HomeMy WebLinkAbout2003-08-04 City Council (4)TO:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
FROM: ~ CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:AUGUST 4, 2003 CMR: 370:03
SUBJECT:APPROVAL OF CONTRACT WITH COMPSYCH IN THE
AMOUNT OF UP TO $50,000 PER YEAR FOR THREE YEARS FOR
THE CITY OF PALO ALTO’S EMPLOYEE ASSISTANCE PLAN
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the Mayor to execute the attached contract with ComPsych
Corporation in the amount of $50,000 for the City of Palo Alto’s Employee
Assistance Plan.
2.Authorize the City Manager or his designee to exercise the option to renew the
contract for the second and/or third years for a total cost not to exceed $50,000 per
year provided the contractor is responsive to the City’s needs, and the quality of
the contractor’s work is acceptable during the first year of the contract.
DISCUSSION
Scope of Services Description
The scope of work to be performed under the contract is for Employee Assistance Plan
(EAP) services. The City has provided employees and their dependents with EAP
benefits since 1982. The EAP provides employees with.confidential personal counseling,
work and family related issues, stress, childcare issues, eldercare, substance abuse, etc.
In addition EAP programs provide a valuable tool for supervisors to refer troubled
employees to professional outside help. The EAP is designed to promote the well-being
and welfare of City employees and their families, as well as to support on-the-job
productivity. Please see Attachment B for the complete scope of services.
CMR: 370:03 Page 1 of 3
Summary, of Solicitation Process
Proposal Description/Number
Proposed Length of Project
Number of Proposals Mailed
Total Days to Respond to Proposal
Pre-proposal Meetin~ Date
Number of Company Attendees at Pre-
proposal Meetin~
Number of Proposals Received:
Company flame
1. Concern EAP21,. ComPsych
3. The Holman Group
4. Mal~ellan Behavioral Health
5. Mills-Peninsula
Ran!~e of Proposal Anmunts Submitted
RFP No. 152027 for provision of Employee Assistance Plan (EAP)
Services
12 months with the option to renew
16
20
None
N/A
5
Location (City, State)
Mountain View, CA
Chica~o, IL
Cano~a Park, CA
El Se~undo, CA
Burlin~ame, CA
$26029.20 to $34269.60
Selected for oral Interview?
N/A
N/A
N/A
N/A
N/A
An evaluation committee consisting of the Risk & Benefits Manager in Human
Resources and prior Benefits Manager l_~onard Zucker reviewed the proposals. The
committee carefully reviewed each f’u-m’s qualifications and submittal in response to the
criteria identified in the RFP. The committee also reviewed each provider’s
qualifications relative to the following criteria: types of services offered; quality of
services offered; customer service capability; internet technology; communication
materials; statistical reports; and, costs.
It was determined that oral interviews would not be beneficial as none of the proposals
could duplicate the services or cost provided by ComPsych. ComPsych was selected
because it has demonstrated over the past three years the ability to provide enhanced and
innovative services at a competitive cost. ComPsych has demonstrated the ability to
provide immediate critical incident response when needed, and excellent work-life
services. ComPsych provides unlimited practical advice through telephonic consultation,
timely referral information and educational literature for a wide range of needs including
child care, eider care, and personal convenience as well as financial and legal counseling.
In addition, ComPsych’s website continues to provide cutting-edge resources for
information as well as assessment tools. Utilization of EAP services among City
employees has increased since ComPsych was selected and is significantly higher than
the national average for similar programs. Bargaining union representatives commented
that their members have expressed that ComPsych provides good services and they have
not received any complaints about the plan.
CompPsych has proposed a rate of $1.99 per employee per month, which represents the
lowest proposed cost. The rate will be guaranteed for three years. This rate provides for
3 EAP sessions for each employee. For safety employees, additional sessions after the
CMR: 370:03 Page 2 of 3
first three, up to a maximum of 10 per employee per year, will be billed on a fee-for-
service basis at $691session. Based on the City’s experience, ComPsych estimates the
total cost of these sessions will be less than $13,000/year. If safety employees do not
require additional sessions after the three, the City will realize savings. This rate also
includes the handling of three Department of Transportation (DOT) substance abuse
professional cases per contract year. Other proposals charged an additional fee for DOT
case handling.
RESOURCE IMPACT
Funding for the plan is available in the 2003-2005 budget.
