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Backup Documents 07/10/2018 Item #16E 3 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP 16E 3 TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s)(List in routing order) Office Initials Date 1. Risk Risk Management . 7//�f`I 2. County Attorney Office County Attorney Office S4s/ 7/VO 4. BCC Office Board of County �S in Commissioners Jtk ?'25—K 4. Minutes and Records Clerk of Court's Office 1\N— TliStc6 c1:1(e64114 5. Procurement Services Procurement Services PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Stephanie Cales Contact Information 239-252-8950 Contact/ Department Agenda Date Item was July 10,2018 Z Agenda Item Number 16.E.3 Approved by the BCC Type of Document CONTRACT _ / Number of Original y 2 Attached V Documents Attached PO number or account N/A 18-7409 18-7409 7 number if document is Matrix Absence Matrix Absence to be recorded Management, Inc. Management, Inc. INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A"in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature STAMP OK N► 2. Does the document need to be sent to another agency for additional signatures? If yes, N/A provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be SC signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's N/A Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the SC document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's SC signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip N/A should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 07/10/2018 and all changes made during *c the meeting have been incorporated in the attached document. The County Attorney's Office has reviewed the changes,if applicable. 9. Initials of attorney verifying that the attached document is the version approved by the BCC,all changes directed by the BCC have been made,and the document is ready for thcit Chairman's signature. 16E3 MEMORANDUM Date: July 25, 2018 To: Stephanie Cales, Purchasing Technician Procurement Services From: Martha Vergara, Sr. Deputy Clerk Minutes & Records Department Re: Contract #18-7409 "Matrix Absence & Disability Management of Employee Benefit Programs" Contractor: Matrix Absence Management, Inc. Attached for your records is an original of the referenced document above, (Item #16E3) adopted by the Board of County Commissioners on Tuesday, July 10, 2018. The Board's Minutes & Records Department has kept an original as part of the Board's Official Records. If you have any questions, please feel free to contact me at 252-7240. Thank you. Attachment 16E3 MATRIX ABSENCE MANAGEMENT A MEMBER OF THE TOKIO MARINE GROUP AGREEMENT FOR SERVICES (Client's Agreement #18-7409) Client:Board of County Commissioners/Collier County Government (hereinafter "Client") Effective Date: January 1St, 2019 Services: ✓ Family Medical Leave Act ("FMLA") ✓ Short Term Disability ("STD") ✓ Americans with Disabilities Act ("ADA") Service Agreement 2018 1 16E3 THIS AGREEMENT is made as of the Effective Date set forth on the face page hereof by and between the Client set forth on the face page hereof and Matrix Absence Management, Inc., a corporation organized and existing under the laws of the State of Delaware ("Matrix"). RECITALS WHEREAS, Client is an employer that maintains certain benefit programs for its employees; and WHEREAS, Matrix offers absence and disability management services to employers;and WHEREAS, Client desires to utilize Matrix's absence and disability management services; with respect to the benefit programs checked on the face page hereof(collectively the "Plans"); THEREFORE, in accordance with the terms and conditions contained herein, acknowledged to be good and sufficient consideration,the parties agree as follows: 1. DEFINITIONS "Allocated Loss Adjustment Expenses" means all costs, charges or expenses incurred by Matrix, its agents or its employees which are properly chargeable to a Claim including, without limitation, medical records costs, court costs, fees and expenses of IME's, attorneys, independent adjusters, investigators, appraisers, medical cost containment service providers, experts and witnesses, and fees for obtaining diagrams, reports, documents and photographs, language translation costs and any other items which are deemed necessary or appropriate to process a Claim, but do not include the fees for services performed by Matrix employees. "Agreement Period" means the one year period beginning on the Effective Date and ending on the first anniversary of the Effective Date, and each subsequent one year period there after, for so long as the Agreement is in effect. "Claimant" means anyone filing a claim under the Plan(s). "Claim" means a claim made under, and pursuant to the terms of the Plan(s). "Claim Appeal Brief" documentation of Matrix review and notifications with respect to Claimant appeal of an initial Claim decision. "Effective Date" means, the date upon which this Agreement shall be effective and the services described herein shall begin to be delivered, as set forth on the face page hereof. "Eligible Pay" means the compensation of a Participant that is eligible to be considered for the purpose of determining benefits as set forth in the applicable plan document. Service Agreement 2018 2 bE 3 "Employee" means an employee of Client as determined by Client's human resource policies. "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder. The Plans may not be subject to ERISA. To the extent that a Plan is not subject to ERISA,all references to ERISA hereunder shall be deemed as having no effect. "FMLA" means the Family