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HomeMy WebLinkAbout16 - New Benefits BrokerCITY OF F NEWPORT REACH City Council Staff Report November 12, 2014 Agenda Item No. 16 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Terri L. Cassidy, Deputy City Manager /Human Resources Director -(949) 644 -3303, tcassidy @newportbeachca.gov PREPARED BY: Sheri Anderson, HR Supervisor, and Jill Ortiz, HR Specialist PHONE: (949) 644 -3307 and (949) 644 -3310 TITLE: Approval of a New Benefits Broker — Alliant Employee Benefits ABSTRACT: The City published a request for proposal for benefit broker services, which Aon Hewitt has provided for over 10 years. The City received four proposals, with Alliant Employee Benefits ranking highest. As the City's benefits broker, they will facilitate renewals of City- sponsored health plans, provide health program consulting, and ensure all state and federal requirements are administered properly. RECOMMENDATION: Approve a five -year Professional Services Agreement with Alliant Insurance Services, Inc. to serve as the City's employee benefits broker with an annual expenditure of $49,000, effective January 1, 2015. FUNDING REQUIREMENTS: The fiscal year 14/15 budget request for the Benefit Administrative Fees is sufficient to cover the proposed annual cost of $49,000 for benefit broker services. DISCUSSION: The City published the request for proposal on September 2, 2014. The request for proposal was sent to parties who had expressed interest in providing these services, and other vendors were identified through the City's vendor database and were provided copies of the solicitation. By the submittal deadline of September 30, 2014, the City received four (4) proposals from: Alliant Employee Benefits; AON Hewitt; Keenan & Associates; and Wells Fargo Insurance Services USA, Inc. 16 -1 All four proposers met the City's minimum submittal standards and were forwarded to the evaluation panel for review. The evaluation committee consisted of three members made up of two outside public agencies, City of Orange and City of Irvine with subject matter experts in benefits administration, and one from our Risk Management Division in Human Resources. Proposals were scored on the weighted criteria in Table A using a 300 -point scale: Table A — Proposal Evaluation Criteria Evaluation Criteria Percentage of Keenan & Score Qualifications and Experience of the Proposer in providing 20% benefits broker services Project Approach and Methodology 20% Demonstrated Ability to Deliver Services as Requested in the 20% RFP 89.00 Proposer's Experience in Working with Public Agencies for 20% Similar Services 105.50 Project Costs 20% At the completion of the three -step evaluation process, Alliant ranked number one. The aggregate scoring of all four proposers is outlined in Table B below. Table B — Aggregate Scores The City contracts direct with CaIPERS for medical health plan administration through the Public Employees' Medical and Hospital Care Act (PEMHCA), therefore, no broker services are required for those plans. This contract will be administered by the Risk Management Division under the supervision of HR Supervisor Sheri Anderson. 16 -2 Alliant Employee Keenan & Wells Fargo Insurance Services AON Hewitt Benefits Associates USA. Inc. Step 1: Proposal 101.33 101.67 89.00 86.33 Review Step 2: Panel 105.50 105.50 99.50 75.00 Interview Step 3: Cost 56.57 43.58 57.75 60.00 Analysis Rank 1 2 3 4 Aggregate Score 263.40 250.75 246.25 221.33 The City contracts direct with CaIPERS for medical health plan administration through the Public Employees' Medical and Hospital Care Act (PEMHCA), therefore, no broker services are required for those plans. This contract will be administered by the Risk Management Division under the supervision of HR Supervisor Sheri Anderson. 16 -2 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15375) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - Professional Services Agreement with Alliant, Inc. 16 -3 F-1flaCH7:IMg011 /_1 PROFESSIONAL SERVICES AGREEMENT WITH ALLIANT INSURANCE SERVICES, INC. FOR BENEFITS BROKER SERVICES THIS PROFESSIONAL SERVICES AGREEMENT ( "Agreement ") is made and entered into as of this 12th day of November, 2014 ( "Effective Date "), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ( "City "), and ALLIANT INSURANCE SERVICES, INC., a Delaware corporation ( "Consultant'), whose address is 1301 Dove Street, Suite 200, Newport Beach, California 92660, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Consultant to provide benefits broker services ( "Project'). C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the professional services described in this Agreement. D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on December 31, 2019, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ( "Services" or "Work "). City may elect to delete certain Services within the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Consultant shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to completion in a diligent and timely manner. The failure by Consultant to r[IM F-1flaCH7:IMg011 /_1 strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.4 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by hand - delivery or mail. 4. COMPENSATION TO CONSULTANT 4.1 City shall pay Consultant for the Services on a time and expense not-to- exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Two Hundred Forty Five Thousand Dollars and 001100 ($245,000.