HomeMy WebLinkAbout2008/10/14 Item 4
CITY COUNCIL
AGENDA STATEMENT
~(ff:.. eIn' OF
~CHUIA VISTA
ITEM TITLE:
SUBiVIlTTED BY:
REVIEWED BY:
OCTOBER 14, 2008, Iteml
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING At'J AGREEivfENT
BETWEEN THE CITY OF CHULA VISTA At'ID
CREATIVE BEl'-iEFITS, A WAGE WORKS COivIPAt'JY,
FOR THIRD PllliTY ADMINISTRATION OF FLEXIBLE
SPENDING ACCOliNT (FSA) REIMBURSEivfENiS, THE
CONSOLIDATED OMNIBUS BUDGET
RECONCILA TION ACT (COBRA) CONTINUATION
PLA.N, At"'TI THE RETIREE PLAN AND AUTHORIZING
THE CITY MANAGER TO APPROVE THREE
ADDITIONAL ONe-YEAR EXTENSIONS OF THE TERtvf
OF THE AGREEMENT
IillMAN RESOlJRCES DIRECTOR /J42--
INTERIM CITY JYIA..l"!AGER S r
4/5THS VOTE: YES D NO I X I
SUlVlJ\IARY
The Human Resources Department is recommending that the City contract with a third-
party administrator to handle Flexible Spending Account (FSA) reimbursements,
administration of the COBRA Continuation Plan and the Retiree Plan. A Request for
Proposal (RFP) for third-party administration was issued. Five proposals were received
and evaluated. Based on this evaluation, Creative Benefits, a Wage Works company, is
being recommended for final consideration as the third-party administrator.
Creative Benefits will be responsible for ensuring compliance with specific laws
goveming IRS Section 125 Cafeteria Plans, the Health Insurance Portability and
Accountability Act (RIFPA) regulations and COBRi". IRS regulations allow the City to
use FSA forfeitures to pay for administration of benefit programs. Employees will not be
charged administration fees the first year or thereafter as long as there are sufficient
forfeiture funds at the end of each plan year.
ENVIRONMENTAL REVIEW
Not applicable.
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OCTOBER 14, 2008, Item~
Page 2 of 4
RECOMlVIENDATION
Council adopt the resolution.
BOARDS/COMlVliSSION RECOMNIENDATION
Not applicable.
DISCUSSION
The Human Resources Department staff currently performs Flexible Spending Account
(FSA) reimbursements and administration of the COBRA Continuation Plan and the
Retiree Plan. It is our goal to ensure compliance with specific laws governing IRS
Section 125 Cafeteria Plans, the Health Insurance Portability and Accountability Act
(HIP.AA) regulations and the ever-changing Consolidated Omnibus Budget
Reconciliation Act (COBRA) provisions. Non-compliance with the laws governing these
Plans can be costly. At this point outsourcing seems to be a more cost effective means of
administering the claims. A Request for Proposal (RFP) for a third-party administrator
was issued. .'
Five proposals were received and evaluated. Creative Benefits was selected to be
retained as the third-party administrator for the Flexible Spending Accounts and for
COBRA and Retiree Plan administration.
Creative Benefits is a privately held firm with extensive experience working with the
public sector in San Diego County. Creative Benefits was the first administrator to be
designated as an Accredited third party administrator by the Employers Council on
Flexible Compensation LTlstructions (ECFC). They are committed to deliver timely and
accurate administration; to provide flexibility in meeting the City's administrative needs;
and to provide a high level of expertise in administering FSA's, COBRA and Retiree
Plans. In performing the services required by the City, Creative Benefits has agreed to
risk a 10% refund of service fees if the City is not satisfied with their services.
The scope of work to be performed by Creative Benefits is outlined in the attached
agreement.
Under IRS Section 125, FSA's allow employees to pay eligible medical, dental, vision
and dependent care expenses with pre-tax dollars. Employees can allocate their excess
annual Flexible Allotments and/or set aside their own money to establish a Health FSA
and/or Dependent Care FSA. El!lployees that participate in these accounts can submit
requests for reimbursement to Human Resources. Eligible claims received in Human
Resources are processed and credited to their paychecks. Due to the sensitivity of health
information accessible to Human Resources, the City is subject to the policies and
procedures in accordance with the Health Insurance Portability and Accountability Act of
1996 (HIPAA) regarding the use and disclosure of protected health information (pHI)
obtained from t..'1e employee's claims. The City currently has 372 Health FSA and 65
Dependent Care FSA participants.
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OCTOBER 14, 2008, Item~
Page 3 of4
Eligible employees may continue their City-sponsored medical, dental and/or vision plan
coverage under COBRA. for up to 18 months or 36 months depending on the qualified
event such as tennination of employment, divorce, loss of dependent status and other
major life events. Qualified individuals are required to pay 102% of the City's group
premium rate. The administration of COBRA. benefits is a time-consuming and critical
process. Non-compliance with its regulations poses a potential liability to the City.
Penalties may be hundreds of dollars per employee per violation. Human Resources
tracks the notification of qualified participants, records elections of benefit coverage,
receives premiums, reconciles and forwards payments to the insurance carriers, assists
COBRA participants with eligibility and claim issues, and conducts open enrollment
periods. We have approximately twenty (20) COBRA participants.
Retiring benetlted employees may continue to participate in the City's medical insurance
programs. Like COBRA. administration, Human Resources receives premiums,
reconciles billing and submits payments to the medical plans, assists the retirees with
eligibility and claim issues and conducts open enrollment periods. Currently, there are
221 retirees enrolled in the City' 5 Retiree Plan.
DECISION MAKER CONFLICT:
Staff has reviewed the decision contemplated by this action and has detennined that it LS
not site specific and consequently the 500-foot rule found in California Code of
Regulations section 18704.2(a)(I) is not applicable to this decision.
FISCAL IMPACT
Estimated annual costs for the first year and second year of implementation are broken
down as follows:
FSA COBRA Retiree Total
Administration Administration Administration Estimated Cost
First Year Estimated
Annual Fees $26,220 $330 $14,143 $41,243
Second Year Estimated
Annual Fees $26,220 $330 $13,393 $40,498
The first two years of this contract will be paid with forfeiture funds from employees who
didn't use all their Flexible Spenqing Account allotment in Plan Years 2007 and 2008.
Employees will not be charged administration fees in the tlrst two years of this program.
IRS Section 125 regulations do not pennit employees to carryover unused contributions
under the Health and Dependent Care Accounts from one plan year to another. Under the
use-or-lose rule, unused contributions will be forfeited back to the City. IRS regulations
allow the City to use these forfeitures to pay for the Flexible Spending Account (FSA)
administration. In 2007, the total FSA forfeiture was $40,189.55. The difference
between the first year cost and the 2007 forfeitures will be paid out of the Human
Resources budget.