POLICY IMPLICATIONS
This request does not represent a change in existing policies.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act
ATTACHMENTS
A: Agreement with Compsych
PREPARED BY:Sandra T.R. Blanch, Risk & Benefits Manager
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
LESLIE LOOMIS
EMILY HARRISON
Assistant City Manager
CMR: 370:03 Page 3 of 3
ATTACHMENT A
AGREEMENT
TillS AGREEMENT is made and entered into this __ day of August, 2003, by and
between COMPSYCH CORPORATION, an Illinois corporation ("ComPsych"), and CITY
OF PALO ALTO, a chartered municipal corporation of the State of California ("Client").
RECITALS
WHEREAS, ComPsych is engaged in the business of providing employee assistance
programs (an "EAP") to employers; and
WHEREAS, pursuant to’an EAP, ComPsych provides those services described on
Schedule I attached hereto (the "Services") to employees of client companies and/or their
respective spouses and dependents who, from time to time, participate in an EAP
("Participants"); and
WHEREAS, Client desires to engage ComPsych, and ComPsych desires to be engaged
by Client, to provide an EAP to Client (the "Client EAP") pursuant to which ComPsych shall
provide the Services to Client and Participants in the Client EAP, on the terms and conditions
set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:
1. Services: Throughout the Term (as defmed below), ComPsych will provide to Client an
EAP pursuant to which ComPsych will perform the Services for Client and Participants in the
Client EAP, as indicated in Schedule I.
2. Fees:
(a) Throughout the Term, Client will pay a base fee per employee per month to
ComPsych as indicated in Schedule II. The first (lst) monthly fee shall be due and payable
on or before the Commencement Date (as defined below). Subsequent fees shall be due and
payable on or before each one (1) month anniversary of the Commencement Date
throughout the Term. Fees will be fixed for a period of three (3) years.
(b) In the event that any payment due. ComPsych hereunder is not received by
ComPsych from Client when due, a delinquency charge shall be assessed on each
installment assessed in default for not less than thirty days in an amount not to exceed one
and one half percent
(11A %) for each month the installment remains unpaid or, if less, the maximum amount
allowed by law, in addition to attorney’s fees and other costs and expenses incurred by
ComPsych to collect any amounts due hereunder.
3. Term: The term of this Agreement shall be for a period of one (1) year
(the "Initial Term") commencing on September 1, 2003 (the "Commencement Date") and
ending on August 31, 2004. Following the expiration of the Initial Term, this Agreement shall
automatically renew for two successive one-year periods (each a "Renewal Term") unless
either party shall deliver to the other party written notice of non-renewal not less than sixty
(60) days prior to the expiration of the Initial Term or the applicable Renewal Term.
This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and
the Palo Alto Municipal Code. This Contract will terminate without any penalty at the end of
any fiscal year in the event that funds are not appropriated for the following fiscal year for the
services under this Agreement. This section shall take precedence in the event of a conflict
with any other covenant, term, condition or provision of this Contract.
4. Responsibility and Authority: It is agreed and acknowledged that:
(a) ComPsych shall have no responsibility or liability whatsoever to Client, any
Participant or any other person, firm, corporation or entity for any of the following:
(i) Verification of any participant’s entitlement to group medical/health plan coverage
or insurance reimbursement;
(ii) Payment of any participant’s bills, debts, obligations or other liabilities of any
kind relating to any treatment or confinement (except as specified in any of the
Schedules attached hereto), or payment of any treatment not expressly provided for in
this Agreement.
(iii) Any employment related decisions made by Client, including, without limitation,
hiring, terminations, and employee accommodations made pursuant to the Americans
with Disabilities Act.
(b) ComPsych shall have no responsibility or liability whatsoever for the accuracy,
completeness, propriety, necessity or advisability of the information which is provided to
ComPsych by or from third parties, including, without limitation, hospitals, alternative
facilities, treatment providers and practitioners.
(c) Client, in conjunction with its claims administrator, shall retain all fmal authority
for benefit determination under any and all applicable insurance and claim administration
contracts.
5. Statistical Reports: ComPsych will furnish statistical management reports to Client which
reflect the Services being rendered, as described in Schedule I.
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6. Proprietary Rights: Client shall not, during the term of this Agreement, or at any time
thereafter, disclose to any person, firm, corporation or other entity any information concerning
the business or affairs of ComPsych, except as may be subject to disclosure as a public
document under the California Public Records Act, or as may be ordered disclosed by court
order. All rights, title and interest to the work product developed or produced under this
Agreement are the sole property of ComPsych. Client covenants and agrees that it shall not
knowingly, either directly or indirectly, in any way during the Term and for a period of three
(3) years thereafter, solicit, attempt to solicit, or hire for employment or engage any person
who is or was an employee or agent of ComPsych during the Term.
