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'4(:110 OF SAN BERNARDI~ - REQU~T FOR COUNCIL AC
From: Mary Jane Perl ick
Dept: Personnel
,
RE.C't). - t.\)M\~. Ql!bject:
\:~1 l'.t\R \ B t\~ \1): 53
Resolution to amend agreeme t with The
Wyatt Company to extend agreement and
increase the maximum compensation paid
Date: March 17. 1987
Synopsis of Previous Council action:
At the meeting of the Mayor and Common 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.
~;t,~
Supporting data attached: Yes
':J>
Amount: / ,. rOt). 01>
,
Phone: X5361
Ward: N/A
Source: ,1,S',/j/. $.J p".s-
Finance7~AL}S~~~
...,..........
Contact person: Mary .JanE> PprJ ; ck
FUNDING REQUIREMENTS:
Council Notes:
75.0262
':1_ 17_;>.7
Agenda Item No.
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CI10 OF SAN BERNARDIt9 - REQU~ FOR COUNCIL AC'O>>N
STAFF REPORT
The current agreement with the Wyatt Company expired on
February.4, 1987. The firm serves as the City'S Employee
Benefit Consultant which monitors the self-funded medical,
hospitalization and life insurance program administration.
The Wyatt Company has been extremely efficient for the past
two years, with the service being professional and timely on
all occasions. In addition to the normal duties of the
agreemen~the company has made itself available to perform
other professional studies outside the contract's require-
ments. Renewal of the Wyatt Company agreement for an
additional year will ensure the continued comprehensive
analysis of our self funded insurance program administration.
The increase in the contract maximum from $14,800 last
contract year to $16,400 proposed for this contract year is
due to our anticipated need in the special projects area.
This maximum amount will not be spent unless this need
develops as we only pay for services actually requested.
75.0264
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF A SECOND AMENDMENT TO AGREEMENT WITH THE WYATT COMPAN
TO PROVIDE FOR A ONE YEAR EXTENSION OF THE TERM OF THE AGREEMENT
AND TO INCREASE THE MAXIMUM COMPENSATION PAID TO CONSULTANT.
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
Second Amendment to Agreement with The Wyatt Company to provide
for a one year extension of the term of the agreement and to
increase the maximum compensation paid to Consultant, 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
BernarcHno at a
meeting thereof, held on
the
day of
, 1987, by the following vote,
to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day
of
, 1987.
Mayor of the City of San Bernardino
27 Approved as to form:
Z3 :ltn <~#?~
Ii, .(nf'; City Attorne .
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SECOND AMENDMENT TO AGREEMENT
(Employees' Group Insurance)
THIS SECOND 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 Counsultant agree as follows:
1. Recitals.
A. City and Consultant entered into an agreement on
February 4, 1985, and a first amendment to agreement on March 5,
1986, relating to consulting services in connection with the
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City's insurance and benefit programs.
B. The parties now desire to amend the agreement to
14 provide for an additional one year term and to increase the
IS maximum compensation provided for in said contract from $14,800 to
16 $16,400.
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2. ~. The term of the agreement is extended for an
18 additional one year period commencing February 5, 1987, and
19 terminating February 4, 1988.
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3. Compensation.
A. Paragraph II Subparagraph A 1 is amended to read:
-1. An annual financial evaluation of plan results for the
23 past plan year which sets forth a complete accounting of all
24 employee benefit dollars spent. The maximum charge under this
2S paragraph 1 for all items is $6,100. The evaluation will include,
26 but not be limited to:
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a. A breakdown of claims experience and benefit
2b payments, by plan, on an employee versus dependents basis.
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b. An accounting of nonbenefit plan costs such as:
( 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
nonbenefit costs compared with expected contribution rates and
premiums for the period.
d. Evaluation of rate and contribution levels to
support the plan(s) for the next plan year.
e. Development of cash versus accrual accounting costs
and the establishment of reserve levels necessary to support the
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 $1250.-
C. Paragraph V is amended to read:
"v. Compensation. City shall pay to Consultant a sum not to
exceed a total of Sixteen Thousand Four Hundred Dollars ($16,400)
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
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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 $125.00 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
covenants of the agreement, as amended, shall remain the same and
be in full force and effect.
DATED:
CITY OF SAN BERNARDINO
ATTEST:
By
Mayor
City Clerk
THE WYATT COMPANY
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By a/imI_D-~
Title ad ~.i1i f
19 Approved as to form:
/7
20 t2/(j-#f ...{' ~
. ')1. ~d. City Attorney'
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