HomeMy WebLinkAbout2003-02-18 City Council (6)City PMo A to
C ty ¢ anager’s Report
7
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:FEBRUARY 18, 2003 CMR: 167:03
SUBJECT:APPROVAL OF AN AMENDMENT IN THE AMOUNT OF $150,000
AND TO EXTEND THE EXISTING CONTRACT FOR GROUP
LIFE, ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D)
AND LONG TERM DISABILITY INSURANCE (LTD) PLAN WITH
STANDARD INSURANCE FOR AN ADDITIONAL MONTH.
RECOMMENDATION
Staff recommends that Council approve and authorize the Mayor to execute the attached
contract amendment extending the City’s existing goup life, Accidental Death and
Dismemberment (AD&D) and Long Term Disability (LTD) insurance plan contract with
Standard Insurance Company for an additional one-month period and increasing the
amount of the contract by $150,000 for the payment of premiums through the
Agreement’ s term.
DISCUSSION
On March 1, 2000, the City entered into a three-year contract for underwriting the City’s
group life, AD&D and LTD benefits, saving the City approximately $89,500 per year
compared to the previous carrier. The three-year contract is for $750,000 annually.
Since January 1, 2000, the number of City management employees has increased from
235 to 283. The increase in the number of management employees has increased payroll
on which premiums are calculated by approximately 20 percent. As of February 1, 2003,
the City has a balance of $16,000. This is insufficient to.pay the required monthly
premium of approximately $75,000 or the March monthly premium of approximately
$75,000. 40 percent of these premiums are funded via contribution from employees.
Staff has issued a Request For Proposal (RFP) for the group life, AD&D and LTD
contracts to examine the feasibility of self-insuring the City’s LTD plan to determine if
self-insurance would reduce the City’s cost and!or improve claims administration as well
CMR: 167:03 Page 1 of 2
as to determine if the current contract is still cost competitive.
needed to complete the RFP process.
RESOURCE IMPACT
Funding for this agreement is provided in the 2002-03 budget.
the increase in premiums.
POLICY IMPLICATIONS
This request does not contain any policy implications.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
A: Amendment No. One to A~eement No. S0119602
B: Agreement No. S0119602
An additional month is
The budget does reflect
PREPARED BY: Leonard Zucker, Benefits Manager
DEPARTMENT HEAD:
Leslie Loomis
Director of Human Resources
CITY MANAGER APPROVAL:
EMILY H,ARRISON
Assistant ~i’~y Manager
CMR: 167:03 Page 2 of 2
AMENDMENT NO. ONE TO AGREEMENT NO. S0119602
BETWEEN THE CITY OF PALO ALTO AND
STANDARD INSURANCE COMPANY
This ~_men~ment No.One to Agreement No. S01!9602
("Agreement") is entered into _, by and between the
CITY OF PALO ALTO ("CITY"), and STANDARD INSURANCE COMPANY, an
Oregon corporation, located at ii00 SW Sixth Avenue, Portland,
Oregon 97204 ("CONTRACTOR").
R~E C I T A L S:
WHEREAS, on March !, 2000, the Agreement was entered into
between the parties for the provision of group life insurance,
accidental death and dismemberment insurance and group !ong term
disability insurance for an initial one-year term; and
9~EREAS, on April 5, 2001, the parties renewed the
Agreement for an additional one-year term, in accordance with the
Agreement and the City Counci! authorization therefor; and
~Z£EREAS, on March 22, 2002, the parties renewed the
Agreement for a fina! one-year renewal term, in accordance with the
Agreement and the City Counci! authorization therefor; and
[~EREAS, the parties wish to amend the Agreement to
extend the final renewal term of the Agreement through and
including March 30, 2003, and to increase the amount of the
Agreement to cover the increased cost of coverage due to additiona!
management employees.
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of the Agreement and this Amendment, the
parties agree:
SECTION !. The section entitled "TERMS" is hereby
amended to read as fo!lows:
TERM The insurance and/or materials furnished
under this Agreement shall commence in
accordance with Exhibits "A" & B". One year
initia! term and two one-year renewal terms to
be exercised at City’s option in accordance
with RFP #119602. The fina! renewal term is
hereby extended by one additional month to and
including March 30, 2003.
SECTION 2. The section entitled ,’COMPENSATION" is hereby
amended, to read as follows:
030213 cl 8120322
COMPENSATION for the full performance Of this
Agreement: CITY shall pay CONTRACTOR: in
accordance with the rates set forth in Exhibit
"C" Tota! compensation payable to CONTRACTOR
for services to al! Members for the fina!
renewal period of March i, 2002 through March
30, 2003, shal! not exceed Nine Hundred
Thousand Dollars ($900,000).