7. Confidentiality & Compliance with HIPAA Requirements: ComPsych and Client
acknowledge and agree that all information obtained or prepared by ComPsych in connection
with this Agreement concerning individual Participants is confidential and ComPsych agrees to
follow all applicable HIPAA requirements relating to Participants and their health information.
No such information shall be disclosed except when disclosure is required by legal mandate or
by express written consent of the Participant.
8. Dissemination of Information: Client covenants and agrees that any and all
communications disseminated by Client to Participants regarding the Client EAP or the
Services to be rendered by ComPsych hereunder shall: (a) if written, be subject to ComPsych’s
prior written approval, which approval shall not be unreasonably withheld; and (b) if oral,
accurately reflect the terms hereof and comply with such guidelines as may be established,
from time to time, by ComPsych.
9. Representations and Warranties: ComPsych and Client each represent and warrant to the
other that:
(a) such party is a duly organized and validly existing corporation in good standing
under the laws of its state of incorporation;
(b) the execution and delivery of this Agreement by such party and its performance of
its obligations hereunder have been duly authorized by all appropriate and requisite
corporate action;
(c) this Agreement is binding upon such party and enforceable against such party in
accordance with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws.
10. Indemnification: ComPsych agrees to indemnify, defend and hold harmless Client and
its Council Members, officers and employees from and against any and all loss, damage, claim
or liability (including without limitation, reasonable attorney’s fees) incurred by Client which
arise out of ComPsych’s negligent acts, errors or omissions, in performing under this
Contract. ComPsych shall control all litigation and settlement of claims that requires its
indemnification hereunder.
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11. Insurance: ComPsych shall maintain in full force and effect during the term of this
Contract insurance as set forth on the Certificate of Insurance attached hereto as Exhibit 1.
Such insurance will contain an endorsement stating that the insurance will not be canceled or
altered by the insurer except after filing with Client’s city clerk thirty (30) days’ prior written
notice of such cancellation or alteration. The City of Palo Alto will be named as an additional
insured on such insurance.
12. Workers’ Compensation: ComPsych, by executing this Contract, certifies that it is
insured against liability for workers’ compensation.
13. Assignment: This contract is for the personal services of ComPsych, therefore,
ComPsych will not assign, transfer, convey or otherwise dispose of this Contract, any right,
title or interest in or to the same or any part thereof without the prior written consent of Client,
which consent shall not be unreasonably withheld, provided, that ComPsych shall have the
right to sell, transfer, convey or assign this agreement to any successor, subsidiary, parent or
affiliate of ComPsych and such assignee shall acquire all of the rights, duties and obligations of
ComPsych set forth herein. A consent to one assigrtment will not be deemed to be a consent to
any subsequent assignment. Any assignment made without the approval of the City Manager
will be void and, at the option of the City Manager, this Contract may be terminated. This
Contract will not be assignable by operation of law.
14. Nondiscrimination: ComPsych, as a supplier of services to the City of Palo Alto, certifies
that it does not discriminate in employment with regards to age, race, color, religion, sex,
national origin, ancestry, disability, or sexual preference and that it is in compliance with all
Federal, State and local directives and executive orders regarding nondiscrimination in
employment.
ComPsych agrees that each contract for services with an independent provider will contain
a provision substantially as follows:
"Provider will provide ComPsych with a certificate stating that Provider is
currently in compliance with all Federal and State of California laws covering
nondiscrimination in employment; and that Provider will not discriminate in the
employment of any person under this contract because of the age, race, color,
national origin, ancestry, religion, disability, sexual preference or gender of
such person."
15. Force Majeure: No failure, delay or default in performance of any obligation of a Party
to this Agreement shall constitute an event of default or breach of the Agreement to the extent
that such failure to perform, delay or default arises out of a cause, existing or future, that is
beyond the control and without negligence of such Party, including, but not limited to: action
or inaction of governmental, civil or military authority; fire, strike, lockout or other labor
dispute; flood, war; riot; theft; earthquake and other natural disaster.
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16. Exclusivity: During the term of this Agreement, Client warrants that ComPsych shall be
the exclusive provider of the services under this Agreement to Client’s employees.