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.2 Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant's bills shall include the name of the person who performed the Work, a brief description of the Services performed and /or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Consultant only for those costs or expenses specifically identified in Exhibit B to this Agreement or specifically approved in writing in advance by City. 4.4 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Alliant Insurance Services, Inc. Page 2 FRIA F-1flaCH7:IMg011 /_1 Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER 5.1 Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Michael Menzia, Executive Vice President to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 5.3 If Consultant is performing inspection services for City, the Project Manager and any other assigned staff shall be equipped with a cellular phone to communicate with City staff. The Project Manager's cellular phone number shall be provided to City. 6. ADMINISTRATION This Agreement will be administered by the Human Resources Department. City's Risk Manager or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Consultant in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's Work schedule. 8. STANDARD OF CARE 8.1 All of the Services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with the highest professional standards. For purposes of this Agreement, the phrase "highest professional standards" shall mean those standards of practice recognized by one (1) or more first - class firms performing similar work under similar circumstances. Alliant Insurance Services, Inc. Page 3 WIN F-1flaCH7:IMg011 /_1 8.2 All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Consultant certifies that the Work conforms to the requirements of this Agreement, all applicable federal, state and local laws, and the highest professional standard. 8.3 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.4 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS 9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent, reckless, and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable, or any or all of them). 9.2 Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. Alliant Insurance Services, Inc. Page 4 FRNA F-1flaCH7:IMg011 /_1 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the Work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Consultant or its employees. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the Work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the Services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement or for other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall Alliant Insurance Services, Inc. Page 5 i[IF1 F-1flaCH7:IMg011 /_1 be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or syndicate or co- tenancy, which shall result in changing the control of Consultant. Control means fifty percent (50 %) or more of the voting power or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. 16. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. OWNERSHIP OF DOCUMENTS 17.1 Each and every report, draft, map, record, plan, document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications (hereinafter "Documents "), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally, all material posted in cyberspace by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents, including all logins and password information to City upon prior written request. 17.2 Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant, and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. Alliant Insurance Services, Inc. Page 6 r[IN F-1flaCH7:IMg011 /_1 17.3 All written documents shall be transmitted to City in formats compatible with Microsoft Office and /or viewable with Adobe Acrobat. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 19. INTELLECTUAL PROPERTY INDEMNITY Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement or alleged infringement of any United States' letters patent, trademark, or copyright, including costs, contained in Consultant's Documents provided under this Agreement. 20. RECORDS Consultant shall keep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 21. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to.the terms of this Agreement. Consultant shall not discontinue Work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and /or restoration expense shall be Alliant Insurance Services, Inc. Page 7 FL4wLe] F-1flaCH7:IMg011 /_1 borne by Consultant. Nothing in this Section is intended to limit City's rights under the law or any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 24. CONFLICTS OF INTEREST 24.1 Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 24.2 If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 25. NOTICES 25.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first - class mail, addressed as hereinafter provided. 