HomeMy WebLinkAbout1995-09-12; City Council; Resolution 95-255\e ;I e e
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RESOLUTION NO. 95-255
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT
FOR HUMAN RESOURCES CONSULTING SERVICES.
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5 WHEREAS, the City Council has determined that it is desirablc
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and necessary to retain professional group benefits consulting
services.
9 NOW, THEREFORE, BE IT RESOLVED by the City Council of the
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City of Carlsbad, California, as follows:
1. That the above recitation is true and correct. 12
13 2. That the City Council approves the attached agreement
l4 (Attachment A) authorizing the retention of Towers Perrin as an
I.5 11 employee benefits consultant.
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3. That funds are available in the Human Resources
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Department budget for fiscal year 1995-96.
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Of SEPTEMBER , 1995, by the following Vote, to Wit: 7
PASSED, APPROVED, AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, on the 12th day
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AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall
NOES: None
ABSENT: None
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18 ATTEST:
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ALETHA L. RAUTENKRANZ, City Clerk
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- a 0 LA& .LL.L"ILLIYLI L LA
'L AGREEMENT
THIS AGREEMENT, made and entered into as of the first day of JI
1995, by and between the CITY OF CARLSBAD, a municipal corporati
hereinafter referred to as "City", and Towers Perrin, hereinafter refer
to as "Contractor."
RECITALS
City requires the services of Contractor to provide the necessary
professional services for the review of the City's group benefits progrl
and Contractor possesses the necessary skills and qualifications
provide the services required by the City;
NOW, THEREFORE, in consideration' of these recitals and the mL
covenants contained herein, City and Contractor agree as follows:
1. CONTRACTOR'S OBLIGATIONS
a. Contractor will examine the specific elements of the C
group benefits program, including:
- Funding (i.e., funding of reserves, etc.)
- Plan design
- Cost-containment initiatives
- Eligibility provisions . ' 1
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L - Flexible benefits
- Claims administration
- HMO/prepaid plan strategy
- Retiree coverage
- Wellness
- Employee communications
b. Contractors' responsibilities will include the followir
accomplishments:
- Meet with City Human Resources staff and bargainir
unit representatives to review overall philosophy
funding, plan design, employee(er) contribution
employee relations, etc.
- Gather necessary data from the City and insuranc
carriers.
- Evaluate current arrangements.
- Develop alternative funding and design options.
- Prepare recommendations.
c. Contractors will address the following specific issues:
- Should the City continue its current minimum premii
arrangement with present insurance?
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i - What alternative funding arrangements are available at-
how do their costs compare with your eurrer
arrangement?
- Should the funding method include some type of ric
transfer, such as specific and aggregate stop-loss?
- What type of plan changes would be appropriate in vie
of your employee relations environment?
- What plan design incentives would encourage employe
to use your program more cost-effectively?
- Should the deductible and coinsurance features
modified?
- Should eligibility provisions be modified?
- What level of employee contribution is appropriate?
- What analytical data on plan utilization will be availal
to assist you in establishing cost-containme
priorities?
- Is your current Preferred Provider Organization (PF
currently providing effective discounts?
- Are your current Long-Term Disability (LTD) and s
leave programs operating cost-effectively?
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. - How will current legislation affect your employe
benefit program?
- Does a flexible spending account for flexible benefi
make sense for the City?
- How can employee communications be designed
improve employee understanding and appreciation of yo
plans to enhance cost-effectiveness as well?
- Are the rates of the current voluntary life and Accideni
Death and Dismemberment (AD&D) program competitive
2. CITY OBLIGATIONS
The City shall provide any documents that are necessary f
Contractor to complete their scope of work.
3. PROGRESS AND COMPLETION
The work under this contract will begin within ten (IO) days aft
receipt of notification to proceed by the City and be completed within :
days of that date. Extensions of time may be granted if requested by tl
Contractor and agreed to in writing by the Human Resources Director. Tt
Human Resources Director will give allowance for documented a1
substantiated unforeseeable and unavoidable delays not caused by a lac
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L of foresight on the part of the Contractor, or delays caused by Cii
inaction ,or other agencies' lack of timely action.
