R11-0711
RESOLUTION NO. R11- p�I
�F
A RESOLUTION OF THE CITY COMMISSION OF
6 BOYNTON BEACH, FLORIDA, APPROVING THE ONE
YEAR RENEWAL OF THE CONTRACT FOR LIFE AND
DISABILITY INSURANCE WITH HARTFORD LIFE
AND ACCIDENT INSURANCE COMPANY FROM
10 OCTOBER 1, 2011 TO SEPTEMBER 30, 2012; AND
11 PROVIDING AN EFFECTIVE DATE.
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1�1 WHEREAS, on September 18, 2008, the City Commission of the City of Boynton
1-1 Beach, via resolution 08 -111, approved a Two Year Contract for Life and Disability Insurance
lE Plans with Hartford Life and Accident Insurance Company; and
11 WHEREAS, the contract approved by the City Commission provided for two (2)
I f additional one (1) year extensions; and
1S WHEREAS, on July 20, 2010, the City Commission approved a one year renewal of
2( the Life and Disability Insurance Plans with Hartford Life and Accident Insurance Company
21 at the same terms, conditions and rates as allowed by the Provider Agreement; and
2: WHEREAS, the City Commission of the City of Boynton Beach, upon
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2� recommendation of staff, deems it to be in the best interests of the residents and citizens of the
2� City of Boynton Beach to approve the one year renewal of the Contract for Life and Disability
2-' Insurance with Hartford Life and Accident Insurance Company from October 1, 2011 to
2( September 30, 2012.
2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
28 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
2S Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed
S: \CA \RESO\Agreements \Reso - Life and Disability(Hartford) renewal 1 year 2011- 12.doc
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I as being true and correct and are hereby made a specific part of this Resolution upon adoption
hereof.
Section 2. The City Commission of the City of Boynton Beach, Florida does
4 hereby approve the one year renewal of the Contract for Life and Disability Insurance with
5 Hartford Life and Accident Insurance Company from October 1, 2011 to September 30, 2012,
6 a copy of the original Contract previously approved) is attached hereto as Exhibit "A ".
7 Section 3. That this Resolution shall become effective immediately upon passage.
a PASSED AND ADOPTED this day of July, 2011.
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27 ATTEST:
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3 > Janit M. Prainito, MMC
3A t�
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3`I ate Sea .
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OF BOYNTON BEACH, FLORIDA
Vice Maihr — William Orlove
Commi er Woodrow
s er — ven o
Commissioner — Marlene Ross
ents \Reso - Life and Disability(Hartford) renewal 1 year 2011- 12.doc
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AlF, / /
TWO YEAR CONTRACT FOR LIFE AND DISABILITY INSURANCE PLANS
FOR THE EMPLOYEES OF THE CITY OF BOYNTON BEACH
THIS CONTRACT is entered into between the City of Boynton Beach, hereinafter referred to as
"the City ", and HARTFORD LIFE AND ACCIDENT INSURANCE COMPANY,,
hereinafter referred to as "the Company ", in consideration of the mutual benefits, terms, and
conditions hereinafter specified.
1. SERVICES DESIGNATED. The Company is retained by the City to perform insurance
carrier services in connection with the services designated in RFP — "TWO YEAR
CONTRACT FOR "LIFE AND DISABILITY INSURANCE PLANS FOR THE
EMPLOYEES OF THE CITY OF BOYNTON BEACH " - RFP #062 - 1610- 08 /JA.,
2. SCOPE OF SERVICES. Company agrees to provide group benefit services, identified on
Exhibits 1, 2 & 3 attached hereto, including the terms and conditions of the Request for
Proposal.
TIME FOR PERFORMANCE. Services under this CONTRACT shall commence upon the
giving of written notice by the City to the Company to proceed. Company shall perform all
group benefit services and provide all work product required during the contract period of
October 1. 2008 to September 30, 2010 unless an extension of such time is granted in
writing by the City. This CONTRACT allows for two (2) additional one (1) year extensions
at the same terms, conditions, and prices subject to Company acceptance, satisfactory
performance and determination that the renewal is in the best interest of the City.