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OCTOBER 14, 2008, Item~
Page 4 of4
ATTACHMENT
A - Agreement between the City of Chu1a Vista and Creative Benefits
Prepared by: IHarcia Raskin, Human Resources Director, Human Resources
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RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHliLA VISTA APPROVE\iG AN AGREEMENT BETWEEN
THE CITY OF CHULA VISTA A.J"\ID CREATIVE BENEFITS, A
WAGE WORKS C01vlPA.l'-iY, FOR THIRD PARTY
ADMINISTRl-\.TION OF FLEXIBLE SPENDrNG ACCOlTNT
(FSA) REIMBURSEMENTS, THE CONSOLIDATED
OrvINIBUS BUDGET RECONCILATION ACT (COBRA)
CONTmDA TION PLAN, AND THE RETIREE PLAN AND
AUTHORIZING THE CITY MANAGER TO APPROVE THREE
ADDITIONAL ONE- YE.i\R EXTENSIONS OF THE TERtv! OF
THE AGREEMENT
WHEREAS, Human Resources Department statY currently administers the Flexible
Spending Account (FSA) reimbursements, the Consolidated Omnibus Budget Reconciliation Act
(COBRA.) Continuation Plan, and the Retiree Plan; and
and
WHEREAS, staff has determined that outsourcing these tasks will save the City money;
WHEREAS, staff issued a Request for Proposal (RFP) for third-party administration of
the FSA reimbursements and the COBRA. Continuation PI'1n; and
WHEREAS, five proposals were received and;
WHEREAS, staff asked the proposers to also bid on the administration of the Retiree
Plan; and
WHEREAS, the proposals were evaluated by a selection corrunittee consisting of three
Human Resources Department staff and a representative from Barney and Barney, the City's
Broker of Record; and
WHEREAS, Creative Benefits, a Wage Works company, was selected to be the third-
party administrator for the FSA reimbursements, the COBRA Continuation Plan, and the Retiree
Plan.
,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. That it approves' an agreement between the City of Chula Vista and Creative Benefits, a
Wage Works Company, for third parry administration of Flexible Spending Account
(FSA) reimbursements, the Consolidated Omnibus Budget Reconciliation Act (COBRA)
Continuation Plan, and the Retiree Plan.
J ;\Allomey\R ESOIA G RoE :::;\11 ENTS\C r<':~tj"e Bene!;!, _ I ().I..-08_~QC
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Resolution No. 2008-
Page .2
2. That it authorizes the City Manager to approve three additional one-year extensions of
the term of the Agreement.
Presented by:
Approved as to form by:
Marcia Raskin
Director of Human Resources
~~ tL h~ h--__
Bart C. Miesfeld 1./
Interim City Attornev
. -
1:\A(10meY\RESO\AGR.E~ME:'iTS\C;<:~rive B<;merils_l Q.I..j...'J8.doc
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THE ATTACHED AGREEMENT HAS BEEN REVIEWED
ANTI APPROVED AS TO FORlYf BY THE CITY
ATTORl'-J'EY'S OFFICE AND WILL BE
FOR.t\JIALL Y SIGNED UPON APPROVAL BY
THE CITY COUNCIL
/}' ,'~~
i " /1 f .\
\.~~ \. ~-~___ ,j' '-',,v .... /J;--e,,-
Bart Miesfeld V
Interim City Attorney
Dated: /0 / )? / (13
. ,
Agreement between
City of Chula Vista
and
Creative Benefits, a WageWorks Company
for
Flexible Spending Account (FSA).
and
COBRA and Retiree Plan Administration
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Agreement between
City of Cbula Vista
an.d
Creative Benefits, a vVageWorks Company
for Flexible Spending Account (FSA) and COB~'" and Retiree Plall Administration
This agreemem ("Agreement"), dated October 14. 2008 for the purposes of reference only,
and elIective as of the date last executed unless another date is otherwise specified in Exhibit A,
Paragraph 1, is between the City-related entity as is indicared on Exhibit A, Paragraph 2, as such
("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicared on
the attached Exhibir A, Paragraph 4, as TPA, whose business form is set forth on Exhibit A,
Paragraph 5, aIld whose place of business and telephone numbers are ser forth on Exhibit A,
Paragraph 6 ("TPA"), and is made with reference to the following facts:
Recitals
Wbereas, City staff issued a Request for Proposal (RFP) for a third-party administrator to
handle Flexible Spending Accoum (FSA) reimbursements, and administration of the COBRA
Continuation Plan; and .
Wbereas, five proposals were received and evaluated by a cOIT1..mirree consisting of three
Human Resources Slat! and Barney and Barney, the City's Broker of Record; and
\Vhereas, Human Resources staff asked the finalisls to include a bid for the administration of
the Retirement Plan; and
Wbereas, the Selection Committee recomillended Creative Benefits, a WageViorks compa.'1Y,
to be retained third party administrator for the City's Flexible Spending Account (FSA), COBRA
and Retiree Plans; and
Whereas, Creative Benefits warrants and represents that they are experienced and staffed in a
manner such that they are and can prepare and deliver the services required within the time
frames provided by the City, an in accordance with the rerms and conditions of this Agreement.
O,biigatnry Prnvisions
NOW, THEREFORE, BE IT RESOL 'fED that the City and Creative Benefits do hereby
mutually agree as follows:
1. Third Party .A.dministration (TPA) Duties
A. General Duties
IP A shail perform all of the services described on the attached Exhibit A, Paragraph 7,
entitled "General Duties"; and,
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Page 1
B Scope of Work alld Schedule
In the process of performing al1d deliverillg said "General Duties", TF A shaU also perform aU
of the services described in Exhibit A, Paragraph 8, enritled "Scope of vVork and Schedule", not
inconsistent with the General Duties, according to, and within the time frames set forth iII
Exhibir A, P2.ragraph 8, and deliver 10 City such Delivercbies as are identiiied in Exhioil A,
Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement.
The General Duties and the work and deliverables required in the Scope of vVork and Scheduie
shaU be herein referred to as the "DdiIled Services". Failure to complete the Detlned Services by
the times indicated does not, exceot at the ootion of the Citv, ooerale to terminate this
l, . ~ _
~~greernent.
C. Reductions in Scope of Work
City may independentiy, or upon request from IFA, from ti.me to time reduce the Defmed
Services to be performed by the TPA under this Agreement. Upon doing so, City and TPA agree
to meer in good :t'2.ith 2.nd confer for the purpose of negotiating a corresponding reduction in the
compensation associated with said reduction.
D. Additional Services
In addition 10 performing the Detlned Services herein set forth, City may require TF A ro
perform additional consulting services related to the Defined Services (n Additional Services"),
and upon doing so in writing, if rhey are within the scope bf services offered by IPA, IFA shall
perform same on a time and materials basis at the rates set forch in the "Rate Schedule" in
Exhibit A, Pcs2.graph IO(C), unless a sep2.rate fixed fee is othervise agreed upon. All
compensation for Additional Services shall be paid monthly as biUed.