SECTION 3. Except as herein modified, all other
provisions of the Agreement, including any exhibits and subsequent
amendments thereto, shall remain in full force and effect.
IN WITNESS %’THEREOF, the parties have by their duly
authorized representatives executed this p~endment on the date
first above written.
ATTEST:CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
.Mayor
STANDARD INSURANCE COMPANY, an
Oregon Corporation
Senior Asst. City Attorney
APPROVED:
By:
Name:
Assistant City Manager Title:
Director of Administrative
Services
By:
Name:
Director of Human Resources
Insurance Review
Title:_
Taxpayer Identification No.
(Compliance with Corp. Code § 313 is
required if the entity on whose behalf
this contract is signed is a corporation.
In the alternative, a certified corporate
resolution attesting to the signatory
authority of the individuals signing in
their respective capacities is acceptable)
030213 cl 8120322
2
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § i189)
STATE OF
COUNTY OF
)
)
)
On , before me, the undersigned, a
notary public in and for said County, personall~ appeared
personaTly¯ _ known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
030213 cl 8120322
CERTIFICATE OF ACKNOWLEDGMENT
(civil C6de § 1189)
STATE OF
COUNTY OF
)
)
)
On before me, the undersigned, a
notary public in and for said County, personally appeared
personally know~ to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official sea!.
Signature of Notary Public
030213 cl B120322
AG R E EMENT
~.~.,2°i,.o .:-
BY THIS AGREEMENT MADE AN D ENTERED INTO ON THE i ~’L’’~°DAY OF
BY AND BETWEEN THE CITY OF PALO ALTO "CITY", AND STANDARDTNSURANCE
2000
_/ ~ ~’DATE TO BE ENTERED
[BY CiTY PURCHASING
a
(ADDRESS) II00 SW Sixth Avenue (ciTY)Portland, OR (ziP:. 97204 (PHONE)(925)
3950"CONTRACTOR" IN CONSIDERATION OF THEIR MUTUAL COVENANTS,THE PARTIES HERETO-AGREEAS FOLLOWS: - - - .-
® CONTRACTOR SHALL PROVIDE OR FURNIS~t THE~=OLLOWtNG sPEcIFIED 1) GOODS AND MATERIALS/2) SERVICES c~R 3)-A COMBINATION
THEREOF AS SPECIFIED IN THE EXHIBITS NAMED BELOW AND ATTACHED HERETO AND INCORPORATED HEF~EIN BY THIS REFERENCE;
TITLE: (DESCRIPTION) .....
-GROUP LIFE INSUP~ANCE; ACCIDENTAL DEATH AND D-ISNJ~tBE~ENT iNSU_~CE~
GROUP LONG TEP~M DISABILITY INSURD/NCE
n Oreqon cerporation
947-
e "EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HERESY ARE MADE PART OF THIS AGREEMEI~I’:
e~SEE ATTACHED LISTee~
insuranceTERM THE~ND/OR MATERIALSFURNISHED UNDER THIS’AGREEMENT SHALL COMMENCE’~N inaccordance
~V~Zg£mJ5~4~4~ Exhibits A & B.,. One y#ar initial term,and two~oneyear-
renews! terms to-be exercised .at Czu~ S op£ion in accordance with RFP#119602-oOOM PENSATION FOR THE FULL PERFORMANCE OF-TH S AGREEM E~:..~.
~_ CITY SH~LL PAY CONTRACTOR: in accordance with Exhibit C
~~~X~X Insurance benefits in accordance with Exhibits
PAYMENT RECORD (DEPARTMENT USE REVERSESIDE) -
CITY ACCOUNT NUMBER:
KEY CODE OBJECT PROJECT PHASE NO.}DOLLAR AMOUNT.
~.’uuuuuU87000000 30223023 I ~:~ -i) -~,7~U,000.. T0ta]GENERAL TERMS AND CONDITIONSARE INCLUDED ON BOTH SIDES OF THIS AGREEMENT."
THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY CITY. IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS
AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE.
HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless CITY. its Council Members, officers, employees, and agents from any and all demands,
claims or liabili%, of any nature, including wrongful death, caused by or arismg out of CONTRACTOR’S, its officers’, directors’, employees’ or agents’ negligent acts, errors,
or omissions or willful misconduct, or conduct for which the law imposes strict liability on CONTRACTOR in the performance of or failure to perform this agreement by
CONTRACTOR.
