Administrative Services Committee Meeting

Administrative Services Committee Commission Chamber- 10/24/2011- 1:00 PM Meeting ADMINISTRATIVE SERVICES 1. Approve Aetna as Augusta, Georgia’s Ancillary Insurance Attachments Provider (Life/Long Term Disability/Accidental Death and Dismemberment) for 2012. 2. Approve BlueCross BlueShield of Georgia as the Augusta, Attachments Georgia Medical Insurance Provider for 2012. 3. Motion to approve the Rental Agreement between Augusta, Attachments Georgia (Landlord) and the Department of Human Resources - Family and Children Services (Tenant) for property located at 520 Fenwick Street in Augusta, Georgia. www.augustaga.gov  Administrative Services Committee Meeting 10/24/2011 1:00 PM Approve Aetna as Augusta, Georgia’s Ancillary Insurance Provider (Life/Long Term Disability/Accidental Death and Dismemberment) for 2012. Department: Human Resources Caption: Approve Aetna as Augusta, Georgia’s Ancillary Insurance Provider (Life/Long Term Disability/Accidental Death and Dismemberment) for 2012. Background: Augusta has more than 2,400 employees eligible for Life and Long Term Disability coverage. The total cost for this year will be approximately $$963,809. The current carrier for ancillary insurance for Augusta, GA is The Standard Life Insurance Company. Analysis: After a thorough RFP process for both Life and Long Term Disability, 4 finalists were selected for formal presentations to the insurance committee. Each vendor was asked to prepare a 45 minute presentation and provide their best and final offer. Those vendors included, The Standard, BCBS of Georgia, Aetna, and Cigna. While all 4 companies were very competitive and provided an enhanced benefit package over what Augusta Richmond County has in place today, Aetna was chosen as the carrier to continue final negotiations with based on competitive pricing and overall value. Wells Fargo entered into final negotiations with Aetna and below are the negotiated rates for 2012. The rates listed come with a 3 year rate guarantee and no reduction in benefits to Augusta Richmond County employees. Financial Impact: Alternatives: Do not approve Aetna as Augusta, Georgia’s Ancillary Insurance Provider (Life/Long Term Disability/Accidental Death and Dismemberment) for 2012. Recommendation: Approve Aetna as Augusta, Georgia’s Ancillary Insurance Provider (Life/Long Term Disability/Accidental Death and Dismemberment) for 2012. Cover Memo Funds are Available Item # 1 in the Following In respective employee benefits budgets. Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 1  Administrative Services Committee Meeting 10/24/2011 1:00 PM Approve BlueCross BlueShield of Georgia as Augusta, Georgia’s Medical Insurance Provider for 2012. Department: Human Resources Caption: Approve BlueCross BlueShield of Georgia as the Augusta, Georgia Medical Insurance Provider for 2012. Background: Augusta has more than 2,400 employees eligible for medical insurance. The total estimated cost for this year will be approximately $20,571,414. The plan is currently funded using a shared risk arrangement with BlueCross BlueShield of Georgia. BlueCross BlueShield of Georgia is also the provider for the retiree Smart Value Insurance for Augusta, GA. Analysis: The initial renewal for 2012 with BlueCross BlueShield of Georgia was for an 8% ($1,645,713) increase in premium. After the initial review by Augusta’s Benefits Consultant, Wells Fargo two companies were selected two finalists (BlueCross BlueShield of Georgia and Aetna). After the finalists presentations the information was reviewed again by the selection committee and BlueCross BlueShield of Georgia was selected to begin final negotiations with Wells Fargo. Active Employees Original Renewal Premium $22,217,127 Best & Final Offer (5% increase) $21,599,984 Additional Negotiated Discount (1%) $205,714 Net Premium for 2012 $21,394,270 Increase $822,856 Financial Impact: The total estimated cost for Active employees in 2012 is: $21,394,270 Augusta currently has a shared risk agreement with BCBS of GA. 3% of the premium is waived if Augusta does not reach a set claims threshold. This year Augusta will not reach the threshold saving the 3% in premium. This agreement will be continued for 2012. This not only has a potential of saving Augusta money, but it helps to prepare for the potential risk that will be incurred if Augusta decides to become self insured in the future. Alternatives: Do not approve BlueCross BlueShield of Georgia as Augusta, Georgia’s Health Insurance Provider for 2012 for employees and retirees of Augusta, GA. Cover Memo Item # 2 Recommendation: Approve BlueCross BlueShield of Georgia as Augusta, Georgia’s Health Insurance Provider for 2012 for employees and retirees of Augusta, GA. