CITY OF STOCKTON REQUEST FOR PROPOSALS (RFP) TO PROVIDE BENEFITS CONSULTANT SERVICES (PUR ) QUESTIONS/ANSWERS & CLARIFICATIONS

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1 CITY OF STOCKTON REQUEST FOR PROPOSALS (RFP) TO PROVIDE BENEFITS CONSULTANT SERVICES (PUR ) QUESTIONS/ANSWERS & CLARIFICATIONS POSTED THE CITY RECEIVED 5 SETS OF QUESTIONS AND THE RESPONSES ARE INDICATED IN BLUE BELOW. From: van Rijswijk, Aimee [mailto:avanrijswijk@segalco.com] Sent: Thursday, May 18, :14 PM To: Cecelia Nichols Fritzler <Cecelia.Nichols Fritzler@stocktonca.gov>; Concepcion Gayotin <Concepcion.Gayotin@stocktonca.gov> Cc: Murphy, Stephen E <smurphy@segalco.com>; Wu, Johnny <jwu@segalco.com> Subject: Written questions for the City of Stockton RFP (PUR ) Benefits Consultant Services Please find attached Segal s written questions to the City of Stockton s RFP. Let us know if you have any questions. Written Questions to CITY OF STOCKTON RFP Benefits Consultant Services (PUR ) Questions 1. Is this RFP being released to satisfy the City s procurement policies? 2. Are there service or resource issues the City is specifically looking to address through this RFP? 3. On an annual basis, what is the average number of onsite meetings anticipated by type and frequency (e.g., Staff, City Council, Committees, Employee Organizations, Open Enrollment, Health Fairs, etc.) the consultant should plan to attend? Yes Responses The City is satisfied with the incumbent consultant, however, to ensure that the City is receiving competitive pricing and optimal services, it is prudent to issue an RFP. On an annual basis, the consultant should plan to attend at least three onsite meetings. It is anticipated that the consultant will meet with the bargaining units to and review the Health Benefits Annual report and renewal rates, meet with the City

2 Questions 4. How many hours are estimated for each meeting type noted above? 5. Does the City prefer to reimburse consulting services through hourly fees or on a fixed fee retainer basis? 6. When is the last time the City s employee benefit plans were competitively bid through a formal RFP process? 7. Are there any unique public procurement procedures that the consultant must adhere to? If so, what are they? 8. Who is responsible for managing employee benefit program communications on behalf of the City? 9. What is the City s current annual budget for employee benefit communications? 10. Will the consultant be required to create new Plan documents or perform consultative and technical reviews of existing Plan documents? 11. Does the City brand and synchronize its employee benefit and wellness communications? Responses Council and present the Health Benefits Annual report and the renewal rates for approval. It is also anticipated that the consultant will meet with the City Manager on an annual basis. The consultant should set aside at least two hours for the meeting with the bargaining units and at least two hours for the meeting with the City Council. The consultant should also allow for travel time, if outside the Stockton area. The City prefers to reimburse consulting services on a fixed fee retainer basis. The City has 15 contracts, each of which expire at different times. Included is a list of current contracts and their expiration dates. See table below. Yes, Consultant must adhere to City s RFP process and boilerplates, as well procurement policies and procedures. The Director of Human Resources is responsible for managing employee benefit program communication on behalf of the City. The City s annual budget for employee benefit communication is $7,000. Yes, if required, the consultant will be required to create new Plan documents and/or perform consultative and technical reviews of existing Plan documents. The City communicates the employee benefits and wellness information through a variety of media, such as the City of Stockton external and internal website, printed and mailed notices, including a quarterly newsletter and annual open enrollment information.

