Agenda Item AGENDA STAFF REPORT ASR Control 17-000570
MEETING DATE:	05/23/17
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
	Diana Banzet (714) 834-2978

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: N/A

Current Year Cost: N/A

Annual Cost: See Financial Impact Section

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: 07/15/2014 #35

RECOMMENDED ACTION(S):

Authorize the Chief Human Resource Services Officer or designee to execute Amendment Number Three to the contract with Hartford Life and Accident Insurance Company to continue to provide Life and Accidental Death and Dismemberment insurance commencing January 1, 2018, through December 31, 2018, renewable for one additional one-year period subject to approval requirement established by CEO/Office of Procurement, as approved by the Board of Supervisors.

SUMMARY:

Authorize Chief Human Resource Services Officer or 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 (MOU) 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, HRS 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 renewal periods.

Amendment One to the contract was executed on October 7, 2014, to correct a decimal error in 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 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.

The current contract includes eight performance guarantees which require Hartford 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 first nine 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 2018 cost for the one year renewal is $808,500. Appropriations for this contract are included in the FY 2017-18 Recommended Budget and will be included in the budgeting process for FY 2018-19.

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. Three 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