E. Standard of Care
TFA, in performing any Services under this agreemem, whether Deiined Services or
Additional Services, shall perform in a marmer consistent with that level of care and skill
ordinariI v exorcised bv members of the profession curremly practicing under similar conditions
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and in similar locations.
F. Insurance
TP A must procure insurance agaipst claims for injuries to persons or damages to property
that may arise from or in connection with the performance of the work under the contract and the
results of that wor', by tho TPA, his agents, represematins, employees or subcontractors and
provide documentation of same prior to comInencement of ",,'ork. The insurance must be
maintained for the duration of the contract.
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Page 2
Minimum Scope of Insurance
Coverage must be at least as broad as:
(1) ll1surance Services Office Commercial General Liability coverage (occurrence Form
CG0001).
(2) Insurance ServIces Office Form Nu,-nber CA 0001 covermg Automobile Liability,
Code 1 (any auto).
(3) Workers' Compensation insurance as required by the State of California a..l1d
Employer's liability Insurance.
(4) Professional Liability or Errors & Omissions Liability insurance appropriate to the
TPA's profession. Architects' and Engineers' coverage is to be endorsed to include
contractual liability.
Minimum Limits of Insurance
Contractor must maintain limits no less than:
1. General Liability:
(Including operations, products
and completed ogerations, as
applicable.)
2. Automobile Liabiliry
3. \Vorkers' Comgensation
Employer's Liability:
4. Professional Liability or
Errors & Omissions Liability:
51,000,000 per occurrence for bodily injurj, personal injury and
9roperty damage. If Commercial General Liabiliry insurance with a
gen.eral aggregate limit is use!J" either the general aggregate limit must
apply separately to this project/location or the general aggregate limit
must be Vvv-ice the required occurrence limit.
51,000,000 per accidem for bodily injurf and property. damage.
S [atutory
51,000,000 each accident
51,000,000 disease-policy limit
51,000,000 disease-each employee
53,000,000 per claim or each occurrence
Deductibles and Seif-bsured Retentiocts'
.I\.ny deductibles or self-insured retentions must be declared to and approved by the Ciry. At
the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured
retentions as they pertain to the City, its officers, officials, employees and volunteers; or the
Third Party Administrator (TP A) will provide a financial guarantee satisfactorj to the Ciry
guaranteeing payment of losses and related investigations, claim acL-ninistration, and defense
expenses.
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Page 3
Other Insurance Provisions
The general liability, automobile liabiliTY, and where appropriate, the worker's compensation
policies are to comain, or be endorsed co contain, the foilowing provisions:
(I) The City of Chula Vista, its officers, officials, employees, agents, and volunteers are
[Q be named as additional insureds with respect to liability arising out of automobiles
owned, leased, hired or borrowed by or on behalf of the TPA, where applicable, and,
with respect to liability arising out of work or operations performed by or on behalf of
the TPA, including providing materials, parts or equipment furnished in connection
with such work or operations. The general liability additional insured coverage must
be primary.
(2) Tne TPA's General Liability insurance coverage must be priIn",] insurance as it
pertains to the City, its officers, officials, employees, agents, and volunteers. Any
insurance or self-i.!1surance maintained by the City, its officers, officials, employees,
or vo.lunteers is wholly separate from the insurance of the contractor and in no way
relieves the contractor from its responsibility to provide insurance.
(3) The insurance policy required by tPjs clause must be endorsed to state that coverage
wii! not be canceled by either party, except after thirty (30) days' prior written notice
to the City by certi1:1ed mail, return receipt requested.
(4) Coverage shall not extend to any indemnity co;verage for the active negligence of the
additional insured in any case where an agreement to indemnif:{ the additional insured
would be invalid under Subdivision (b) of Section 2782 of the Civil Code.
(5) TPA's insurer will provide a Waiver of Subrogation in favor of tb.e City for each
required policy providing coverage during tJ.'le life of this contract.
[f General LiabiEtv, Polhnion and/or Asbestos Pollurion Liabili'i:v and/or Ertors & Omissions
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coverage are ~\lvritten on a claims-made form:
(I) The "Retro Date" must be shown, and mllst be before the date of the contract or the
beginning of the contract work.
(2) Insurance must be maintailled and evidence of insurance must be provided for at least
five (5) years after compietjon of the contract work.
(3) Ifcoverage is canceled or non-renewed, and not replaced willi another claims-made
policy form with a "Retro Date" prior to the contract effective date, the TP A must
purchase "extended reponing" coverage for a minimum of five (5) years after
completion of contract 'i'lork.
(4) A copy of the claims reporting requirements must be submitted to the City for review.
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Page 4
Acceptability of insurers
Insurance is co be placed wim licensed insurers admitted to transact business in me State of
California with a current A.M. Best's rating of no less man A V. If insurance is placed with a
surplus li11es insurer, i."surer must be listed on me State of California List of Eligible Surplus
Lines L,surers CLESLI") wim a current AM. Best's rating of no less than A X. Exception may
be made for the State Compensation Fund when not specifically rated.
Verification of Coverage
Third Party Administrator (TP A) shall furnish me City wim origi..nal certiticates and
amendatory endorsements effecting coverage required by mis clause. The endorsements should
be on insurance industry forms, provided those endorsements or policies conform to me contracr
requirements. All certificates and endorsements are to be received and approved by me City
before work commences. The Ciry reserves the righr w require, at any time, complete, certified
copies of all required iIlsurance policies, including endorsements evidencing the coverage
required by these specifications.
Subcontractors
TPA must include all subconsultants as insureds under its policies or furnish separate
certiricates and endorsements for each subconsulram. All coverage for subconsultams are subject
to all of the requirements i."cluded in these specifications.
O. Securil'j for Performance
(I) Performance Bond
In the event that Exhibit ,A" at Paragraph 18, indicates the need for TPA to provide a
Performance BOEd (i.,'1dicaled by a check mark in the parenthetical space immediately preceding
the subparagraph entitled "Performance Bond"), men TP A shall provide to the Cil'j a
performance bond in the form prescribed by [he City and by such sureties which are authorized
to transact such business in the State of California, listed as approved by me United States
Deoartment of Treasury Circular 570. httO:!/"v1iVf\v.fms.rreas.Q:o,;fc570, arid vvhose underwriting
~ ~ ' ~
limitation is sufficient to issue bonds i.,'1 the amount required by the agreement, and which also
satisfy the requiremems stated in Section 995.660 of the Code of Civil Procedure, except as
provided otherwise by laws or regulqtions. All bonds signed by an agent must be accompanied
by a certified copy of such agent's alimority to act. Surety companies must be duly licensed or
authorized in the jurisdiction in which the Project is located to issue bonds for the limits so
required. Form must be satisfacwr; to the Risk Manager or City Attorney w'hich amount is
indicated in the space adjacent to me term, "Performance Bond", in said Exhibit A, Paragraph 18.