3 Questions 12. When does open enrollment take place? Is it an active enrollment (everyone must participate) or a passive enrollment (only those who are new or making changes must participate)? 13. What materials do employees currently receive in advance of and during open enrollment? Responses The Open Enrollment process begins in May of each year. The City has an active enrollment (everyone must participate). For the Open Enrollment period, employees were mailed a save the date postcard followed by a multipage informational packet that included plan and rate information. For a comprehensive overview of the open enrollment materials, please visit the City of Stockton s website at: departments/humanresources/benefits/ openenrollment.html 14. Do you conduct employee enrollment meetings either in person or online? 15. What would be the City s preferred method(s) of communicating benefit and wellness information to its employees in the future (e.g., mail, online, , social media, etc.)? The City of Stockton conducts employee enrollment meetings in person. Recently, the City implemented an online enrollment system in which employees can review open enrollment materials online, compare plans, and select their enrollment options. The City s preferred method(s) of communicating benefit and wellness information to its employees in the future is online, , and through the City s website. Vendor Expiration Date Date of original Contract American Fidelity 06/30/19 03/21/06 Anthem Blue Cross 06/30/17 05/01/06 CalPERS None 09/01/44 CVS/Caremark 06/30/17 07/01/12 Delta Dental of California 06/30/18 01/01/72 Integrated Behavioral Health (IBH) 12/31/17 01/01/15 Kaiser Permanente 06/30/18 09/01/11 Mass Mutual (formerly the Hartford) 05/01/19 10/08/91

4 Vendor Expiration Date Date of original Contract MetLife 06/30/18 07/01/13 P&A Administrative Services, Inc. 06/30/18 07/01/12 P&A Administrative Services, Inc. 06/30/20 07/01/12 Reliance Standard 06/30/17 07/01/13 Sutter Health Plus 06/30/19 07/01/16 Union Labor Life (ULLICO) 07/01/17 07/01/98 Vision Service Plan 07/01/18 01/01/10 Aimee van Rijswijk SEGAL 330 N. Brand Blvd. Ste Glendale, CA Tel Fax From: Nancy Schott Sent: Thursday, May 18, :35 PM To: Cecelia Nichols-Fritzler Concepcion Gayotin Cc: Howell Southmayd Nancy Schott Subject: Keenan Questions - Stockton RFP for Benefits Consultant Services (PUR17-019) Ms. Nichols-Fritzler and Ms. Gayotin: Keenan is please to submit the following questions (also attached in letter format): 1. Please provide enrollment by tier: Employee only, Employee plus 1 and Employee plus Family. EE EE + 1 Family Dependents Employee Total Member Total KAISER HMO KAISER DHMO ACTIVE MODIFIED MEDICAL SUTTER HEALTH WAIVED MEDICAL As of December 2016, dental enrollment totaled 1,292 and vision enrollment totaled 1, Are retirees eligible for Medical, Dental and/or Vision coverages? No. Retired employees are not eligible for medical, dental, and/or vision coverages. These are closed plans and no other retirees may enroll. Those who are currently covered are only allowed to enroll in the Preferred Provider Organization (PPO) plan

5 3. How many retired employees are covered in each medical plan? Please break out the numbers for post-65 and pre-65 retirees. As of December 2016, the enrollment for retired employers was: Plan (Retirees Under 65) December 2016 Enrollment Modified Retirees 2 Original Retirees 0 Plan (Retirees over 65) December 2016 Enrollment Modified Retirees 20 Original Retirees 1 4. What amount, if any, does the City contribute to pre-65 and post-65 retirees? If the contributions differ by class, please provide a schedule. Effective July 1, 2013, retirees must contribute the entire cost of coverage to participate in the City s health plans. The retiree plan is closed; no new enrollments are accepted. 5. What are the top 3 Health and Benefit issues facing the City? The top three health and benefit issues facing the City are: Increasing costs related to health insurance premiums and prescriptions Declining enrollment in the self-insured plan, making it cost prohibitive to continue Competitive benefit offerings to attract and retain employees If you would please acknowledge receipt of this , it would be appreciated. Thank you. Nancy Schott Service Coordinator Municipalities Keenan Innovative Solutions. Enduring Principles. License No p: ext e: nschott@keenan.com w: Broadway, Suite 2000 Oakland, CA 94607

