HomeMy WebLinkAboutDocumentation_Regular_Tab 04_01/12/2012 VILLAGE CLERK'S OFFICE
AGENDA ITEM TRANSMITTAL FORM
Meeting Date: Meeting Type: Regular Ordinance #:
1/12/2012
Consent Agenda: Yes Resolution #:
Originating Department: Human Resources
AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Extension of the Gehring Group's contract as the Village's Agent of Record for its Employee Benefits Programs
for an additional 3 years to March 11, 2015.
BUDGET / FINANCIAL IMPACT:
Account #: Amount of this item:
Current Budgeted Amount Available: Amount Remaining after item:
Budget Transfer Required: i°���,��,:;,�; ,�;�s� Appropriate Fund Balance: t"�i��o� ��; �n il�:i��.
ii;'i�`,.
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
In January 2009, the Committee appointed by the Village Manager to review applications for its Agent
of Record, unanimously recommended the Gehring Group. The contract (Appendix A) comes up for
renewal on March 12, 2012 and HR is recommending a 3 year extension as they have met and
exceeded their contract obligations over the years. The Village has requested them to start exploring
alternatives to the traditional health pfans in January 2012 and it is important that their contract be
renewed prior to its expiration in the middle of the fiscal year. The Council is being asked to approve
the renewal and authorize the Village Manager to offer a letter of extension to the Gehring Group.
APPROVALS: SIGNATUR
Department Head �` , % „'
Finance Director j" '
Reviewed for Financial Sufficiency ❑
No Financial Impact 0
Attorney: (for legal sufficiency) Contract previously reviewed by Attorney
Village Manager: ...__---m.--.--_ __ _ _
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Submit for Council Discussion: ❑ � � �
Approve Item: �] �
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Deny Item: � . '." - .
SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the
number of copies you want signed and place "Sign Here" sticker on them)
Form Amended: 10/20/11
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Memo
To: Michael Couzzo, Jr., Village Manager
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From: Merlene Reid, H.R. Director ���, `
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Subject: Extension of the Gehring Group's contract as the Village's Agent of Record for
its Employee Benefits Programs for an additional3 years
Date: December 21, 2011
In January 2009, the Committee appointed by the Village Manager to review applications
for the selection of an Agent of Record for its employee benefits program, unanimously
recommended the Gehring Group. The contract (Appendix A) comes up for renewal on
March 12, 2012 and HR is recommending a 3 year extension as they have met and
exceeded their contract obligations over the years. Specifically, in addition to their contract
terms, the Gehring Group has conducted numerous workshops in respect of the ongoing
Health Care Reform, helping their clients to manage the overwhelming amount of
information coming at them. Their help with open enrollment and emptoyee claims dispute
has been outstanding, with all settlements in the Village%mployee's favor.
Based on their recommendation and experience with other clients, the Village has
requested them to start exploring alternatives to the traditional health plans in January 2012
and it is important that their contract be renewed prior to its expiration in the middle of the
fiscal year. Their customer base continues to be 95% municipalities, which makes them
more knowledgeable and responsive in respect of our needs.
All other terms and conditions will remain the same.
�P����X �
VILLAGE OF TEQLt�:STA
BROKER OF RECORD AGRF,FMH;NT
This Agreement entered into this .-�� day of March 2009, effective May i, 2009, by
and between "I'he Gchring Gr•oup, lnc., �3 E�lorida corporation, with ��f�fices located at i 1505
Fairchild Gardens �ve., I'alm 13each Gardens, l�lorida 33410, hereinafter referred to as �he
"GI�;IIIZING C;ROUP" and thc VII,I,AGE OI� "I�EQUF,STA, a munici�al corporation, with
ot�fices located at 345 Tec�uesta I)rive, "l�equesta, Fiorida 33469, hereinafter referred to as the
"VI(.I,/�Gt?."
W 1 TN I: S S E"1"H
`i'he VILI,AG�; and the Gt�HR1NG GEZOUP, in cc>nsideration o� lhe mutual coven�r�ts
contained herein and for other good and valtiable consideration, the ►•eceipt and sufficiency of
whicll is hcreby acknowledged by both parties, hereby agree as follows:
l. SCOPE OF SERVICES: "I'he VILI.AGt: and the GI�,IIkING CiROUP both
I�a�eby agree to e�ter into this A�reement whereby the GF,HRING (�ROUP will provide tl�c
VII,LnGE; with consulting and advisoiy services relative to its emp(oyee benefits programs in
accordance ���ith the Scopc of Services attached hereto as l;xhihit "f1".
