Agenda Item

AGENDA STAFF REPORT

 

ASR Control 18-000681

 

MEETING DATE:

07/17/18

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Human Resource Services (Approved)

Department contact person(s):

Renee Catanzariti (714) 834-2564

 

 

Robin Gurien (714) 834-7114

 

 

Subject: Renewal of Contract with Hartford Life and Accident Insurance Company

 

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

Budgeted: Yes

Current Year Cost: $420,550

Annual Cost: FY 2019-20 $420,550

 

 

 

Staffing Impact:

No

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: ISF 29Z: 100%

County Audit in last 3 years: No

 

 

Prior Board Action: 05/23/2017 #72, 07/15/2014 #35;

 

RECOMMENDED ACTION(S):

 

Authorize the Chief Human Resource Officer or her designee to execute Amendment Number Four to the contract with Hartford Life and Accident Insurance Company to continue to provide Life and Accidental Death and Dismemberment insurance commencing January 1, 2019, through December 31, 2019.

 

 

 

SUMMARY:

 

Authorize Chief Human Resource Officer or her designee to execute the renewal of the Contract with Hartford Life and Accident Insurance Company for provision of Life and Accidental Death and Dismemberment insurance to various eligible County employees.

 

 

BACKGROUND INFORMATION:

 

The County provides Basic and Voluntary Life and Accidental Death and Dismemberment (AD&D) insurance for an unexpected death or dismembering injury due to an accident as required by the Memorandum of Understanding for various eligible employee groups. Eligible employees may also purchase additional Life and AD&D coverage for themselves and/or dependents.

 

The prior Hartford Life and Accident Insurance Company (Hartford) contract expired on December 31, 2014. In anticipation of the contract expiration, Human Resource Services issued a Request for Proposal on January 24, 2014. As a result of the competitive solicitation, on July 15, 2014, the Board approved the Contract with Hartford for the period January 1, 2015, through December 31, 2017, for an estimated amount of $894,900, with two additional one-year consecutive renewal periods. This is the final year of the contract and HRS will post an RFP for a new contract in early 2019.

 

Amendment One to the contract was executed on October 7, 2014, to correct a typographical error regarding three of the individual rate amounts in the original contract. Amendment Two of the contract was executed on March 10, 2015, to amend payment language to include a negotiated reduction in County costs in the form of a one-time implementation credit provided by the Hartford to be applied towards costs associated with the implementation of the contract. Per the County Contract Policy Manual, these actions did not require Board approval since these changes represented a decrease to the amount of the contract. Amendment Three renewed the contract for one additional year, from January 1, 2018, through December 31, 2018.

 

The current contract includes eight performance guarantees which require the Contractor to place up to 2% of annual premiums at risk if the performance guarantees are not met. The guarantees include performance standards for customer service, timeliness and accuracy of claims processing and account management satisfaction. For the 14 quarters of the contract period Hartford has met or exceeded all performance guarantees.

 

Hartford has over 60 years of experience as a national provider of Life and AD&D insurance services. They provide services to over five million people in public and private organizations across the county.

 

This contract does not include subcontractors or pass through to other providers. See Attachment C for Contract Summary Form.

 

 

 

FINANCIAL IMPACT:

 

The total estimated 2019 cost for the one year renewal is $841,100. Appropriations for this contract are included in the FY 2018-19 budget and will be included in the budgeting process for FY 2019-20.

 

This Contract is contingent upon funding by the County during the term of this Contract. If such funding is not approved, this Contract will be immediately terminated without penalty to the County.

 

 

STAFFING IMPACT:

 

N/A

 

 

ATTACHMENT(S):

 

Attachment A Amendment No. Four to Contract with Hartford Life and Accident Insurance Company
Attachment B Redline Changes to Contract with Hartford Life and Accident Insurance Company
Attachment C Contract Summary Form
Attachment D Performance Guarantees