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 2  Attachment number 1 \nPage 1 Request for Proposal Request for Proposals will be received at this office until Friday, September 16, 2011 @ 11:00 a.m. for furnishing: RFP Item #11-148 Fully Insured Insurance Services for Human Resources Department RFP Item #11-149 Ancillary Insurance Services for Human Resources Department RFP Item #11-150 Self Insured/TPA for Human Resources Department RFPs will be received by: The Augusta Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams, Director Augusta Procurement Department 530 Greene Street - Room 605 Augusta, Georgia 30901 RFP documents may be viewed on the Augusta Georgia web site under the Procurement Department ARCbid. RFP documents may be obtained at the office of the Augusta, GA Procurement Department, 530 Greene Street – Room 605, Augusta, GA 30901. A Mandatory Pre-Proposal Meeting will be held on Friday, August 26, 2011 @ 10:00 a.m. in the Procurement Department 530 Greene Street, Room 605. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Monday, August 29, 2011 @ 5:00 P.M. No bid will be accepted by fax, all must be received by mail or hand delivered. No RFP may be withdrawn for a period of 90 days after time has been called on the date of opening. Invitation for bids and specifications. An invitation for bids shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the invitation to bid including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark RFP number on the outside of the envelope. Bidders are cautioned that acquisition of RFP documents through any source other than the office of the Procurement Department is not advisable. Acquisition of RFP documents from unauthorized sources places the bidder at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. The purpose of this Disadvantaged Business Enterprises program is to comply with U.S. Department of Transportation (DOT), Federal Transit Administration (FTA), Federal Aviation Administration (FAA) and other federal and state mandated DBE requirements for certain DOT, FTA, FAA, and other federal and state assisted contracts as required by 49 C.F.R. Part 26, et. seq. and/or 49 C.F.R. Part 23, et. seq. This DBE program is only for DOT, FTA and FAA assisted contracts and other federal or state funded contracts having mandatory DBE requirements. (See Article 13 of the Augusta, GA Code) GERI A. SAMS, Procurement Director Publish: Augusta Chronicle August 4, 11, 18, 25, 2011 Metro Courier August 10, 2011 cc: Tameka Allen Interim Deputy Administrator Rod Powell Human Resources Robby Burns Human Resources Revised: 7/14/11 Item # 2  Attachment number 2 \nPage 1 RFP Item #11-148 Fully Insured Insurance Services for Augusta, Georgia - Human Resources Department RFP Due: Friday, September 16, 2011 @ 11:00 a.m. Addendums VENDORS Attachment B E-Verify # Original 9 Copies Fee Proposal 1&2 Aetna Inc 11675 Great Oaks Way YES 47479 YES YES YES YES Alpharetta GA 30071 Blue Cross Blue Shield Of GA 3350 Peachtree Road YES 351835818 YES YES YES YES Atlanta GA 30326 Consumers Life 1899 Powers Ferry Road Suite 400 YES 125928 YES YES YES YES Atlanta GA 30339 United Health Care 3720 Davinci Court Ste300 YES 54820 YES YES YES YES Norcross GA 30092 Aegias 4571-B Cox Road Evans GA 30809 Cigna 3500 Piedmont Road Suite 200 Atlanta GA 30305 Colonial Life 1200 Colonial Life Blvd Columbia SC 29210 Humana 1005 Mansford Lane Evans GA 30809 Transamerica 3007 Pine Needle Road #204 Augusta GA 30909 Wealth Preservation Group LLC 6849 Peachtree Dunwoody Road Building R-1 Suite 102 Atlanta GA 30328 Item # 2 Page 1 of 1 Attachment number 3 \nPage 1 Item # 2 Attachment number 4 \nPage 1 Item # 2 Attachment number 4 \nPage 2 Item # 2 Attachment number 4 \nPage 3 Item # 2 Attachment number 5 \nPage 1 Item # 2 Attachment number 5 \nPage 2 Item # 2 Attachment number 6 \nPage 1 Item # 2 Attachment number 6 \nPage 2 Item # 2 Attachment number 6 \nPage 3 Item # 2 Attachment number 6 \nPage 4 Item # 2 Attachment number 6 \nPage 5 Item # 2  AUGUSTA RICHMOND COUNTY - Fully-Insured RFP Scoresheet General Description Rating Scale 0 (Low) to 5 (High) Factor Points BCBS GA Aetna UHC Consumers Life PROGRAM DESIGN 3.00 Ability to meet all RFP requirements 2.00 1.00 1.00 3.00 Flexibility in custom benefit plan 3.00 2.00 2.00 Points 6.00 5.00 3.00 3.00 8.00 Reporting capabilities 7.00 7.00 6.00 4.00 Claim processing accuracy 4.00 4.00 4.00 3.00 Claim processing timeliness 3.00 3.00 3.00 2.00 Claim processing systems 2.00 2.00 2.00 3.00 Service/performance guarantees 1.00 2.00 - 7.00 Account Management - Staff Level/Experience 7.00 5.00 5.00 PLAN ADMINISTRATION AND SERVICES 2.00 Employer/Member Services 2.00 2.00 2.00 3.00 Wellness Resources 2.00 3.00 2.00 3.00 Diseaase Management Programs 2.00 3.00 3.00 3.00 Access to Providers (Network) 3.00 2.00 3.00 3.00 Network Discounts 3.00 - 3.00 2.00 Technological