17. Rdationship of the Parties: ComPsych and Client agree that ComPsych shall be an
independent contractor and neither party nor their respective employees or agents shall be
deemed to be an employee of the other, nor shall this Agreement be deemed to create a
parmership, joint venture or other association between the parties hereto.
18. Notices: Any notice required hereunder will not be effective, unless in writing, signed by
an authorized officer of the party delivering such notice, and sent by certified or registered
mail to the address indicated below. Notices shall be effective only when received.
ComPsych Corporation
NBC Tower
455 N. Cityfront Plaza Drive
13th Floor
Chicago, IL 60611-5506
Attn: Dr. Richard A. Chaifetz
President and CEO
City of Palo Alto
250 Hamilton Ave.
P.O. Box 10250
Palo Alto, CA 94303
Attn: Employee Benefits Manager
19. Governing Law: This Agreement shall be interpreted under and governed by the laws of
the State of Illinois, without regard to its conflict of laws rules. Any court proceedings shall
take place in Santa Clara County, California, unless the parties agree otherwise.
20. Severability: If any provision of this Agreement or the application thereof to any party or
circumstance is held to be invalid, such invalidity shall not affect the other provisions or
applications of the Agreement which can be given effect without the invalid provision or
application, and to this end the provisions of this Agreement are severable.
21. Schedules Attached and Incorporated into Agreement: The Schedules attached to this
Agreement are incorporated herein, in their entirety, by this reference.
22. Entire Agreement: This Agreement, together with the Schedules attached hereto, shall
constitute the entire Agreement by and between the parties with respect to the subject matter
hereof. There are no promiseS, terms, conditions, or obligations other than those contained
herein and, this Agreement shall supersede all prior and contemporaneous communications,
representations or agreements, either verbal or written, by and between the parties hereto, all
of which are merged herein. This Agreement may not be modified or rescinded except
pursuant to a written instrument signed by the party against whom enforcement is sought.
23. Clause Headings: The clause headings appearing in this Agreement have been inserted
for the purpose of convenience and ready reference. They do not purport to, and shall not be
deemed to, define, limit or extend the scope or intent of the clauses to which they appertain.
24. Facsimile: Facsimile transmission of an executed copy of this Agreement or any
amendments hereto shall be accepted as evidence of a party’s execution of the Agreement or
amendment.
25. Changes, Additions or Deletions: Any changes, additions, or deletions to this Agreement
will not be considered binding or agreed to unless the modifications have been initialed or
otherwise approved in writing by the other party.
26. Recovery of Fees: The prevailing party in any action brought to enforce the provisions of
this Contract may recover its reasonable costs and attorneys’ fees expended in connection with
that action.
27. Dispute Resolution: ComPsych and Client shall attempt to resolve conflicts or disputes
under this Contract in a fair and reasonable manner and agree that if resolution cannot be made
to attempt to mediate the conflict by a professional mediator (except for payment disputes
which may be submitted directly to arbitration). If mediation does not settle any dispute or
action which arises under this Contract or which relates in any way to this Contract or the
subject matter of this Contract, it shall be subject to arbitration under the rules governing
commercial arbitration as promulgated by the American Arbitration Association and
arbitrability shall be subject to the Federal Arbitration Act. Any arbitration proceeding shall
take place in Santa Clara County, California unless the parties agree otherwise.
IN WITNESS WHEREOF, the.parties have executed this Agreement as of the day and
year first above written.
COMPSYCH CORPORATION
By:
Dr. Richard A. Chaifetz
President and CEO
By:
Robert Jacobson
Chief Financial Officer
Tax I.D.: 36-3739783
CLIENT
By:
Title: MAYOR
ATTEST
By:
Title: City Clerk
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[CONTINUATION OF PAGE 6 SIGNATURE PAGE TO AGREEMENT BETWEEN CITY
OF PALO ALTO AND COMPSYCH CORPORATION ENTERED ON AUGUST, 2003]
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Assistant City Manager
Director of Human Resources
Director of Administrative Services
Insurance Review
SCHEDULE I
COVERED SERVICES
EMPLOYEE ASSISTANCE PROGRAM
Account Management: Client will be assigned an account manager who will serve as the
contact person and provide Client with reports and feedback on the program.
Program Promotion: Provide Client with up to six (6) hours of customary EAP
supervisor/employee orientation/training sessions. In addition, ComPsych will provide
customary, literature, brochures and posters announcing and explaining the program to
Client employees; as mutually agreed upon. Customized promotional materials are
available at an additional cost.