4. FEES TO BE PAID TO CONTRACTOR
The amount to be paid by the City to Contractor for service
rendered under the provisions of this agreement shall be in accordanc
with the following:
a. Contractor will be paid for its services rendered pursuant t
this agreement on an hourly basis at the hourly rates set for
below:
Actuary (contractor) $250
Contractor $200
Contractor $1 60
Actuarial Specialist $1 25
Secretarial $85
Contractor will also be reimbursed for out-of-pocket expense
incurred in connection with performance of this agreement i
approved by the Human Resources Director.
b. Payments will be made by the City upon monthly billings to t
submitted by contractor documenting hours spent on th
project and reimbursable costs.
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i c. Contractor adjusts the hourly rate of its consultants and othc
staff members on an annual basis. The hourly rates outline
above will be subject to change on July I of each year of tk
agreement. Contractor may also require other Towers Perr
contractors (other than those mentioned above) to perforl
services for the City. Their hourly rates will be negotiate
with the City before any work is started.
d. Contractor shall submit monthly billings to the City.
The City reserves the right to withhold a ten percent (10%) retentic
until the project has been accepted by the City.
incremental payments, if applicable, should be made as outlined
attached Exhibit "A."
5. DURATION OF CONTRACT
This agreement shall extend for a period of one year from da
thereof. The contract may be extended by the City Manager for thrc
additional one (1) year periods or parts thereof, based upon a review
satisfactory performance and the City's needs. The parties shall prepa
extensions in writing indicating effective date and length of the extendc
contract.
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i 6. PAYMENT OF FEES
Payment of fees shall be upon delivery of services rendered. '
7. FINAL SUBMISSIONS
Within fifteen (15) days of completion and approval of the Hum
Resources Director the Contractor shall deliver the, required work to .
City.
8. CHANGES IN WORK
If, in the course of the contract, changes seem merited by 1
Contractor or the City, and informal consultations with the other pa
indicate that a change in the conditions of the contract is warranted, 1
Contractor or the City may request a change in contract. Such chanc
shall be processed by the City in the following manner: A letter outlini
the required changes shall be forwarded to the City by Contractor
inform them of the proposed changes along with a statement of estimal
changes in charges or time schedule. A Standard Amendment to Agreeml
shall be prepared by the City and approved by the City according to i
procedures described in Carlsbad Municipal Code Section 3.28.172. Su
Amendment to Agreement shall not render ineffective or invalid;
unaffected portions of the agreement.
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9. COVENANTS AGAINST CONTINGENT FEES
The Contractor warrants that their firm has not employed
retained any company or person, other than a bona fide employee worki
for the Contractor, to solicit or secure this agreement, and tl
Contractor has not paid or agreed to pay any company or person, other th
a bona fide employee, any fee, commission, percentage, brokerage fc
gift, or any other consideration contingent upon, or resulting from, i
award or making of this agreement. For breach or violation of t
warranty, the City ,shall have the right to annul this agreement withc
liability, or, in its discretion, to deduct from the agreement price
consideration, or otherwise recover, the full amount of such ff
commission, percentage, brokerage fees, gift, or contingent fee.
1 0. NONDISCRIMINATION CLAUSE
The Contractor shall comply with the state and federal la
regarding nondiscrimination.
11. TERMINATION OF CONTRACT
In the event of the Contractor's failure to prosecute, deliver,
perform the work as provided for in this contract, the City may termini
this contract for no'nperformance by notifying the Contractor by certifi
mail of the termination of the contractor. The Contractor, thereupon,. h
five (5) working days to deliver said documents owned by the City and
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- work in progress to the Human Resources Director.. The Human Resourc
Director shall make a determination of fact based upon the docume
delivered to City of the percentage of work which the Contractor b
performed which is usable and of worth to the City in having the contr
completed. Based upon that finding as reported to the City Manager,
Manager shall determine the final payment of the contract.
This agreement may be terminated by either party upon tender
thirty (30) .days written notice to the other party. In the event of SL
suspension or termination, upon request of the City, the Contractor sk
assemble the work product and put same in order for proper filing a
closing and deliver said product to City. In the event of termination, t
Contractor shall be paid for work performed to the termination da
however, the total shall not exceed the lump sum fee payable unc
paragraph 4. The City shall make the final determination as to t
portions of tasks completed and the compensation to be made.
