HomeMy WebLinkAboutReg 2017-02-21 Item 4C - Agreement - Health Care Brokerage Services with RL Evans for $50,000COUNCIL AGENDA SYNOPSIS
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,g Date 02124117
SPONSOR ❑Council ❑yWayor [][-/,R ❑DCD ❑Finance DFire ❑TS EIP&R ❑Police ❑I)IV ❑Courl
SI)()NS0R'1, Request the Council to approve a contract for services for the City's Health Insurance
SUNINIARY Broker, the R.L. Evans Company for 2017.
IiN, C.O.W. -,\,Itg. ❑ CDN Comm Finance Comm. Public Safety Comm.
❑ Trans &Infrastructure ❑ Arts Comm. F] Parks Comm. F] Planning Comm.
DATE: 2/7/17 CHAIR: SEAL
RECOMMENDATIONS:
SPONSCAR /AtxwN. Human Resources Department
CONIMI'l-YFIF, Unanimous Approval; Forward to Consent Agenda on 2/21/17
COST IMPACT / FUND SOURCE
. . ...... .. . .......
Fund Source: 2017 502 FUND BUDGET
Comments:
IMTG.DATE
ITEM INFORMATION
4.C.
1S*FAFFSP()NS0It: STEPHANIE BROWN O1t1c11NA1.Ac,l N1)i\ Dx11--,: 02/21/17
Contract for City Health Insurance Broker Services
Cx1*1:(3om, ❑ Discussion
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,g Date
D Motion
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� Resolution
A It
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E] Ordinance
RIPS Date
❑ BidAward
Ali Date
[—I Public I lea;-iq
A It Date
E] Other
iA 11
,g Date 02124117
SPONSOR ❑Council ❑yWayor [][-/,R ❑DCD ❑Finance DFire ❑TS EIP&R ❑Police ❑I)IV ❑Courl
SI)()NS0R'1, Request the Council to approve a contract for services for the City's Health Insurance
SUNINIARY Broker, the R.L. Evans Company for 2017.
IiN, C.O.W. -,\,Itg. ❑ CDN Comm Finance Comm. Public Safety Comm.
❑ Trans &Infrastructure ❑ Arts Comm. F] Parks Comm. F] Planning Comm.
DATE: 2/7/17 CHAIR: SEAL
RECOMMENDATIONS:
SPONSCAR /AtxwN. Human Resources Department
CONIMI'l-YFIF, Unanimous Approval; Forward to Consent Agenda on 2/21/17
COST IMPACT / FUND SOURCE
E X I I F N 1) 111) R I ? R I ?Q U I I t I ? 1) AMOUNT BUDGETED APPROPRIATION REQUIRED
$50,000 $ $
Fund Source: 2017 502 FUND BUDGET
Comments:
IMTG.DATE
RECORD OF COUNCIL ACTION
MTG. DATE
ATTACHMENTS
2/21/17
Informational Memorandum dated 01/31/17
Contract for Services -R.L. Evans Company
Minutes from the Finance Committee meeting of 2/7/17
City of Tukwila
Allan Ekberg, Mayor
TO: Finance Committee
FROM: Stephanie Brown, Human Resources Director
BY: Erika Eddins, Human Resources Analyst
CC: Mayor Ekberg
DATE: January 31, 2017
SUBJECT: Healthcare Broker Services
Contract for R.L. Evans, Broker of Record
ISSUE
Execute a contract with R.L. Evans in the amount of $50,000 for healthcare brokerage services
regarding the active employee and LEOFF 1 retiree plans in 2017.
BACKGROUND
The City of Tukwila's self-funded health insurance program was started in 1990. R.L. Evans
has been our broker since that time, helping the City to manage the costs of both the retiree and
active employee health insurance plans as well as negotiating competitive prices on Life, Long-
term Disability, Stop-Loss Insurance and IRS Section 125 Plan services.
DISCUSSION
City staff have been pleased with the expertise and the high level of customer service that R.L.
Evans has provided to us in the past and is confident that their ongoing service will assist the
City in continuing to operate a cost effective and comprehensive benefits plan.
A one-year guarantee for 2017 provides for a 2.6% increase over 2016 for an overall fee of
$50,000. It is expected that any fees and commissions collected in 2016 will offset against the
fees that occur in 2017. The contract expenses will be within 2017 budgeted amounts.