2. INDEPENDE;NT CON'TRACTOR: "1'he C;I�,11K1NG GROUI' will pertorm
required services on an indcpendent contractor basis and shali bc solely responsible for sccuring
at its own expense, all necessary personnel, equiprnent and materials required to perform the
services undcr this Agreement. Such personnel shall not be considcred employees of or have <iny
contractual relationship with the VILLnGi;,. The Gt;IlR1NG GRnUP shall be responsibic for all
of its employecs' paymll ta�es to include, but not be limited to Federal Income Withhc�idinb T'ax,
Worker's ComE�ensation, F'ICn, and i�'ederal and State Unetnployment taxes. "1'he GEIIKING
GROUP is responsible for proper certification and licensure of all its officers and employces and
ior the provision of benefits, inst�rance, etc. for its officers and etnployees. /111 of the serviees
requii•ed hercundcr• shall be perfoni�ed by the GEHRING C,;ROIJF' or ur�der its supervision, and
all personncl cngaged in pertorming the services shall be fully qualified to perform such services
and shall bc licensed to per sueh seivices if required, atathori�ed or permitted uncier state or
l��cal law. 1'he GI;IIRiNG GROUP agrees that it is fiilly responsible to the V[[.I,nGE for thc
acts and/ol• omissions of subcontractors and of persons either directly or indirectly employed by
tl�c GF?I-IRING GROIIP. A11 of thc GF?1{RING GROtJ[''S personnel (and all stibconti•actors)
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while on the VILLAGE'S property will comply with all the VILLAGE'S requirements
governing conduct, safety and security.
3. COMMENCEMENT DATE; TERM; RENEWAL; TERMINATION: The
GEHRING GROUP will begin providing the agreed upon services to the VILLAGE
commencing May 1, 2409. This Agreement shall be for a term of three (3) years and may be
renewed for additional one (1) year periods at the option of the VILLAGE. This Agreement may
be terminated by either party by praviding 60 days written notice to the other party. `The 60 day
notice requirement may be waived by mutual consent of the parties which shall be reduced to
writing and executed as an addendum to this Agreement.
4. COMPENSATION: The GEHRING GROUP will be compensated for the
consulting and advisory services it performs for the VILLAGE in accordance with the Scope of
Services attached hereto as Exhibit A by payment of commissions received from the various
carriers who contract with the VILLAGE to provide coverage for VILLAGE employees. If,
upon the request of fihe VILLAGE, the GEHRING GROUP agrees to perform additional services
for the VILLAGE which are nat contemplated by the Scope of Services attached hereto as
Exhibit A, the GEHRIN'G GROUP wiil be compensated for such additional services in an
amount and rate which is mutually agreeable to the parties. Any such agreement for additional
compensation shall be reduced to writing and executed as an addendum to this Agreement.
5. COMPLIANCE WITH LAWS: The GEHRING GROUP hereby represents
that it has complied and shall continue to comply with a11 applicable Federal and State statutes
and local ordinances. Further, the GEHRING GROUP shall be solely responsible for abtaining
and cornplying with all necessary permits, approvals and authorizations required for the services
provided hereinabove under Scope of Services to be performed pursuant to the terms of this
Agreement fram any federal, state, regional, caunty or VILLAGE agency. In addition, as
provided in Sec. 287.132-133, Florida Statutes, by entering into this Agreement or performing
any work in furtherance hereof, the GEHRING GROUP certifies that it, its affiliates, suppliers,
subcontractors and consultants who will perform hereunder, have not been placed on the
convicted vendor list maintained by the State of Florida Department of Management Services
within the thirty six (36) months immediately prec�ding the date hereof. This notice is required
by Sec. 287.133(3)(a), Florida Statutes.
6. INDEMNIFICATION: The GEHRITIG GROUP shall indemnify, defend, and
save harmless the VILLAGE, its elected officials, agents, guests, invitees and employees, from
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all suits, actions, clairns, demands, damages, losses, expenses, including attorney's fees, costs
and judgments of every kind and description to which the VILLAGE, its agents, guests, invitees,
or ernployees may be subjected by reasan of personal injury, bvdily injury including death, or
praperty damage, resulting from or growing out of any intentional, negligent, reckless, or
careless act of commissian, omission, or consequential damage directly or indirectly connected
with the GEHRING GROUP, its subcontractors, its agents, or employees, and committed in
connection with the performance of the work and services contemplated by this Agreement.
7. JURISDICTIONNENUE: This Agreement sha11 be governed by the laws of
the State of Florida. Venue for the redress of any dispute arising out of this Agreement shall be
in Palm Beach County, Florida.
8. ATTORNEYS FEES: In the event a dispute arises concernir�g this Agreement,
the prevailing party shall be awarded reasanable attorneys' fees, including fees on appeal.
