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HomeMy WebLinkAboutResolution - 2022-R0415 - Amendment No. 2 to Contract 13582 with Optum FinancialResolution No. 2022-RO415 Item No. 6.8 October 11, 2022 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, Amendment No. 2 to Contract No. 13582 by and between the City of Lubbock and Optum Financial to provide Flexible Spending Account and Health Reimbursement Arrangement (HRA) administrative services, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on October 11, 2022 P�-- TRAXYA-fNE, AYOR ATTEST: Reb ca Garza, City Sec et APPRO ED O CONTENT: Clifton Beck, Director of Human Resources APPROVED AS TO FORM: DeputyFCity Attorney ccdocs/RES.Contract-Optum Financial September 27, 2022 Resolution No. 2022-RO415 Amendment No. 2 to the Agreement Between Optum Financial, Inc. and City of Lubbock This Amendment No. 2 ("Amendment") dated January 1, 2023 (the "Amendment Effective Date") is entered into by and between Optum Financial, Inc., including its affiliates, with its principal place of business at 11000 Optum Circle, Eden Prairie, MN 55344 ("Optum") as successor in interest to ConnectYourCare, LLC ("CYC"); and City of Lubbock with its principal place of business at 1314 Avenue K, Lubbock, TX 79401-4051 ("Customer"). Whereas, CYC and Customer are parties to the Administrative Services Agreement dated January 1, 2018 (the "Agreement") for the provision of certain services by Optum to Customer; and Whereas, Optum acquired CYC on November 4, 2020 and CYC subsequently assigned all of its rights and obligations under the Agreement to Optum; and Whereas, the parties desire to amend certain terms and conditions of the Agreement in accordance with this Amendment and agree to new terms and conditions as set forth herein. Now, therefore, the parties mutually agree as follows: 1. Capitalized terms used herein which are not otherwise defined in this Amendment or any attachments hereto shall have the meaning assigned to them in the Agreement. 2. Optum is the successor in interest to CYC and, as permitted by Section 13 of the Agreement, the Parties acknowledge that CYC assigned all of its rights, liabilities, obligations, duties, and interests in the Agreement to Optum and Optum agreed to assume all of CYC's rights, liabilities, obligations, duties and interests under the Agreement. All references to "ConnectYourCare, LLC" or "CYC" in the Agreement are hereby replaced with "Optum Financial, Inc." or "Optum", as applicable. 3. Section 9(a) of the Agreement is hereby deleted in its entirety and replaced with the following: Term. This Agreement is effective as of January 1, 2018 (the "Effective Date") and shall continue through December 31, 2027, unless terminated earlier as provided in Section 9(b). Any such notice by Employer must be received by Optum at least 120 days prior to the end of the then -current term. 4. Exhibit B is hereby deleted in its entirety and replaced with the Exhibit B attached to this Amendment. S. The Parties further agree that the terms set forth in the solicitation documents submitted by and agreed to by Optum for RFP 22-16694-TF Medical, Stop -loss, Dental, PBM, Vision, COBRA, Flexible Spending Account Administration, Medicare, Navigator and HRA Administration shall control in the event, and to the extent, of any conflict or inconsistency between said terms and those in the Professional Services Agreement amended hereby. 6. This Amendment and the Agreement constitutes the entire agreement and understanding of the parties hereto and supersede all prior agreements, consents, and understandings relating to the subject matter hereof whether oral or in writing. The parties agree that there are no other oral or other agreements between the parties that have not been incorporated into this Amendment and the Agreement. 7. Each of the persons signing this Amendment represents and warrants that he/she is a duly authorized officer, director or agent of the party on whose behalf the person is signing, and further represents and warrants that the person signing has the power and authority to bind the party, and that the party has the legal power to enter into this Amendment. Signature Page Follows Optum Financial, Inc. City of Lubbock A011K1oh&f Signature: Mark John „Se, 28, 202216.54 CDT} Signature: Print Name: Mark Johns Print Title: CFO Optum Financial Date: 09/28/2022 Internal Control No.: 00876725.2 Print Name: 10, tt--- R!�' Tray ayne Print Title: Mayor Date: October 11, 2022 EXHIBIT B — FEE SCHEDULE This Exhibit B is made by and between Optum and Employer and is hereby incorporated into the Administrative Services Agreement executed between the Parties on this same date. This Exhibit B sets forth the fees and charges related to the Services provided pursuant to the Agreement. Service/Product Fee Monthly fee per account participant per month (PPPM) Account Type: FSA and DCAP FSA H RA $2.22 PPPM $2.22 PPPM $3.20PPPM Run -Out Charges (one-time fee) $5.55 Set -Up Fee (onetime charge) $125.00 Annual Fee Per Program $0.00 Healthcare Payment Card Services Included Additional Payment Card Included Electronic SPD Included Returned check/ Automated Clearinghouse (ACH) $15.00 Additional Services Fees. Service/Product Enrollment meetings: Non-discrimination Testing Fee $750 per day plus travel expenses; Fee waived for meeting with >500employee participation $350 - First set of cafeteria plan non- discrimination tests per plan year; $100 - Subsequent set(s) of cafeteria plan tests within the same year. Non -Standard Programming Hourly Rate = $150 an hour Additional data handling fee: Hourly Rate =$200 an hour Additional services: The price per page for printed standard materials is as follows: Quad fold brochures (minimum 5,000): $0.14/page, plus shipping; Two-sided color copies (minimum 500): $0.32/page, plus shipping. Customized materials will incur an additional charge of $200 per hour for design and development. Pricing increases if minimums not met.