Letter of Credit
In me event that Ex..c':1ibit A, at Paragraph i8, indicates the need for Tnird Party
AdministratOr (TPA) to provide a L~tt~r of Credit (indicated by a check mark in the parenthetical
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Page 5
space immediately preceding the subparagraph entitled "Letter of Credit"), then TP A shall
provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion
by submitting to the b3J.J.k a letter, signed by the City ?vlanager, stating thar the TPA is in breach
of the terms of this Agreement. The letter of credit shall be issued by a ban..l<, and be in a form
and amount satisfactory to the Risk Manager or Cirj Attorney which amount is indicated in the
space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph 18.
Other Security
In rhe event that Ex...hibit A, at Paragrapb 18, indicates the need for TPA to provide
security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the
parenthetical space immediately preceding the subparagraph entitled "Other Security"), then
TP A shall provide to the City such other seclliity therein listed in a form aild amoumsatisfactory
to the Risk Manager or City Attorney.
H. Business License
TF A agrees to obtain a business license from the Ciry and to othenvise comply with Title 5
of the Chula Vista Municipal Code.
2. Duties oHhe City
A. Consultation and Cooperation
City shall regulariy consult the TP A for the purpose of reviewing the progress of the Defined
Seriices and Schedule therein contained, aild to provide direction and g11idance to achieve the
objectives of this agreement. The Ciry shall permit access to its office facilities, files and records
bv TP A throuO'hout the tertr' of the a2IecITlent. In addition thereto, City azrees to provide the
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information, data, items and materials set forth on Exhibit A, Paragraph 9, and wit.h the further
understanding that delay in the provision of these materials beyond thi.l. LY (30) days after
authorization to proceed, shall constirute a basis for the justifiable delay in the TPA's
perfowlance of this agreement.
B. Compensation
Upon receipt of a properly pre?ared billing from TP A submitted to the Ciry periodically as
indicated in Exhibit A, Paragraph 17, qut in no event more frequently than monthly, on the day
of the period indicated in Exhibit A, J"aragraph 17, Cir-j shall compensate TPA for all services
rendered by TPA according to the terms and conditions set forth in Exhibit A, Paragraph 10,
adjacent to the governing compeasation relationship indicated by a "checkmark" next to the
appropriate arrangement, subject to the requiremeats for retention set forth in Paragraph i8 of
Exhibit A, and shall compensaie TPA for out of pocket expenses as provided in Exhibit A,
Paragraph 11.
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Page 6
All billings submitted by TPA shall comai;1 sufficient information as to the propriety of the
billing to permit the City to evaluate that the a;nount due and payable hereunder is proper, and
shall specifically contail1 the City's account nlli-nber indicated on Exhibit A, Paragraph l7(C) to
be charged upon making such paymem.
3. Adl11iI1jstration of Contract
Each party designates the individuals ("Contract Adminisrrators") indicated on Exhibit A,
Paragraph 12, as said party's contract administrator who is authorized by said party to represent
them in the routine aa.Iuinisrrarion of this agreement.
4. Tenn
The term of this Agreemem is from October 14, 2008 through May 31, 2010. The
Agreement may be extended tor three (3) additional one (1) year periods upon approval by the
City Manager iIl.his/her sole discretion.
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages RaIe is provided in Exhibit A,
Paragraph 13.
It is acknowledged by both parties thar time is ot the essence in the completion of this
Agreement. It is difticu!r to estimate the amount of damages resultLl1g from delay m
performance. The panies have used their judgment to aJ.1~ve ar a reasonable aJ.-noum: to
compensate for delay.
Failure to complete the Defined Services within the allotted time period specified in this
Agreement shail result in the following penalty: For each consecutive calendar day in excess of
the time specitied tor the completion of the respective work assignment or Deliverable, the TP A
shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate
provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate").
Time extensions for delays beyond G'Je TPA's control, other than delays caused by the City,
shall be requested in ""Titing to the City's Contract Ad1llinistrator, or designee, prior to the
expiration of the specified rime. Extensions of time, when granted, will be based upon the effect
of delays to the work and will not be granted for delays to minor portions of work unless' it can
be show'n that such delays did or will qelay the progress of the work.
6. Financial Interests ofTPA
A. Third Patty Administtator (TPA) is Designated as an FFPC Filer
IfTPA is desIgnated on Ex..hibit A, Paragraph 14, as an "FPPC filer", IPA is deemed to be a
"Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure
provisions, and shall report economic interests ro the City Clerk on the required Sta[emem of
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Page '7
Economic L'1teres~s in such reporting categories as are specitled in Paragraph 14 of Exhibit A, or
if none are speciiled, then as determined by the Ciry Attorney.
B. Decline to Participate
Regardless of whether IPA is designated as an FPPC Filer, TPA shall not make, or
participate in ma.1<:L'1g or in any way attempt to use TPA's posiTion to influence a governmental
decision in which IP A k.l10wS or has reason to know TP A has a financial interest other than the
compensation promised by this Agreemem.
C. Search to Determine Economic Interests
Regardless of whether IPA is designated as an FPPC Filer, TPA warrants and represents that
IP A has diligently conducted a search and invemory of TPA's economic interests, as the Ierm is
used in the regulations promulgated by the Fair Political Practices Commission, and has
determined iliaI.IP A does not, to the best of TPA's knowiedge, have an economic i...,terest which
would contlict 'Ii-ith IPA's duties under this agreement.
D. Promise Not IO Acquire Conflicting Interests
Regardless of whether IPA is designated as an FPPC Filer, TPA further warrants and
represents that TPA ,vill not acquire, obtain, or assume an economic imerest during the term of
this Agreement which would constitute a cont1ict of i..,terest as prohibited by the Fair Political
Practices Act.
E. Duty to Advise of Cont1icting Lcterests
Regardless of whether IPA is desigr,ated as an FPPC Filer, IPA fuTIher warrams and
represents that TPA will immedialely advise the City Attorney of City if IPA learns of an
economic iI1terest of TPAls that may result in a conflict of interest for the Durnose of the Fair
. ~ -.I . ..
Political Practices ~A..ct, aIl0 regulations promulgated hereunder.
F. Specific Warranties Agai...,st Economic Imeresls
TPi~'~ \varrants and represenTs that neither TPA, nor TPA's irnJ.'11edi2.te family members, nor
TPA's employees or agents ("TPA Associates") presently have any interest, directly or indirectly,
w-hatsoever LTl any property which may be the subject matter of the Defined Serv-ices, OT in any
properDj within 2 radial miles from the exterior boundaries of any property which may be the
subject matter of the Detlned Services, ("Prohibited LTl,erest"), other Ihan as listed in Exhibit A,
Paragraph 14.
Third PaaY Administrator (TPA) further warrants and represents that no promise of PJture
employ IPA Associates in connection with TPA's pertormance of Ihis Agreemem. IPA
promises to advise City of any such promise that may be made during the Term of this
Agreement, or for tlivelve months thereafter.
