REQUEST FOR PROPOSAL EMPLOYEE BENEFIT BROKERAGE CONSULTING SERVICES

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1 REQUEST FOR PROPOSAL I. INVITATION The City of Pittsburg is interested in obtaining the services of a professional, highly qualified benefits brokerage and consulting firm to provide a full range of services related to the design, implementation, analysis, maintenance, improvement, and communication of an employee insurance benefits program. Interested and qualified brokers/consultants who have demonstrated their ability at comparable work are invited to submit proposals. Proposals will be accepted until 5:00 p.m. Friday, December 7, Submittals and requests for information relative to this Request for Proposal should be addressed to: Griselda Clift Senior Human Resources Analyst City of Pittsburg 65 Civic Avenue Pittsburg, CA gclift@ci.pittsburg.ca.us Written responses and all supporting materials must be submitted in one original plus five copies. Please note that the City of Pittsburg is not asking for, nor authorizing, your soliciting quotes from insurance carriers. II. BACKGROUND OF THE CITY OF PITTSBURG The City of Pittsburg operates under the City Council-City Manager form of government. The City has approximately 276 benefit eligible employees and 157 retirees eligible to participate in the City s health insurance program. The City offers the following benefit options to active benefit eligible employees: CalPERS Pension Delta Dental through Dublin Insurance Services Teamsters Local Union No. 856 Health & Welfare Fund (Kaiser and Anthem Blue Cross PPO and HMO with VSP Vision) 1 P a g e

2 Health Net & United Healthcare (retirees only) Medical and/or Dental Alternative MHN - Mental Health Network (EAP) Standard Life and PORAC (ING Reliastar) Group Life and AD&D Standard Long-Term Disability Insurance (non-sworn) PORAC Long Term Disability Insurance (safety) State Disability Insurance (except safety and Sr. Executive Team) Social Security (except safety) and Medicare American Fidelity (Section 125) and additional life and disability insurances 457 Deferred Comp (MassMutual and Strategic Retirement) 401a ICMA-RC, Strategic Retirement ICMA-RC Retirement Health Savings Accounts (RHS) Clipper Direct Commuter Benefits Retiree Medical -The City offers retiree medical insurance through Kaiser, Anthem, United Healthcare and Health Net. As it is currently administered by City staff, additional City contributions are made via health reimbursement arrangement (HRA) through MidAmerica Administrative and Retirement Solutions directly to eligible retirees based on the applicable vesting schedule below: Miscellaneous Employees (Unrepresented, AFSCME groups and Teamsters) For regular employees hired before January 1, 2012 the City provides contribution/reimbursement toward retiree medical insurance as provided below: 1. Retired employee with a minimum of fifteen (15) but fewer than twenty (20) years of full-time regular City service shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the active employee Kaiser premium per month for the retiree only; or 2. Retired employee with a minimum of twenty (20) but fewer than twenty-five (25) years of full-time regular City service shall receive the lesser of his/her actual premium amount or seventy-five percent (75%) of the active employee Kaiser premium per month for the retiree only; or 3. Retired employee with a minimum of twenty-five (25) years of full-time regular City service shall receive the lesser of his/her actual premium amount or one hundred percent (100%) of the active employee Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month for the retiree and retiree s spouse. 2 Page

3 4. City contribution towards retiree medical insurance ends at retiree s 65 th birthday. Safety Employees For regular employees hired before September 15, 2007, the City provides contribution/reimbursement toward retiree medical insurance as follows: 1. Retired employee with a minimum of five (5) but fewer than fifteen (15) years of full-time regular City service (includes employees receiving a disability retirement from the City) and his/her surviving spouse shall receive the lesser of his/her actual premium amount or twenty-five percent (25%) of the early retiree Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month; or 2. Retired safety employees who retire with an industrial disability retirement with fewer than fifteen (15) years of full-time regular City service and his/her surviving spouse shall receive the less of his/her actual premium amount or twenty-five percent (25%) of the early retiree Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month; or 3. Retiree employees with a minimum of fifteen (15) but fewer than twenty (20) years of full-time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the early retiree Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month; or 4. Retired safety employees with a minimum of twenty (20) years of full-time regular City service and their spouse shall receive one hundred percent (100%) coverage for the retiree and eligible spouse. Coverage premiums to be capped at the level of the higher of the two least expensive City medical plans. For safety employees hired on or after September 15, 2007 and before July 1, 2011 the City provides contribution/reimbursement toward retiree medical insurance as follows: 1. Retired safety employees who retire with an industrial disability retirement with fewer than fifteen (15) years of full-time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or twenty-five percent (25%) of the early retiree Kaiser premium per month (retiree or retiree and spouse, whichever is applicable); or 3 Page

