Title
a. Approve and authorize the Contracts/Purchasing Officer to sign a Renewal and Amendment No. 1 to Agreement No. A-13188 between the County of Monterey and UNUM, retroactive to February 1, 2017, and extending the term of the agreement through January 31, 2018, and replacing Exhibit B, in its entirety, with Exhibit B-1; and
b. Authorize the Contracts/Purchasing Officer to sign future amendments to the agreement where the amendments do not significantly change the scope of work or cause an increase in the agreement rates to a total of more than ten percent (10%) of the aggregate total of the contract.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Contracts/Purchasing Officer to sign a Renewal and Amendment No. 1 to Agreement No. A-13188 between the County of Monterey and UNUM, retroactive to February 1, 2017, and extending the term of the agreement through January 31, 2018, and replacing Exhibit B, in its entirety, with Exhibit B-1; and
b. Authorize the Contracts/Purchasing Officer to sign future amendments to the agreement where the amendments do not significantly change the scope of work or cause an increase in the agreement rates to a total of more than ten percent (10%) of the aggregate total of the contract.
SUMMARY/DISCUSSION:
On June 21, 2016, the Board of Supervisors approved Agreement No. A-13188 between the County of Monterey and UNUM to provide administration of the self-funded, short-term disability advice-to-pay services; fully insured employer-paid, long-term disability (LTD) benefits; and fully insured, voluntary employee-paid LTD benefits, with the option to extend the agreement by mutual consent of the parties. The Contracts/Purchasing Officer was also authorized by the Board to sign future amendments to the agreement.
The Human Resources Department’s (HRD) -Benefits Division was working with UNUM toward renewing and extending the Agreement prior to its expiration on January 31, 2017. Administrative delays in confirming rates to update cost provisions for the extended term; minor correction to the initial claim adjudication rate as noted on Exhibit 1; and update of the employee-paid, voluntary long-term disability rates, caused the Agreement to lapse.
With these agreement items now in place, HRD seeks Board of Supervisors’ approval and authorization for the Contracts/Purchasing Officer to sign an Agreement Renewal, retroactive to February 1, 2017, and Amendment No. 1 to the Agreement.
OTHER AGENCY INVOLVEMENT:
The Offices of the County Counsel and Auditor-Controller have reviewed and approved the Renewal and Amendment No. 1 as to form and legality, and fiscal provisions, respectively.
FINANCING:
There is no impact to the General Fund as a result of this Agreement Renewal and Amendment No. 1. Sufficient appropriations are available in the FY 2016-17 Adopted Budget for Benefits Internal Service Fund 477 for costs associated with the self-funded, short-term disability advice-to-pay services, and fully insured, employer-paid, long-term disability benefits.
BOARD OF SUPERVISORS’ STRATEGIC INITIATIVES:
The proposed recommended action addresses the Board of Supervisors’ Administration Strategic Initiative. The recommended action demonstrates the County’s commitment to provide short- and long-term disability benefits to employees to meet the Board’s strategic initiative by recruiting, retaining, and attracting a diverse, talented work force that supports the mission of Monterey County.
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Prepared By: Kimberly Drabner, Benefits Program Manager
Approved By: Irma Ramirez-Bough, Director of Human Resources
Attachments:
Renewal and Amendment No. 1 to Agreement No. A-13188
Agreement No. A-13188