4-15
P8.ge 8
TP A agrees that TP A Associates shall not acquire any such Prohibited Interest within the
Term oPhis Agreement, or for t\velve months after the expiration of this Agreement, except with
the ""Titten perrrission of City.
TPA may not conduct or solicit any business for any pfu--ty to this Agreement, or for any third
party that may be in conflict with TP A's responsibilities under this Agreement, except with the
written permission of City.
7. Hold Harmless
TPA shall defend, indemnify, protect and hold harmless the Ciry, its elected and appointed
officers and employees, from and against all claims for damages, liability, cost and expense
(including without limitation attorneys fees) arising out of or alleged by third parties to be the
result of the negligent acts, errOtS or omissions or the willful misconduct of tile TPA, and TPA's
employees, subcontractors or other persons, 'agencies or ilTffis for whom TPA is legally
responsible in connection with the execution of the work covered by this Agreement, except only
for those claims; damages, liability, costS and expenses (includLl1g without limitations, attorneys
fees) arising from the sole negligence or sole willfcll misconduct of the City, its 'officers,
employees. Also covered is liability arising from, connected with, caused by or claimed to be
caused by the active or passive negligent acts or omissions of the City, its agents, officers, or
employees which may be in combination with the active or passive negligent acts or omissions
of the TPA, its employees, agents or officers, or any third pfu--ty.
With respect to losses arising from TP A' s professional errors or omisslOns, IP A shall
defend, indemnify, protect and hold harmless the City, its elected and appointed officers and
employees, from and against all claims for damages, liability, cost fu"1d expense (including
without limitation attorneys fees) except for those claims arising from the negligence or willful
misconduct of City, its officers or empioyees.
, TP A's indemnitlcation shall include any and all costs, expenses, attorneys fees and liability
incurred by the City, its officers, agents or employees in defending against such claims, whether
the same proceed to judgment or not. TPA's obligations under this Section shall not be limited
by any prior or subsequent declaration by the TPA. TPA's obligations under this Section shall
survive the termination of this Agreement.
For those professionals who are required to be licensed by the state
engineers), the following indemnification provisions should be utilized:
(~ a architects and
"'!:"
(I) Indemnification and Hold Harmless Agreement
"Vith tespect to any liability, including but not limited to claims asserted or costs, losses,
attorney fees, or payments for injury to any person or property caused or claimed to be caused by
the acts or omissions of t.':1e Third Party Adlninistrator (TPA), or TPA's employees, agents, and
officers, arising out of any services performed involvL'1g this project, except liabiEt)' for
Professional Services covered under Section 7.2, the TPA agrees to defend, indemnify, protect,
and hold harmless'the City, its agents, officers, or employees from and against allliabiiity. )Jso
4-16
Paze 9
covered is liabiliey arising from, connected with, caused by, or claimed to be caused by the active
or passive negligent acts or omissions of the City, its agents, officers, or employees which may
be in combiIlation with the active or passive negligent acts or omissions of the TPA, its
employees, agents or officers, or any third parcy. The TPA's duey to indemnify, protect a.ild hold
harmless shall not include any claims or liabilities arising from the sole negligence or sole willful
misconduct of the City, its agents, officers or employees. This section in no way alters, affects or
modifies the TPA's obligation and duties under Section Exhibit A to this Agreement.
(2) Indemnitication for Professional Services.
As to the TPA's professional obligation, work or services iIlvolving this Project, the
Consulram agrees to indemnify, defend and hold harmless the City, its agents, officers and
. employees from and against any and all liability, claims, costs, and damages, including but not
limited to, attorneys fees, that arise out ot~ or perrain to, or relate to the negligence, recklessness
or 'Nillful misconduct of Consultant and its agents in the performance of services under this
agreement, but this indemnity does not apply liability for damages for death or bodily injury to
persons, inju..-y to propercy, or other loss, ariSD.,g from the sole negligence, willful misconduct or
defects in design by City or the agents, servants, or independent contractors who are directly
responsible to Ciey, or arising from the active negligence ofCiey.
8. Termination of Agreement for Cause
If, through any cause, TPA shall fail to fulfill in a tD.'1lely and proper marLTJer TPA's
obligations under LlJ.is Agreement, or if TPA shall violate any or the covenants, agreements or
stipulations of this Agreement, City shall have the right to terminate this Agreement by giving
written notice to TPA of such termination and speciE/ing the effective date thereof at least five
(5) days before the effective daLc of such termination. In that event, all tinished or un!lnished
documents, data, studies, surveys, drawings, maps, reports and other materials prepared by TPA
shall, at the option of the Ciey, become the propercy of the Ciey, and TPA shall be entitled to
receive just and equitable compensation for any work satisfactorily completed on such
documents and other materials up to the effective date of Notice of Termination, not to exceed
the amounts payable hereutlder, and less atly damages caused City by IF A's breach.
9. Errors and Omissions
In the event that the City Administrator determines that the TP As' negligence, errors, or
omissions in the performance of wor;<. under this Agreement has resulted in expense to City
greater than would have resulted if th~re were no such negligence, errors, omissions, TP A shall
reimburse Ciey for any additional expenses incurred by the Ciey. Nothing herein is intended to
limit City's rights under other provisions of this agreement.
10. Termination of Agreement for Convenience of City
City ffi2Y terminate this AgreeIT~ent at any tinIe and for any reason, by giving specific written
notice to Third Parcy Administrator (TPA) of such termination and specifying the effective date
thereof, at least thirry (30) days before the effective date of such termination. hI that event, aU
4-17
Page 10
finished and un!lnished documents and other materials described hereinabove shall, at the option
of the CIty, become City's sole and exclusive property. If the Agreement is terminated by City as
provided in this paragraph, TPA shall be entitled to receive just aD.d equitable compensation for
any satisfactory work completed on such documents and other materials to the effective dare of
such termi.llation. TPA hereby expressly waivesa11Y an.d all claims for damages or compensation
arising under this Agreement except as set forth herein.
11. Assignability
The services of TP A are personal to the City, andTP A shall not assign aIlY interest in this
Agreement, and shall not transfer any i.llteresr in the same (whether by assignment or novation),
without prior written consent of Clr-f.
City hereby consents to the assignment of the portions of the Defined Services identiIled in
Exhibit A, Paragraph 16 ro the sub consultants identi!led thereat as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems
and any other materials or properties produced under this Agreement shall be the sole and
exclusive property of City. No such materials or properties produced in whole or in part under
this Agreement shall be subject to private use, copyrights or patem rights by TP A in the United
States or in any other country without the express written consent of City. City shall have
unrestricted authority to publish, disclose (except as may be limited by the provisions of the
Public Records Act), dist.tibute, and othenvise use, copyright or patent, in whole or in part, any
such reports, studies, data, statistics, forms or other materials or properties produced under this
Agreement.