6 From: Barbara Weaver Lloyd Sent: Thursday, May 18, :15 PM To: Cecelia Nichols-Fritzler Concepcion Gayotin Cc: Lauren King Barbara Weaver Lloyd Subject: City of Stockton-RFP BENEFITS CONSULTANT SERVICES_Clarifications to RFP 1. A City of Stockton license is required for this project: can we assume firms without a current license can still submit a bid for consideration? A City of Stockton business license is required upon award of the contract. Proposers may submit a bid for consideration without a current license. 2. How many actives employees? Enrollment as of December 2016: Plan December 2016 Enrollment Kaiser DHMO 525 Kaiser HMO 175 Sutter Health Plus HMO 285 Modified 183 As of December 2016, dental enrollment totaled 1,292 and vision enrollment totaled 1, How many retiree? As of December 2016, the enrollment for retired employers was: Plan (Retirees Under 65) December 2016 Enrollment Modified Retirees 2 Original Retirees 0 Plan (Retirees over 65) December 2016 Enrollment Modified Retirees 20 Original Retirees 1 4. Does the City have a written Long term Benefits Strategy? If yes, can you provide? It is the City s goal to provide employees with a comprehensive benefits plan that is cost effective and competitive. 5. Does the City have a formal Wellness plan? No, the City does not have a formal Wellness plan. 6. What is the City s current enrollment system, if any? In May 2017, the City implemented an online enrollment system with ConnectedHealth. 7. How do you submit RFPs to the marketplace? Do you use BidSync? The City uses its own site for posting formal projects. The City calls it BidFlash and it performs similar to BidSync.

7 8. How long has Anthem been your medical vendor? Anthem has been the City s medical vendor since March 1, What is your current Medical Reserve amount (IBNR)? The estimated reserves for 2017/2018 is $462, Is your Pharmacy Benefits currently carved Out? If so with what vendor? The City of Stockton pharmacy benefit is with CVS/Caremark. 11. Are you currently using local delivery model? If so, what hospitals, clinics, etc. are included? Each of the City s providers has their own network. For example, Sutter Health contracts with Dameron Hospital and St. Joseph s Hospitals in Stockton, California, as well as other urgent care clinics and physicians within the region. Kaiser has its own hospitals and physicians. 12. How long have you been self funded with Anthem? Anthem has been the City s medical vendor since March 1, What is the enrollment in all plans? Enrollment as of December 2016 by tier: EE EE + 1 Family Dependents Employee Total Member Total KAISER HMO KAISER DHMO ACTIVE MODIFIED MEDICAL SUTTER HEALTH WAIVED MEDICAL As of December 2016, dental enrollment totaled 1,292 and vision enrollment totaled 1, What is the current annual hours spent for each category of service listed in the cost proposal section? The information is currently not available. 15. What services should be included in each Service Category for pricing purposes? a. General Consulting The City seeks proposals that include comprehensive consultation services for a portfolio of health benefits comprised of Medical, Dental, Vision, Pharmacy Benefits Management, Life Insurance, Long-term Disability, Section 125, Voluntary Insurance products, Occupational Health, and an Employee Assistance Plan. For a comprehensive overview of services, please refer to the Request for Proposal, Section 2.0 BACKGROUND and Section 2.1 SCOPE OF WORK. b. Health Actuary The consultant shall also have the capacity to provide annual actuarial reporting services and consultation

8 relative to establishing health premiums and other funding considerations. For a comprehensive overview of services, please refer to the Request for Proposal, Section 2.0 BACKGROUND and Section 2.1 SCOPE OF WORK. c. Vendor Contract RFP/Bids The Consultant will provide all assistance required to formulate benefit delivery structures, administer and advise on vendor bid and request for proposal (RFP) processes. For a comprehensive overview of services, please refer to the Request for Proposal, Section 2.0 BACKGROUND and Section 2.1 SCOPE OF WORK. 16. Please describe the following service needs: a. Occupational Health Services The City may need support services in the future. b. Deferred Compensation The City currently uses a deferred compensation consultant however, there may be a need for ancillary services in the future Best Regards, Barbara Weaver Lloyd Area Senior Vice President Arthur J. Gallagher & Co 1255 Battery Street, Suite 450 San Francisco, CA Office Cell Barbara_weaverlloyd@ajg.com From: Tina Koenig [mailto:koenig@burnhambenefits.com] Sent: Thursday, May 18, :34 AM To: Cecelia Nichols-Fritzler <Cecelia.Nichols-Fritzler@stocktonca.gov> Subject: Benefit Consultant RFP Questions PUR-019 Hi Cecelia, In reviewing your very thorough proposal, we only have a few questions. 1. It appears as though City of Stockton does not currently have a consulting relationship. Can you please confirm? The City of Stockton currently contracts for such services.