Service Access: 24 hour 800 line access to guidance counselors and 24 hour access to
ComPsych’s Guidance Resource website at www.comps¥ch.com.
Assessment, Counseling and Referral: Assess the presenting problem of each participant
requesting services and provide a maximum of three (3) behavioral health counseling
sessions per presenting problem (for safety employees, ComPsych will provide a maximum
of ten (10) behavioral health counseling sessions per presenting problem) if such problem is
determined by ComPsych to be resolvable within the above number of sessions (in
California, any sessions which constitute "sessions" as defined under California Code of
Regulations, Title 10 §1300.43.14(b) are limited to three within any six-month period). If
the participant’s presenting problem is determined not to be resolvable in the above number
of sessions, the participant will be referred for alternative services after assessment.
Crisis Intervention/Critical Incident Debrief’mg: ComPsych will provide up to three (3)
hours of on-site crisis intervention and critical incident debriefmgs at no additional charge
to Client. For any additional on-site crisis intervention and critical incident debriefings,
Client will be charged an additional fee as set forth on Schedule II.
DOT: ComPsych shall coordinate referrals to Substance Abuse Professionals. Substance
Abuse Professionals shall provide required services and communicate directly with Client’s
designated employer representative.
Supervisor Consultation: ComPsych professionals are available to provide technical
support and policy-based advice to supervisors and managers of Client
Management Report: ComPsych will prepare and provide to Client statistical
management reports, without disclosure of the identity of any Participant utilizing the
program services, as mutually determined.
O LegalConnect: Provide Client employees and their respective spouses and dependents
with telephonic legal information and local referral upon request. If a local referral is
requested, the. employee or their family member shall be entitled to a free thirty minute
consultation and thereafter a 25 % reduction in the attorney’s customary rates.
FinancialConnect: Provide Client employees .and their respective spouses and dependents
with telephonic financial information regarding their personal finances and related issues.
FamilySource: Provide Client employees and their respective spouses and dependents
with child and/or elder care resources in the community where the Participant has a
caregiving need. In addition, provide information on automobile purchases, relocation, pet
services, apartment shopping, and mortgages. ComPsych will identify a resource which
ComPsych believes will be appropriate to the request of the Participant. ComPsych does
not control and is not responsible for the quality of services rendered by resources or does
ComPsych review or monitor their activities. A referral by ComPsych to a resource is not
a recommendation, approval or representation by ComPsych regarding the standards,
quality, competence or adequacy of such resource or its agents and employees or its
facilities. The decision as to whether or not to utilize a resource identified by ComPsych
shall rest solely with the Participant who has the sole and independent obligation to decide
whether or not to contract with or otherwise retain or employ such resource. ComPsych
does not assume any liability with regard to the services performed by any resource.
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Employee Assistance Program
SCHEDULE H
SCHEDULE ~OF FEES
$1.99 per employee per month*
Basic Services:
Client warrants as of the effective date that it has approximately 1090 employees for an
approximate yearly program cost of $26,029.20 paid on a monthly basis in equal installments of
$2,169.10. Client agrees to provide ComPsych with quarterly updated employee counts.
* This rate includes three (3) EAP sessions for each employee per year. Safety employees may
receive up to seven additional EAP sessions for a maximum of ten (10) per year. Each
additional EAP session for a safety employee beyond the initial three sessions shall be billed at
the rate of $69.00 per session. ComPsych anticipates that the total cost of these sessions will
be $13,000 per year or less.
Additional Services:
Total compensation for additional services will not exceed Ten Thousand Dollars ($10,000) per
fiscal year. Additional services include, but are not limited to, travel related expenses, DOT
services, and clinical on-site intervention services. Travel expenses will be billed separately and
are subject to the City’s guidelines and limitations. Client’s EAP includes, at no additional
charge, up to three (3) hours of on-site critical incident debriefing services. Any additional
clinical on-site intervention will be billed at a rate of $225.00 per hour of services plus all travel
and related expenses. Client’s EAP includes, at no additional charge, all initial telephone
consultation following a critical incident. ComPsych EAP also includes, at no additional charge,
up to three (3) DOT cases per contract year. For each additional DOT case, Client shall pay
ComPsych $670.00 per case.
Total Compensation:
Total compensation for both basic and additional services for each contract term shall not
exceed Fifty Thousand Dollars ($50,000).
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