12. DISPUTES
If a dispute should arise regarding the performance of work unc
this agreement, the following procedure shall be used to resolve a
question of fact or interpretation not otherwise settled by agreeme
between parties. Such questions, if they become identified as a part of
dispute among persons operating under the provisions of this contra1
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shall be reduced to writing by the principal of the Contractor or the Hum;
Resources Director. A copy of such documented dispute shall be forwardt
to both parties involved along with recommended methods of resolutic
which would be of benefit to both parties. The Human Resources Direct
or principal receiving the letter shall reply to the letter along with
recommended method of resolution within ten (IO) days. If the resolutic
thus obtained is unsatisfactory to the aggrieved party, a letter outlinir
the dispute shall be forwarded to the City Council for their resolutic
through the Office of the City Manager. The City Council may then opt
consider the directed solution to the problem. In such cases, the action
the City Council shall be binding upon the parties involved, althouc
nothing in this procedure shall prohibit the parties seeking remedic
available to them at law.
13. STATUS OF THE CONTRACTOR
The Contractor shall perform the services provided for herein i
Contractor's own way as an independent contractor and in pursuit (
Contractor's independent calling, and. not as an employee of the Cit;
Contractor shall be under control of the City only as to the result to k
accomplished, but shall consult with the City as provided for in tt-
request for proposal. The persons used by the Contractor to provic
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L services under this agreement shall not be considered employees of tl
Cjty for any purposes whatsoever,
The Contract0.r is an independent contractor of the City. TI
payment made to the Contractor pursuant to the contract shall be the f
and complete compensation to which the Contractor is entitled. The C
shall not make any federal or state tax withholdings on behalf of tl
Contractor or his/her employees or subcontractors. The City shall not I
required to pay any workers' compensation insurance or unemployme
contributions on behalf of the Contractor or his/her employees
subcontractors. The Contractor agrees to indemnify the City within :
days for any tax, retirement contribution, social security, overtin
payment, unemployment payment or workers' compensation payment whic
the City may be required to make on behalf of the Contractor or a1
employee or subcontractor of the Contractor for work done under th
agreement or such indemnification amount may be deducted by the Ci
from any balance owing to the Contractor.
The Contractor shall be aware of the requirements of tt
Immigration Reform and Control Act of 1986 and shall comply with tho:
requirements, including, but not limited to, verifying the eligibility f
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m - b employment of all agents, employees, subcontractors and Consultants tk
are included in this agreement.
14. CONFORMITY TO LEGAL REQUIREMENTS
The Contractor shall cause all drawings and specifications
conform to all applicable requirements of law: federal, state and loci
Contractor shall provide all necessary supporting documents, to be fill
with any agencies whose approval is necessary.
The City will provide copies of the approved plans to any 0th
agencies.
15. OWNERSHIP OF DOCUMENTS
All plans, studies, sketches, drawings, reports, and specificatiol
as herein required are the property of the City, whether the work f
which they are made be executed or not. In the event this contract
terminated, all documents, plans, specifications, drawings, reports, a1
studies shall be delivered forthwith to the City. Contractor shall have t
right to make one (1) copy of the plans for hidher records.
1 6. REPRODUCTION RIGHTS
The Contractor agrees that all copyrights which arise from creatil
of the work pursuant to this contract shall be vested in City and here
agrees to relinquish all claims to such copyrights in favor of City.
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m ., .. 17. HOLD HARMLESS AGREEMENT
The City, its elected and appointed officers and employees shall
be liable for any claims, liabilities, penalties, fines, or any damage
goods, properties, or effects of any person whatever; nor for perso
injuries or death caused by, or resulting from, or any intentional
negligent acts, errors or omissions of Contractor or Contractor's ager
employees, or representatives.
Furthermore, Contractor agrees to defend, indemnify, protect, a
hold free and harmless the City and its elected and appointed officers i
employees against any claims for damages, liabilities, penalties or fin(
costs or expenses, including liabilities or claims by reason of alleg
defects in any plans and specifications arising out of the conduct of .
