where applicable, provide cost analysis of possible impact on plan. c) Administrative Support: Revise and maintain Plan Document, including preparation of amendments and the restatement of the Plan Document, as needed. Review for accuracy and appropriateness revisions to the Summary Plan Description. Review unusual claims situations, such as appeals which cannot be resolved at the peer review level or which require special handling. 1 2. Other Benefits: Revise and maintain dental plan document and flexible benefits plan document, including preparation of amendments and the restatement of the Plan Documents, as needed. Review for accuracy and appropriateness revisions to Summary Plan Descriptions. Review contracts with vendors to insure accuracy and comprehensiveness of coverage. Provide guidance in contract interpretation, as needed. Advise on required reserves for dental plans. Assist in the modification and pricing of any current or newly considered flexible benefit plan provisions, Advise and consult on trends in benefit plans being offered locally and nationally (such as dental, vision, PPO, etc.). Assist with development of Requests For Proposals for various vendors in compliance with City purchasing requirements. This may include developing evaluation criteria and evaluating/summarizing proposal information. 3. Contract Negotiation: Work with City Purchasing and Benefits to advise on negotiations with third party administrators, utilization review firms, HMO's, PPO's, stop loss, long term disability, prescription drug discount programs, and life/AD&D insurance carriers. 4. Legal Support: Assist in the preparation of governmental filings, such as the Form 5500. Provide notification and updates on changing laws, regulations, and administrative or judicial ruling which relate to benefits programs. Review plan documents to ensure compliance with appropriate laws and regulations and notify of any necessary plan document amendments. General Guidance: Provide answers or guidance to any general or technical benefits questions. If requested, review communication materials (open enrollment, summary plan descriptions, memos, etc.) for content, appearance, and compliance with laws and regulations. The Consultant will be working on a frequent basis with the Benefits Administrator. The consultant will be expected to assist the City on a regular basis and in a timely manner to provide guidance to technical problems that may arise. In the past, it is not uncommon to conduct several telephone calls per week and a meeting every month. The Consultant is not expected to attend open enrollment meetings with employees. However, the Consultant may occasionally be expected to attend a special meeting to provide expert guidance and discussion of the plans. 6. Additional Requests for other Services: The City reserves the right under the terms of this RFP to request duties unrelated to this defined set of consulting services. The Scope of these services and related cost will be agreed to prior to the consultant performing any work. Compensation for these services will be based on an "not to exceed" amount. 3