4 2. Retired employee with a minimum of ten (10) but fewer than fifteen (15) years of full-time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or twenty-five percent (25%) of the early retiree Kaiser premium per month; or 3. Retired employee with a minimum of fifteen (15) but fewer than twenty (20) years of full-time regular City service and his/her surviving spouse shall receive the lesser of his/her actual premium amount or fifty percent (50%) of the early retiree Kaiser premium (retiree only or retiree and spouse, whichever is applicable) per month; or 4. Retired employee with a minimum of twenty (20) years of full-time regular City service and his/her spouse shall one hundred percent (100%) coverage for the retiree and eligible spouse. Coverage premiums to be capped at the level of the higher of the two least expensive City early retiree medical plans. For non-safety employees hired after January 1, 2012 and safety employees hired after July 1, 2011, the City matches an employee contribution of $75 per month to a Retirement Health Savings Plan with ICMA while employed to be used to purchase a medical, dental, and/or vision plan upon retirement. This plan is in lieu of participation in a defined benefit retiree health plan. Systems and services currently in place include: o EDEN Tyler Finance & Human Resources information system o COBRA (dental/vision/eap) is currently administered by City staff and Northwest Administrators (Teamsters Trust for medical). o Retiree Medical Insurance through Kaiser, Anthem, United Healthcare and Health Net is currently administered by City staff and Northwest Administrators (Teamsters Trust). Reimbursements to retirees are processed by MidAmerica Administrative and Retirement Solutions through an HRA plan. 4 Page

5 SCOPE OF SERVICES The City of Pittsburg is seeking a broker/consultant to perform the full range of services related to the design, implementation, maintenance, communication, and improvement of the City of Pittsburg group medical, dental, vision, life, EAP, LTD/STD, FSA and DC benefit programs. Specific responsibilities include, but are not limited to the following: Assisting the City of Pittsburg in administering all group insurance plans, responding to questions from and providing information to staff, and providing other consulting services during the course of the plan year. Researching and advising the City of Pittsburg of any new developments in the law and employee benefit programs on an ongoing basis. Reviewing claims, claim service, and claim administration to ensure maximum benefit to the City of Pittsburg. Determining and recommending the most economical funding methods for the benefit programs. Representing the City of Pittsburg in all negotiations with providers on all issues including those related to premiums, benefit levels, plan design, and special terms and conditions. Meeting with and providing reports to various City of Pittsburg representatives including City Council, City Manager, Human Resources staff and the Finance Committee. Assisting the City of Pittsburg with the implementation and communication of new programs or changes to existing programs, which may include attending and presenting information at Open Enrollment meetings. As requested by the City of Pittsburg, preparing bid specifications and soliciting proposals from insurance markets which specialize in group insurance plans as needed. Evaluate bids and bidders, including administration, claim payment procedures, customer service, network, reserve establishment policies, financial soundness, and identifying the most cost-beneficial package from among the various bidders. Provide retiree medical and COBRA administration for the City of Pittsburg during the length of the contract? Provide online benefits services to employees comparable to or more advanced than the City s current system? Interface with insurance carriers as needed to assist the City of Pittsburg in the resolution of problems associated with the benefit programs. 5 Page

