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AGENDA REPORT
Meeting Date:
Item Number:
October 18, 2022
To: Honorable Mayor & City Council
From: Shelley Ovrom, Director of Human Resources
Kirsten Rowe, Assistant Director of Human Resources
Sharon L’Heureux Dressel, Risk Manager
Subject: AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF BEVERLY HILLS AND WAGEWORKS, INC. FOR THE
ADMINISTRATION OF THE CITY’S FLEXIBLE SPENDING
ACCOUNT; AND
APPROVAL OF A PURCHASE ORDER FOR FISCAL YEAR 2022/23
IN THE AMOUNT OF $300,000 FOR A TOTAL NOT TO EXCEED
AMOUNT OF $525,000
Attachments: 1. Agreement
RECOMMENDATION
Staff recommends that the City Council approve Amendment No. 2 to an agreement between the City of Beverly Hills and WageWorks, Inc., for a total not to exceed amount of $525,000, and authorize the City Manager to approve a purchase order for Fiscal Year (FY) 2022/23 in the amount of $300,000.
INTRODUCTION
The City retained the services of WageWorks, Inc (formerly Conexis) to provide administration of the City’s Flexible Spending Account (FSA) program. The FSA, a benefit the City offers to all FullTime and Regular Part-Time employees, allows employees to use tax-free funds to pay for eligible health care expenses ($2,750 annually for Calendar Year (CY) 2022) and dependent care services ($5,000 annually for CY 2022).
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Meeting Date: October 18, 2022
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DISCUSSION
The City began using Conexis in 2011 (acquired by WageWorks, Inc. in 2014) and has been satisfied with their ability to effectively and efficiently administer the City’s FSA. This administration includes the monitoring of all employee accounts, paying participant claims, and providing monthly reports and plan documents that are IRS compliant.
The previous agreement expired on June 30, 2021. Due to unforeseen process related circumstances at WageWorks, there was a delay in finalizing the contract and a delay in processing invoices. During this time, WageWorks continued to provide the same level of service with the understanding that payment would be remitted once the contract was finalized and approved. The proposed amendment provides for an estimated $200,000.00 to address pending invoices from July 1, 2021 to current, and $100,000 for contractual charges in FY 2022/23. In 2023, staff will be issuing a Request for Proposals (RFP) for the administration of the City’s Flexible Spending Accounts.
FISCAL IMPACT
Overall, the fiscal impact to the City for the remaining term of the agreement is $300,000. Funds for this agreement are available in the existing Human Resources and Risk Management budget.
Shelley Ovrom
Director of Human Resources
Approved
Attachment 1
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B0785-0001\2704047v1.doc
AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND WAGEWORKS, INC. FOR THE ADMINISTRATION OF THE CITY’S FLEXIBLE SPENDING ACCOUNT
NAME OF CONTRACTOR: WageWorks, Inc.
RESPONSIBLE PRINCIPAL OF
CONTRACTOR: Tyson Murdock, CFO
CONTRACTOR’S ADDRESS: 15 W. Scenic Point Dr. Ste 100
Draper, Utah 84020
Attention: Tyson Murdock, CFO
CITY’S ADDRESS: City of Beverly Hills 455
N. Rexford Drive
Beverly Hills, CA 90210
Attention: Shelley Ovrom, Director of
Human Resources
COMMENCEMENT DATE: July 1, 2017
TERMINATION DATE: June 30, 2020 (original termination date) June 30, 2021 (as extended pursuant to
Section 2 by letter dated July 1, 2020)
June 30, 2023 (as extended pursuant to
Amendment No. 1)
CONSIDERATION: OriginalAgreement: Not to exceed
$125,000
Amendment No. 1: Not to exceed
$100,000
Amendment No. 2: Not to exceed
$300,000
Total Not to Exceed: $525,000
DocuSign Envelope ID: 012EC9DF-5055-4350-8CD3-12D574FD9989 -2-
B0785-0001\2704047v1.doc
AMENDMENT NO. 2 TO AN AGREEMENT BETWEEN THE CITY OF
BEVERLY HILLS AND WAGEWORKS, INC. FOR THE ADMINISTRATION OF THE CITY’S FLEXIBLE SPENDING ACCOUNT
This Amendment No. 2 is to that certain Agreement between the City of Beverly Hills (hereinafter called "CITY"), and WageWorks, Inc. (hereinafter called "CONTRACTOR") dated November 20, 2018, and identified as Contract No. 712-18, as amended by Amendment No. 1 dated July 29, 2022 and identified as Contract No. 491-22 (collectively, the “Agreement”).
RECITALS
A. CITY entered into a written agreement with CONTRACTOR to provide administration services of CITY’s flexible spending account, which was previously amended.
B. CITY and CONTRACTOR desire to further amend the Agreement to increase the Consideration to compensate CONTRACTOR for prior services performed and future services.
NOW, THEREFORE, the parties agree as follows:
Section 1. The CONSIDERATION shall be amended as set forth on the cover page of this Amendment No. 2.