13. Independent Contractor
Cir-f is interested only in the results obtained and IPA shall perform as an independent
contractor with sole control of tL'1e manner and means of performing the services required under
this Agreement. City mainiains the right only to reject or accept TPA's work products. TPA and
any of the TPA's agems, employees or representatives are, for all purposes under this Agreemem,
an independent contractor and shall not be deemed to be an employee of City, and none of them
shall be entitled to any benefits to which City employees are entitled including but not limited to,
overtime, retirement benefits, worker's compensation benetlts, injury leave or other leave
benefits. Therefore, CIty will not with;b.old state or federal income tax, social securiry tax or any
other payroll tax, and TP A shall be soleiy responsible for the payment of same and shall hold the
City harmless with regard thereto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this agreement, against the City unless a
claim has first been presented in writing and med with the City and acted upon by the City in
accordance wiih the procedures set fOfT.n in Chapter 1.34 of the Chula Vista Municipal Code, as
4-18
Page 11
same may from time CD time be amended, me provIsions or" which are incorporated by mis
reference as if fully set forth herein, and such policies and procedures used by the City in the
implementation of same.
Upon request by City, Ihird Party Administrator (II'A) shall meet and confer in good faim
with City for the pUI1lose of resolving any dispute over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result in litigation, it is agreed that the
prevailing party shall be entitled to a judgrnent against the other for an amount equal to
reasonable attorney's fees and court costs incurred. The "prevailing parry" shall be deemed to be
the parry who is awarded substantially the relief SOUghL
16. Statement of Costs
1-1 the event that TP A prepares a report or document, or participates in me preparation of a
report or document in performing the Defmed Services, II' A shall include, or cause the inclusion
of, in said report or document, a statement of [he numbers and cost in dollar amounts of all
conrracts and subcontracts relating to the preparation of the report or document.
17. Miscellaneous
A. I1'A not authorized to Represent City
Unless specifically authorized in writing by City, IFA shall have no authority to act as City's
agent to bind City to any contracmal agreemems whatsoever.
B. I1'A is Real Estate Broker and/or Salesman
If the box. on Exhibit A, Paragraph 15 is marked, \:.tle TPA and/or their principals is/are
licensed with the State of California or some other state as a licensed real estate broker or
salesperson. Otherwise, IF A represents that neither IF A, nor their principals are licensed real
estate brokers or salespersons.
C. Notices
All notices, demands or requests: provided for or p"rmitted to be given pursuam to this
Agreement must be in 'Nriting. All notices, demands and requests to be sent to any parry shall b"
d"emed to have been properly given or served if personally served or deposited in the United
States mail, addressed to such part)', postage prepaid, registered or certitied, with return receipt
requested, at the addresses identifIed h"rein as cue places of business for each of the designated
parties.
4-19
Page 12
D. Entire ~~greement
rnis Agreement, together with a..TlY ou'1er written document referred to or contemplated
herein, embody the entire Agreement and understanding benveen the parties relaring to the
subject matter hereof. Neither this Agreement nor any provision hereof may be amended,
modified, waived or discharged except by an insrrulnem in writiL'1g executed by the parry againsr
which enforcement of such amendment, waiver or discharge is sought.
E. Capacity of Pa..rties
Each signatory and paw; hereto hereby warra..'1ts and represents to the other pa.c-ty that it has
legal authority and capacity and direction from its principal to enter into this Agreement, and that
all resolutions or other actions have been ta..\en so as to enable it to enter into this Agreement.
F. Governing Law/Venue
This Agreemem shall be governed by and consrrued in accordc.nce with the laws of the State
of California. Any action arising under or relating to this Agreement shall be brought only in the
federal or srate courts located ill San Diego County, State of California, and if applicable, the.
City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance
hereunder, shali be the City of Chula Vista.
(Ei\iD OF AGREElVIENT. l"o'EXT PAGE IS SIGNATURE PAGE.)
4-20
Page 13
S ignarure Page
to
Agreement bcnveen
City of (hula Vista
and
Creative Benct1ts, A V'/age \Norks Company
!orFlexible Spending Account (fSA) a11d COBRA and Retiree Plan Administration
IN WITNESS \,ilHEREOF, City and TPA have executed this Agreement thereby
lndicating that they have read and understood same, atl.d indicate their full and complete consent
to its terms:
Dated:
City of Chula Vista
Bv,
"
Cheryl Cox. Mayor
Attest:
Donna Noms, City Cierk
Approved as to form.:
Ban lViiesfeld, Interim Cir:y P'.ITornev
Dated:
Creative Benetlts, 8. \VageV\;'orks
Company
\'~ ~J'\ J ()
8y~~\ ----< ,~
(, . - ", I P " .,
"", J~a.)" L. Vlete_~ resldent
'----'
By:
Exhibit List to .j,,,greemem
(X) Exhibit A,
P2.ge 14
4-21
Ex]1jbit A
to
Agreement between
City ofChula Vista
and
Creative BeneD!s, a Viage Works Company
l. Effective Date of Agreement: October 14, 2008
2. City-Related Entity:
(X) City of Chula Vista, a mu.11icipal chartered corporation of the State of California ("City")
3. Place of Business for City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
4. Third Party Administrator: Creative Benefits, a Wage Wor:<:s Company
5. Business Form of Third Party Adrojnistrator:
(X) Corporation No longer a Sub S Corporation effective 9-16-2008
6. Place of Business, Telephone and Fax Number of Third Parry Administrator:
956 Vale Terrace Drive, Vista, Ca 92084
Voice Phone: (760) 509-0132
Fax Phone: (760) 414-3002
7. General Duties:
To administer the City's Flexible Spending Account, COBRA. and Retiree Plans as described
in Paragraph 8, Scope of Work and Schedule below.
8. Scope of Work and Schedule:
A. Detailed Scope of VVork:
TPA shall pertorm the following tasks to ,he satisfaction of the Director of Human
Resources:
4-22
Page 15
1. Flexible Soendlll!?: Accounts (FSAl Administration
a) TP A shall administer the FSA on a Januarj I drrough December 31 Plan year, with a run-
out period up to March 15 of me following year. IF A shall allow employees to submit
claims up to March 31 of the following year.
b) IP A shall store employee L'lformation reiated to enrollment.
c) TPA shall provide ciaim forms to employees for submission ofciaims.
d) TPA shall process reimbursements for health care and dependent care on a weekly basis.
e) TPA shall process existing elections, new hire eiections and elections of employees with qualified
starus changes during the year pursuant w the City's eligibility determination. .
f) IPA shall use reasonable care to guard against fraudulent or erroneous ciaims. TPA has delivered
to the Cit! a detailed program outlining the steps it will take to guard against fraudulent or
erroneous claims. The City has reviewed this pre gram and made any necessary additions or
deletions. TPA shall make available to the Clty Employee Benet!ts Manager appropriate reports
and notifications in \vriting tf it believes that mere has been a fraudulent or erroneous clailn or a
participant is later reimbursed by his or her health provider, within five days of discovery of the
potential fraudulent or erroneous claim.
