Title
Dept/ Agency: Administration/Division of Personnel
Action: ( X ) Ratifying (X) Authorizing ( ) Amending
Type of Service: EUS Contract
Purpose: Provide Voluntary Employee Paid Life Insurance Product
Entity Name: Fort Dearborn Life Insurance
Entity Address: 1020 31st Street, Downers Grove, Illinois 60515-5591
Contract Amount: Estimated cost of $160,000.00 provided by participating City employees bi-weekly payroll deductions
Funding Source: N/A - Employee funded
Contract Period: April 1, 2011 to March 31, 2013
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( X ) EUS
( ) Fair & Open ( X ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient ( ) n/a
Additional Information:
7R1-N120811
body
WHEREAS, the City of Newark (the City) desires to provide its employees with the opportunity to participate in a voluntary group life insurance plan; and
WHEREAS, Fort Dearborn has submitted a proposal to provide a voluntary group life insurance plan for two years with no cost to the City; and
WHEREAS, the City of Newark desires to enter into a contract with Fort Dearborn for the provision of a voluntary group life insurance plan, for the contract period of April 1, 2011 and terminating on March 31, 2013 for an estimated cost (actual cost is contingent upon enrollment) of $160,000.00 which is paid solely by participating City employees via bi-weekly payroll deduction; and
WHEREAS, this Contract is awarded without competitive bidding as an exception to Local Public Contracts Law, pursuant to N.J.S.A. 40A:11-5(m), and as an Extraordinary Unspecifiable Service, in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii); and
WHEREAS, Local Public Contracts 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, Fort Dearborn provided indemnification and hold harmless language; 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 execute an Extraordinary Unspecifiable Service contract with Fort Dearborn Life Insurance Company whose address is 1020 31st Street, Downers Grove, Illinois 60515-5591, for the provision of a voluntary life insurance product for all eligible employees, for a two year period commencing April 1, 2011 through March 31, 2013, pursuant to N.J.S.A. 40A:11-15(6).
2. This contract is hereby ratified from April 1, 2011 to the date of adoption of this authorizing resolution.
3. The estimated cost of providing the aforesaid services for the period of April 1, 2011 to March 31, 2013 is $160,000.00 paid solely by participating City employees via bi-weekly payroll deductions.
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:11-5(m), and as an Extraordinary Unspecifiable Services in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii) 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. The City will permit employee payment of premiums through authorized payroll deductions.
9. Fort Dearborn provided indemnification and hold harmless language.
10. A certification of funds is not required with this agreement because the City of Newark will not be required to expend funds as a result of this contract but will be in receipt of funds which will not be required to be deposited to the General Fund Account.
11. There shall be no amendments or changes of this contract without approval of the Municipal Council.
12. There shall be no advance payments on this contract in accordance with N.J.S.A. 40A:5-16.
13. If required by State 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.
14. 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.
STATEMENT
This Resolution ratifies and authorizes the Mayor and/or his designees, the Business Administrator and the Personnel Director, to execute an Extraordinary Unspecifiable Services contract with Fort Dearborn Life Insurance Company whose address is 1020 31st Street, Downers Grove, Illinois 60515-5591, for the provision of a voluntary life insurance product for all eligible employees, for the period commencing April 1, 2011 and terminating on March 31, 2013, with no cost to the City of Newark. 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), and as an Extraordinary Unspecifiable Services in accordance with the requirements of N.J.S.A. 40A:11-5(1)(a)(ii), and is in compliance with Executive Order MEO-07-0001, effective March 31, 2007