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CITY OF SAN _RN&'DINO - RBQUBST lOR COUNCIL ACTION
From:
Gordon R. Johnson
Director of Personnel
Personnel
DlIt8:
December 20, 1988
SubJ~: Execution of an Agreement with
Payroll Tax Control Corporation
for Unemployment Compensation
Claims Administration and Cost
Control Servi~es effective 1-Ol~8
Dept:
Synopsis of Previous Council action:
None.
Recommended motion:
Adopt Resolution.
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Si~ture
Contact person:
Gordon R. Johnson
Phone:
5161
Supporting data atteched:
FUNDING REQUIREMENTS: Amount: $2,160.00
Ward:
nnm;n;Rtra~ive services
Finance:
Acct No. 677-132-53905
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Source:
Council Notes:
'7'Ln.,..,
Agenda Item No ~O
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CITY OF SAN BBRNQaDlNO - RI!QUBST Fa. COUNCIL ACTION
STAFF REPORT
In 1984, the Common Council approved an agreement with Reed, Roberts Associates,
Inc., for unemployment claims administration and cost control services. Since
that date, the company has twice changed names, first to GAB Business Services,
Inc., and then to R.E. Harrington, Inc. These changes have caused some deficien-
cies in service levels so we have considered other administrators of this service
following the December 31, 1988, expiration date of the current agreement.
The Payroll Tax Control Corporation (PTCC) has submitted an excellent proposal
with a rate of $1.90 per employee, guaranteed for 3 years, and not contingent
on the City's renewing from year to year. This figure represents a 25% re-
duction from the current rate of $2.50 per employee in the contract with R.E.
Harrington, Inc.
The guaranteed rate of $1.90 per employee would save the City $720 per year,
using 1200 employees as an average, and $2160 over the life of the guaranteed
rate.
PTCC was formed in 1970 and represents over 400 Southern California employers.
Their references are very positive towards the quality of services rendered.
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH PAYROLL TAX CONTROL CORPORA-
TION FOR UNEMPLOYMENT COMPENSATION CLAIMS ADMINISTRATION AND
COST CONTROL SERVICES EFFECTIVE FEBRUARY 1, 1989.
SECTION 1.The Director of Personnel is hereby authoriz
compensation claims administration and cost control services;
which agreement is attached hereto marked Exhibit wAR, 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
of
, 1989, by the following vote to
wit:
AYES:
Councilmembers
NAYS:
ABSENT:
City Clerk
(Continued)
page
01/12/89
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1
RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
2 PAYROLL TAX CONTROL CORPORATION FOR UNEMPLOYMENT COMPENSA-
TION CLAIMS ADMINISTRATION AND COST CONTROL SERVICES EFFEC-
3 TIVE FEBRUARY 1, 1989.
4
The foregoing resolution is hereby approved this
day of
, 1989.
EVLYN WILCOX
City of San Bernardino
IAPproved as to form and legal content:
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A G R E E MEN T
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3 THIS AGREEMENT is made and entered into effective January
4 1, 1989, by and between the CITY OF SAN BERNARDINO, a municipal
5 corporation, referred to as "City", and Payroll Tax Corporation
6 referred to as "Administrator".
7 The parties agree as follows:
8 1. Recitals.
9 A. City pays unemployment compensation taxes pursuant to
10 Unemployment Compensation Amendments of 1976, Public Law 94-566.
11 B. Administrator represents to City that it is qualified
12 to administer and advise City with respect to City's unemployment
13 insurance program.
14 2. Services to be Provided bv Administrator.
15 Administrator shall be City's agent to deal with matters
16 affecting the City's state unemployment tax rate(s) for the
17 following Account Number(s):
18 and shall:
19 .A. Develop and install a system for the orderly
20 reparation and transmittal of employee separation records.
21 B. Under the supervision of the City Attorney, provide
22 training for City's supervisors in proper procedure-s of
23 discipline so that City can maximize its ability to defend claims
24 before California Employment Development Department.
25 C. Under the supervision of the City Attorney, receive and
26 act on claims for unemployment insurance benefits when action is
27 proper pursuant to the California Unemployment Insurance Code
28 and the Employment Development Department's regulations.
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(Unemployment Insurance)
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1 D. Under the supervision of the City Attorney, act as ,
2 authorized representative of City at hearings before
3 Administrative Law Judges involving claimant and/or City appeals.
4 City hereby promises to cooperate with the Administrator in all
5 respects required to allow the Administrator to represent City
6 before the Employment Development Department.