g) TPA shall.ensure strict compliance with HIP,"...A. Privacy Act. TPA has provided to the City a
detailed program outlining its HIP AA Compliance security procedures and privacy authorization
processes for handling Protected Health Information (PHI). IP A outlined the physical,
administrative and technical safeguards in place to protect PHI. IP A shall not release any PHI to
any agent, service provider and/or vendor unless authorized by the covered employee or r.,quired
by law.
h) TPA shall accept the City's electronic fund transfer (EFT) eligibility file on a weekly basis. TPA
shalll advise the City of furrding amounts for the account.
t) TP A shall provide an Explanation of Bendits statement JO employees "vith every claim
submission. IPA shall advise employees in writing the reason for any denied claims due to
inadequat.= substantiation Of data submission and provide for an adequate period of time for the
employee to resubmit the claim.
j) IPA shall provide a wll-free service number to employees and ensure that employees have on-
line access to their account stmement, current balances, claims activity, and other relevant
information.
k) TPA shall respond to inquiries by empioyees of the City about benefits available and the
procedure for proper submission of claims in a timely manner.
i) IPA shall provide marketing materials to the City tor distribution to all empioyees.
m) IP A shall accept claims via mail, fax and/or scanned emaiL
n) TPA shall offer direct deposit and/or regular check reimbursements to employees. TPA shall
prepare and mail to employees the checks for payment of eligible claims.
0) TP A shall guarantee that the turn-around time for yrocessing claims ~vill be one week from the
date of submission.
p) TFA shall waintain records and accounts ofi:he Plan's operation and prepare and deliver to the
City periodic Client Reports Including, but not limited to, standard reports, election and payroll
processing reports, Participant Baiance R~port, Reimbursement Register, Reimbursement for
Health Care, Reimbursement for Dependent Care, Non.Discrimination Testing upon reques1: and
provision or requested data and pian year reconciliation reports (only if CB maintains the ban.~
account).
q) IPA shall prepare and deliver a Forfeirure Report co the City at year-end.
r) TP A shall reconcile year-end accounts and provide a written report by May I" for the previous
plan year.
s) TPA shall attend at least tvvo Open Enrailment meetings a[ the City dUTh!g the month of
November.
4-23
Page i 6
t) TP A shall conduct annual non-discrimination testing for both health and dependent care accounts
and provide an annual written report of the results orthe tests to the City. The testing shall
include pre-ta;-, benefits, Health Care Spending Account and Dependent Care Spending
Account plans. IP A shall perform the testing after annual open enroihnent and provision
of the requested data from the City.
u) TF A shall meet with the City stat! on a..'1 annual basis to review products, discuss services and
changes in legislation.
v) TPA shall ensure that only designated City staff has access to all City records ror auditing
purposes.
II. COBRA. Administration
a) TP A shall generate and ensure delivery of the rnitia! Notice of COER.". Righ[s to participants.
The initial Notice of COBR.". RightS shan include: Beneiit availability
o Benefit cost - initial premium notice with payment coupon
b) TPA shall generate and ensure deliverj to pa.rticipants of other communications if necessary
including: .
o U:nderpaymem letter to par'icipant
o Cancellation letter upon
i. Failure to reply
11. Failure to make initial payment
ill. Failure to ma.~e regular payment
lV. Attainment of the end of eligibility period
o Premium change letter with new coupons
o Conversion Notirlcation Letter
o N{edicare Part D Credible Coverage Notic~s
o Medicare Eligibility Letter
o HIP AA Certificates
c) TPA shall perform billing and premium collection functions, including:
o Establish and maintain records
o Receive and provide accounting of premium payrr'tents
o Disburse PJnds to City for remittance to insurance carriers
d) TP A shall provide monthly reports to the City which shall include:
o Participan[ Enrollment
o Participant payment history
o Past Due accounts
o T enninations
o Notification of letters sen;'
e) TPA shall perform open enrollment tasks for COBRA participants including the preparation and
delivery to participants of the announcemem of open enrollment, preparation of iniormation
regarding insurance plan coverage for the fonowing plan year, arid processing open enrollment
changes.
f) TPA shall maimain strict compliance with Federal Law ''lith regard to COBRA administrative
duties
g) TPA shall provide a toil-free service number to participams.
4-24
Pc:ge 17
h) TPA shall meet with the Ciry staff on an annual basis to review products, discuss services and
changes in legislation.
i) TPA shail ensure that only the Cit'j designated Human Resources staff has access to all Ciry
records for auditing purposes. TPA shall ati:end at least t\vo Open Enrollment meerings in
conjunction with FSA open enroilmem mee(ings ar the Ciry during the month of November.
j) TPA shall provide a toll-free service number to p2.i'iicipac"1IS.
Ill. Retiree Administration
a) TP A shall generate and ensure delivery of letters to retirees that include the following:
o Election notice - upon qualitication for retiree plans
.;] Benefit cost - initial premium notice with payment coupon
b) TP A shall generate and ensure delivery of other communications to retirees if necessary
including:
o Underpayment letter
o Reminder letter (if past due)
.;] Canceliarion lerrer upon
. Failure to reply
Failure to make initial payment
11 Failure to make regular payment
11 Attainment of the end ofc!igibilil'j per~od
o Premium change lener with new' coupons
c) TPA shall perform billing and premium collection functions, including:
o Estab lish and maintain records
o Receive and provide accouu{irrg ofprernium payments
o Disburse funds to City for remittance to insurance carriers
c) IP A shall provide monthly writt~n r~ports to the City which shall indude:
o Participant Enrollment
o Participant payment historj
o Past Due accounts
o Terrr11nations
B. Date for COl11..mencement ofT?~;. Sell/lces:
(V') Same a- Ff""~tl"'-' D~l' 0"'.\ VToome~~
..'\.. ~.!,_ ~ _~-1."-"- 1 '- a.... 1 ."'"\.~ '"''"'U~ .!..it
( ) Other:
,
C. Dates or Time Limits for Delivery of Deliverabies: Not applicable
D. Date for completion of all TPA services:
The term or this Agreement is from October 14, 2008 (Mough May 31,2010. The Agreement
may be extended for three (3) additional one (1) year periods upon approval by the Cirf Manager
in his/her sole discretion.
4-25
Page 18
9. Materials Required to be Supplied by City to TPA:
(X) All available documents related to the administration of the City's Flexible Spending
Accounts, COBRA.. and Retiree Plan including related City policies and procedures
pursuant HIPA..A. regulations.
10. Compensation:
A. ( ) Single Fixed Fee Arrangemem.
B. ( ) Phased Fixed Fee Arrangemem.
C. ( ) Hourly Rate ,'\.rrangement
D. (X) Administrative Pricing
For the performance of all the Derined Services by the Third Party Adrrinistrator (TPA) as
herein required, the TPA shall be compensated for all the Defmed Services as follows:
Flexible Spending Account Administration Services
1. Set-Up Fee: None
2. Ongoing Administration Fees
a. TP A shall bill the City in advance ror me following momh.
