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RESOLUTION NO. /.3/,;? <:3
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH REED, ROBERTS ASSOCIATES, INC.
RELATING TO THE ADMINISTRATION OF THE CITY'S UNEMPLOYMENT
INSURANCE PROGRAM.
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
an Agreement with Reed, Roberts Associates, Inc. relating to the
administration of the City's unemployment insurance program,
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 avn
on the ~c5~day 0
meeting thereof, held
, 1978, by the following
vote, to wit:
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resolution is hereby app' this ,..;l0
day
AYES:
NAYS:
ABSENT:
of
f'\.. The foregoing
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, 1978.
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A G R E E MEN T
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(Unemployment Insurance)
lTHIS AGREEMENT is made and entered into this .:P Id day
of J/lJ~.IL~____ , 1978, by and between the CITY OF SAN
BP:RNARDINO, a ~unicipal corporation, hereinafter called "City",
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and REED, ROBERTS ASSOCIATES, INC., a New York corporation,
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hereinafter called "Administrator".
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WIT N E SSE T H:
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WHEREAS, it is anticipated that City will be subjected to
paying unemployment compensation taxes pursuant to Unemployment
Compensation Amendments of 1976, Public Law 94-566, if said law
is declared constitutional pursuant totertain litigation
presently in progress; and
WHEREAS, it is anticipated that the State of California
may enact enabling legislation pursuant to said Public Law
94-566; and
WHEREAS, if said federal law is declared constitutional,
and if the state passes and adopts its enabling legislation
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pursuant to said Public Law 94-566, then City will be required to
provide unemployment insurance compensation coverage ~o its
employees effective January 1, 1978, and will be required
to
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administer an unemployment insurance program; and
23 WHEREAS, Administrator represents to City that it is
24 eminently well qualified to advise City with respect to City's
25 unemployment insurance program that may be required by law; and
26 WHEREAS, Administrator is willing to administer City's
27 unemployment insurance program if in fact one is ultimately
28 required, and City enters into this agreement on reliance upon
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1 Administrator's said representations to City,
2 NOW, THEREFORE, in consideration of the mutual promises,
3 provisions and covenants herein contained, the parties hereto
4 hereby agree as follows:
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1. Services to be Provided by Administrator:
(a) Upon execution of this agreement, and upon notice to
7 Administrator by City's City Administrator to commence, Adminis-
8 trator shall provide the following:
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(1) A comprehensive and complete financial analysis
10 and associated recommendations regarding the best possible method
11 of financing, including a detailed and complete cost analysis for
12 each of the three available options.
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(2) Personnel practices evaluations, which will
14 include a thorough review of existing personnel practices such as
15 hiring and termination procedures, employee handbooks, union
16 contracts, application forms, separation forms, warning notices
17 and other items used in day-to-day personnel administration.
18 Upon completion of this study, a comprehensive written report
19 shall be provided by Administrator outlining all potential pro-
20 blem areas and specifying detailed recommendations for changes.
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(b) Administrator shall conduct educational and training
22 seminars for all supervisory and management personnel at a time
23 established by City's City Administrator as soon as possible
24 after the City adopts a personnel policy and procedure program
25 based upon Administrator's services set forth in Paragraph 1 (a)
26 (2) hereinabove. These seminars shall be conducted by Administra-
27 tor for the purpose of acquainting said personnel with the new law
28 and for the purpose of training said personnel with respect to
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1 proper hiring and separation methods, accurate record keeping,
2 timely reporting, exit interviews, and in all other such areas
3 as will in the opinion of the City Administrator serve to minimize
4 City's cost for unemployment insurance taxes. Notwithstanding
5 anything in this agreement to the contrary, and by way of
6 limitation, Administrator's total compensation for anyone year
7 shall not exceed the sum of three thousand five hundred dollars
8 ($3,500.00).
9 (c) Administrator shall provide the following:
10 (1) Claims supervision to include:
11 (a) Examination of each individual claim as to
12 eligibility, amount of claim and benefit period.
13 (b) Investigation and protest of all question-
14 able claims.
15 (c) Verification that unwarranted charges are
16 not entered against City's experience.
17 (d) Verification of the state Agency's periodic
18 Statements of Amounts due.
19 (2) Analysis of merit rating (if under tax provisions
20 of law) which includes:
21 (a) Verification of the accuracy of City's
22 annual contribution rate as assigned by the State Unemployment
23 Agency.
24 (b) Study and test of procedures leading to the
25 lowest tax rating allowable, if applicable.
