HomeMy WebLinkAboutReg 2018-12-03 Item 4C - Agreement - 2019 Broker Services with RL Evans for $52,750 COUNCIL AGENDA SYNOPSIS
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Meeting Date Prepared by Mayor's review Counal
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ITEM INFORMATION
STAH SPONSOR: RACHEL BIANCHI ORIGINAL AGENDA DATE: 12/03/18
AGENDA.ITEM TITLI A contract with R.L. Evans
CATEG(AIY E Discussion Z Motion [1] Resolution E Ordinance E Bid Award E] Public Hearing E] Other
Mtg Date Mrs Date 12/3/18 Mtg Date Mtg Date AI ts Date Mt g Date Mtg Date
SPONSOR OCounci l EMayor ZHR ODCD OF i nance OF ire E TS E]p&R E Police Epir, 0 Court
SP ON SOR'S Execute a contract with R.L. Evans in the amount of$52,750 for 2019 brokerage services
SE IMMARY regarding the active employee and retiree healthcare plans. The Council is being asked to
approve the contract with R.L. Evans and consider this item on the December 3, 2018
Regular Meeting Consent Agenda.
REVIEWII)BY Li C.O.W. Mtg. C CDN Comm Z Finance Comm. C Public Safety Comm.
0 Trans &Infrastructure 0 Arts Comm. El Parks Comm. 1: Planning Comm.
DATE: 11/20/18 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONSOR/ADMIN. Human Resources Department
Commumi:
COST IMPACT / FUND SOURCE
EXPENDITURE RI (.2IHRI7D AMOUNT BUDGETED APPROPRIATION REQUIRED
$52,750 $ $
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
12/3/18
MTG. DATE ATTACHMENTS
12/3/18 Informational Memorandum dated 11/14/18
R. L. Evans Contract, Exhibit A Scope of Services & Exhibit B Method of Payment
Minutes from the Finance &Safety Committee meeting of 11/20/18
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44 City of Tukwila
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.... , , -1 Allan Ekberg, Mayor
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a INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Rachel Bianchi, Deputy City Administrator
BY: Erika Eddins, Human Resources Analyst
CC: Mayor Ekberg
DATE: November 14, 2018
SUBJECT: Healthcare Broker Services Contract for R.L. Evans, Broker of Record
ISSUE
Execute a contract with R.L. Evans in the amount of$52,750 for healthcare brokerage services
regarding the active employee and LEOFF 1 retiree health plans in 2019.
BACKGROUND
The City of Tukwila's self-funded health insurance program was started in 1990. R.L. Evans
has been the City's broker since that time, helping the City to understand and manage the costs
of both the retiree and active employee health insurance plans. R.L. Evans also assist the City
in negotiating competitive prices on Life, Long-term Disability, and Stop-Loss Insurance and
providing customer service with complex plan administration and compliance.
DISCUSSION
The past four contracts with the broker have offered one-year terms with an annual $1,250
increase. The proposal provided for this renewal offers two options, a one-year agreement at
$52,750 (an increase of$1,500); or a three-year agreement with a $250 a year discount as
follows: annual fee of$52,500 in 2019, $53,750 in 2020, and $55,000 in 2021.
The small increase for the one-year term reflects a service change from the broker for taking on
a new partnership with a third-party benefit provider. That relationship allows for the broker to
pass on potential insurance discounts to the City, as well as increased customer service to us in
plan administration and compliance. With the transition occurring in the Human Resources
department and time needed to evaluate the service provided by the broker, renewing the
contract at the one-year proposal allows for future flexibility.
FINANCIAL IMPACT
A one-year guarantee for 2019 provides for a $1,500 increase over the 2018 fee for an overall
contract expense of$52,750. It is expected that any fees and commissions collected in 2018 will
offset against the fees that occur in 2019. The contract expense is within 2019 budgeted
amounts.
RECOMMENDATION
The Committee is being asked to approve a one-year contract with R.L. Evans for Healthcare
Broker Services and forward this item to the subsequent December 3, 2018 Regular meeting
Consent agenda.
ATTACHMENTS
R.L. Evans Contract with Exhibits A and B: Scope of Services and Method of Payment
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,„��tLA�,y City of Tukwila Contract Number:
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° 5
4 0 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:
1. 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 $52,750.00 per year at a rate of$4,395.83
per month.