4. PAYMENT. The Company shall be paid by the City for insurance services rendered under
this CONTRACT as follows:
a. Payment for the services provided by Company shall be paid on a monthly basis,
determined by the number of full time employees in this program during this period.
b. The City may submit Self- Administered Billing Premium Statements to the Company
once per month. Such statements will be prepared and checked by the City, and upon
approval thereof, payment will be made to the Company in the amount approved.
c. Final payment of any balance due the Company of the total premiums earned will be
made promptly upon its ascertainment and verification by the City after the completion of
all provided services under this CONTRACT and its acceptance by the City.
d. Payment as provided in this section shall be full compensation for services rendered and
for all materials, supplies, equipment and incidentals necessary to provide group benefit
services.
e. The Company's records and accounts pertaining to this CONTRACT are to be kept
available for inspection by representatives of the City and State for a period of three (3)
years after final payments. Copies shall be made available upon request.
CA -1
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5. OWNERSHIP AND USE OF DOCUMENTS. All documents and other materials produced
by the Company in connection with the services rendered under this CONTRACT shall be
the property of the City. The Company shall be permitted to retain copies, including
reproducible copies, in connection with Company's endeavors.
6. COMPLIANCE WITH LAWS. Company shall, in performing the group benefit services
contemplated by this CONTRACT, faithfully observe and comply with all federal, state and
local laws, ordinances and regulations that are applicable to the services to be rendered under
this CONTRACT.
7. INDEMNIFICATION. Company shall indemnify, defend and hold harmless the City, its
offices, agents and employees, from and against any and all claims, losses or liability, or any
portion thereof, including attorneys fees and costs, arising from injury or death to persons,
including injuries, sickness, disease or death to Company's own employees, or damage to
property occasioned by a negligent act, omission or failure of the Company.
8. INSURANCE. The Company shall secure and maintain in force throughout the duration of
this contract comprehensive general liability insurance with a minimum coverage of
$1,000,000 per occurrence and $1,000,000 aggregate for personal injury; and $1,000,000 per
occurrence /aggregate for property damage, and professional liability insurance in the amount
of $1,000,000.
Said general liability policy shall name the City of Boynton Beach as an additional named
insured and shall include a provision prohibiting cancellation of said policy except upon
thirty (30) days prior written notice to the City. Certificates of coverage as required by this
section shall be delivered to the City within fifteen (15) days of execution of this
CONTRACT.
INDEPENDENT CONTRACTOR. The Company and the City agree that the Company is an
independent contractor with respect to the services provided pursuant to this CONTRACT.
Nothing in this CONTRACT shall be considered to create the relationship of employer and
employee between the parties hereto. Neither Company nor any employee of Company shall
be entitled to any benefits accorded City employees by virtue of the services provided under
this CONTRACT. The City shall not be responsible for withholding or otherwise deducting
federal income tax or social security or for contributing to the state industrial insurance
program, otherwise assuming the duties of an employer with respect to Company, or any
employee of Company.
10. COVENANT AGAINST CONTINGENT FEES. The Company warrants that they have not
employed or retained any company or person, other than a bonafide employee working solely
for the Company, to solicit or secure this CONTRACT, and that they have not paid or agreed
to pay any company or person, other than a bonafide employee working solely for the
Company, any fee, commission, percentage, brokerage fee, gifts, or any other consideration
contingent upon or resulting from the award or making of this CONTRACT. For breach or
violation of this warranty, the City shall have the right to annul this contract without liability
or, in its discretion to deduct from the CONTRACT price or consideration, or otherwise
recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or
contingent fee.
CA3
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11. DISCRIMINATION PROHIBITED. The Company, with regard to the work performed by it
under this CONTRACT, will not discriminate on the grounds of race, color, national origin,
religion, creed, age, sex or the presence of any physical or sensory handicap in the selection
and retention of employees or procurement of materials or supplies.
12. ASSIGNMENT. The Company shall not sublet or assign any of the services covered by this
CONTRACT without the express written consent of the City.