9. NOTICE: Notice as may be required in this Agreement shall be sufficient when
sent by certified mail or hand delivered to the Parties at the following addresses:
VILLAGE GEHRING GROUP
Village af Tequesta The Gehring Group, Inc.
345 Tequesta Drive l I505 Fairchild Gardens Ave,
Tequesta, Florida 33469 Palm Beach Gardens, Florida 33410
ATTN: Michael Couzzo ATTN: Kurt Gehrin
10. NON ASSIGNMENT: The CONTRACTOR shall nat transfer or assign its
duties, obligations or rights as cantained in the Agreement without prior written consent of the
VILLAGE.
11. ENTIRE AGREEMENT: This four (4) page Agreement, plus Exhibit A
attached hereto constitutes the entire agreement between the parties; no rnodifieation shall be
made to this Agreement unless such modification is in writing, agreed to by both parties and
� attached hereto as an addendum to this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and
year first above written.
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Wl"I'NI�;SS1;S: "I'HE GE:HItING GROUP, INC'.
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Kurt Gchring, Presi ent
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(CORPOR/1TE SEAL)
n"rTEST: VILLAGE OF TEQUF,STA
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APPROVf�U AS TO FORM AND LEGAL �'�o9T�� �,..�9'' ��.`'�
SUI I� iCIENCY ��4'F���F„FL��°�
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Village Attorncy
Y:ldocs��l equestalAgreemenisA�,reemenC Gehrin�t Group 2009.doc
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i EXHIBIT A
' SCOPE OF SERVICES TO BE PROVIDED BY GEHRING GRUUP
; A. Conduct detailed review, �nalysis and projection sessions with decision makers �t key points
` throughout the year: mid-year, fourth quarter, and pre-renewal.
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; B. Negotiate renewal rates, benefits, and services with group insurance carriers to maximize
value for the VILLAGE.
C. Attend andior conduct group insurance committee meetings with employees and
� management. Conduct review sessions and renewal negotiations based on experience
' periods.
D. Include in the process:
a. Planningldiscussian with Human Resources
b. Di�citssfdn� with employges
c. Discussions with VILLAGE Management Leadership Team
d. Mid-year review/analysis/projection
e. Fourth quarter review/analysis/projection
f. Present original renewal off'er from current carrier
g. Negotiate renewat options(present to VILLAGE
h. Conduct format RFQ process, if directed
; i. Assist in analysis of Proposals
j. Renegotiate with carrier, if directed
k. Present information to VILLAGE Council, if directed
l. Coordinate contract processing
E. Provide review/analysisiprajection sessions to include:
a. Projected renewal costs
b. Enrollment analysis and comparisons
c. Claims analysis and comparisons
d. High cost claim summary
e. Network utilization and cost avoidance reports
F. Support the VILLAGE administrative staff by resolving important enrollment and billing
problems.
G. Serve the VILLAGE's employees by resolving individual benefit delivery issues including
special problems with providers and clairns.
H. Provide feedbaek to the VILLAGE's administrative staff an the results of wark on behalf of
individual employees.
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I. Update VILLAGE on changes in applicable laws and haw they affect VILLAGE benefits.
d. Conduct benefits surveys, if directed, for cornparing ViLLAGE benefits with other agencies
and campanies.
' K. Conduct periodic on-site meetings with employees andlor dependants on a voluntary basis
� far individual claim resolution and benefits counseling.
� L. Assist with annual employee open enrallment meeting for the purpose of supporting and
• improving service to employees.
� M. Provide Experience Utilization Reports to VILLAGE (at least quarterly).
. N. Pravide detailed quarterly reports analyzing plan revenues, claims, and administrative
expenses in a format that is easy to understand and helpfizl in decision-making.
- O. Be avaitable for questions, explanations, discussions, and respond to requests flrom Human
� Resaurces within the time frame requested.
P. Provide guidance and assistance with COBRA compliance and administration.
Q. Provide administration (or pay for administration services) for COBRA. voluntary benefits,
Leave of Absence voluntary benefits, and Retiree voluntary benefits.
R. Additionai Services:
Continuous Plan Analysis
Consistent Client Contact �
. Development of Requests for P�roposalsJQuotes
Plan & Proposal EvaluatiQn
Plan Renewals & Effective Negotiations .
Program Implementation
Ongaing Service
On-site Service �
� Employee Surveys ,
Displacement Analysis
Employee Benefits Handbook
In-House Graphics Deparlment — Professional Employee Communications
Legislative Compliance & Updates
Produce Formal Proposals / Make Presentations
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