25.2 All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Lauren Farley, Risk Manager Human Resources Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 25.3 All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Attn: Michael Menzia, Executive Vice President Alliant Insurance Services, Inc. 1301 Dove Street, Suite #200 Newport Beach, CA 92660 Alliant Insurance Services, Inc. Page 8 16 -11 F-1flaCH7:IMg011 /_1 26, CLAIMS Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Consultant shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Consultant's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Consultant in writing as unsettled at the time of its final request for payment. Consultant and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Consultant shall be required to file any claim Consultant may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 27. TERMINATION 27.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 27.2 Notwithstanding the above provisions, City shall have the right, at its sole and.absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 28. STANDARD PROVISIONS 28.1 Recitals. City and Consultant acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 28.2 Compliance with all Laws. Consultant shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. Alliant Insurance Services, Inc. Page 9 MOO F-1flaCH7:IMg011 /_1 28.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 28.4 Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 28.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 28.6 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 28.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 28.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 28.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 28.10 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, age or any other impermissible basis under law. 28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 28.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Alliant Insurance Services, Inc. Page 10 VD5193 ATTACHMENT IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: CITY OF NEWPORT BEACH, a California municipal corporation Date: By: 4:=' By: Aar, n . Harp om %ulz Rush N. Hill, II City A ttorney Mayor ATTEST: CONSULTANT: Alliant Insurance Date: Services, Inc., a Delaware corporation Date: By: By: Leilani I. Brown Mark Conway City Clerk Executive Vice President By: Ted Filley CFO [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Alliant Insurance Services, Inc. Page 11 16 -14 F-1flaCC•7:IMg011 /_1 EXHIBIT A SCOPE OF SERVICES The Human Resources Department oversees the City's benefit plans including, medical, dental, vision, life, voluntary life, disability (STD & LTD), FSA, EAP, CaIPERS Long Term Care and 457 and Retiree Health Savings plans and serves roughly 1112 active employees total, both full and part time. Consultant shall provide Benefits Broker Services to support the Human Resources Department in the following capacity: 1. Program Administration and Consultant Responsibilities: Consultant shall: 1.1 Assist Human Resources in selection and award of contracts for services outlined in the Current Employee Benefits and Provider Information located in Section 2 of this Scope of Services. The current renewal for all benefit plans is January 1; 1.1.1 Consultant will represent the City in all negotiations with insurance providers, third -party administrators, networks, vendors, etc. Consultant's process is outlined below: • Evaluate carrier renewal calculation by component: claims experience, trend factor, administration fees and carrier margin; • Evaluate demographic changes via census analysis and compare to carrier assumptions; • Use critical analysis and Consultant's book of business to negotiate the lowest cost for the City; • Identify and recommend cost saving options that do not change benefits; • When appropriate, market lines of coverage to other carriers in the marketplace; and • Identify alternative funding and risk - sharing options that may be beneficial to the City. 1.2 Prepare a strategic benefits review and report with benchmarking to other comparable local agencies. Need to provide strategic planning and benchmarking on an on -going basis; 1.21 Consultant's service team will utilize its database of public entity clients to provide benchmarking comparisons for the City benefit plan design and cost structure. Prior to developing the annual work plan, Consultant will conduct a thorough review of the City's current benefit plans, rates, eligibility provisions, etc. 1.2.2 After this initial data review, Consultant will evaluate the City's current benefit plans and premium costs to provide a benchmarking analysis that includes a comparison to its public entity benchmark database, as well as other similar -sized private sector entities. Based on these assessments, Alliant Insurance Services, Inc. Page A -1 16 -15 F-1flaCC•7:IMg011 /_1 Consultant will identify areas where the City's benefit programs are similar to other cities and where it may need improvements or modifications to remain competitive. 1.3 Perform an initial review and report of employee health benefits program for cost effectiveness, program design, competitiveness and plan or claims administration. This review /analysis should include premium calculations, COBRA administration, IBNR requirements, and ACA compliance; 1.3.1 Consultant will, in collaboration with the City, develop a long -term employee benefits strategy aligned with the City's goal of maintaining quality programs and containing costs. Consultant will work with City management to understand its current challenges, labor- management relations, budget constraints and current benefit program in order to identify a strategy that suits the needs of the City and its employees. 