6 III. SCHEDULE FOR THE RFP Completion Date o RFP distributed November 9, 2018 o Responses to RFP due December 7, 2018 o Appropriate Committee reviews responses Week of December 17, 2018 o Conduct interviews with selected broker/consultants Week of January 14, 2019 o Select broker/consultant January 21, 2019 o City of Pittsburg Council Approval (if necessary) February 18, 2019 o Tentative Broker Effective Date July 1, 2019 IV. CONTRACT LENGTH This proposal is for awarding a contract to cover a two (2) year period with options to renew under the same terms and conditions. The first year applicable in the agreement will begin on July 1, The City may, at its option and with the approval of the consultant, extend the period of this agreement up to a maximum of three (3) one-year options, provided the scope of the engagement does not change. The agreement shall automatically renew unless the consultant is notified thirty (30) days prior, in writing, of the intention to terminate. Termination of the Agreement by the City can occur at any time during the Agreement period and at the City s discretion. V. SELECTION PROCESS The Contract award will be made after the selection of one (1) respondent s proposal from among all respondents with implementation of services to follow. However, this RFP does not indicate a commitment by the City to award a contract to any successful respondent. An award of contract is estimated to occur within approximately sixty (60) calendar days after receipt of proposals. The City intends to evaluate the proposed services based upon the data presented in response to the RFP. The proposals will then be reviewed based on qualifications, specific experience, references, familiarity with the services and pricing, and then rated according to which company best meets the City s requirements. Those firms whose proposals most closely meet the needs of the City of Pittsburg will be required to attend an interview with the City of Pittsburg staff the week of January 14, Failure to attend this meeting, if selected, may give cause to have your proposal declared nonresponsive, at the City s discretion. 6 Page

7 VI. KEY CONSIDERATIONS & EVALUATION CRITERIA The RFP responses will be evaluated based upon the following: Perceived ability of broker to negotiate a benefits program that meets the needs of the City of Pittsburg. Broker s demonstrated expertise in negotiating benefit plans on behalf of clients similar to the City. Broker s knowledge and/or technical support related to the implementation of an online benefits service process. Broker s and other assigned staff s availability and accessibility, including the location of the office that will be servicing our account. The experience, professional credentials, and references of those persons who will actually be servicing our account. Broker s conceptual approach and ideas related to service, as well as how they will manage our account. Broker s ability to provide proactive support to the City of Pittsburg Human Resources function including dissemination of current general and legal updates as well as time-sensitive insurance carrier information. General Information All proposals and related materials become the property of the City of Pittsburg and may be returned only at its option. The City of Pittsburg is not obligated to accept any proposal or to negotiate with any respondent. All transactions are subject to the final approval of the City of Pittsburg who reserves the right to reject any or all proposals without cause or liability. All costs directly or indirectly related to responding to this RFP (including all costs incurred in supplementary documentation, information or presentation) will be borne by the proposer. VII. BROKER/CONSULTANT QUALIFICATIONS To assist in the evaluation of potential brokers/consultants, please provide the following information: 1) Firm name, address, and contact information. 2) Telephone, facsimile, and Internet address. 3) Type of firm: individual, partnership, corporation, subsidiary, or government entity. 4) Organizational structure of the firm, history, including number of years in existence, number and location of offices, total number of employees. 7 Page

8 5) Describe the ability of your firm to provide local service to sites/offices located in Pittsburg and Mare Island. 6) Names and titles of all principals/officers of the firm (name, title, phone number). 7) List applicable certifications and licenses and the associated numbers. 8) How many years has your firm been providing health, dental, life and vision benefits services to municipalities? 9) List the municipalities your firm provided similar services for within the past three (3) years. Include the number of employees for each agency. 10) Discuss your company s resources and activities as they relate to knowledge and understanding of our industry. 11) Describe the responsibility, experience, and qualifications of the individual(s) who would comprise the service team. 12) Describe the firm s philosophy for servicing an account and commitment to customer service and quality assurance. 13) Describe your firm s resources or methods to provide education on best practices, trends, or hot topics. 14) Describe the organization s legal research capabilities and how you communicate legislative updates to your clients. 15) Describe your underwriting resources, procedures, and staff. 16) Describe your renewal process and timelines. 17) What resources does your firm offer to assist with the administration of a benefits program (i.e. on-line benefits system and management, retiree medical contribution and COBRA administration, and flexible spending account administration)? 18) Describe your firm s capabilities with regard to communication. Include ongoing employee communication/open enrollment and web-based communications. 19) Describe the firm's Errors and Omissions (E&O limits) and provide evidence your company carries all applicable insurance coverages and licenses. 20) Describe the resources and tools available for benchmarking. 21) Describe the firm s view of the role wellness programs have on controlling healthcare costs. What resources and tools do you offer clients around wellness initiatives? 22) Describe the firm s experience in establishing or knowledge of insurance pools. Discuss your philosophy related to the concept of insurance pools. 23) Describe your firm s commitment to diversity in both your employment practices and in client relations. 24) Fee Information Describe your method of compensation for your services. Discuss how your method of compensation will be transparent and reported to 8 Page