Medical Leave Act. "FMLA Services" means, collectively, the services, functions, duties and responsibilities related to the administration of Client's FMLA Plan, including the administration, management and adjudication of intermittent and stand-alone claims under FMLA, and claims that run concurrently with claims under the STD Plan or under one of the Statutory Plans; the tracking of leaves; co- ordination with Client's systems and managers; co-ordination with workers compensation carriers and long-term disability providers as required. "IME" means independent medical examination. "Participant" means an Employee of Client who Client determines is eligible for,and who is enrolled in, and covered by the Plans. "Plan(s)" means the Program(s), to which this Agreement applies as set forth on the face page hereof, and as described in the applicable plan documents. "Plan Description" means documents provided to Participants describing the terms and conditions of coverage offered under the Plans. "Plan Document(s)" means a written description of the Plan benefits and Plan provisions. "Proprietary Business Information" means information about Client's business or Matrix's business that is confidential, proprietary, trade secret or is not readily available to the general public; or, information that has been designated by Client or Matrix as confidential or proprietary. "Requirements Document" means the document(s) listing the specifications and requirements of the Services, including the manner in which the Services will be provided, as such document(s) may be amended or supplemented from time to time. "Return to Work"or"RTW" means a transition process for return to active work of those Employees or Participants who are (1) receiving short-term disability benefits or long-term disability benefits, and/or(2) absent from work due to an approved leave, and who have a medical release to return to work at modified duty or with restrictions. "Service Period" The billing period in which Matrix provides Administrative Services to the Client. "Services" means, collectively, the services, functions, duties and responsibilities related to certain claims and other leave administrative management services under the Programs to be performed by Matrix as described in more detail in the Requirements Documents in the Attached Addendums. Service Agreement 2018 3 3 "Self-Fund" or"Self-Funded" means that Client has the sole responsibility to pay,and provide funds, for all covered Plan benefits and applicable payroll taxes during the term of this Agreement, excluding administrative expenses. "Tax" or"Taxes" means taxes,assessments and all other federal,state,local or other governmental charges. II. OBLIGATIONS OF MATRIX A. Compliance with Laws. Matrix represents and warrants that it will remain, throughout the period in which this Agreement is effective, in compliance with all laws, rules, and regulations that are now or hereafter promulgated by any governmental authority or agency that govern or apply to the operation and/or use of the services described herein or that otherwise govern or apply to Matrix. This includes Florida Statute § 501.171. Security of Confidential Personal Information. B. Public Records Compliance. By executing and entering into this Agreement, Matrix ("Contractor") is formally acknowledging without exception or stipulation that it agrees to comply, at its own expense, with all federal, state and local laws, codes, statutes, ordinances, rules, regulations and requirements applicable to this Agreement, including but not limited to those dealing with the Immigration Reform and Control Act of 1986 as located at 8 U.S.C. 1324, et seq. and regulations relating thereto, as either may be amended; taxation, workers' compensation, equal employment and safety and the Florida Public Records Law Chapter 119, including specifically those contractual requirements at F.S. § 119.0701(2)(a)-(b) as stated as follows: IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: Communication and Customer Relations Division 3299 Tamiami Trail East,Suite 102 Naples, FL 34112-5746 Telephone: (239)252-8383 The Contractor must specifically comply with the Florida Public Records Law to: 1. Keep and maintain public records required by the public agency to perform the service. 2. Upon request from the public agency's custodian of public records, provide the public agency with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law. 3. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the Service Agreement 2018 4 E 3 contract term and following completion of the contract if the Contractor does not transfer the records to the public agency. 4. Upon completion of the contract,transfer, at no cost,to the public agency all public records in possession of the Contractor or keep and maintain public records required by the public agency to perform the service. If the Contractor transfers all public records to the public agency upon completion of the contract, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of the contract,the Contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the public agency, upon request from the public agency's custodian of public records, in a format that is compatible with the information technology systems of the public agency. If Contractor observes that the Contract Documents are at variance therewith,it shall promptly notify the County in writing. Failure by the Contractor to comply with the laws referenced herein shall constitute a breach of this agreement and the County shall have the discretion to unilaterally terminate this agreement