Contractor or any agent or employee, subcontractors, or others
connection with the execution of the work covered by this agreeme
except only for those claims arising from the sole negligence or SI
willful conduct of the City, or its elected and appointed officers a
employees.
Furthermore, Contractor agrees to defend, indemnify, protect, a
hold free and harmless the City and its elected and appointed officers a
employees against any claims for damages, liabilities, penalties or fin€
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b costs or expenses, including liabilities or claims by reason of allec
defects in any plans and specifications arising out. of or connected w
the negligent conduct of the Contractor or any agent or employ
subcontractors, or others in connection with the execution of the w
covered by this agreement.
Contractor's indemnification shall include any and all co:
expenses, attorneys fees and liability incurred by the City, its officc
agents, or employees in defending against such claims, whether the sa
proceed to judgment or not.
Consultant shall at its own expense, upon written request by
City, defend any such suit or action brought against the City, its office
agents or employees. Contractor's indemnification of City shall not
limited by any prior or subsequent declaration by the Contractor.
18. ASSIGNMENT OF CONTRACT
The Contractor shall not assign this contract or any part thereof
any monies due thereunder without the prior written consent of the City
1 9. SIJBCONTRACTING
If the Contractor shall subcontract any of the work to be perforrr
under this contract by the Contractor, Contractor shall be fL
responsible to the City for the acts and omissions of Contractc
subcontractor and of the persons either directly or indirectly employed
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c - the subcontractor, as Contractor is for the acts and omissions of perso
directly employed by Contractor. Nothing contained in this contract sf
create any contractual relationship between any subcontractor
Contractor and the City. The Contractor shall bind every subcontrac
and every subcontractor of a subcontractor by the. terms of this contr,
applicable to Contractor’s work unless specifically’ noted to the contr;
in the subcontract in question approved in writing by the City.
20. PROHIBITED INTEREST
No official of the City who is authorized in such capacity on bet-
of the City to negotiate, make, accept, or approve, or take part
negotiating, making, accepting, or approving of this agreement, st
become directly or indirectly interested personally in this contract or
any part thereof. No officer or employee of the City who is authorized
such capacity and on behalf of the City to exercise any executb
supervisory, or similar functions in connection with the performance
this contract shall become directly or indirectly interested personally
this contract or any part thereof.
21. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent,
employee of the City, either before, during or after the execution of t
contract, shall affect or modify any of the terms or obligations herc
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under the terms of this contract.
22. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 18, "Hold Harmlc
Agreement," all terms, conditions, and provisions hereof shall inure to i
shall bind each of the parties hereto, and each of their respective he
executors, administrators, successors, and assigns.
23. EFFECTIVE DATE
This agreement shall be effective on and from the day and year f
written above.
24. CONFLICT OF INTEREST
The Contractor shall file a conflict of interest statement with
City Clerk in accordance with the requirements of the City's conflict
interest code. The disclosure category shall be Category 1: lnvestm
and Real Property.
25. INSURANCE
The Contractor shall obtain and maintain for the duration of
contract and any and all amendments insurance against claims for injur
to persons or damage to property which may arise out of or in connect
with performance of the work hereunder by the contractor, his ager
representatives, employees or subcontractors. Said insurance shall
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a . obtained from an insurance carrier admitted and authorized to do businc
in the State of California. The insurance carrier is required to have
current Best's Key Rating of not less than "A-:VI' and shall meet the Cit
policy for insurance as stated in Resolution No. 91-403.
A. Coveraaes - and Limits.
Contractor shall maintain the types of coverages and minim1
limits indicated herein, unless a lower amount is approved by the C
Attorney or City Manager:
1. Comprehensive General Liability Insurance. $1,000,0
combined single-limit per occurrence for bodily injury, personal injt
and property damage. If the submitted policies contain aggregate limi
general aggregate limits shall apply separately to the work under tl
contract or the general aggregate shall be twice the required p
occurrence limit.
2. Automobile Liability (if the use of an automobile
involved for contractor's work for the City). $1,000,000 combined sing
limit per accident for bodily injury and property damage.