26 (3) Current reports, including:
27 (a) Reconciliation of current payroll records
28 with quarterly tax reports submitted, if applicable.
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(b) Issuance of service letters relating to
unemployment tax matters where pertinent.
(c) Periodic visits to City offices to review
procedures which will effect a complete system for the super-
vision and control of unemployment tax data.
(4) Continuing education and training for key City
staff, including instruction in changes in the law necessary to
ensure proper compliance.
(5) Attend all Administrative Law Judge and Appeals
Board hearings, whether initiated by Administrator on behalf of
City or by claimants in the exercise of their appeal rights.
City will be advised by letter as to the results of each hearing.
(6) At the conclusion of each year, an annual finan-
cial analysis with appropriate details and recommendations to
enable City to determine whether the financing option is appro-
priate or in need of change.
(7) A detailed quarterly computer report listing the
names of those individuals who have filed for benefits and the
disposition of each claim. This report shall classify claims by
department and location within City.
2. Services to be Performed by City:
(a) City shall promptly provide Administrator with all
relevant information and data that it has in its possession
required by Administrator.
3. Administrator's Fee: City shall pay Administrator
for its services hereunder, an annual fee computed on the basis
of the number of full-time equivalent employees as of January I
of each year at the rate of $2.50 per full-time employee. Payment
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of said fee shall be made in equal quarterly installments with
the first installment to be made on or before March 31, 1978.
The annual fee shall be adjusted on a quarterly basis based on
the number of full-time equivalent employees on the date ending
the preceding quarter. Notwithstanding the foregoing, Adminis-
trator shall not be entitled to any fees for any services prior
to January 1, 1978. Provided, further, in the event a legal
requirement is not imposed upon City to provide unemployment
insurance compensation as anticipated then Administrator shall
only be entitled to compensation for its services on a pro-
rata basis based upon the period of time elapsed from the date
Administrator is advised to commence pursuant to subsection
(a) of Paragraph 1, and the time Administrator is advised by
City to cease all of its activities on behalf of City. Notwith~
standing any provision in this agreement to the contrary, and
by way of limitation, Administrator's total compensation for
anyone year shall not exceed the sum of three thousand five
hundred dollars ($3,500.00).
4. Term: This agreement shall be for a term of 36 months,
commencing on January 1, 1978, and continuing through December
31, 1980. The City shall have the option to renew this agreement
under the same terms and conditions and for a like term by giving
written notice to Administrator at least sixty (60) days prior to
the expiration date of this agreement. Notwithstanding the fore-
going, City shall have the right to terminate this agreement at
any time upon fifteen (15) days advance written notice to
Administrator. Provided, further, that in the event a legal
obligation to maintain unemployment insurance is not imposed upon
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City, then City may terminate this agreement immediately by
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giving Administrator telegraphic notification of said termination,
and, thereafter, City's obligation to Administrator hereunder
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shall terminate forthwith upon receipt of said notice by Adminis-
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trator.
5. Accounting Records: Administrator shall maintain
7 records of all expenditures made pertaining to its services
8 under this agreement. Said records shall be maintained in
9 accordance with generally accepted accounting principles and
10 shall be available to City for its audit at all reasonable times
11 and places.
6. Expenses: Administrator shall bear all of its
13 expenses that it incurs in performance of its duties hereunder
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14 and hold City free and harmless for all and any liability there-
15 for.
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7. Notices: All notices herein required shall be in
17 writing and delivered in person or sent by certified mail,
18 postage 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 1346
Beverly Hills, CA 90213
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.g~, Assignability. The experience, skill and expertise
22 of Administrator is of the essence of this agreement. Adminis-
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23 trator shall not assign (whether by assignment or novation) this
24 agreement or delegate its duties hereunder in whole or in part or
25 any right or interest hereunder without the prior written con-
26 sent of City. Any assignment or attempt to assign this agreement
27 without such prior written consent or by operation of law shall
28 constitute cause for termination.
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9. Time of Essence: Time is of the essence with respect
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to Administrator's performance under this agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this
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Agreement on the date first hereinabove written.
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NO
ATTEST:
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ASSOCIATES, INC.
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