Number of
ParticiDants
50i-l,000
Monthly Fee
per FSA Participant
$4.75
3. Enrollment Meetings:
a. One enrollment meeting is provided at no charge.
b. Each subsequent meeting is S50
'c. Teleweb seminars provided at no charge.
4. Benefit Fair:
a. One fair is provided at no charge.
b. Each subsequent fair is $200 for Dlll day; $ i 00 for half-day.
5. Plan Document and SUTTh-nary of Plan Document (SPD) Preparation
a. Included at no charge uPon initiation of Plan
6. Discrimination Testing
a. Standard testing provided annually at no additional cost
7. Customized reports provided on a time and expense basis, quoted in advance.
8. Miscellaneous
4-26
Page 19
a. Stop payment processing fee of $15 (1..11 addition ~o &""1]" bank charges) upon me
City's request if made within 30 days of the date the check ,vas processed. There
will be no charge [0 City if observing the 30-day waiting period.?
b. Retrieval of particip2J.1Ls records are charged a! $50 after pian designated run-out
period. (Isn't this excessive)
9. Upon Plan Termination:
a. Upon plan termin.ation,clainl adjudication run-out fees are 100% of the monthly
administrative fees.
b. Fee based on the number of active participants for the month prior to termillation.
COBR~ Administration Services
1. Sel-Up Fee: None
2. Ongoing Administration Fees
Fees based on number of active employees of the City who, if lhey or their dependents
had a qualifying COBRA event, would be eligible for COBRA. continuation plus the
number of enrolled as plan qualified beneficiaries (PQB). TPA shali billt'1e City in
advance for rhe following month.
Momhly Fee
oer COBR.'\. Particioam olus POBs
SO. 50
3. Relaled Fees:
a. In addition to above fee, TPA shall retain tb,e 2% COBRA administrative fees
added to the PQB premium rates.
~ A_i1I1ual Re-Enrollment Fee: $8.00 per COBRA PQB
a. Assessed upon commencement of open enrollment
Retiree Administration Services
1. Sel-Up Fee: $750
a. 50% of the set-uD fee is due and pavable upon execution of this A'ZTeement
~ - -
b. Remaining balance is due within 30 days of the execution of Agreemem
2. OngoLl"1g Administration Fees
a. Fees based on number of active retirees.
b. Billed iII advance for the following month.
Number of
Retirees Enro lled
101-250
Monthly Fee
oer Re[iree Particivants
$5.50
4-27
Page 20
TP A agrees L'1at the rates described above are guaraIlteed until the Agreement expires on May
31,2008,2010. Ai'l:er L'1at date, if the Agreement is eXlended pursuant to Section 4 (Term of
Agreemem), TPA shall give the City 180-days wTicten notice of a.'lY proposed rate change.
lfthe City is not satisfied with the services provided by TPA pursuant to this Agreement, TPA
shall reimburse to the City ten percent (10%) of the service fees paid to TPA during the previous
twelve (12) months attributabk to the area of unsatisfactory service. The City shall request a fee
reimbursement by giving wTitten notice to TPA describing the details of the unsatisfactorj
service. TPA shall have 60 (sixty) days to rectify the unsatisfactory service. lfthe City remains
unsatisfied with TPA's service after the sixty-day period, the City shall make a written demand
for the reimbursement. TPA shall pay to the City t..i:1e reimbursement within thirty (30) days of
this written demand.
11. Materials Reimbursement Arrangement
For the cost of out of pocket expenses inclL1Ted by TPA in the performance of services herein
required, City shall pay TPA at the rates or amounts set forch below:
(X) None, the compensation includes ail COSts.
Cost or Race
$
$
$
$
$
$
$
$
$
$
() Reports, not to exceed $
() Copies, not to exceed $
() Travel, not to exceed $
() Printing, not to exceed $
() Postage, not to exceed $
() Delivery, not to exceed $
() Long Distance Telephone Charges, not to exceed $
. () Other Actual Identifiable Direct Costs:
, not to exceed $
, not to exceed $
12. Contract Administrators:
City: Kelley Bacon
Assistant Director of Human Resources
City of Chula Vista
276 Fourth Avenue, Chula Vista, CA 91910
Telephone: (619) 691-514.<1.
Fa;,: (619) 691-476-2348
Third Party Administrawr:
Linda Campbell Director of Client Services
4-28
Page 21
Creative Benet]ts, a \\'aze\Vorks Comnanv
- . .
956 Valle Terrace Drive
Vista, CA 92084
Telephone: (760) 509-0132
Fax: (760) 414-3002
13. Liquidated Damages Rate:
( ) S
( ) Other:
per day.
14. Stat~ment of Economic Interests, Third Parry Adn1inistrator Reporting Categories, per
Cont1ict of Interest Code:
( ) No[ Applicable. Not an. FPPC Filer.
(X) FPPC Filer
( ) Categor; No. 1. Inv~stmems and sources of income.
( ) Category No.2. Interests in real property.
( ) Category No.3. Invesrments, interest in real property and sources of income suoject
to the regulatory, permit or licensing amhorit; of the department.
) Categof'J No.4. Investments in business entities and sources of income that engage in
land developmem, conslIuction or the acquisition or sale of real property.
( ) Category No.5. Investments iTl business entities and sources of income of the type
which, within the past t,;;;o years, have contracted with the City of Chula Vista
(Redevelopment Agency) to provide services, supplies, materials, machinery or
equipment.
( ) Categof'J No.6. Investments in busi.,1ess entities and sources of income of the type
whica, wi[hin the past hvo years, have contracted with the designated employee's
department to provide services, supplies, materials, machinery or equipment.
( ) Categorj No.7. Business positions.
) Lisl ''Taird Part; Administraror (TPA) Associates" interests in real property within 2
radial miles of Project Property, if any:
15. ( ) TPA is Real Estate Broker and/or Salesman
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16, Permitted Subcontractors:
17, B ill Processing:
A, IPA's Billing to be submitted for the following period ofrline:
(X ) Monthly
( ) Quarterly
( ) Other:
B. Day of the Period for submission of Ihird Pa,1:y Administrator's (IPA) Billing:
( ) First of the Month
( ) 15th Day of each Month
( ) End of the Month
( ) Other:
C. City's Account Number:
18, Security for Performance
( ) Performance Bond, $
( ) Letter of Credit, $
( ) Other Security:
Type:
Amount: $
( ) Retention, If this space is checked, then notwithstanding other provisions to (he contrary
requiring the paymem of compensation to tile IP A sooner, the City shall be entitled to
retain, at their option, either the following HRetention Percentage I! or "Retention. ArrlountlT
until the City determines that the Retention Release Event, listed below, has occurred:
( ) Retention Percentage:
( ) Retention Amount: $
%
Retention Release Event:
( ) Completion of All TPA Services
( ) Other:
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