3. Workers' Compensation and Employer's Liabili
Workers' Compensation limits as required by the Labor Code of the Sta
of California and Employer's Liability limits of $1,000,000 per accide
for bodily injury.
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4. Professional Liability. Errors and omissions liabil
appropriate to the contractor's profession, with a discovery period of r
less than 12 months after completion of work or termination of contra
$1,000,000 per occurrence.
B. Additional Provisions.
Contractor shall ensure that the policies of insurance requir
under this agreement contain, or are endorsed to contain, the followi
provisions.
1. The City shall be named as an additional insured on
policies excluding Workers' Compensation.
2. The contractor shall furnish certificates of insurance
the City before commencement of work.
3. The contractor shall obtain occurrence coverac
excluding Professional Liability which shall be written as claims-ma
coverage.
4. This insurance shalli be in force during the life of t
agreement and any extension thereof and shall not be canceled without
days prior written notice to the City sent by certified mail.
5. If the contractor fails to maintain any of the insuran
coverages required herein, then the City will have the option to deck
the contractor in breach, or may purchase replacement insurance or p
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* the premiums that are due on existing policies in order that the requirc
coverages may be maintained. The contractor is responsible for a1
payments made by the City to obtain or maintain such insurance and tl
City may collect the same from the contractor or deduct the amount p;
from any sums due the contractor under this agreement.
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% 2 6. RESPONSIBLE PARTIES
The name of -the persons who are authorized to give written noticc
or to receive written notice on behalf of the City and on behalf of tt
Contractor in connection with the foregoing are as follows:
For City: Ann Jensen
Human Resources Director
1200 Carlsbad Village Dir.
Carlsbad, CA 92008
For Contractor: James K. Foreman
Principal, Towers Perrin
333 Bush Street, Suite 1600
San Francisco, CA 94104
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b 2 7 .BUSINESS LICENSE . w
Contractor shall obtain and maintain a City of Carlsbad Busine
License 'for the duration of the contract.
Executed by Contractor this / 534 day 49 , -7 19 7.5:
CONTRACTOR: CITY OF CARLSBAD, a municir
corporation of the State
California
"/-b w E ES QERRrd """"__"""-
(name of Contractor)
b' ATTEST:
By: <'$** \a
(dign here)
""""""""__~ 31.4 t-l E- 5 I<, 4% @.E r-ld N -Le Q&Y&L&-
" "" ""- (print name here) ALETHA L. RAUTENKRANZ
"_"""" ru-irJc,PALjPArZNEQ ~"__- City Clerk
(title and organization of
signatory) (qe,\w e,~ $' ('c 1,'5 12 i kj)
(Proper notarial acknowledgment of execution by Contractor must t
attached.)
(President or vice-president and secretary or assistant secretary mu
sign for corporations. If only one officer signs, the corporation mu:
attach a resolution certified by the secretary or assistant secretary undt
corporate seal empowering that officer to bind the corporation.)
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b APPROVED AS TO FORM: - %
RONALD R. BALL
City Attorney
BY
Deputy City Attorney
State of Califom' County of 5wt.3- ) -1
vlclb,f'/A hI(IIELL/KI bAe&L2'
On s':Ah!GS K. f b RE M A h, a before me, @ere insert name and title of the officer), personally appeared -
personally known to me (or proved to me on the basis of satisfactory evidence) to be the perJon+ nnme(s) iskt subscribed to the within instrument and acknowledged to me that he/- exec same in hls/Wtlreir authorized capacitg&s), and that by his/b&" signaturtdd on the instru~
person&, or the entity upon behalf oi which the personfs) acted, executed the instrument.
WmsS my hand and official seal. A A,% &* - ~ A*-
Signature Jh6p? 4 &A A& -I 0 <2 f2&+,7.d 2 hnm. #%I8686 (sen]) 6 &&..+ Victoria Anielski Barb;
r? a&ip c. 1- o NOTARY PUBLIC CALlFOflNl
IlY 8 COunlY Of S311 Franclscc
kc4z$i4;1, Comm Expilc-s Julys0 19p - V~."-./ " -rrv v
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