RECOMMENDATION
The Committee is being asked to approve the contract with R.L. Evans for Healthcare Broker
Services and forward this item to the subsequent February 21 Regular Meeting Consent
Agenda.
ATTACHMENTS
R.L. Evans Contract, Scope of Services and Method of Payment
3
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City of Tukwila Contract Number:
• 6200 Southcenter Boulevard, Tukwila WA 98188
CONTRACT FOR SERVICES
This Agreement is entered into by and between the City of Tukwila, Washington, a non-charter
optional municipal code city hereinafter referred to as "the City," and R.L. Evans Company, Inc.,
hereinafter referred to as "the Contractor," whose principal office is located at 3535 Factoria Blvd. SE
Suite 120, Bellevue, WA 98006.
WHEREAS, the City has determined the need to have certain services performed for its citizens
but does not have the manpower or expertise to perform such services; and
WHEREAS, the City desires to have the Contractor perform such services pursuant to certain
terms and conditions; now, therefore,
IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties
hereto agree as follows:
Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform
those services described on Exhibit A attached hereto and incorporated herein by this reference as if
fully set forth. In performing such services, the Contractor shall at all times comply with all Federal,
State, and local statutes, rules and ordinances applicable to the performance of such services and
the handling of any funds used in connection therewith. The Contractor shall request and obtain
prior written approval from the City if the scope or schedule is to be modified in any way.
2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered
according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by
this reference. The total amount to be paid shall not exceed $50,000 per year at a rate of -
3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the
maximum limits set forth in this Agreement. The Contractor shall request prior approval from the
City whenever the Contractor desires to amend its budget in any way.
4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing
January 1, 2017, and ending December 31, 2017, unless sooner terminated under the provisions
hereinafter specified.
5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor
with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be
considered to create the relationship of employer and employee between the parties hereto. Neither
Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees
by virtue of the services provided under this Agreement. The City shall not be responsible for
withholding or otherwise deducting federal income tax or social security or contributing to the State
Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the
Contractor, or any employee of the Contractor.
CA Revised December 2016 Page 1 of 7
6. Indemnification. The Contractor shall defend, indemnify and hold the Public Entity, its officers,
officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or
suits including attorney fees, arising out of or in connection with the performance of this Agreement,
except for injuries and damages caused by the sole negligence of the Public Entity.
Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115,
then, in the event of liability for damages arising out of bodily injury to persons or damages to
property caused by or resulting from the concurrent negligence of the Contractor and the Public
Entity, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be
only to the extent of the Contractor's negligence. It is further specifically and expressly understood
that the indemnification provided herein constitutes the Contractor's waiver of immunity under
Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has
been mutually negotiated by the parties. The provisions of this section shall survive the expiration or
termination of this Agreement.
7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance
I against claims for injuries to persons or damage to property which may arise from or in connection
with the performance of the work hereunder by the Contractor, their agents, representatives,
employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and
limits as required herein shall not be construed to limit the liability of the Contractor to the coverage
provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in
equity.
A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits
described below:
Automobile Liability insurance with a minimum combined single limit for bodily injury and
property damage of $1,000,000 per accident. Automobile liability insurance shall cover all
owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance
Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability
coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage.
2. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence,
$2,000,000 general aggregate and $2,000,000 products - completed operations aggregate
limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence
form CG 00 01 and shall cover liability arising from premises, operations, independent
contractors, products - completed operations, stop gap liability, personal injury and advertising
injury, and liability assumed under an insured contract. The Commercial General Liability
insurance shall be endorsed to provide a per project general aggregate limit using ISO form
CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability
arising from explosion, collapse or underground property damage. The City shall be named
as an additional insured under the Contractor's Commercial General Liability insurance policy
with respect to the work performed for the City using ISO Additional Insured endorsement CG
20 10 10 01 and Additional Insured-Completed Operations endorsement CG 20 37 10 01 or
substitute endorsements providing at least as broad coverage.
3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of
Washington.
CA Revised December 2016
0
Page 2 of 7
B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General
Liability insurance policies are to contain, or be endorsed to contain that they shall be primary
insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage
maintained by the City shall be excess of the Contractor's insurance and shall not contribute with
it.