9 our team. Does your company accept any carrier overrides? If on a commission basis, would your company be taking any form of compensation beyond the commission built into our premium rates? If selected, what are your methods of disclosing compensation to the City and the frequency of that disclosure? 9 Page

10 VIII. CONTRACT The firm selected shall be required to enter into a Consulting Services Agreement for this project with the City of Pittsburg. Any contract resulting from this RFP shall not be effective unless, and until, approved by the City of Pittsburg, which may require City Council approval. Upon approval, the contract shall start within one day after the award of the contract. Before the City executes a contract, the selected firm shall furnish the City certificates evidencing insurance, as required by the City of Pittsburg. The City shall be named as additional insured. Certificates of Insurance must be accompanied by the applicable endorsements for the specific insurance policy. IX. OTHER PROPOSAL INFORMATION A. Reservations Issuance of this RFP does not commit the City of Pittsburg to award a contract, to pay any costs incurred in the preparation of a response to this request, or to procure a contract for services. The execution of any contract pursuant to this RFP is dependent upon the approval of the City of Pittsburg, which may require City Council approval. The City of Pittsburg reserves the right to waive any irregularities or informalities in the proposal or proposal process. The City of Pittsburg retains the right to reject all submittals. Selection is also dependent upon the negotiation of a mutually acceptable contract with the successful respondent. B. Acknowledgment of Amendments Each firm receiving a copy of this shall acknowledge receipt of any amendment to this RFP by signing and returning the amendment with the completed proposal. The acknowledgment must be received by the City of Pittsburg at the time and place specified for receipt of proposal. C. Additional Information Questions regarding this solicitation shall be submitted in writing to: Griselda Clift Senior Human Resources Analyst City of Pittsburg 65 Civic Avenue Pittsburg, CA gclift@ci.pittsburg.ca.us Respondents/firms are cautioned that any oral statements made that materially change any portion of this RFP are not valid unless subsequently ratified by a formal written amendment to this RFP. No technical questions that may 10 P a g e

11 materially change any portion of this RFP will be accepted during the seven calendar days prior to the time and date set for receipt of proposals. D. Business License - The City of Pittsburg does not anticipate that the professional services provider, and any subcontractor(s), shall not be required to obtain a City of Pittsburg business license. E. Professional Licensing - The professional services provider, and all subcontractors, shall possess any necessary license(s) relative to the work to be performed required by an appropriate licensing authority of the State of California and shall provide evidence of such to the City with their proposal or prior to commencement of the work in such form as the City shall require. F. Assignment / Subcontracting - The selected professional services provider shall not assign or subcontract services or responsibilities without the prior written consent of the City of Pittsburg. The City acknowledges that subcontracting can be in the City s interest but reserves the right of final approval. G. Indemnification Required -The provider to whom a contract is awarded will be required to indemnify and hold the City harmless for any and all liabilities arriving from the provider s performance of the work. Indemnification provisions to this effect will be incorporated in the Professional Services Agreement, which will be executed between the provider selected for the project and the City. H. Right to Cancel The City reserves the right to cancel, for any or no reason, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements. I. Variations in Scope of Work The City may materially change the scope of work. Such changes may include additions, deletions, or other revisions within the general scope of RFP requirements. No material changes or adjustments shall be made without a written amendment to this RFP, signed by the City Clerk. The City of Pittsburg reserves the right to waive the written requirement for a variation in the scope of work if, in the opinion of the City, such variation does not materially change the item or its performance within parameters acceptable to the City. J. Applicable Laws The contract awarded shall be governed in all respect by the laws of the State of California, and any litigation related to the contract or this RFP shall be brought in the State of California, with a venue of the Contra Costa Superior Courts. The firm awarded the contract shall comply with all applicable Federal, State, and local laws and regulations. 11 P a g e