1.3.2 In the first Strategic Planning Meeting, the Consultant will facilitate a discussion with the City's Management team that will include the following components: • Defining success metrics for various stakeholders within the organization; • Understanding the organizational strengths, challenges and opportunities relative to the success benchmarks; and • Prioritizing what's most important and identifying obstacles to making progress. 1.3.3 In our second Strategic Planning Meeting, Consultant will present a draft Strategic Game Plan with short and long term objectives and corresponding strategies and milestones. The Strategic Game Plan will be finalized with the City's feedback and approval and a final copy will be distributed to the City. Ultimately, this plan will provide the City's Management Team with a greater sense of clarity and confidence on their path forward to overcome obstacles and achieve their goals. 13.4 Once the Strategic Game Plan has been developed, Consultant will break the 1- year objectives down into tangible milestones which will be built into an Annual Work Plan. This custom management plan will consist of various stages with clearly defined time lines and will be evaluated each year to ensure it is consistent with the long term goals and changing needs of the City. 1.4 Perform annual reviews and report of programs for renewal purposes. Establish renewal objectives. Request early notification from Vendors. Communicate renewal and negotiations; 1.4.1 As part of its Annual Work Plan, Consultant shall conduct a pre - renewal meeting 6 -8 months prior to the policy effective date to discuss budget, trends, review claims experience and put together a renewal /marketing strategy and timeline. This timeline will include approximate dates for accomplishing tasks and tentative meeting dates to present results. 1.5 Provide written reports of findings and recommendations with definitive reasons for recommended changes in terms, conditions or limits; 1.5.1 Consultant will conduct a thorough analysis of current benefit programs and evaluate the current cost - control strategies, along with the funding and purchasing options available in the marketplace. This will include requesting quotes from the marketplace for various products and Alliant Insurance Services, Inc. Page A -2 16 -16 F-1flaCC•7:IMg011 /_1 services when appropriate. Consultant will review the marketplace for alternative funding and purchasing options utilizing the following steps: • Evaluate carrier renewal calculation by component: claims experience, trend factor, administration fees and carrier margin; • Evaluate demographic changes and compare to carrier assumptions; • Use critical analysis and Consultant's book of business to negotiate the lowest cost for the City; • Identify and recommend cost - saving options that do not change benefits; • When appropriate, market lines of coverage to other carriers in the marketplace; and • Identify alternative funding and risk- sharing options that may be beneficial. 1.5.2 Consultant will assemble all this data in a report that is clear and concise and will make proactive recommendations to ensure comprehensive coverage at the lowest cost to the City and its employees. Consultant will review this material with the City's insurance committee and address any questions to assist with the decision - making process. 1.6 Perform liaison services between the City and benefits contractors, including coordination of reporting and assistance resolving claims; 1.6.1 Consultant will respond to and expedite resolution of all issues regarding contract administration, service provisions, benefits coverage, billing questions, and service delivery in a timely manner. Consultant's team members will ensure that the City receives the highest level of timely and accurate problem - solving satisfaction and will • Respond within 24 hours to every inquiry call; • Research and resolve claim and eligibility issues; • Monitor service of carrier and third -party administrators; and • Track claim office and member services data to assess and make recommendations for plan changes and employee education needs. 1.7 Be available for and participate in the preparation and presentation of Renewal reports and meetings with the City's collective bargaining groups at request of City; 1.8 Perform special projects as requested by the City, possibly including, but not limited to: a. Develop /assist in implementation of new insurance plans. b. Assist in design and delivery of drafting, reviewing, and issuing and evaluation of benefit request for proposals (includes identification of appropriate markets). Alliant Insurance Services, Inc. Page A -3 16 -17 F-1flaCC•7:IMg011 /_1 C. Advise The City in contract negotiations /renewals (includes review for accuracy of coverage, compliance, terms and conditions). d. Assist in developing costs associated with various issues involving benefit plans. e. Assist in design and delivery with employee communication materials and projects, which may result from plan changes, legislative or regulatory changes. f. Prepare special reports showing claims experience. g. Prepare /provide benchmarking and survey information used to determine plan competitiveness and strategies. h. Analyze benefits in comparison to employee benefits program objectives. 