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From:
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CIIi OF SAN BERNARDIOo - REQUEOr FOR COUNCIL AC'OoN
mfoJliAlM"'.O'F.
. ..11ft Subject: Resolution to amend agreement with The
RFn-8 AM __y~tt Company to extend agreement and
increase the maximum compensation Paid
Gordon Johnson
Director of Personnel
Personne 1
Dept:
Dab: April 6. 1988
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Synopsis of Previous Council ection:
At the meeting of the Mayor and Coirmon Council held February 4, 1985, Resolution
No. 85-58 was approved authorizing the execution of an agreement between the City
and The Wyatt Company for consulting services on City's insurance and benefit
programs.
Recommended motion:
Adopt resolution
.~;( tL-
Signa!'re .
Contact penon:
Gordon Johnson
Phone: 5161
Supporting dab attached:
Ward:
FUNDING REQUIREMENTS:
Amount: $17 .220/vr
Source: 675-131-53905
Comblned Health Servlces
Financa: tJ:.-- e,l:"" .A
Council Notes:
April 6, 1988
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Agenda Item No ~ (
75-0262
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CI'IC OF SAN BERNARDIO - REQUEC1 FOR COUNCIL AC,,-=,N
STAFF REPORT
The current agreement with the Wyatt Company expired on
February 4, 1988, The firm serves as the city's Employee
Benefit Consultant which monitors the self-funded medical,
dental, vision and life insurance programs.
The wyatt company has been extremely efficient for the past
three years, with the service being professional and timely
on all occasions. In addition to the normal duties of the
agreement the company has made itself available to perform
other professional studies outside the contract's require-
ments. Renewal of the Wyatt Company's agreement for an
additional year will ensure continuity and continued
comprehensive analysis of our self funded insurance programs.
The increase in the contract maximum from $16,400 last
contract year to $17,220 proposed for this contract year is
due to a small rate increase and our anticipated need in the
special projects area; the modification of the health benefit
booklet, and providing information to be used during negotia-
tions. This maximum amount will not be spent unless this
need develops as we only pay for services actually requested.
75.0264
April 6, 1988
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THE
COMPANY
ACTUARIES AND CONSULTANTS
EMPLOYEE BENEFITS
COMPI:NSATION PROGRAMS
EMPLOYEE COMMUNICATIONS
AOM1NISTR~TIVE SYSTEMS
RISK MANAGEMENT
INTEANATlON"L SERVICES
SUITE 300
9339 GENESEE AVENUE
SAN DIEGO. CALIFORNIA 92121
(619) 458-3900
OFFICES IN PRINCIPAL CITIES
AROUND THE WORLD
March 3, 1988
Mr. Roger DeFratis
Assistant Personnel Director
City of San Bernardino
300 North "D" Street
San Bernardino, California 92408
Dear Roger:
The purpose of this letter is to offer to renew our employee benefits (group benefits
and insurance plans) consulting and actuarial services contract with the City of San
Bernardino for an additional 12 month period of February I, 1988 to January 31,
1989.
During the past year our contract maximum was $16,400. Also during this time period
our hourly rates have increased by 5% as of October I, 1987. Based upon our time and
expense charges for the past year and projecting forward to next year, we find our
fees for service needs for 1988 need to be increased to a maximum level of $17,220
(5%).
We request that the City budget this amount for this year's contract in the event it
is needed.
Of course, we will bill only for those services actually provided and not in excess
of $130 per hour.
Please call me if you have any questions concerning this matter.
Sincerely,
THE WYATT COMPANY
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ONHnr i'~:~ ,:(r, i'r;_," ,~ll.'~
'l{~l'" ... .\;. ,.\
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Michael D. Baker
Consultant
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1 RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A THIRD AMENDMENT TO AGREEMENT WITH THE WYATT
3 COMPANY, TO PROVIDE FOR A ONE YEAR EXTENSION OF THE TERM OF
THE AGREEMENT AND TO INCREASE THE MAXIMUM COMPENSATION PAID
4 TO CONSULTANT.
5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is
hereby authorized and directed to execute on behalf of said
City a Third Amendment to Agreement with The Wyatt Company,
relating to an extension of the agreement for consulting
services on the City's insurance and benefit programs, a
copy of which is attached hereto, marked. Exhibit "A" and
incorporated herein by reference as fully as though set
forth at length.
