R12-091 11
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2 RESOLUTION NO. R12 -091
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5 A RESOLUTION OF THE CITY COMMISSION OF
6 BOYNTON BEACH, FLORIDA, APPROVING THE ONE 1
YEAR RENEWAL OF THE CONTRACT FOR LIFE AND
8 DISABILITY INSURANCE WITH HARTFORD LIFE
9 AND ACCIDENT INSURANCE COMPANY FROM
10 OCTOBER 1, 2012* TO SEPTEMBER 30, 2013 *; AND
11 PROVIDING AN EFFECTIVE DATE.
12 ,
13
14 WHEREAS, on June 27, 2012, Procurement Services received and opened four (4)
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1 ! proposals in response to the RFP for Life and Disability Insurance; and
1. WHEREAS, the Evaluation Committee reviewed all proposals and ranked them
1 accordingly and recommends awarding the proposal to The Harford Life and Accident
1: Insurance Company as the most responsive responsible proposer; and
1' WHEREAS, the City Commission of the City of Boynton Beach, upon
21 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 Two Year Contract for Life and Disability Insurance
2. with Hartford Life and Accident Insurance Company from October 1, 2012 to September 30,
2 2014.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
2 • THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
2: Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed
2 as being true and correct and are hereby made a specific part of this Resolution upon adoption
2 5 hereof.
2' Section 2. The City Commission of the City of Boynton Beach, Florida does
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*Scrivener 's Error
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1 hereby approve the Provider Agreement for a Two Year Contract for Life and Disability
2 Insurance Plans for the Employees of the City of Boynton Beach with Hartford Life and
3 Accident Insurance Company from October 1, 2012 to September 30, 2014.
4 Section 3. The Interim City Manager is authorized to execute the Provider
5 Agreement, a copy of which is attached hereto as Exhibit "A ".
6 Section 4. That this Resolution shall become effective immediately upon passage.
7 PASSED AND ADOPTED this 4 day of September, 2012.
3
9 CITY BOYNTON BEACH, FLORIDA
10
11 ( "0° - *''‘r-GrV 1 44____
12 Mayor — Ws e : : L... _
14 � �'
15 I ice ayor — Mac ► A • " ray
16
17
18 Coptim' : • - er
19
21 Commission— Ste -n Holzman
2'; - ,- /
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24 ommissioner — Marlene Ross
25
26 ATTEST:
27
20 G.L. •_ Y)1. PA.01.:4_
30 J. et M. Prainito, MMC
31 'rty Clerk
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PROVIDER AGREEMENT
FOR A
"TWO YEAR CONTRACT FOR LIFE AND DISABILITY INSURANCE PLANS
FOR THE EMPLOYEES OF THE CITY OF BOYNTON BEACH"
THIS AGREEMENT 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 Consultant or Company ", in consideration of the mutual benefits, terms, and
conditions hereinafter specified.
1. SERVICES DESIGNATED. The Consultant is retained by the City to perform insurance
carrier services in connection with the project designated RFP FROM INSURANCE
CARRIERS FOR A "TWO YEAR CONTRACT FOR LIFE AND DISABILITY INSURANCE
PLANS FOR THE EMPLOYEES OF THE CITY OF BOYNTON BEACH " - RFP No.: 053 -
1610 -12/J MA.
2 SCOPE OF SERVICES Consultant agrees to perform the services, identified on Exhibits 1
& 2 attached hereto, including the provision of all labor, materials, equipment and supplies
3 TIME FOR PERFORMANCE. Work under this agreement shall commence upon the giving
of written notice by the City to the Consultant to proceed. Consultant shall perform all
services and provide all work product required during the agreement period of October 1 ,
2012 to September 30, 2014 unless an extension of such time is granted in writing by the
City. This AGREEMENT allows for three (3) additional one (1) year extensions at the same
terms, conditions, and agreeable prices subject to the Company acceptance, satisfactory
performance and determination that the renewal is in the best interest of the City
4 PAYMENT The Consultant shall be paid by the City for completed work and for services
rendered under this agreement as follows
a Payment for the work 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 Company may submit invoices to the City once per month Such invoices will be
checked by the City, and upon approval thereof, payment will be made to the Carrier in
the amount approved The policies govern the insurance relationship between Supplier
and the City Premium rates may be guaranteed for a certain period of time during the
term of the policies.