ENTIRE AGREEMENT. This agreement and the terms and conditions on the reverse hereof represent the entire agreement between the parties with respect to the purchase
and sale of the goods, equipment, materials or supplies or payment for services which may be the subject of this agreement. AI! prior agreements, representations,
statements, negotiations and undertakings whether oral Or written are superseded hereby.
PROJECT MANAGER AND REPRESENTATIVE FOR CITY CONTRACTOR
............. Rona !d ~.~. ’Z’impe
DEPT.Human Resources TITLE Chairman, President and CEO
P.O. BOX 10250 SOCIAL SECURITY
PALO ALTO, CA 94303 OR LR.S. NUMBER :93.~024-2990
.. ; .,W //Telephone (650) 329-2235 By .’,.,-t- ’-:-:’ .....~,-:!:,~ ....: ~ ......¯
INVOICING s~.o ALL ,.vo,oEs TO TH~ C,W. A~.: ~O~O~ ~A.A~~.’ ,. ~ ~.
.:,Title: Vice Pr.esi~ent & Corporate
CITY O~ PALO ALTO APPROVALS" (~ouTE FO~ S,G.ATURES ACCO~U,.G 70 .UM~E~S [. ~@~OVA~ BOXES ~OW) S~creta~.
.,["!,M . :.’~-
i /~ ~ -- ,--’ L-"); ~Bud~eted ~ ~ ~,./ )~.: :’I. ~i.~if~: :/ !
APPROVAL OVER S25,000 ~ :,:.:~::~ :::. ApPRQXAL OVER $65,000
OI~0FPALOALT0 ....~.
;-: ....: ....r /.:;::-A~ESTv ::,~ :~j ..........APPR0VEDASTO:EoRM~
PDA nO7~O RETAIN GRFFN COPY "
ACCEPTANCE. THIS AGREEMENT IS LIMITED TO THE TERMS AND
CONDITIONS ON THE FACE AND BACK HEREOF WHICH INCLUDES ANY
EXHIBITS REFERENCED.
GOVERN!NG LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF CALIFORNIA¯
INTEREST OF CONTRACTOR, IT IS UNDERSTOOD AND AGREED THAT
THIS AGREEMENT IS NOT A CONTRACT OF EMPLOYMENT IN THE SENSE THAT
THE RELATION OF MASTER AND SERVANT EXISTS BETWEEN THE CITY AND
UNDERSIGNED. AT ALL TIMES CONTRACTOR SHALL BE DEEMED TO BE AN
INDEPEIIDENT CONTRACTOR AND CONTRACTOR IS NOT AUTHORIZED TO
BIND CITY TO ANY CONTRACTS OR OTHER OBLIGATIONS. IN EXECUTING
TH!S AGREEMENT, CONTRACTOR CERTIFIES THAT NO ONE WHO HAS OR
WILL HAVE ANY FINANCIAL INTEREST UNDER THIS AGREEMENT tS AN
OFFICER OR EMPLOYEE OF CITY.
INSURANCE. CONTRACTOR AGREES TO PROVIDE THE INSURANCE
SPECIFIED IN THE "INSURANCE REQUIREMENTS~’ FORM ISSUED HEREWITH
IK THE EVENT SELLER IS UNABLE TO SECURE A POLICY ENDORSEMENT
NAMING THE CITY OF PALO ALTO AS AN ADDITIONAL INSURED UNDER ANY
COMPREHENSIVE GENERAL LIABILITY OR COMPREHENSIVE AUTOMOBILE
POLICY OR POLICIES. CONTRACTOR SHALL AT A vll ‘41[vlUM. AND ONLY WITH
THE WRITTEN APPROVAL OF CITY’S RISK MANAGER OR DESIGNEE, CAUSE
EACH SUCH INSURANCE POLICY OBTAINED BY IT TO CONTAIN AN
ENDORSEMENT PROVIDING THAT THE INSURER WAIVES ALL RIGHT OF
RECOVERY BY WAY OF SUBROGATION AGAINST CITY, ITS OFFICERS,
AGENTS, AND EMPLOYEES IN CONNECTION WITH ANY DAMAGE, CLAIM,
_ ABILITY PERSONAL N JURY. OR WRONGFUL DEATH COVERED BY ANY s.UC..H,..
POLICY. EACH SUCH POLICY OBTAINED BY CONTRACTOR SHALE coNTAIN-AN-
ENDORSEME",IT REQUIRING THIRTY (30) DAYS’ WRITTEN NOTICE FROM THE
INSURER TO CITY BEFORE CANCELLATION OR CHANGE IN THE COVERAGE,
SCOPE OR AMOUNT OF SUCH POLICY.
