The URL can be used to link to this page

Home My WebLink About12-139 - Healthcare Actuaries - Self-Insured Health Care Plan ReviewCity of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 CONTRACT FOR SERVICES Contract Number: 12-139 Council Approval N/A 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 Healthcare Actuaries, hereinafter referred to as "the Contractor," whose principal office is located at16519 107' Place NE, Bothell, WA. 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 Contra 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 $10,500. 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 August 15, 2012, and ending September 30, 2012, 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. I si- f CA Revised 2012 Page 1 of 4 b. Indemnification The Contractor shall defend, indemnify and hold the City, its officers, agents, 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 City. 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 City, 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. 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 written on 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 the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an 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 equivalent coverage. 2. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. CA Revised 2012 Page 2 of 4 B. Other Insurance Provision. The 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. 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 ten (10) 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 Contractor shall not discriminate against any employee, applicant for employment, or any person seeking the services of the Contractor to be provided under this Agreement on the basis of race, color, religion, creed, sex, age, national origin, marital status or presence of any sensory, mental or physical handicap. 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. CA Revised 2012 Page 3 of 4 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 Stephanie Brown, Human Resources Director City of Tukwila 6200 Southcenter Blvd Tukwila, WA 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 +h day of 11/oVt r Gr 20 CITY OF TUKWILA xwz Ma r Attest/Authenticated: City Clerk CONTRACTOR: Healthcare Actuaries By: A� Printed Name and Title: Ro T. Burton President Consulting Actuary Address: 16519 10` Place NE Bothell, WA 98011 Approved as to Form: Roger T. Burton President Consulting Actuary Office of the City Attorney CA Revised 2012 Page 4 of 4 EXHIBIT A: SCOPE OF WORK jl ealthcaTe Actuaries tN larhro ul to 1 de £[fre;;��e ('as35ult =ua July 31, 2012 Stephanie Brown Human Resources Director City of Tukwila 6200 Southcenter Boulevard Tukwila, Washington 98188 -2544 Re: 2013 Renewal Report Engagement Letter Dear Stephanie, 16519 107th Place NE I Bothell, VVA 98011 t (425) 939 -7444 1 IF (425) 939 -0089 w www.HeaitficareActuaries.corn This letter outlines the fees, the project plan, and the information required to complete a 2013 renewal report (funding projection) for the City of Tukwila. Project and Deliverables The purpose of this project is to provide an annual review of the City of Tukwila's healthcare budget and to provide a renewal report for the 2013 plan year. With this report, we will include: A projection of the healthcare budget for the 2013 plan year, including a composite per employee rate Tiered renewal rates for each group and plan for the City for 2013 An estimate of the incurred claims liability (IBNR) for 2013 An actuarial opinion on the above items in order to comply with all Washington State regulations regarding actuarial services for municipal health plans Schedule A suggested schedule for the renewal follows. The City and Healthcare Actuaries may adjust the schedule as necessary. ..r.< 3c_.._ 15 A. ...;......�.•l<rz:;c. 8A Responsible Date Send information request to the City Healthcare Actuaries 871 Gather requested information City of Tukwila 8/15 Provide preliminary renewal Healthcare Actuaries 8/23 City to provide feedback City of Tukwila 8/30 Provide final renewal Healthcare Actuaries 9/5 ..r.< 3c_.._ 15 A. ...;......�.•l<rz:;c. 8A EXHIBIT B: COMPENSATION AND METHOD OF PAYMENT Fees The fees for the 2013 renewal report are: Preliminary Projection $8,250 Final Projection $2,250 Total Fees for 2012 $10,500 Major revisions to the renewal are outside the scope of this project. We will bill for additional work at the following hourly rates: Team Member Hourly Rate Lead Actuary $360 Actuary/Analyst $240 Information Required In order to complete the project, Healthcare Actuaries needs the following information. 1. Monthly paid claims and covered employees and dependents by month from August 2011 to the present, separately for medical, Rx, dental and vision. Medical and Rx should be shown separately for actives and LEOFF 1 retirees. 2. A listing of large claims >$25, 000) for plan years 2011 and 2012 year -to -date. 3. Claims lag data separately for medical /Rx, dental, and vision, monthly for claims paid in August 2011 up to the most recent paid month available. 4. Administrative and other costs to build into the rates. Please supply the current rates and the rates for 2013, if known. 5. Current enrollment by family tier, split by actives and retirees. 6. Current budget information from the finance department. 7. An estimate of the anticipated change (as either a headcount or a percentage change in headcount) in the City's benefits eligible workforce for 2013, 2014, and 2015. 8. The 2012 rates and employee contributions. 9. A description of any plan changes that will be effective January 1, 2013. 16519 10T Place Northeast J Bothell, Washington. 98011 t (425) 939 l 8425; 939 0069 w tiAn a� Flea +,';ca eAr:t�!ar ;o,Y; If you have any questions or require clarification, please feel free to call us at (425) 939 -7444. Best regards, Roger T. Burton, FSA, MAAA, FCA c: Douglas Evans, R.L. Evans Company, Inc. 18519 107" Place Northeast I Bothell, Washington 98011 t (425) 939 -7444 1 f (425) 939 -0089 1 w wmvAeaithcareActuar es.com