13. NON - WAIVER. Waiver by the City of any provision of this CONTRACT or any time
limitation provided for in this CONTRACT shall not constitute a waiver of any other
provision.
14. TERMINATION.
a. The City reserves the right to terminate this CONTRACT at any time by giving ten (10)
days written notice to the Company.
b. In the event of the death of a member, partner or officer of the Company, or any of its
supervisory personnel assigned to the City of Boynton Beach, the surviving members of
the Company hereby agree to complete the work under the terms of this CONTRACT, if
requested to do so by the City. This section shall not be a bar to renegotiations of this
CONTRACT between surviving members of the Company and the City, if the City so
chooses.
15. DISPUTES. Any dispute arising out of the terms or conditions of this CONTRACT shall be
adjudicated within the courts of Florida. Further, this CONTRACT shall be construed under
Florida Law.
16. NOTICES. Notices to the City of Boynton Beach shall be sent to the following address:
City of Boynton Beach
P.O. Box 310
Boynton Beach, FL 33425 -0310
Attn: Sharvn Goebelt , Human Resources Director
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17. INTEGRATED CONTRACT. This CONTRACT, together with attachments or addenda,
represents the entire and integrated CONTRACT between the City and the Company and
supersedes all prior negotiations, representations, or agreements written or oral. This
CONTRACT may be amended only by written instrument signed by both City and Company.
DATED this 'Aa_ day of JepT em bey , 20°x
CITY OF BOYNTON BEACH:
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City Manager
Attest/Authenticated:
ty Cler
Approved a to Form:
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Company
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Title
Office the CWAttorney Secretary
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RFP# 062- 1610 -MJA
Exhibit l
PREMIUM QUOTATION SHEET
BASIC & OPTIONAL LIFE
ACTIVE/RETIREE EMPLOYER PAID
BASIC LDWAD&D LIFE INSURANCE
Employer Paid
Estimated in Force
Monthly Rate Per
Monthly Premium
Basic Life Benefit
Volume /Lives
$1,000
(estimated in Force
(Estimated in Force
Volume x Monthly
Volume X Monthly
RBWS1,000
Active Basic Life
$22,373,900 / 918
$.15
3,356
Active Basic
$22,268,900 / 918
$.04
$890.76
AD&D
135-39
$9,590,000
.13
Retiree Basic Life
$942,000/ 314
$.15
$141.30
SUB -TOTAL #1 ANNUAL PREMIUM 54,388.15
ACTIVE EMPLOYEE PAID
OPTIONAL LIFE MONTHLY 'REMIUM RATE SUMMARY
Employee
Estimated in Force
Monthly Rate Per
Monthly Premium
Age Breakdown
Volume
$1,000
(Estimated in Force
Volume X Monthly
RaWS1,000)
Under 30
$4,945,000
.08
$395.60
130-34
$9,050,000
.10
$905.00
135-39
$9,590,000
.13
51,246.70
140-44
$9,920,000
.22
52,182.40
14549
$8,390,000
.31
$2,600.90
150-54
$5,380,000
.54
$2,905.20
155-59
$1,885,000
.82
$1,545.70
60-64
S750,000
1.22
$915.00
65-69
5215,000
1.64
$352.60
170-74
$40,200
3.24
$130.25
1 75 -99
so
7.00
$0
Optional AD&D
635,140,200
.05
$1757.01
SUB -TOTAL #2 ANNUAL PREMIUM
$14,93636