Capabilities 1.00 2.00 2.00 1.00 Communication materials 1.00 1.00 1.00 Points 44.00 38.00 36.00 36.00 INTEGRATION WITH ADP 2.00 External Vendors - Value & Ease of doing business 1.00 1.00 2.00 Points 2.00 1.00 1.00 2.00 25.00 Premium 25.00 18.75 12.50 PRICING 2.00 Multi-Year Rate Guarantee - - - Points 27.00 25.00 18.75 12.50 7.00 Experience related to performance of requested services 7.00 7.00 7.00 PROSPECTIVE 3.00 Financial/Administrative Stability 3.00 3.00 3.00 CONTRACTOR'S 3.00 RFP Quality/Completeness 3.00 2.00 2.00 CREDENTIALS AND RESPONSIVENESS 4.00 Character, Reputation, References 4.00 4.00 4.00 4.00 Overall Value Proposition 3.00 2.00 2.00 Points 21.00 Item 20.00 #2 18.00 18.00 Grand Total 100.00 89.00 76.75 71.50 1  Administrative Services Committee Meeting 10/24/2011 1:00 PM DHS-DFCS Rental Agreement Department: Law Caption: Motion to approve the Rental Agreement between Augusta, Georgia (Landlord) and the Department of Human Resources - Family and Children Services (Tenant) for property located at 520 Fenwick Street in Augusta, Georgia. Background: Analysis: n/a Financial Impact: Please see Exhibit A Alternatives: Deny the motion to approve the rental agreement. Recommendation: Approve the motion. Funds are Available in the Following n/a Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Attachment number 1 \nPage 1 Item # 3 Attachment number 1 \nPage 2 Item # 3 Attachment number 1 \nPage 3 Item # 3 Attachment number 1 \nPage 4 Item # 3 Attachment number 1 \nPage 5 Item # 3 Attachment number 1 \nPage 6 Item # 3  #3246 EXHIBIT A 1. PROVISION FOR ADJUSTMENTS IN OPERATING EXPENSES PAYMENTS: a. Per Article III and Exhibits “A, & C”, rent is composed of two elements. The two elements are Capital Expenses Rent (“CE”) and Operating Expenses Rent (“O/E”). Attachment number 2 \nPage 1 Adding these two elements together equals Base Rent (“BR”) (CE+ O/E = BR). Base Rent is reflected as a number in Article III. Operating Expenses Rent is subject to annual adjustments subject to Exhibit “B”, paragraph 1. Capital Expense Rent is subject to adjustments subject to Exhibit “B”, paragraph 3. Operating Expense Rent is paid monthly and originally is set at $3.997 per square foot or $28,975.00 per month. b. For purposes of this Special Stipulation No. 1, 1. the term ‘Building’ shall refer to that building located at 520 Fenwick Street, Augusta, Georgia 30901 , being that building in which the premises referenced in this Agreement is located; 2. the term ‘Operating Expenses” shall include only those costs of operation and routine repair and maintenance of the Building and shall specifically be comprised of insurance, utilities, janitorial and cleaning services, landscaping, dumpster/trash, light bulbs, parking lot, service contracts, elevators, HVAC, pest control, and for the cost of materials and labor for routine repairs and maintenance; 3. the term ‘Base Year’ shall refer to the calendar year ending on the 31st day of December last preceding the beginning of the renewal or extension term for which additional Rent is being calculated; 4. the Base Year for this special stipulation shall be Calendar Year 2010; 5. the term “Increased Operating Expenses Rent” shall refer to the amount, if any, by which the Operating Expenses Rent for the Calendar Year following the Base Year exceeds the Operating Expenses Rent for the Base Year, excluding the amount of any such increase over which Landlord has any direct control; 6. the term ‘Pro-Rata Percentage’ shall refer to a numerical value calculated by dividing the net usable/rentable square footage of office space in the Building occupied by Tenant (numerator) by the total net usable/rentable square footage of office space in the Building (denominator) and multiplying the resulting fraction by 100 as follows: 86,986 Square feet times 100 equals 100.00 % 86,986 Square feet c. Upon receipt of supporting documents showing Increased Operating Expenses, Tenant agrees to pay in any renewal or extension term of this Agreement, additional Operating Expenses Rent in equal monthly payments in addition to the Capital Expense Rent described in this Agreement. Said additional Operating Expenses Rent shall be equal to the Pro-Rata Percentage divided by 100 and multiplied by the Increased Operating Expenses, plus the additional Operating Expenses Rent (if any) paid in the immediately preceding term. d. Landlord shall furnish Tenant written evidence, of the Operating Expenses of the Base Year and the year immediately preceding the Base Year in order to justify any additional Operating Expenses Rent. Said written evidence shall be furnished to Tenant within ninety (90) days from the end of the Base Year. 2. PROVISION FOR CAPITAL EXPENSE RENT: Item # 3 Page 1 of 3  The Base Rent for the Premises is set forth in Article III of the Rental Agreement. As