C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best
rating of not less than A: VII.
D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy
of the amendatory endorsements, including but not necessarily limited to the additional insured
endorsement, evidencing the insurance requirements of the Contractor before commencement of
the work. Upon request by the City, the Contractor shall furnish certified copies of all required
insurance policies, including endorsements, required in this Agreement and evidence of all
subcontractors' coverage.
E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance
coverage and limits required, if any, to be obtained by subcontractors, which determination shall
be made in accordance with reasonable and prudent business practices.
F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this
work with written notice of any policy cancellation, within two business days of their receipt of
such notice.
G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance
as required shall constitute a material breach of contract, upon which the City may, after giving
five business days notice to the Contractor to correct the breach, immediately terminate the
contract or, at its discretion, procure or renew such insurance and pay any and all premiums in
connection therewith, with any sums so expended to be repaid to the City on demand, or at the
sole discretion of the City, offset against funds due the Contractor from the City.
8. Record Keeping and Reporting.
A. The Contractor shall maintain accounts and records, including personnel, property, financial and
programmatic records which sufficiently and properly reflect all direct and indirect costs of any
nature expended and services performed in the performance of this Agreement and other such
records as may be deemed necessary by the City to ensure the performance of this Agreement.
B. These records shall be maintained for a period of seven (7) years after termination hereof unless
permission to destroy them is granted by the office of the archivist in accordance with RCW
Chapter 40.14 and by the City.
9. Audits and Inspections. The records and documents with respect to all matters covered by this
Agreement shall be subject at all times to inspection, review or audit by law during the performance
of this Agreement.
10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor
thirty (30) days written notice of the City's intention to terminate the same. Failure to provide
products on schedule may result in contract termination. If the Contractor's insurance coverage is
canceled for any reason, the City shall have the right to terminate this Agreement immediately.
11. Discrimi nation Prohibited. The Consultant, with regard to the work performed by it under this
Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age,
veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the
presence of any disability, or any other protected class status under state or federal law, in the
selection and retention of employees or procurement of materials or supplies.
CA Revised December 2016
Page 3 of 7
VA
12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the
services contemplated by this Agreement without the written consent of the City.
13. Entire Agreement; Modification. This Agreement, together with attachments or addenda,
represents the entire and integrated Agreement between the City and the Contractor and
supersedes all prior negotiations, representations, or agreements written or oral. No amendment or
modification of this Agreement shall be of any force or effect unless it is in writing and signed by the
parties.
14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or
unenforceable or limited in its application or effect, such event shall not affect any other provisions
hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement,
which by their sense and context are reasonably intended to survive the completion, expiration or
cancellation of this Agreement, shall survive termination of this Agreement.
15. Notices. Notices to the City of Tukwila shall be sent to the following address:
City Clerk, City of Tukwila
6200 Southcenter Blvd.
Tukwila, Washington 98188
Notices to the Contractor shall be sent to the address provided by the Contractor upon the
signature line below.
16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington. In the event any suit, arbitration, or other
proceeding is instituted to enforce any term of this Agreement, the parties specifically understand
and agree that venue shall be properly laid in King County, Washington. The prevailing party in any
such action shall be entitled to its attorney's fees and costs of suit.
DATED this _ day of 1 20_.