NAME OF COMPANY: Hartford Life sad Accident Iasuranee Cozy
AUTHORIZED SIGNATURE: +C "
By signing this proposal sheet your firm is agreeing to the terms and conditions of the
Request for Proposal
TEUS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO
BE CONSIDERED COMPLETE AND ACCEPTABLE
170 of 332
RFP# 062- 16104WJA
Ex6ibtt 1 Continued
ACTIVE EMPLOYEE PAID
OPTIONAL SPOUSE LIFE
Employee Paid
Estimate In force
Monthly Rate
Monthly Premium
Benefit amount
Volume/ Lives
per $1,000
(Estimated in force
Volume x Monthly
Rate / $1,000
S 10,000 Benefit
150,000
.12
1$18.00
$20,000 Benefit
1,140,000
.12
1 5136.80
$30,000 Benefit
4,410,000 /total 219
.12
$529.20
lives
Optional AD &D
2,970,000/101
1.05
$143.50
SUB - TOTAL #3
ANNUAL PREMIUM
$07.50
ACTIVE FAHWYEE PAID
OPTIONAL DEPENDENT CEULDREN LIFE
Employee Paid
Estimate in force
Monthly Rate per
Monthly Premium
Benefit amount
Volume / Lives
$1,000
(Estimated in force
Volume x Monthly
Rate / $ 1,000
$2,000 Benefit
10,00015
.30
$3.00
55,000 Benefit
195,000/39
.30
$58.50
SI0,000 Benefit
1,320,0001132
1.21
$277.20
SUB -TOTAL #4
ANNUAL PREMIUM
$338.70
• Dependent Life — flat premium regardless of # of eligible dependents emolled
NAME OF COMPANY: 11artford Life end A ecldent Insuraaee Comnanv
AUTHORIZED SIGNATURE: e
By signing this proposal shed your firm is agreeing to the terms and conditions of the
Request for Proposal
THIS PAGE TO BE suBM11TED ALONG WITH RESPONSE IN ORDER FORPACKAGE TO
BE CONSIDERED COMPLETE AND ACCEPTABLE
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RFP# 062 - 1610 -WJA
Exibit 2
PREMIUM QUOTATION SHEET
EMPLOYER PAID GROUP LONG TERM DISABILITY (LTD) INSURANCE
Benefit Amount 60'/0 of basic monthly earnings up to 56,500 monthly benefit •
Benefit applies to all fin time genera[ employees.
Excludes sworn Police Offices and Firefighters
I Estimated Volume per Month I lives Rate Monthly Premium
$1,384,364 4 592 .50 $100 $6,921.82 / $100
I I
Total Annual LTD Premiom Amoant $6,921.82
*Per current schedule of benefits
NAME OF COMPANY: Hartford We and Accident Insurance ComDanv
AUTHORIZED SIGNA'T'URE: :: x
By signing this proposal sheet your firm is agreeing to the terms and conditions of the
Request for Proposal
THIS PAGE TO BE SU13WrrED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO
BE CONSIDERED COMPLETE AND ACCEPTABLE
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RFP# 062 - 1610 -MJA
Exhibit #3
PREMIUM QUOTATION SHEET
EMPLOYER PAID ACTIVEIRETIREE BASIC LIFE & AD &D; OPTIONAL
LIFE & AD &D FOR EMPLOYEE, SPOUSE & DEPENDENT CHILDREN LIFE;
GROUP LTD ADDITIONAL DISCOUNT OFFERED
ONLY PROPOSERS QUOTING BOTH LIFE AND LTD SHOULD COMPLETE
THIS PREMIUM QUOTATION SHEET
The City of Boynton Beach is providing an opportunity to proposers who are quoting
both the Life and LTD product to offer an additional discount in return for being awarded
both products. Additional evaluation consideration will be given to proposals who offer
this additional discount offer. The , overall , ' diswunt percentage will be locked in for a
gusianteed period of two (2) years.
