SUPPLEMENTAL AGENDA, PERSONNEL AND ANIMAL WELFARE COMMITTEE. Wednesday, April 19, 2017

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1 SUPPLEMENTAL AGENDA, PERSONNEL AND ANIMAL WELFARE COMMITTEE Wednesday, April 19, 2017 ROOM 1010, CITY HALL - 8:30 AM 200 NORTH SPRING STREET, LOS ANGELES, CA MEMBERS: COUNCILMEMBER PAUL KORETZ, CHAIR COUNCILMEMBER DAVID E. RYU COUNCILMEMBER MARQUEECE HARRIS-DAWSON (Adam Lid - Legislative Assistant - (213) or Adam.Lid@lacity.org) Click here for agenda packets Note: For information regarding the Committee and its operations, please contact the Committee Legislative Assistant at the phone number and/or address listed above. The Legislative Assistant may answer questions and provide materials and notice of matters scheduled before the City Council. Sign Language Interpreters, Communication Access Real-Time Transcription (CART), Assistive Listening Devices, or other auiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting/event you wish to attend. Due to difficulties in securing Sign Language Interpreters, five or more business days notice is strongly recommended. For additional information, please contact the Legislative Assistant listed above. MULTIPLE AGENDA ITEM COMMENT GENERAL PUBLIC COMMENT ITEM NO. (5) CAO report relative to proposed First Amendment to First Supplemental Agreement to Contract No. C with Great-West Life & Annuity Insurance Company (also known as Empower Retirement Services) etending the term for ten months through October 31, 2017, to provide Third Party Administrator services for managing the City of Los Angeles Pensions Savings Plan for part-time, temporary, and seasonal employees. Fiscal Impact Statement Submitted: Yes Community Impact Statement: None submitted. TIME LIMIT FILE - JUNE 10, 2017 Wednesday - April 19, PAGE 1

2 (LAST DAY FOR COUNCIL ACTION - JUNE 9, 2017) If you challenge this Committee's action(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at or prior to, the public hearing. Any written correspondence delivered to the City Clerk before the City Council's final action on a matter will become a part of the administrative record. Materials relative to items on this agenda can be obtained from the Office of the City Clerk's Council File Management System, at lacouncilfile.com by entering the Council File number listed immediately following the item number (e.g., ). Wednesday - April 19, PAGE 2

3 TRANSMITTAL TO DATr The City Council City Attorney 3/21/17 f NOW The Mayor goo 1 council nr no COUNCIL OlSlHdf Proposed First Amendment to First Supplemental Agreement to Contract No. C with Great-West Lite & Annuity Insurance Company tor Third Party Administrator Services tor the City of Los An go Eos Pension Savings Plan Approved and transmitted lor further processing See attached City Adr-inrslrative Officer report altached. (Ana Guerrero) MAYOR, RHL:JJI L LIAO fl4q-d I Wednesday - April 19, PAGE 3

4 Report From OFFICE OF THE CITY ADMINISTRATIVE OFFICER Analysis of Proposed Contract ($25,000 or Greater and Longer than Three Months) To: The Mayor Date: C.D. No. CAO File No.: Contracting Department/Bureau: Contact: Personnel Department Bobbi Jacobsen (213) Reference: Transmittal from the Personnel Department dated November 9, 2016; referred for report on November 16, 2016 Purpose of Contract: To provide Third Party Administrator services for managing the City of Los Angeles Pension Savings Plan Type of Contract: ( ) New contract Contract/Amendment Amount: ( ) Amendment Contract Term Dates: January 1, 2012 through October 31, 2017 Fees paid in accordance with Fee Schedule set forth in the First Supplemental Agreement to Contract No. C Proposed amount $ + Prior award(s) $ = Total contract amount is based on the fees paid in accordance with the fee schedule established in the contract and the number of participants Source of funds: Department No. 61; No City Funds - trust fund of fees collected from Pension Savings Plan participants to pay contract epenses Name Of Contractor: Great West Life & Annuity Insurance Company (also known as Empower Retirement Services) Address: 8515 East Orchard Road, Greenwood Village, CO Yes Council has approved the purpose Appropriated funds are available Charter Section 1022 findings completed Proposals have been requested Risk Management review completed 6. Standard Provisions for City Contracts included 7, Workforce that resides in the City: 0.3 % No N/A* 8. Contractor has complied with: Yes No N/A* a.equal Employmt. Oppty./Affirm. Action b.good Faith Effort Outreach c. Equal Benefits Ordinance d.contractor Responsibility Ordinance e,slavery Disclosure Ordinance f. Bidder Certification CEC Form 50 *N/A = not applicable ** Contracts over $100,000 RECOMMENDATION That the City Council approve, and authorize the General Manager of the Personnel Department to eecute, the First Amendment to First Supplemental Agreement to Contract No. C with Great-West Life & Annuity Insurance Company (also known as Empower Retirement Services) to ratify and etend the term of the contract by ten months for a new term effective January 1, 2012 through October 31, 2017 to provide Third Party Administrator services for managing the City of Los Angeles Pensions Savings Plan for part-time, temporary, and seasonal employees, subject to the review and approval of the City Attorney. SUMMARY The Personnel Department requests authority to eecute the First Amendment to First Supplemental Agreement to Contract No. C (Amendment) with Great-West Life & Annuity Insurance Company, also known as Empower Retirement Services (Empower), to provide Third Party Administrator (TPA) services for the City of Los Angeles Pensions Savings Plan (PSP) for part-time, temporary, and seasonal employees. The proposed Amendment will etend the term of the contract by ten months for a revised contract term effective January 1, 2012 to October 31, Li JJ l CAO 661) Rev. 5/2007 Wednesday Analy; ~Assistant-2#0 - April 19, City Admirrisfrative Officer PAGE 4

5 CAO File No Page 2 Approval of the proposed Amendment will enable the continuation of administration, recordkeeping, and employee communication/enrollment services for the PSP. In January 2017, the Personnel Department released a request for proposal for TPA and investment management services for the PSP. The Department anticipates receiving proposals in late March The proposed contract etension is necessary to allow sufficient time to complete the competitive procurement process and, if necessary, for transitioning to a new service provider. PSP participants pay all costs of the PSP including administrative, consulting, and investment costs through fees. Accordingly, the City does not contribute any funds to administer the PSP. Annual participant fees and other charges will be prorated as necessary to reflect the shortened term of the proposed Amendment. In accordance with Charter Section 1022, the Personnel Department determined that there are no classifications of City employees that can perform these services. As a result of the need for Empower s services to be provided continuously on an on-going basis, the proposed Amendment includes a ratification clause acknowledging services performed from the epiration of the prior agreement to the eecution of the proposed Amendment. In accordance with LAAC Section 10.5, City Council approval of the proposed Amendment is required because the cumulative term of the contract eceeds three years. Empower has complied with all City contracting requirements, policies, and procedures. FISCAL IMPACT STATEMENT There is no fiscal impact to the General Fund associated with the recommendation provided in this report. All costs of administering the Pension Savings Plan are funded solely by participant fees. RHL:JJI: Wednesday - April 19, PAGE 5