Section 2. Exhibit B “SCHEDULE OF PAYMENT AND RATES” shall be amended and restated as attached hereto and incorporated herein.
Section3. Except as specifically amended by section 1 of Amendment No. 1 and this Amendment No. 2, the remaining provisions of the Agreement shall remain in full force and effect.
EXECUTED the day of 2022, at Beverly Hills, California.
CITY OF BEVERLY HILLS
A Municipal Corporation
____________________________
LILI BOSSE
Mayor
ATTEST:
By: (SEAL)
HUMA AHMED
City Clerk
[Signatures continue]
DocuSign Envelope ID: 012EC9DF-5055-4350-8CD3-12D574FD9989 -3-
B0785-0001\2704047v1.doc
CONTRACTOR:
JON KESSLER
Chief Executive Officer
TYSON MURDOCK
Executive Vice President & Chief Financial Officer
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
_______________________ ____________________________
LAURENCE S. WIENER GEORGE CHAVEZ
City Attorney City Manager
____________________________
SHELLEY OVROM
Director of Human Resources
____________________________
SHARON L’HEUREUX DRESSEL
Risk Manager
DocuSign Envelope ID: 012EC9DF-5055-4350-8CD3-12D574FD9989 -4-
B0785-0001\2704047v1.doc
EXHIBIT B
SCHEDULE OF PAYMENT AND RATES
CITY shall compensate CONTRACTOR for the services required by this Agreement based on the rates set forth in this Exhibit in an amount not to exceed Five Hundred Twenty-Five Thousand Dollars ($525,000.00).
Schedule of Payment and Rates effective 1/1/2022
Reimbursement Accounts – Participant Service Fees
Fixed Rate per Medical FSA/DCAP Plan Participant $8.90 per participant per month
Minimum Monthly Billing $170.00
CONTRACTOR may modify the service fees and/or services in accordance with this Exhibit as of the date any change is made in postal rates or to laws or regulations to the extent such change imposes duties or obligations on CONTRACTOR or requires CONTRACTOR to carry out its obligations in a manner not otherwise contemplated by this Agreement in force at the time of such change.
CONTRACTOR may revise the service fees by providing CITY thirty (30) days prior written notice of such changes. In addition, service fees may be revised by giving CITY fifteen (15) days prior written notice, if CITY makes changes to the Plan (regardless of reason) that materially revises the nature or volume of the services contemplated by this Agreement and/or the increase of pass through fees from third party service providers to CONTRACTOR.
CONTRACTOR shall submit to CITY a detailed invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within 30 days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall pay CONTRACTOR said Consideration in accordance with the schedule of payment set forth in this Exhibit.
DocuSign Envelope ID: 012EC9DF-5055-4350-8CD3-12D574FD9989 Certificate Of Completion
Envelope Id: 012EC9DF505543508CD312D574FD9989 Status: Sent Subject: Complete with DocuSign: Amendment No. 2 - Wageworks, Inc..pdf Source Envelope:
Document Pages: 4 Signatures: 5 Envelope Originator:
Certificate Pages: 2 Initials: 0 Kirsten Rowe
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.166
Record Tracking
Status: Original
10/4/2022 1:17:24 PM
Holder: Kirsten Rowe
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Deborah R. Hakman For
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 107.77.228.49
Signed using mobile
Sent: 10/4/2022 1:26:03 PM
Viewed: 10/4/2022 2:58:17 PM
Signed: 10/4/2022 2:58:37 PM
Electronic Record and Signature Disclosure:
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Jon Kessler
[email protected]
President & CEO
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 104.28.123.91
Signed using mobile
Sent: 10/4/2022 2:58:40 PM
Viewed: 10/4/2022 5:35:20 PM
Signed: 10/4/2022 5:36:11 PM
Electronic Record and Signature Disclosure:
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Tyson Murdock
[email protected]
EVP & CFO
HealthEquity, Inc.
Security Level: Email, Account Authentication
(None)
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Using IP Address: 216.51.93.155
Sent: 10/4/2022 5:36:14 PM
Resent: 10/5/2022 12:22:53 PM
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Signed: 10/5/2022 12:59:20 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Sharon L'Heureux Dressel
[email protected]
Risk Manager
Sharon Dressel
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(None)
Signature Adoption: Pre-selected Style
Using IP Address: 198.245.189.166
Sent: 10/5/2022 12:59:22 PM
Viewed: 10/6/2022 7:45:55 AM
Signed: 10/6/2022 7:46:02 AM
Electronic Record and Signature Disclosure:
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Signer Events Signature Timestamp
Kirsten Rowe
[email protected]
Asst Director of Human Resources
City of Beverly Hills
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(None)
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Using IP Address: 198.245.189.166
Sent: 10/6/2022 7:46:05 AM
Resent: 10/6/2022 8:17:52 AM
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Signed: 10/6/2022 8:18:25 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 10/6/2022 8:18:27 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
George Chavez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
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Lili Bosse
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
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Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
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