12 K. Nonconforming Terms and Conditions Any proposal that includes terms and conditions that do not conform to the terms and conditions of this RFP is subject to rejection as non-responsive. The City of Pittsburg reserves the right to permit the respondent to withdraw non-conforming terms and conditions from its proposal prior to action by the City of Pittsburg City Council to award a contract. L. Late Submissions Any proposal received after the date and time specified for receipt shall not be accepted or considered. M. Public Information All documents received by the City of Pittsburg are considered public records and will be made available after the RFP selection for public inspection and copying upon request. N. Insurance Required - The consultant is required to furnish to the City evidence of insurance coverage including Automobile Liability, Workers Compensation, Professional Liability and Comprehensive General Liability. The form of the insurance policy is subject to approval by the City. The City shall be furnished an endorsement showing that City, its officers, employees and agents are named as additional insured prior to consultant commencing duties under this Agreement. Said policy of liability insurance shall state coverage thereunder as applied to City, its officers, employees, and agents shall be primary and non-contributing as to any other insurance and selfinsurance as may be maintained by City. The policy shall contain severability of interest, specifying that the coverage afforded by the policy applies separately to each insured thereunder. The policy shall be endorsed to expressly provide the City with thirty (30) calendar days advance written notice of cancellation, nonrenewal, or material change in coverage. Sample insurance requirements language is attached. 12 P a g e

13 Sample Insurance Requirements Language Consultant shall not begin work under this Agreement until it obtains insurance required under this section and shall remain in full force and effect the required insurance during the term of this Agreement. All insurance policies shall be subject to approval by City as to form and content. Consultant may, in writing, notify City of explanation as to why any specific insurance requirements should be waived. The Human Resources Manager in conjunction with the City Manager may determine to waive certain requirements. Such determination is final. Any amendment or waiver to the insurance requirements as defined herein shall be in writing and incorporated into this Agreement. All insurance shall cover Consultant and its principals and employees and also cover their liability arising out of operations of Consultant s agents, representatives, and subcontractors in connection with its operations under this Agreement. All insurance requirements shall appear either in the body of the insurance policies or as endorsements. The insurance required under Automobile Insurance and Public Liability and Property Damage Insurance shall specifically name City, its officers, officials, agents, employees and volunteers ( City and its employees ) as an additional insured. A copy of all policies or evidence thereof shall be furnished to the City at least five (5) days prior to Consultant s commencement of services under this Agreement. All policies shall provide for at least thirty (30) calendar days prior notice to City before coverage is canceled; Consultant shall notify City at least thirty (30) calendar days prior to any suspension, voiding, or reduction of coverage or of limits. Consultant s insurance is to be placed with insurance companies with A.M. Best Co. s rating of no less than A-VII. Any deductibles or self-insured retention exceeding $35,000 shall be declared to and approved by the City. Consultant s insurance shall be primary with respect to City and its employees. Any failure by City and its employees to comply with the reporting provisions of the policy shall not affect coverage provided to City and its employees. Automobile Insurance Consultant shall maintain minimum automobile insurance coverage of (a) one hundred thousand dollars ($100,000) for property damage, five hundred thousand dollars ($500,000) for injury to one person/any one occurrence and one million dollars ($1,000,000) for injury to more than one person/any one occurrence; or (b) combined single limit of one million dollars ($1,000,000) per occurrence. 13 P a g e

14 Workers Compensation Insurance Consultant shall maintain Workers Compensation Insurance as required by the State Labor Code and Employer s Liability Insurance with limits in the amount of one million dollars ($1,000,000) per accident. The insurers shall agree to waive all rights of subrogation against City and its employees for losses arising from work performed by Consultant for City. Public Liability and Property Damage Insurance Consultant shall take out and maintain general liability and property damage insurance and shall insure City and its employees from claims for damages for personal injury, including death, as well as from claims for property damage which may arise from Consultant s negligent operations under this Agreement, whether or not done by Consultant or by anyone directly or indirectly employed by Consultant. Such insurance shall have a combined limit of not less than one million dollars ($1,000,000). Errors and Omissions Insurance Consultant shall take out and maintain a policy in form and content satisfactory to City that shall indemnify Consultant against errors and omissions or malpractice by Consultant. Said policy or policies shall provide liability coverage in the amount of five hundred thousand dollars ($500,000) per claim, and a deductible provision of not more than fifty thousand dollars ($50,000), and one million dollars ($1,000,000) aggregate. 14 P a g e