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, 2019, and ending December 31, 2019, 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
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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
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:
1. 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.
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.
CA Revised December 2016 Page 2 of 7
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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. Discrimination 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.
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. "Provided, the City
hereby grants consent to the Contractor to assign or subcontract some of the services provided under
this Agreement to ALLIANT INSURANCE SERVICES."
CA Revised December 2016 Page 3 of 7
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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 , 20_
CITY OF TUKWILA CONTRACTOR
By:
Allan Ekberg, Mayor
Douglas Evans, President, R.L. Evans Co., Inc.
ATTEST/AUTHENTICATED:
Address: 3535 Factoria Blvd., Suite 120
Bellevue, WA 98006
City Clerk, Christy O'Flaherty
APPROVED AS TO FORM:
Office of the City Attorney
CA Revised December 2016 Page 4 of 7
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EXHIBIT A. SCOPE OF SERVICES
For Active and Retiree Plans
The Scope of Services for this contract includes the following coverages or programs:
Medical/Rx Individual/Aggregate Stop Loss
Dental Third Party Administrative (TPA) Services
Vision Group Life & AD&D and Dependent Life
Long Term Disability (LTD)
HMO (Kaiser Permanente)
The following are representative of the basic services the BROKER will provide with respect to the
CITY'S benefit plans:
1. Current Plan Review
• Review in-force contracts, plans, benefit design
• Review funding agreements
• Review claims data and plan benefit design
• Assist with renewal 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 installation
• Monitor TPA for compliance with contract terms
4. Benefit Communication
• Plan and organize employee meetings
• Develop benefit summaries
• Assist with preparation of Summary Plan Descriptions
5. Assist the City (Plan Sponsor) to Comply with Federal Laws Impacting Benefit Plans
• COBRA compliance
• PPACA compliance
• TEFRA compliance
• HIPAA compliance
CA Revised December 2016 Page 5 of 7
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6. Other Services
• Act as an advocate of the participants and CITY in resolving difficult claims and
administrative problems
• Meet, at least quarterly with Health Care Committee, and as desired, with City
representatives to discuss claims experience, administration services, cost containment
ideas, benefit design, new programs and other employee benefit plan issues and
problems.
• Assist in providing detailed annual financial accountings
• Review and analyze claims data and make recommendations
• Review industry trends and advise the City of Tukwila
• Assist the CITY in strategic benefit planning
• Other special projects agreed to between the CITY and BROKER
CA Revised December 2016 Page 6 of 7
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EXHIBIT B. METHOD OF PAYMENT
ACTIVE (4024) and RETIREE (5024) PLANS
The Broker Commission Fee payable to R.L. Evans is $4,395.83 per month. This contract is not to
exceed $52,750.00 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
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z City of Tukwila
City Council Finance Committee
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FINANCE COMMITTEE
Meeting Minutes
November20, 2018-5:30 p.m. -Hazelnut Conference Room, City Hall
Councilmembers: Verna Seal,Acting Chair; Dennis Robertson, Kate Kruller
Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Richard Takechi, Bruce Linton, Chris
Flores, Gail Labanara, Jeff Friend, Erika Eddins, Laurel Humphrey
CALL TO ORDER: Acting Chair Seal called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. 2018 3rd Quarter Financial Report
Staff presented the Committee with the City's 2018 3rd Quarter Financial Report which captures
the general state of financial affairs and highlights significant items and trends. The General
Fund is on track to end the year with revenues covering expenditures and no draw down of fund
balance. Revenue of$44.3 million was $162K less than budget but exceeded the same period in
the prior year by almost $2 million. Actual departmental expenditures came in $1.3 million less
than budget. Councilmembers asked clarifying questions about the report. Councilmember Seal
asked if the Council's direction on constructing a crosswalk near the Islamic Center would be
reflected in a budget amendment for 2018 or 2019. Staff replied that it would be an amendment
to the proposed 2019-2020 budget. When the Council makes final decisions on the proposed
budget the amendments will be incorporated into the published budget. FORWARD TO
NOVEMBER 26, 2018 COMMITTEE OF THE WHOLE.
B. Contract: Health Care Broker Services
Staff is seeking Council approval of a contract with R.L. Evans in the amount of $52,750 for
healthcare brokerage services for active employee and LEOFF 1 retiree plans in 2019. 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 2019. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 3,2018 REGULAR CONSENT
AGENDA.
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