The "additional" discount vercentage will be soolied to bmh your life and LTD
myzdum
Onestlon #1:
CQNFIRM YOU ARE 0lVM VG B_ OTH A L UM AND LTD QUOTE? Yes
IF YES ARE Y2U PFMRi * AN ADDITIONAL DISCOUNT BAS ON
AWARD OF BOTH PRODUCTS AS DESCRIBED ABOVE? Yes
IF YES WHAT IS THE DISCOUNT? 5 %
COMPLETE THE O UOTATI ON BEL
Total Life Premium and Discount % applicable to Resulting Reduced Total
LTD Pramum (carried both products Premium
forward from quotation
shed)
527,412.53 5% $26,041.90
TOTAL ANNUAL COMBINED DISCOUNTED $312,502.80
PREMIUM
NAME OF COMPANY: Herd LNe and Accident Imsn rmce Commmv
AUTHORIZED SIGNATURE: J
By signing this proposal shed your firm is agreeing to the terms and conditions of the
Request for Proposal
THIS PAGE TO BE SUBMITTED ALONG WITH RESPONSE IN ORDER FOR PACKAGE TO
BE CONSWLntED COMPLETE AND ACCEPTABLE
173 of 332
CITY CLERK'S OFFICE
MEMORANDUM
TO: Sharyn Goebelt
Director, Human Resources
FROM: Judith A. Pyle
Deputy City Clerk
DATE: September 24, 2008
RE: R08 -111 Two Year Contract for Life and Disability Insurance
Plans for the Employees for the City of Boynton Beach
Attached is a copy of the above mentioned resolution and the partially executed
contract. Once the document has been fully executed, please return original document
to the City Clerk's Office for Central File
j
Attachment (2)
CC: Central Files & Followup
S: \CC \WP \AFTER COMMISSION \Departmental Transmittals \2008 \Sharyn Goebelt- R08- 111.doc
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rw:3
BIDS AND PURCHASES OVER $100,000
July 5, 2011
40 CITY OF BOYNTON BEACH
AGENDA ITEM REQUEST FORM
COMMISSION MEETING DATE: July 5, 2011
❑
OPENINGS
❑
PUBLIC HEARING
❑
OTHER
❑
CITY MANAGERS REPORT
F
ANNOUNCEMENTS/PRESENTATIONS
F
UNFINISHED BUSINESS
NATURE OF
AGENDA ITEM ❑
ADMINISTRATIVE
❑
NEW BUSINESS
❑
CONSENTAGENDA
❑
LEGAL
®
BIDS AND PURCHASES OVER $100,000
❑
FUTURE AGENDA ITEMS
CODE COMPLIANCE AND LEGAL
❑
SETTLEMENTS
REQUESTED ACTION BY CITY COMMISSION: PROPOSED RESOLUTION NO. R11 -072 - Approve a
one -year extension to the Provider Agreement for "GROUP BENEFITS MEDICAL CLAIMS
ADMINISTRATION (TPA) SERVICES AND /OR FULLY INSURED PLAN" with CIGNA Healthcare for
the plan year October 1, 2011 through September 30, 2012 as provided under the Terms of the contract
with CIGNA and the City of Boynton Beach
PROVIDER AGREEMENT PERIOD: OCTOBER 1, 2011 THROUGH SEPTEMBER 30, 2012
EXPLANATION OF REQUEST: A Request for Proposal (RFP) 046- 1610- 10 /CJD was issued for
Group Benefits Medical Claims Administration (TPA) Services - a Fully Insured Medical Plan
by Procurement Services. The Proposals were opened on June 2, 2010 with five healthcare
companies responding to this RFP. The City's Human Resources staff (Review Committee)
ranked the proposals based on criteria stated in the RFP. CIGNA received the highest ranking
with a score of 95 out of a possible 100 points. The City's Insurance Committee, a cross
functional team with representation from the Unions and general employees met to review the
proposals. The Insurance Committee and the Review Committee recommended awarding the
medical insurance agreement for the period October 1, 2010 through September 30, 2011 to
CIGNA Healthcare as the most responsive, beneficial healthcare plan. On July 20, 2010,
Commission approved Resolution No. R10 -094 authorizing the City Manager and City Clerk to
execute the Provider Agreement with CIGNA Healthcare.
Under the Term of the Provider Agreement, the City has the option to extend for three
additional one -year periods. CIGNA Healthcare has agreed to extend the Agreement for one
year at the existing rates, with minor benefit changes. (Attached Letter dated June 3, 2011.)
In the Provider Agreement, the Scope of Services states "No modifications will be made to the
original scope of work without the written approval of the City Manager or his designee." For
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