CONTRACTOR SHALL PROVIDE CERTIFICATES OF SUCH POLICIES OR OTHER
EVIDENCE OF COVERAGE SATISFACTORY TO CITY;S .RISK. MANAGER,
TOGETHER WITH EVIDENCE OF-PAYMENT OF PREMIUMS. TO CITY AT THE
COMMENCEMENT OF THIS AGREEMENT. AND ON RENEWAL OF THE POLICY,
OR POLICIES, NOT LATER THAN TWENT’~’ (20). DAYS BEFORE EX.F~ RATION .OF
THE TERMS OF ANY SUCH POLICY.
TERMINATION. THIS AG REEMEI‘4T MAY BE-I:ERM1NATED BY CITY uISON
TEN (10) DAYS WRITTEN NOTICE TO CONTRACTOR,-MONIES THEN OWING
BASED_UPON WORK SAT SFACTORJLY AC~_C.OMPL_I_SHED SHALL BE PAID TO
CONTRACTOR. ..
CHANGES. THIS AGREEMENT SHALL NOT BE ASSIGNED OR :TRANSFERRED
WITHOUT THE WRITTEN CONSENT OF THE CITY. NOCHANGES OR
VARIATIONS OF ANY KIND ARE-AUTHORIZEDWITHOUTTHE WRITTEN
CoNsEI’IT OF THE CITY MANAGER.
AUDITS. CONTRACTOR AGREES TO PERMIT CITY TO AUDIT. AT ANY
REASONABLE TIME DURING THE TERM OF THIS AGR. EEMENT AND FOR THREE
(3) YEAi5,S THEREAFTER, CONTRACTOR’S RECORDS PERTAINING TO
MATTERS COVERED BY THIS AGREEMENT. CONTRACTOR FURTHER AGREES
TO MAINTAIN SUCH RECORDS FOR AT LEAST THREE (3) YEARS AFTER THE
TERM OF THIS AGREEMENT.
NO IMPLIED WAIVER. NO PAYMENT, PARTIAL PAYMENT, ACCEPTANCE,
OR PARTIAL ACCEP-I-ANCE BY CITY SHALL OPERATE AS A WAIVER ON THE
PART OF CITY OF ANY OE ITS RIGHTS UNDER THIS AGREEMENT.
CITY’S PROPERTY. TITLE TO CITY’S PROPERTY FURN!SHED TO
CONTRACTOR SHALL REMAIN IN THE CITY. CONTRACTOR SHALL NOT ALTER
OR USE PROPERTY FOP, ANY PURPOSE, OTHER THAI’; THAT SPECIFIED BY
CITY. OR FOR ANY OTHER PERSON WITHOUT THE PRIOR WRITTEN CONSENT
OF CITY. CONTRACTOR SHALL STORE. PROTECT. PRESERVE, REPAIR AND
MAINTAIN SUCH PROPERTY IN ACCORDANCE WITH SOUND PROFESSIONAL
PRACTICE. ALL AT CONTRACTOR’S EXPENSEs .
r~.~-D~SL, Rt.., ~,A ~ ,ON. NO DISCRIMINATION SHALL BE MADE IN THE
EMPLOYMENT OF PERSONS UNDER THIS AGREEMENT BECAUSE.OF THE
RACE, COLOR. NATIONAL ORIGIN. AGE, ANCESTRY, RELIGION OR SEX OF
SUCH PERSON.
WARRANTY, CONTRACTOR EXPRESSLY WARRANTS THAT ALL MATERIALS
AND SERVICES COVERED BY THIS AGRE--MENT SHALL CONFORM TO THE
SPECIFICATIONS REQUIREMENTS INSTRUCTIONS. OR OTHER DESCRIP-
TIONS UPON WHICH THIS AGREEMENT IS BASED, SHALL BE FIT AND
SUFFICIENT FOR THE PURPOSE INTENDED, OF GOOD M/~TERIAL AND
WORKMANSHIP AND FREE FROM DEFECT AND THAT MATERIALS AND
SERVICES OF CONTRACTOR’S DESIGN WILL BE FREE FROM DEFECT IN
DESIGN. INSPECTION. TEST. ACCEPTANCE, PAYMENT OR USE OF THE GOODS
FURNISHED HEREUNDER SHALL NOT AFFECT THE CONTRACTOR’S
OBLIGATION UNDER THIS WARRANTY~ AND SUCH WARRANTIES SHALL
SURVIVE INSPECTION, TEST ACC ~PTANCE AND USE. CONTRACTOR AGREES
TO REPLACE. RESTORE. OR CORRECT DEFECTS OF ANY MATERIALS OR
SERVICES NOT CONFC RMING TO THE FOREGOING WARRANTY ~ROMPTLY.