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 the work under this agreement and its acceptance by the City
d. Payment as provided in this section shall be full compensation for work performed,
services rendered and for all materials, supplies, equipment and incidentals necessary
to complete the work
e The Company's records and accounts pertaining to this agreement 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 and upon the
parties' execution of a mutually agreeable audit confidentiality agreement, and once the
Contractor has received signed authorizations from claimants and beneficiaries, if
confidential claim information is in scope for audit
5. OWNERSHIP AND USE OF DOCUMENTS. The Company will own all records and its
Hartford customer information derived from insurance transactions and as required by
applicable law. Upon termination of the insurance contract and to the extent permitted by
applicable law, The Company will transfer to the new insurance carrier necessary records
and information not proprietary to The Company. The Company will work with The City to
establish a time frame for the orderly transfer of files to the new carrier. The Company shall
be permitted to retain copies, including reproducible copies, of drawings and specifications
for information, reference and use in connection with Company's endeavors.
6. COMPLIANCE WITH LAWS Company shall in performing the services contemplated by
this service agreement, 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
agreement.
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 reasonable 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 agreement.
9. INDEPENDENT CONTRACTOR. The Company and the City agree that the Company is an
independent contractor with respect to the services provided pursuant to this agreement.
Nothing in this agreement shall be considered to create the relationship of employer and
employee between the parties hereto. Neither Company nor any employee of Company
shall be entitled to any benefits accorded City employees by virtue of the services provided
under this agreement. The City shall not be responsible for withholding or otherwise
deducting federal income tax or social security or 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 he has not
employed or retained any company or person, other than a bona fide employee working
solely for the Company, to solicit or secure this agreement, and that he has not paid or
agreed to pay any company or person, other than a bona fide 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 agreement. For
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breach or violation of this warranty, the City shall have the right to annul this agreement
without liability or, in its discretion to deduct from the agreement price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift,
or contingent fee
11. DISCRIMINATION PROHIBITED The Company, with regard to the work performed by it
under this agreement, 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
agreement without the express written consent of the City
13 NON - WAIVER Waiver by the City of any provision of this agreement or any time limitation
provided for in this agreement shall not constitute a waiver of any other provision
14. TERMINATION
a. The City reserves the right to terminate this agreement at any time by giving ten (10)
days written notice to the Company. Once in effect, the policy(ies) will terminate
according to their own termination provisions.
15 DISPUTES Any dispute arising out of the terms or conditions of this agreement shall be
adjudicated within the courts of Florida Further, this agreement shall be construed under
Florida Law The parties shall attempt in good faith to resolve any dispute arising out of or
relating to this Agreement promptly by negotiation between representatives with the
authority to resolve such disputes. If the matter has not been resolved within thirty (30)
days of a party's request for negotiation, either party may initiate non - binding mediation or
file suit in a court of competent jurisdiction
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. Julie Oldbury , Human Resources Director
Notices to the Carrier shall be sent to the following address:
The Hartford
4830 West Kennedy Blvd
Tampa, FL 33609
Attn: Denise Clayton, Account Manager
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INTEGRATED AGREEMENT. This agreement, together with attachments or addenda,
represents the entire and integrated agreement between the City and the Company and
supersedes all prior negotiations, representations, or agreements written or oral. This
agreement may be amended only by written instrument signed by both City and Company.
DATED this / day of 0(_,71--rL__Q__, , 20 I .
CITY OF BOYNTON BEACH:
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Approved as to orm: Attes A uthenticated:
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Officer•f the lir Attorney Secretary
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EXHIBIT 1
PREMIUM QUOTATION BASIC & OPTIONAL LIFE
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EXHIBIT 2
PREMIUM QUOTATION LONG TERM DISABILITY (LTD) INSURANCE
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EXHIBIT 1.