CITY OF TUKWILA CONTRACTOR
Allan Ekberg, Mayor
ATTEST /AUTHENTICATED:
in
Printed Name and Title:
Address: 3535 Factoria Blvd., Suite 120
City Clerk, Christy O'Flaherty Bellevue, WA 98006
APPROVED AS TO FORM:
Office of the City Attorney
CA Revised December 2016
Rl
Page 4 of 7
EXHIBIT A SCOPE OF SERVICES
For Active and Retiree Plans
The Scope of Services for this contract includes the following coverages or programs:
MedicuKRx Ind ivNua Stop Loss
Dental Third Party Administrative (TP/\) Services
Vision Group Life 6t/\D&D and Dependent Life
Long Term Disability (LID) IRS Section 125 Medical Reimbursement Plan
HMO (Group Health Co'op)
The following are representative of the basic services the BROKER will provide with respect tothe CITY'S
benefit plans:
l. Current Plan Review
• Review in-force contracts, plans, benefit design
• Review funding agreements
• Review claims data and plan benefit design
• Assist with reocv/u| contract negotiations
2. Bidding the In-Force Lines of Coverage
• Prepare bid specifications for underwriters
• Research insurance markets on CITY'S (Plan Sponsor's) behalf
• Analyze proposals and make recommendations
3. Plan Administration
• Evaluate current/prospective TPA`s
• Assist with billing and eligibility problems
• Assist with plan b'NuUudon
• Monitor TPA for compliance with contract terms
4. Benefit Communiootion
• Plan and organize employee meetings
• Develop benefit summaries
• Assist with preparation of Summary Plan Descriptions
5. Assist the City (Plan Sponsor) tn Comply with Federal Laws Impacting Benefit Plans
• COBRA compliance
• PP/\L/\compliance
• TEPRAconup|iance
• 0lP/\/\compliance
CA Revised December 2016
Page 5 of 7
�
�
6. Other Services
* Act as an advocate of the participants and CITY in resolving difficult clairns and administrative
problems
• Meet, at least quarterly with Health Care Committee, and usdesired, with City representatives to
discuss claims experience, administration services, cost containment ideas, benefit design, new
programs and other employee benefit plan issues and pn`b|enno.
• Assist in providing detailed annual financial accountings
• Review and analyze claims data and make recommendations
• Review industry trends and advise the City ofTukwila
• Assist the CITY in strategic benefit planning
• Other special projects agreud\obetwuentheClTYandDllOKEK
CA Revised December 2O1S
Page Gof7
EXHIBIT B. METHOD OF PAYMENT
ACTIVE (4024) and RETIREE (5024) PLANS
The Broker Commission Fee payable to R.L. Evans is $4,166.67 per month. This contract is not to exceed
$50,000 in a year. The fee is reduced by any standard agent fees or commissions that R.L. Evans receives
during the year and will provide a full accounting at year-end.
CA Revised December 2016
Page 7 of 7
11
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FINANCE COMMITTEE
Meeting Minutes
City Council Finance Committee
February 7,2017- 6:15 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Verna Seat, Chair; Kathy Hougardy, Thomas McLeod
Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Stephanie Brown, Laurel Humphrey
CALL TO ORDER: Chair Seat called the meeting to order at 6:23 p.m.
I. PRESENTATIONS
11. BUSINESS AGENDA
A. Contract: Health Care Broker Services
Staff is seeking Council approval of a contract with R.L. Evans in the amount of $50,000 for
healthcare brokerage services for active employee and LEOFF 1 retiree plans in 2017. R.L. Evans
has been the City's broker since the inception of the self - funded health insurance program in
1990, and helps the City to manage costs and negotiate prices. Staff continues to be satisfied
with the value and the quality of service provided by R.L. Evans and would like to renew the
service through 2017 for $50,000, representing a 2.6% increase. Councitmember McLeod
suggested changingthe language in the second recital to say "employees" instead of "citizens."
He also requested that in the future staff conduct additional research to determine that the City
is still getting the best quality service for the best value. The other Committee members agreed
with these proposals. Staff agreed to return to Committee in the 4th quarter of 2017 with the
additional research requested. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 21, 2017
REGULAR CONSENT AGENDA.
B. Interlocal Agreement: Regional Animal Services of King County
Staff is seeking Council approval of an interlocal agreement with King County Regional Animal
Services (RASKC) for continued animal services for unincorporated King County and 24 contract
cities. The City's 2012 contract with RASKC included a two-year extension which was approved
by the Council last year and expires on December 31, 2017. The existing contract is currently
under review by representatives of each of the member cities and by King County, and proposed
changes are summarized in the memo. The Cost allocation method of 80% service usage and
20% population will remain the same. Since the Council was last briefed in 2016, the City of
Kirkland has decided to withdraw and King County will be making program cost reductions to
mitigate 50% of this impact. Tukwila's costs are estimated at $111k, about $6k lower than
current budget. The final deadline for municipal approval of the intertocal agreement is June
1, 2017. A representative from RASKC will attend the Committee of the Whole to provide
additional information. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 13, 2017
COMMITTEE OF THE WHOLE.
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