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'C~ OF SAN 8I!RNAR.g.O - RI!QIOsT FOR COUNCIL AQ-ION
Dept:
Personnel
HP'C""':~IHA~ndum to the Agreement with Reed,
.. .....-.. ROf1e'rts. I nc., for UnemD 1 oyment Compensa-
1,,0 Ii':) -, . ti~n Claims Administration Central Serv-
":d ...1',01 ';ces~ to chanQe of name from GAB Business
Services, Inc:, to R.E.Harrington Inc. al
extend contract through December 31, 1988
From:
Roger DeFratis, Acting Director of
Pe rsonne 1
Date:
March 3, 1988
SynopSis of Previous Council action:
Council approved the initial agreement in April, 1985, for a term of 48 months
commencing January 1, 1984.
Recommended motion:
Adopt Resolution.
~t:?v~
, Signature
Contact person: Roger DeFratis
SupportiRg !lata attached:
Phone:
5008
Ward:
FUNDING REQUIREMENTS:
Amount:
Source:
Finance:
Council Notes:
7 ~.0262
r-2:L
Agenda Item No
~I& OF SAN BERNARDQO - RI!QUaT FOR COUNCIL A~ION
STAFF REPORT
The purpose of this agreement to provide the City with a
qualified agent to represent it at administrative claim
hearings and to process all unemployment claims against the
City.
The agreement has been in effect since January 1984 at a
cost of $3,500 per year maximum. This cost is based on. the
number of full-time equivalent employees at the rate of $2.50
per employee on January 1, of each year. The 3 year contract
cost is $10,500 ($3,500 per year maximum). The claims
administrator, by submitting data to the State Employment
Development Department in the appropriate format and wording
-against- approximately 50 claims out of an approximate total
of 225 claims, resulted in the winning of 20 of these claims.
Thus the City did not have to payout approximately $32,295
in claims. The City has thus incurred a savings of
approximately $21,700 over a 3 year period.
The original contract was with Reed, Roberts Associates,
Inc., from January 1, 1984 through December 31, 19.87. On
July 22, 1986 the contract was inured to GAB Business
Services, Inc., and an addendum to the contract was signed.
GAB Business Services, Inc., has inured the contract to R.E.
Harrington, Inc. effective January 22, 1988, and the firm has
requested the contract be extended through December 1988 with
no changes.
'J~.026.
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RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN ADDENDUM TO THE AGREEMENT WITH REED, ROBERTS
3 ASSOCIATES, INC. , FOR UNEMPLOYMENT COMPENSATION CLAIMS
ADMINISTRATION AND COST CONTROL SERVICES, TO CHANGE THE NAME
4 FROM GAB BUSINESS SERVICES, INC., TO R.E. HARRINGTON, INC.
AND TO EXTEND THE CONTRACT THROUGH DECEMBER 31, 1988.
5
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
6 ITY OF SAN BERNARDINO AS FOLLOWS:
7 SECTION 1. The Director of Personnel is hereby author-
8 ized and directed to execute on behalf of said City an adden-
9 urn to the agreement with Reed, Roberts Associates, Inc., for
10 nemployment compensation claims administration and cost
11 ontrol services, to change the name from GAB Business Ser-
15 reference as fully as though set forth at length.
16 I HEREBY CERTIFY that the foregoing resolution was duly
17 dopted by the Mayor and Common Council of the City of San
18 ernardino at a meeting thereof, held on the
Inc., to R.E. Harrington, Inc., and to extend the
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through December 31, 1988, which agreement is at-
hereto marked Exhibit RAR, and incorporated herein
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20 it:
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of
, 1988, by the following vote to
AYES:
councilmembers
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23 NAYS:
24 ABSENT:
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(Continued)
28 Page 1
3-3-88
City Clerk
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3 ay of
foregoing resolution is hereby approved this
, 1988.
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7 pproved as to form and legal content:
Mayor of the city of San Bernardino
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City Attorney
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3-3-88
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ADDENDUM
TO
UNEMPLOYMENT CONPENSATION
CLAIMS ADMINISTRATION SERVICES AGREEMENT
It is agreed that the Agreement between City of San Bernardino
and Reed Roberts Associates, Inc. (as amended on 7-24-86 to
inure to the benefit of its successor, GAB Business Services,
Inc.) e~fective Januarv 1. 1984 for unemployment compensation
claims administration and cost control services, is extended
through December 31, 1988 and revised to change the claims
ad~inistrator from GAB Business Services. Inc. to R. E.
Harrinqton. Inc.
All other terms and conditions of the original Agreement will
co~tinue in effect.
Signed this
day of
, 19
.
R. E. Harrington, Inc.
President
By
Title
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A G R E E MEN T
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(Unemployment Insurance)
THIS AGREEMENT is made and entered into effective January 1,
1984, by and between the CITY OF SAN BERNARDINO, a municipal
corporation, referred to as .City., and REED, ROBERTS ASSOCIATES,
INC., a New York corporation, referred to as .Administrator..
The parties agree as follows:
1. Recitals.
A. City pays unemployment compensation taxes pursuant to
unemployment Compensation Amendments of 1976, Public Law 94-566.