1.9 Assist with planning and coordination of vendors for the City's annual employee health fair, Retirement Seminar, and other benefit educational services at the request of the City; 1.10 Assist the City with the development of performance guarantees relating to vendors' performance of services to the City and evaluate the performance of vendors. Coordinate meetings to review performance, etc. Monitor insurance companies for financial solvency, i.e. AM Best ratings; 1.11 Provide estimates of renewal rates and assist the City in preparation of budget and expenditure projections for benefits. Recommended changes should also include the consultant's fees to further develop any plan changes and incorporate plan changes into plan documents; and 1.12 Provide information on health benefits issues, trends, possible new benefits, and proposed or new legislation, and assist the City with on -going maintenance of medical plan documents when necessary due to regulatory changes. 2. Current Employee Benefit and Provider Information: The City provides the following benefits to all full time employees and employees who qualify based on hours worked under the Affordable Health Care Act. • CalPERS Medical Plans • Two voluntary dental plan options — Delta PPO, and Delta HMO • One voluntary vision plan option — MetLife PPO • City paid life and AD &D and voluntary life • Employee Assistance Program (EAP) • Flexible spending plan (FSA) and Dependent Care (DC) Plans • Retiree Health Savings Plan (RHS) Alliant Insurance Services, Inc. Page A -4 16 -18 F-1flaCH7:IMg011 /_1 2.1 Medical Currently, the City offers CaIPERS medical plan options to Active employees, COBRA participants and Retirees. CalPERS Medical Plans as contracted by the City under the Public Employees' Medical and Hospital Care Act ( PEMHCA). Currently CalPERS has 13 medical plans for employees to choose from made up of 9 HMOs and 4 PPO's, one of which is an Association based plan. For active full time employees the City currently contributes a dollar amount per month as negotiated by the City and its Collective Bargaining Groups. As a contracting agency with CalPERS and as required by PEMHCA the City also contributes a "medical allowance" to be adjusted annually by CalPERS to reflect any changes in the medical care component of the Consumer Price Index -Urban (CPI - U). Employees contribute to any remaining out of pocket costs on a pre -taxed basis. COBRA participants and Retirees may participate in any of the medical plan options at their own cost. Retirees pay the full premium cost less the CaIPERS Mandatory Employer Contribution. 2.2 Voluntary Dental Delta Dental provides a PPO and HMO plan. Employee participation is voluntary and dependent enrollment is allowed. COBRA participants and Retirees may participate in either of the dental plan options at their own cost. Retirees may stay on the vision plan indefinitely. However, if they drop the coverage, they may not return to the plan at a later date. 2.3 Voluntary Vision The City offers a voluntary PPO vision plan through MetLife. COBRA participants and Retirees may also enroll in the vision plans at their own cost. Retirees may stay on the vision plan indefinitely. However, if they drop the coverage, they may not return to the plan at a later date. 2.4 City paid Life and AD &D with Voluntary Life Full Time employees are provided a City paid life and AD &D benefit up to $50,000. Employees may also purchase additional life insurance for themselves, their spouses, and children. This coverage is provided through Reliance Standard. 2.5 Employee Assistance Program (EAP) The City provides a 3 visit model EAP through Value Options to all full time employees. 2.6 Flexible Spending Account The City provides a Flexible Spending Plan including dependent care to all full time employees. Alliant Insurance Services, Inc. Page A -5 16 -19 F-1flaCH7:IMg011 /_1 EXHIBIT B SCHEDULE OF BILLING RATES For the Scope of Services described in this Agreement, Consultant shall be compensated a flat annual consulting fee in the amount of Forty Nine Thousand Dollars and no /100 ($49,000.00). The following table illustrates the not -to- exceed amount for this Agreement for each term year as well as a total Agreement amount: Year Not -to- Exceed Compensation Amount Year $49,000.00 Year $49,000.00 Year 3 $49,000.00 Year 4 $49,000.00 Year 5 $49,000.00 TOTAL AGREEMENT COMPENSATION $245,000.00 Service Guarantee To illustrate our commitment of quality service to the City, Consultant is willing to place 10% of its annual consulting fee at risk. Listed below are the categories of the Service Guarantee: 1. Execution of Scope of Work (50 %) - Client satisfaction with deliverables in the Scope of Work. 2. Service and Support (50 %) - Service and support of client with decision making tools, attendance at meetings, and assistance for any implementation of new benefits, products and transition of carriers. At any time, the City can invoke the terms of the guarantee. All categories are based solely on client satisfaction level. Alliant Insurance Services, Inc. Page B -1 16-20 F-1flaCH7:IMg011 /_1 EXHIBIT C INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES 1. Provision of Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existing coverage to comply and that coverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers. B. General Liability Insurance. Consultant shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract) with no endorsement or modification limiting the scope of coverage for liability assumed under a contract. C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented Alliant Insurance Services, Inc. Page C -1 16 -21 F-1flaCH7:IMg011 /_1 vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. D. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and and two million dollars ($2,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City and its officers, officials, employees, and agents shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self - insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days notice of cancellation (except for nonpayment for which ten (10) calendar days notice is required) or nonrenewal of coverage for each required coverage. 5. Additional Agreements Between the Parties The parties hereby agree to the following: A. Evidence of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance Alliant Insurance Services, Inc. Page C -2 16-22 F-1flaCH7:IMg011 /_1 shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant sixty (60) calendar days advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation. C. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non - compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. D. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. E. Self- insured Retentions. Any self- insured retentions must be declared to and approved by City. City reserves the right to require that self- insured retentions be eliminated, lowered, or replaced by a deductible. Self - insurance will not be considered to comply with these requirements unless approved by City. F. City Remedies for Non - Compliance. If Consultant or any subconsultant fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand. G. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Contract, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. H. Consultant's Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own Alliant Insurance Services, Inc. Page C -3 16 -23 FA 0 U191.INI701/9 judgment may be necessary for its proper protection and prosecution of the Work. Alliant Insurance Services, Inc. Page C -4 16-24 NEWPORT BEACH PLANNING COMMISSION AGENDA CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE THURSDAY, NOVEMBER 6, 2014 REGULAR MEETING — 6:30 p.m. CALL TO ORDER November 12, 2014 Agenda Item No. 17 II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. PUBLIC COMMENTS Public comments are invited on non - agenda items generally considered to be within the subject matter jurisdiction of the Planning Commission. Speakers must limit comments to three (3) minutes. Before speaking, please state your name for the record and print your name on the blue forms provided at the podium. V. REQUEST FOR CONTINUANCES VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF OCTOBER 23, 2014 Recommended Action: Approve and file VII. PUBLIC HEARING ITEMS Speakers must limit comments to three (3) minutes on all items. Before speaking, please state your name for the record and print your name on the blue forms provided at the podium. If in the future, you wish to challenge in court any of the matters on this agenda for which a public hearing is to be conducted, you may be limited to raising only those issues, which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing. ITEM NO. 2 Enterprise Rent -A -Car Conditional Use Permit (PA2014 -108) Site Location: 4500 Campus Drive and 4361 Birch Street Summary: A conditional use permit to expand the existing Enterprise Rent -A -Car facilities located at 4361 Birch Street. The proposed project includes the following: (1) demolition of three existing office buildings (69,804 square feet in total) at 4500 Campus Drive; (2) grading and paving with installation of perimeter security, landscaping, and exterior lighting; (3) construction of a new approximately 5,000 sq. ft. administrative office building, 3,400 sq. ft. covered vehicle display area, and surface parking; (4) reconfiguration of the existing site to accommodate additional stacked parking and a transport truck offloading area; and (5) addition of two new fuel dispensers and conversion of an existing service bay into a carwash. The existing barrier between the properties at 4500 Campus Drive and 4361 Birch Street will be removed to allow vehicular traffic to circulate between the two sites without having to utilize the surrounding public right -of -way. CEQA Compliance: The project is categorically exempt under Sections 15302 and 15303, of the State CEQA (California Environmental Quality Act) Guidelines — Class 2 (Replacement and Reconstruction) and Class 3 (New Construction or Conversion of Small Structures). Recommended Action: 1. Conduct a public hearing; and 2. Adopt Resolution No. approving Conditional Use Permit No. UP2014 -025. 1 of 2 VIII. STAFF AND COMMISSIONER ITEMS ITEM NO. 3 MOTION FOR RECONSIDERATION ITEM NO. 4 COMMUNITY DEVELOPMENT DIRECTOR'S REPORT 1. Update on the General Plan /Local Coastal Program Implementation Committee 2. Update on City Council Items ITEM NO. 5 ANNOUNCEMENTS ON MATTERS THAT THE PLANNING COMMISSION MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION, OR REPORT ITEM NO. 6 REQUESTS FOR EXCUSED ABSENCES IX. ADJOURNMENT 2 of 2