WITHOUT EXPENSE TO CITY. WHEN NOTIFIED OF SUCH NONCOM FORMITY BY
CITY. IN THE EVENT OF FAILURE BY CONTRACTOR TO CORRECT DEFECTS IN
OR REPLACE NONCONFORMING GOODS OR SERVICES PROMPTLY, CITY,
AFTER REASONABLE NOTICE TO CONTRACTOR, MAY MAKE SUCH
CORRECTIC NS OR REPLACE SUCH MATERIALS OR SERVICES AND CHARGE
CONTRACTOR FOR THE COST INCURRED BY THE CITY THEREBY.
WORKERS’ COMPENSATION. CONTRACTOR, BY EXECUTING THIS
AGREEMENT, CERTIFIES THAT tT IS AWARE OF THE PROVIS!ONS OF THE
LABOR CODE OF THE STATE OF CALIFORNIA W~iCH REQUIRE EVERY
EMPLOYER TO BE INSLIRED AGAINST _lABILITY FOR WO_R_K..ERS’
COMPENSATION OR TO UNDERTAKE SELF-INSURANCE IN ACCORDANCE
WITH THE PROVISIONS OF THAT CODE, AND CERTIFIES THAT IT WILL COMPLY
WITH SUCH PROVISIONS BEFORE COMMENCING THE PERFORMANCE O--THE
WORK OF THIS AGREEMENT.
PRICE TERMS.
(al EXTRA CHARGES. INVOICES AND PAYMENT. NO EXTR~ CHARGESOF ANY
KIND WILL BE ALLOWED UNLESS SPECIFICALLY AGREED TO IN WRITIN_G BY
CITY. ALL STATE AND FEDERAL EXCISE. SALES AND USE TAXES SHALL BE
STATED SEPARATELY ON THE INVOICES ....
(b) TRANSPORTATION CHARGES. ANY TRANSPORTATION CHARGES WITH
RESPECT TO-WHICH CONTRACTOR IS ENTITLE~"YO RECEIVE
REIMBURSEMENT SHALL BE ADDED TO CONTRACTOR’S INVOICE-AS A
SEPARATE ITEM, :WITH THE RECEIPTED FREIGHT BILL ATTACHED THERETO.
(c) CONTRACTOR WARRANTS THAT THE PRICES FOR MATERIALS QR
SERVICES Sd)LD:ro CITY Ui’~DER THIS AGREEMENT¯ ARE NOT LESS
FAVORABLE THAN THo~E CURRENTLY EXTENDED TC~.]@NY OTHER
CUSTOMERS OF THE SAME OR LIKE ARTICLES OR SERVICES IN EQUAL OR
LESS QUANTITIES. 1I’4 EVENT CONTRACTOR REDUCES ITS PRICE FOR ~UCH
MATERIALS OR SERVICES DURING THE TERM OF THIS AGREEMENT,
CONTRACTOR AGREES TO REDUCE THE PRICES OR RATES HEREOF
CORRESPONDINGLY.
SCHEDULES OR DELIVERY. TIME IS OF THE ESSENCE OF THIS
AGREEMENT. CONTRACTOR AGREES TO COMPLY WITH THE SPECIFIC
SCHEDULE PROVIDED BY THE CITY OR AGREED UPON HEREIN WITHOUT
DELAY AND WITHOUT ANTICIPATING CITY’S REQUIREMENTS. CONTRACTOR
ALSO AGREES NOT TO MAKE MATERIAL COiv1MITMENTS OR SCHEDULING
ARRANGEMENTS IN EXCESS OF THE REOUtRED AMOUNT OR I[I ADVANCE OF
THE TIME NECESSARY TO MEET THE SCHEDULE(S) OF THIS AGREEMENT, IF
ANY.
TRANSPORTATION, PACKAGING & LABELING. ALL MATERIALS
OR SERVICES ARE TO BE PROVIDED: (a) F.O.B. PALO ALTO UNLESS
OTHERWISE SPECIFIED; (b) WITH A PACKING LIST ENCLOSED IN CARTONS,
WHICH INDICATE THE AGREEMENT NUMBER. EXACT QUANTITY Af‘4D
DESCRIPTIONS, CONCERNING ANY MATERIAL SHIPMENTS: (c) AND COivIPLY
WITH CURRENT PACKAGING AND LABELING REQUIREMENTS PRESCRIBED E~Y
D.O.T.
PAYMENT RECORD: (For Department Use)
Warrant No. Date Amount
(I)
(2)
Warrant No.
(4)
(5)
(6)
Date Amount