7 E. Under the supervision of the City Attorney, and if
8 proper, petition the California Unemployment Insurance Appeals
9 Board to review unfavorable decisions received from a hearing.
10 The Administrator shall present arguments to the Unemployment
11 Insurance Appeals Board and represent City until the final
12 decision of the California Unemployment Insurance Appeals Board.
13 F. Maintain a current analysis of the status of City's
14 unemployment insurance account.
15 G. Under the supervision of the City Attorney advise and
16 counsel City on matters relating to unemployment insurance.
17 H. Advise and counsel City on personnel practices and
18 policies as they affect claims for unemployment insurance,
19 excluding advice on legality of such practices and policies.
20 I. Provide City with periodic newsletters to keep City
21 informed of matters pertaining to unemployment insurance
22 administration.
23 3. Administrator may refer general employment law
24 questions from City Attorney only to a labor attorney who
25 consults with Administrator. Such questions shall be of a
26 general nature and respo~ses shall not be interpreted as being
27 legal advice. City Attorney only must first contact
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1 Administrator directly concerning such questions. Administrator
2 and the labor attorney do not provide legal advice to City.
3 Administrator's representation of City before the Employment
4 Development Department is limited to issues concerning the
5 eligibility for unemployment insurance benefits. Specifically,
6 neither Administrator nor the labor attorney is providing a
7 service for legal advice concerning employment discrimination,
8 wrongful discharge or any other issues involving the employer-
9 employee relationship other than unemployment insurance benefits.
10 4. Services to be Performed bv Citv. City will forward to
11 the Administrator or otherwise make available to the
12 Administrator immediately upon receipt, all claims, notices,
13 forms, reports, and other communications from the State
14 Employment Development Department and photocopies of DE3,
15 Quarterly Contribution Reports.
16 5. Administrator's Fee. City shall pay Administrator for
17 its service an annual fee computed on the basis of the number of
18 full-time equivalent employees as of January 1 of each year at
19 the rate of $1.90 per full-time employee. Payment shall be made
20 in equal quarterly installments with the first installment to be
21 made on or before March 31, 1989. The annual fee shall be
22 adjusted each year based on the number of full-time equivalent
23 employees on December 31 of the preceding ~ear.
24 6. Term. This agreement shall be for a term of one year
25 commencing on January 1, 1989, and continuing through December
26 31, 1989, but may be cancelled at the end of any calendar quarter
27 upon thirty (30) days notice. Such cancellation, by either
28 party, must be by written notice.
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1 7. Accountina Records. Administrator shall maintain
2 records of all expenditures made pertaining to its services under
3 this agreement. Said records shall be maintained in accordance
4 with generally accepted accounting principles and shall be
5 available to City for its audit at all reasonable times and
6 places.
7 8. EXDenses. Administrator shall bear all expenses it
8 incurs in performance of its duties hereunder and hold City free
9 and harmless for all and any liability therefor.
10 9. IndeDendent Contracts. For all intents and purposes
11 Administrator shall be considered as an independent contractor
12 and shall not be considered as as employee of City.
13 10. Notices. All notices herein required shall be in
14 writing and delivered in person or sent by certified mail,
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postage prepaid, addressed as follows:
Director of Personnel
City of San Bernardino
300 North RDR Street
San Bernardino, CA. 92418
Payroll Tax Control Corporation
10801 National Boulevard Ste 202
Los Angeles, CA. 90064
11. Assianabilitv. The experience, skill and expertise of
Administrator is of the essence of this agreement. Administrator
shall not assign (whether by assignment or novation> this
agreement or delegate its duties hereunder in whole or in part or
any right or interest hereunder without the prior written consent
of City. Any assignment or attempt to assign this agreement
without such prior written consent or by operation of law shall
constitute cause for immediate termination by City.
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1 12. Entire Agreement. This Agreement constitutes the full
2 and complete understanding of the parties, and there have been no
3 oral promises or representation not contained herein.
4 IN WITNESS WHEREOF, the parties hereto have executed this
5 agreement on the
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8 ATTEST:
day of , 1989.
CITY OF SAN BERNARDINO
By
Mayor
9
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City Clerk
PAYROLL TAX CONTROL CORPORATION
By
William A. Flayer
Title President
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