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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Employee and Public Services
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DATE:
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August 29, 2006
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BOARD MEETING DATE:
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September 19, 2006
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Tim Sullivan, Assistant HR Director
Paul Hackleman, Benefits Manager
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SUBJECT:
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Approval of Extension of Agreement with AIG for Accidental Death and Dismemberment Benefits
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RECOMMENDATION:
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Adopt a resolution waiving the Request for Proposal process and approving the extension of an agreement with AIG for Accidental Death and Dismemberment benefits for the period from October 1, 2006 through October 1, 2009 for an estimated annual cost of $28,000.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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Goal(s): 20 and 21: Government decisions are based on careful consideration of future impact rather than temporary relief or immediate gain; and County employees understand, support and integrate the County vision and goals into their delivery of services.
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Performance Measure(s):
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Measure
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Contract Years 2005-06
Actual
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Contract Years 2006-09
Projected
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Enrollment of eligible employees within 30 days of notification
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N/A
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100% enrollment within 30 days
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Average response time for incoming calls
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N/A
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<30 seconds
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BACKGROUND:
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The County currently offers a $100,000 Accidental Death and Dismemberment (A, D & D) benefit to Elected, Management, County Counsel, Deputy County Counsel and Confidential employees. Additionally, the County offers a $10,000 A, D & D benefit to all employees.
The County conducted a competitive bid in August, 2003 which resulted in the selection of AIG for a three year contract. AIG offered the lowest aggregate proposal for these benefits with no increase during the three-year term.
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DISCUSSION:
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AIG is being recommended to continue to provide A, D & D benefits because it:
• Offered the lowest cost proposal in 2003, without increase during the past three years and has agreed to continue the benefits without increase for the next three year period and
• Minimizes disruption by avoiding the need to produce new certificates, policies and summary plan descriptions.
The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
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FISCAL IMPACT:
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The extension of the agreement with AIG provides A, D & D coverage for the period from October 1, 2006 through October 1, 2009 at no increase in cost. The estimated annual total cost of the premium is $28,000.
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