Title
Dept/ Agency: Administration/Division of Personnel
Action: ( X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Contract for Life Insurance Plan
Purpose: Retiree Life Insurance (Policy Coverage Threshold : $1,500 per eligible retiree)
Entity Name: Prudential Life Insurance
Entity Address: 80 Livingston Avenue, Roseland, NJ 07068
Contract Amount: Estimated cost of $268,876.00
Funding Source: City of Newark Budget
Contract Period: January 1, 2012 through December 31, 2013
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( X )Insurance/EUS
( ) Fair & Open ( X ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( Insurance Exception, N.J.S.A.40A:11-5(m) ) n/a
Additional Information:
Prior Adopted Resolution 7R1Y092111
body
WHEREAS, the City of Newark desires to enter into contract to provide its eligible retirees represented by the various bargaining units with which the City negotiates and eligible unclassified personnel with retiree life insurance benefits; and
WHEREAS, pursuant to Resolution 7R1-Y, adopted September 21, 2011, the City of Newark entered into an Agreement with Prudential Insurance Company (Prudential) for the provision of providing retiree life insurance benefits in the amount of $1,500, for the period commencing January 1, 2012 and terminating on December 31, 2013 for an estimated amount not to exceed $268,876.00; and
WHEREAS, Prudential submitted a proposal indicating that they would provide life insurance benefits for the same rate of $6.400 per $1,000 for a period commencing on January 1, 2012 and terminating on December 31, 2013; and
WHEREAS, the City of Newark feels that it is in the best interest of its eligible retirees to accept this amendment from Prudential; and
WHEREAS, the City of Newark desires to enter into a contract with Prudential for the provision of retiree life insurance entitlement, for the contract period of January 1, 2012 through December 31, 2013, for an estimated cost of $268,876.00; and
WHEREAS, this Contract is awarded without competitive bidding as an exception to Local Public Contract Law, pursuant to N.J.S.A. 40A:11-5(m), and in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii), Extraordinary Unspecifiable Service; and
WHEREAS, Local Public Contract Law N.J.S.A. 40A:11-1, et seq. requires a Resolution of the Governing Body authorizing the award of contracts for Extraordinary Unspecifiable Services; and
WHEREAS, the contract is exempt from the requirements of State Pay- to- Play Law N.J.S.A. 19:44A-20.5 as Insurance Companies are state-regulated companies by the Department of Banking and Insurance and are statutorily barred from making a reportable contribution pursuant to N.J.S.A. 19:34-32; and
WHEREAS, the Mayor of the City of Newark signed into law Executive Order Number MEO-07-0001 (hereinafter "Pay to Play Executive Order"), which requires reporting of political contributions to Newark Municipal Candidates and prohibits certain political contributions during the duration of the contract.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or his designees, the Business Administrator and the Personnel Director, are hereby authorized to enter into and a contract with Prudential Insurance Company whose address is 80 Livingston Avenue, Roseland, NJ 07068 for the provision of life insurance benefits for eligible retirees, for a two year period commencing January 1, 2012 and terminating on December 31, 2013, pursuant to N.J.S.A. 40A:11-15(6).
2. This contract is hereby ratified from January 1, 2012 to the date of adoption of this authorizing resolution.
3. The estimated cost of providing the aforesaid services for the period of January 1, 2012 to December 31, 2013 is $268,876.00.
4. A copy of the fully-executed contract shall be filed in the Office of the City Clerk by the Personnel Director.
5. The Contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A 40A:11-(m), and is in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii), Extraordinary Unspecifiable Services, and is in compliance with Executive Order MEO-07-0001, effective March 31, 2007.
6. A Certification of Extraordinary Unspecifiable Services is attached and shall be filed with the Office of the City Clerk.
7. The contract is exempt from the requirements of State Pay-to-Play Law N.J.S.A. 19:44A-20.5 because Insurance Companies are state-regulated companies by the Department of Banking and Insurance and are statutorily barred from making a reportable contribution pursuant to N.J.S.A. 19:34-32.
8. Attached hereto are partial certifications of funds from the Municipal Comptroller which states that there are available sufficient and legally appropriated funds for the purposes set forth herein through December 31, 2012:
a. $31,912.00 from Fund 011, Agency 200, Organization 2001, Object 60410;
b. $1,076.00 from Fund 037, Agency 750, Organization 7503, Object 60410;
c. $2,102.00 from Fund 011, Agency 010, Organization 0111, Object 60410
9. Additional funds are contingent upon appropriations as required by N.J.A.C. 5:30-5.5(c) and pursuant to N.J.A.C. 5:30-5.5(d)(2).
10. There shall be no amendments or changes of this contract without approval of the Municipal Council.
11. There shall be no advance payments on this contract in accordance with N.J.S.A. 40A:5-16.
12. A notice of this action shall be published in the newspaper authorized by law to publish a legal advertisement and as required by law within 10 days of its passage.
13. If required by Law, the City Clerk shall provide the appropriate notice of award of the contract to the State Comptroller no later than 20 business days following such award, in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution ratifies and authorizes the Mayor and/or his designees, the Business Administrator and the Personnel Director, to enter into and execute a contract with Prudential Life Insurance located at 80 Livingston Avenue, Roseland, NJ 07068, for the provision of retiree life insurance services for all eligible retirees, for the period commencing January 1, 2012 and terminating on December 31, 2013. The Contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A. 40A:11-5(m), in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii), Extraordinary Unspecifiable Services, and is in compliance with Executive Order MEO-07-0001, effective March 31, 2007