9 2. If seeking a Consultant for the first time, can you elaborate on the reason why the City has elected to pursue a contract at this time? The current contract is set to expire December 13, To ensure that the City is receiving competitive pricing and optimal services, it is prudent to issue an RFP. 3. Please provide the headcount (active vs. retiree) enrolled in each of the medical plans. Enrollment as of December 2016: Plan December 2016 Enrollment Kaiser DHMO 525 Kaiser HMO 175 Sutter Health Plus HMO 285 Modified 183 Modified Retirees 2 Original Retirees 0 Modified Retirees 20 Original Retirees 1 Dental 1,292 Vision 1, Please provide the current City contributions for each of the medical plans. Employee Only $631 Employee + 1 dependent $1,146 Employee + 2 or more dependents$1,526 Thank you. Tina Koenig (Brink), Vice President BURNHAM BENEFITS INSURANCE SERVICES Direct Cell koenig@burnhambenefits.com 2220 Douglas Boulevard, Suite 170 Roseville, CA CA License # 0D86695

10 From: Julie Theirl Sent: Wednesday, May 17, :36 PM To: Cecelia Nichols-Fritzler Concepcion Gayotin Subject: RFP for Benefits Consultant Good afternoon, We have a number of questions regarding the subject RFP as follows: 1. Please confirm that the City s current consultant is Segal. The City of Stockton currently contracts with Segal Consulting. 2. It appears as if the City is currently paying Segal a not to exceed amount of $315,000. Is that amount per year or is that total split over a certain period time (please specify)? The contract with Segal is a not to exceed amount of $315,000 for the entire term of the contract. The amount per year varies. 3. Why has the City issued this RFP? The City issued the RFP to ensure that it is receiving competitive pricing and optimal services. 4. What is the level of satisfaction with the incumbent consultant? The City is satisfied with the incumbent consultant. 5. Section 1.14 of the RFP Is the City willing to negotiate alternate language including a limitation of liability? The proponent shall assert that these Indemnification/Hold Harmless provisions will be adhered to as part of their proposal. Failure to agree with this language may result in a proposal being deemed unresponsive. 6. Are any of the City s plans self funded? If yes, please describe. The City offers a self-funded PPO plan and a self-funded dental plan. 7. Are the requested actuarial services being provided currently by the incumbent consultant for the fee referenced in questions #2 above? The requested actuarial services are being provided currently by the incumbent consultant for the fee referenced in questions #2 above. 8. Under the Scope of Work, Section 2 refers to surveys for employee feedback. Has the city previously conducted surveys and if yes, please describe. Are those fees included in the incumbent consultant s current revenue as mentioned in question #2 above? The City has not previously conducted a survey for employee feedback.

11 9. How many onsite meetings would the city estimate would be required by the consultant? The City estimates at least three onsite meetings per year would be required by the consultant. The City reserves the right to request additional onsite meetings, as required. 10. How many hours has been billed annually by the incumbent consultant for each of the past 3 years? The information is currently not available. 11. Are there any services listed in the Scope of Work that are not currently being provided by the incumbent consultant as part of the fee referenced in question #2 above? The incumbent consultant is providing the services listed in the Scope of Work as part of the fee referenced in question #2 above. 12. How often does the city require that health/benefit plans be formally marketed (i.e. RFP issued)? Each of the benefit plans expire at varying times. Ideally, the health/benefit plans should be formally marketed approximately every three to five years. 13. For the Cost Proposal Information to be provided, please provide this information for the incumbent consultant for the current contract. It is the City s policy not to release this information during the RFP process. However, such information can be requested under the Public Records Act after the RFP and at which time the confidentiality factor will be taken into consideration. 14. The RFP references needing a City of Stockton business license. Is that required in order to submit a proposal or can one be obtained upon award of the bid? The business license will be required upon award of the project. Respectfully, Julie Theirl Senior Vice President Aon Risk Solutions Public Sector Risk Pooling Aon 425 Market Street, Suite 2800 San Francisco, CA O: M: F: julie.theirl@aon.com

12 POSTED Communication please send your communication via Questions the last day to make inquiries is May 18, Answers clarifications and answers will be posted by May 25, Proposals due promptly by 2:00 pm, Thursday, June 1, 2017, City Clerk s Office.