part of the Base Rent, Tenant shall pay a monthly Capital Expense Rent, which is subject to adjustment pursuant to Paragraph 3 of this Exhibit B. Capital Expense Rent is calculated based upon $3.360 per rentable square foot of space in the Premises per year or $24,358.34 per month. Landlord shall be responsible for, contingent upon adequate maintenance reserves (See EXHIBIT C), structural repairs to the roofs, exterior walls and foundation of the Building and for capital expenditures incurred to repair and replace improvements, systems and equipment on the Premises. The portion of Base Rent which represents the Capital Expense Rent shall be placed in a number 2 \nPage 2 Attachment segregated custodial account (hereinafter the “CE Fund”) by the Landlord, which shall be an interest-bearing account. Landlord may, at Landlord’s discretion, invest and reinvest the funds in the CE Fund in investments permitted for funds of the Landlord and all earnings shall be maintained in the CE Fund. The CE Fund, together with all earnings thereon, shall be used solely for the purpose of funding Capital Repairs to the Premises. Neither the Capital Expense Rent nor the earnings there from shall be used as general fund revenue by, or placed in any general account, of the Landlord. At least once annually, a financial statement shall be forwarded from Landlord to Tenant to show accounting of the CE Fund balance, including, without limitation, all receipts and disbursements. The financial statement is to be delivered to Tenant by the 1st day of April each year for the preceding year. Both a representative of the Landlord (Director of Planning & Development Department) and of the Tenant (Director of Office of Facilities and Support Services) shall agree in writing on the list of projects, costs on projects, and the date of completion of those projects by May 1st each year. 3. PROVISION FOR CAPITAL EXPENSE RENT ADJUSTMENT: Prior to May 1st of the Initial Term or any Additional Term thereafter, or at any other time or times when requested by Tenant, Tenant and Landlord will agree to an equitable adjustment to increase or decrease the amount, if any, of the monthly Capital Expense Rent for deposit in the CE Fund for the following term. Tenant and Landlord also agree to review and agree upon the increased or decreased in the monthly Capital Expense Rent (or other funding mechanisms) required to fund such costs before Landlord is deemed obligated to make any modifications to the Premises to bring them into compliance with any new Federal and State statues or regulations. Any CE Fund increases or decreases shall be reduced to writing and acknowledged by both Tenant and Landlord. At the time Tenant vacates the Premises all monies in the CE Fund account shall be returned to the Tenant within sixty (60) days. 4. PROVISION FOR OPEN ENDED MODIFICATION Upon receipt of a written request from Tenant, Landlord agrees to perform such alterations and/or modifications to the premises as are deemed necessary by Tenant, provided that such alterations and/or modifications are acceptable to Landlord and are consistent with the structural integrity of the Premises. Landlord shall not unreasonably withhold consent to such alterations and/or modification requests. Each such request shall specifically enumerate all items of work to be performed by Landlord and shall set forth the Special Rent Assessment payable by Tenant. If such alterations and/or modifications, and the amount of the proposed Special Rent Assessment are acceptable to Landlord, Landlord agrees to perform such work in accordance with Tenant’s request; provided however, that Landlord shall not be required to perform any work not specifically set forth in any such request, including, without limitation, changes to work being performed as a result of such requests, unless Tenant submits additional written request, enumerating all such additional items of work and conforming to the above Item # 3 Page 2 of 3  requirements. Tenant further agrees to pay all Special Rent Assessments in full within ten (10) days of completion of all work set forth in each such request, upon acceptance and approval of such alterations or modifications by Tenant. 5. PROVISION FOR ADDITIONAL NOTICE: All notices, demands and requests required or permitted to be given under the provisions of this Lease shall be deemed duly given if sent by registered or certified United States mail, postage prepaid, addressed to Landlord, Tenant and as follows: Attachment number 2 \nPage 3 Georgia State Properties Commission Leasing Division 47 Trinity Avenue, SW Suite G-02 Atlanta, Georgia 30334-9006 or such other address as the parties may from time to time designate in writing. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Item # 3 Page 3 of 3 Item # 3 Item # 3 Item # 3 Item # 3