I HEREBY CERTIFY that the foregoing resolution
was
duly adopted by the Mayor and Common Council of the City
of San Bernardino at a
meeting thereof, held
on the ____ day of
1988, by the following
vote, to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
(Continued)
01 APR 1988
Page 1
o 0 0 01
1 RESOLUTION RELATIVE TO THIRD AMENDMENT TO AGREEMENT WITH
WYATT COMPANY.
2 Page 2
3
4 The foregoing resolution is hereby approved this
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5 of
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, 1988.
Evlyn Wilcox, Mayor
City of San Bernardino
Approved as to form and legal content:
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Ci~ Attorne~Q
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01
THIRD AMENDMENT TO AGREEMENT
(Employee's Group Insurance)
THIS THIRD AMENDMENT TO AGREEMENT is entered into
between the CITY OF SAN .BERNARDINO, a municipal corporation,
referred to as "City", and THE WYATT COMPANY, a California
corporation, referred to as "Consultant".
City and Consultant agree as follow:
1. Bec~tals.
(A) City and Consultant entered into an agreement
on February 4, 1985 and a second amendment to agreement on
April 7, 1987, relating to consulting services in
connection with the City's insurance and benefit programs.
(B) The parties now desire to amend the agreement
to provide for an additional one year term and to increase
the maximum compensation provided for in said contract from
$16,400 to $17,200.
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2. ~erm. The term of th~ agreement is extended for
an additional one year period commencing February 4, 1988 and
terminating February 4, 1989.
3. Compensation.
A. paragraph II subparagraph A 1 is amended to
read:
"1. An annual
financial evaluation
of plan
results for the past plan year which sets forth a
complete accounting of
all employee benefit
dollars spent. The maximum charge under this
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paragraph 1 for all items is $6,920. The
evaluation will include, but not be limited to:
a. A breakdown of claims experience and
benefit payments, by plan, an employee versus
dependents basis.
b. An accounting of non-benefit plan costs
such as:
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(1) Insurance premiums.
(2) Special risk and pooling charges
(3) Claims administration charges
(4) Booklet, forms and printing costs.
(5) Premium taxes, where applicable.
c. An evaluation of plan expenses for claims
and non benefit costs compared with expected
contribution rates and premiums for the period.
d. Evaluation of rate and contribution levels
to support the plants) for the next plan year.
e. Development of cash versus accrual
accounting costs plan(s) and properly state plan
liabilities at year end.
f. Comparisons of expected versus actual
claims experience results."
B. Paragraph II Subparagraph A 5 is amended to read:
"5. Assistance in updating employee
communications, booklets and plan documents to
support both the insured and self-funded plans,
at a maximum charge of $1500."
C. paragraph V is amended to read:
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"v. Compensation. City shall pay to
Consultant a sum not to exceed a total of
Seventeen Thousand Two Hundred and Twenty Dollars
($17,220) for all work, including the maximum
charges set forth under paragraph A,
subparagraphs 1-8 hereinabove, and for services
involved in providing the work set forth in
paragraph B. City will only be charged for and
will only pay for these services specifically
requested by the City. Consultant shall be paid
for services in accordance with the maximum fee
set forth herein, said sum to constitute full and
complete compensation for all of Consultant's
services rendered. Consultant's hourly billing
rate shall not be in excess of $130.00 per hour.
There shall be no other compensation payable to
Consultant hereunder, and Consultant shall be
solely responsible for paying the expenses for
all services rendered to the City pursuant to
this agreement."
4. Other Provisions. All other terms, conditions and
convenants of the agreement, as amended, shall remain
the same and be in full force and effect.
DATED:
CITY OF SAN BERNARDINO
By
Mayor
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ATTEST:
City Clerk
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THE WYATT COMPANY
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By
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Title_
Approved as to form and legal content:
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9 CifY Attorn