PREMIUM QUOTATION SHEET BASIC & OPTIONAL LIFE
! ACTIVE/RETIREE EMPLOYER PAID
BASIC LIFE/AD&D LIFE INSURANCE
Employer Paid Basic Estimated In Monthly Rate Monthly Premium
Life Benefit Force Volume Per $1,000 (estimated in Force
I /Lives Volume x Monthly
Rate/$1,000
Active Basic Life 19,155,000 / 708 1 A26 $2,413.53
Active Basic AD&D 19,155,000 / 708 .020 $381.10 . 5c.-3,1L-
Retiree Basic Life 1,182,000 / 394 .126 $148.93
SUB -TOTAL #1 ANNUAL PREMIUM $35,346.74
ACTIVE EMPLOYEE PAID
OPTIONAL LIFE MONTHLY PREMIUM RATE SUMMARY
Employee Estimated in Monthly Rabe Monthly Premium
Age Breakdown Force Volume Per $1,000 (Estimated in Force
Volume X Monthly
Rate/$1,000)
Under 30 3,590,000 .068 244.12
30 - 34 6,920,000 0.086 595.12
35 -39 10,000,000 0.112 1120
40-44 10,295,000 0.188 1935.46
45 -49 7,390,000 0.265 1958.35
50 - 54 5,465,000 0.462 2524.83
55 - 59 2,030,000 0.701 1423.03
60 -64 985,000 1.04 1024.4
65 - 69 95,000 1.4 133
70 -74 0 2.76 0
75 -99 1 (t9, 5.99 0
Optional AD&D , 0.047 4e771478 AL1 - , U "
SUB -TOTAL #2 ANNUAL PREMIUM $45 01,277.
NAME OF COMPANY: Hartford Life and Accident insurance Company
AUTHORIZED SIGNATURE: jJ0AA
David Kryzanslcl, President
By signing this proposal sheet your firm is agreeing to the terms and conditions of
the Request for Proposal
RFP No: 053- 1610- 12JJMA EXHIBITS 1 - 6 1
Page 2 — Exhibit 1.
ACTIVE EMPLOYEE PAID
OPTIONAL SPOUSE LIFE
Employee Paid Estimate In force I Monthly Rate Monthly Premium
Benefit amount Volume/Lives per $1,000 (Estimated In force
Volume x Monthly
Rate / $1,000
$10,000 Benefit* 90,000. /9 .103 9.27
$20,000 Benefit* 320,000. /16 .103 32.96
$25,000 Benefit 650,000. /26 .103 66.95
$30,000 Benefit* 1 ,230,000. /41 .103 j 126.69
$42,500 Benefit* 42,500. /1 .103 4.3775
$50,000 Benefit 3,500,000.170 .103 360.5
Optional AD&D 4,720,000. /126 .103 486.16
SUB- TOTAL #3 ANNUAL PREMIUM $13,042.89
ACTIVE EMPLOYEE PAID
O PTIONAL DEPENDENT CHILDREN LIFE
Employee Paid Estimate In force Monthly Rats per Monthly Premium
Benefit amount Volume / Lives $1,000 (Estimated in force
Volume x Monthly
Rate I $1,000
$2,000 Benefit 2,000. / 1 .18 I!:!!'
$5,000 Benefit 65,000. 13 .18 11.7
$10,000 Benefit 1,390,000. / 139 , .18 250.2
SUB - TOTAL #4 ANNUAL PREMIUM $3,186 t 7)147,
. $10,000, $20,000, $30,000 and $42,500 Spouse amounts grandfathered from
previous contract
• Dependent Child Life — flat premium regardless of # of eligible dependents
enrolled
NAME OF COMPANY: Hartford Life and Accident Insurance Company
AUTHORIZED SIGNATURE: D ot,,ot_
David icryzaisitit
By signing this proposal sheet your firm is agreeing to the terms and conditions of
the Request for Proposal
RFP No.: 053 - 1610- 12/JMA EXHIBITS 1 - 6 2
EXHIBIT 2.
PREMIUM QUOTATION SHEET
EMPLOYER PAID GROUP LONG TERM DISABILITY (LTD) INSURANCE
Benefit Amount: 60% of basic monthly eamings up to $6,500 monthly benefit *
Benefit applies to all full time general employees.
Excludes swom Police Officers and Firefighters
Estimated Volume per Month Lives Monthly Premium
$1,814,070 424 .426 $7,727.94/100
Total Annual LTD Premium Amount $92,735.26
*Per current schedule of benefits
NAME OF COMPANY: Hartford Lite and Accident Insurance Company
AUTHORIZED SIGNATURE: Dvc&
David Kryzansld, idsnt
By signing this proposal sheet your firm is agreeing to the terms and conditions of
the Request for Proposal
RFP No.: 053-1610- 12/A4A EXHIBITS 1 - 6 3