B. Administrator represents to City that it is qualified
to advise City with respect to City's unemployment insurance
program.
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2. Services to be Provided by Administrator. Administrator
shall provide the following:
A. Evaluations of personnel practices, as required by
City, including review of hiring and termination procedures,
employee handbooks, union contracts, application forms, separation
forms, warning notices and other items used in day-to-day
personnel administration. After such review, Administrator shall
make appropriate recommendations for changes.
B. Claims supervision to include:
(1) Examination of each individual claim as to
eligibility, amount of claim and benefit period.
(2) Investigation and protest of all questionable
claims.
(3) Verification that unwarranted charges are not
entered against City's experience.
EXHIBIT A
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(4) Verification of the California Department of
2 Economic Development's periodic statements of amounts due.
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C. Analysis of merit rating (if under tax provisions of
4 law) which includes:
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(1) Verification of the accuracy of City's annual
6 contribution rate as assigned by the California Department of
7 Economic Development.
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(2) Study and test of procedures leading to the
9 lowest tax rating allowable, if applicable.
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D. Current reports, including:
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(1) Reconciliation of current payroll records with
12 quarterly tax reports submitted, if applicable.
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(2) Issuance of service letters relating to
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14 unemployment tax matters where pertinent.
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(3) Periodic visits to City offices to review
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procedures which will effect a complete system for the
and control of unemployment tax data.
supervision'
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E. Continuing education and training for key City staff,'
19 including instruction in changes in the law necessary to ensure
20 proper compliance.
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F. Attend all Administrative Law Judge and Appeals Board
22 hearings, whether initiated by Administrator on behalf of City or
23 by claimants in the exercise of their appeal rights. City will be
24 advised by letter as to the results of each hearing.
2.5
G. At the conclusion of each year, an annual financial
26 I analysis with appropriate details and recommendations to enable
27 City to determine whether the financing option is appropriate or
21 in need of change.
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H. A detailed quarterly computer report listing the
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I names of those individual~ who have filed for benefits and the
2 disposition of each claim. This report shall classify claims by
3 department and location within City.
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3. Services to be Performed by City. City shall promptly
~ provide Administrator with all relevant information and data that
6 it has in its possession required by Administrator.
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4. Administrator's Fee. City shall pay Administrator for
I its services an annual fee computed on the basis of the number of
9 full-time equivalent employees as of January 1 of each year at the
10 rate of $2.50 per full-time employee, except that Administrator's
II total fee for anyone year shall not exceed $3,500.00. Payment
12 shall be made in equal quarterly installments with the first
13 installment to be made on or before March 31, 1984. The annual
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14 fee shall be adjusted each year based on the number of full-time
IS equivalent employees on December 31 of the preceding year.
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5. ~. This agreement shall be for a term of 48 months,
17 commencing on January 1, 1984, and continuing through December 31,
II 1987. The City shall have the option to renew this agreement
19 under the same terms and conditions and for a like term by giving
20 written notice to Administrator at least sixty (60) days prior to
21 the expiration date of this agreement. Notwithstanding the
22 foregoing, City shall have the right to terminate this agreement
23 at any time upon thirty (30) days' advance written notice to
24 Administrator.
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6. Accounting Records. Administrator shall maintain record I
26 of all expenditures made pertaining to its services under this
27 agreement. Said records shall be maintained in accordance with
28 generally accepted accounting principles and shall be available ~
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1 City for its audit at all reasonable times and places.
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7. Expenses. Administrator shall bear all expenses it
3 incurs in performance of its duties hereunder and hold City free
4 and harmless for all and any liability therefor.
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8. Notices. All notices herein required shall be in writing
6 and delivered in person or sent by certified mail, postage
7 prepaid, addressed as follows:
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City of San Bernardino
300 North -D- Street
San Bernardino, CA 92418
Reed, Roberts Associates, Inc.
P.O. Box 5050
Carson, CA 90749-5050
9. Assignability. The experience, skill and expertise of
11 Administrator is of the essence of this agreement. Administrator
12 shall not assign (whether by assignment or novation) th.is
13 agreement or delegate its duties hereunder in whole or in part or
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14 any right or interest hereunder without the prior written consent
IS of City. Any assignment or attempt to assign this agreement
16 without such prior written consent or by operation of law shall
17 constitute cause for termination.
18 IN WITNESS WHEREOF, the parties hereto have executed this
/l..d
19 Agreement on the /7rL day of ~ ' 1985.'
20 CITY OF SAN BERNARDINO
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ATTEST a
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REED, ROBERTS ASSOCIATES, INC.
, Approved as to form:
By <~~~,-
Tlt1e . t/~ ~j,.:r;-
r
ttorney
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ADDENDUM TO CONTRACT
The existing contract dated April 1, 1985, between Reed
Roberts Associates, Incorporated, and The City of San Bern-
adino, shall and has inured to the benefit of its successor,
GAB/Resources Management Services, a division of GAB Business
Services, Incorporated.
(~
7-,;}.:;)-8 ~
Management Se ices.
Gerald Cunningham
Sr. Client Service Representative
Date
Au,Q/~Hve.
City of San Bernadino
7-2.f-Jt.
Date