immediately. C. Privacy. Matrix represents and warrants that it will remain,throughout the period in which this agreement is effective, in compliance with applicable federal privacy laws and regulations. D. Other Obligations of Matrix. Matrix agrees to discharge its duties with respect to this Agreement with the care, skill, prudence, and diligence under the circumstances then prevailing as would a prudent person, acting in a like capacity and familiar with such matters in accordance with, and pursuant to,the provisions of the Plan. Matrix further agrees that it will remain, throughout the period in which this Agreement is effective, in compliance with all laws, rules, and regulations that are now or hereafter promulgated by any government authority or agency that govern or apply to the services described herein or that are otherwise provided by Matrix to Client. III. OBLIGATIONS OF CLIENT A. Responsibility for the Plan. Except to the extent this Agreement specifically requires Matrix to have the responsibility for a Plan's administrative function, Client is responsible for the Plan. Matrix is not the plan administrator of the Plan(s). B. Enrollment Services for the Plan. Client shall be responsible for determining the eligibility of Employees to be Participants. Client or its designated third-party benefits administrator shall provide, and Matrix shall accept in an agreed upon format, eligibility information electronically or otherwise on a weekly basis or as needed. Matrix shall be entitled to rely on the most current information provided by Client regarding Service Agreement 2018 5 16E 3 eligibility of Participants in paying Plan benefits and providing other services under this Agreement. C. Description of the Plan. Client will give Matrix a written description of the Plan benefits and Plan provisions in a timely manner, so that Matrix will be able to provide its services under this Agreement on the effective date. D. Plan Documents. Client will provide Matrix with copies of Plan documents and Employee communications. Client will provide to Matrix any documentation which Matrix reasonably requests for review. E. Plan Changes. Client will notify Matrix in writing if Client intends to change relevant Plan benefits or other relevant Plan provisions, including termination of the Plan, within a reasonable period of time but no less than thirty (30) days prior to the change becoming effective. F. Compliance with Laws. Client represents and warrants that it will remain, throughout the period in which this Agreement is effective, in compliance with all laws, rules,and regulations that are now or hereafter promulgated by any governmental authority or agency that govern or apply to the operation and/or use of the services described herein or that otherwise govern or apply to Client. Client acknowledges that while Matrix may, from time to time, advise client of regulatory changes that it becomes aware of which may affect the Plans, it is the Client's sole responsibility to maintain awareness of all regulatory changes, and to make such modifications to the Plans as may be required. G. Responsibility for Employment Decisions— Client is and shall remain solely responsible for all determinations of the employment status of employees of Client,including but not limited to eligibility and qualification for leave of absence, and any extensions thereof, pursuant to Client's employment policies. In addition, Client shall remain solely responsible for all determinations regarding accommodations requested by employees in their employment, including without limitation extension of any leave of absence or reduced work schedules. Matrix shall direct any employee who submits such a request to Matrix to submit the request directly to the Client and Matrix shall notify a designated person at the Client of any such requests that it receives. IV. COMPENSATION TO Matrix Client shall pay Matrix the fees set forth in Exhibit A. Any expenses or fees for products or services not specified in this Agreement, must be agreed to and approved in writing by Client and Matrix prior to commencement of such products or services. A. Due Dates, Payments,and Penalties. Matrix's charges for its Administrative Services under this Agreement are set forth in Exhibit A attached to and made a part of this Agreement, as may be changed from time to time by written agreement between Matrix and Client. Payments are due upon receipt of a proper invoice and in compliance with Chapter 218, Fla. Stats., otherwise known as the "Local Government Prompt Payment Act." Any late interest Service Agreement 2018 6 16 3 Stats., otherwise known as the "Local Government Prompt Payment Act." Any late interest fees shall be pursuant to Section 218.74, Fla. Stat. B. Changes in Service Fees. The service fees are subject to change: (1) at anytime after the end of each Agreement Period, subject to any rate guarantees specifically set forth in Exhibit A; (2) any time there are changes made to this Agreement or the Plans, which materially affect the Services; (3) when there are changes to laws or regulations which materially affect the Services; or (4) if Client's actual claims activity exceeds the threshold outlined in Exhibit A. Matrix will provide Client with sixty(60) days prior written notice of the revised service fees for subsequent Agreement Periods, and for service fee adjustments. Client shall have the option to accept or reject the revised service fees. If Client accepts the revised service fees, the revised service fees will become effective at the end of the 60 day notice period. If the Client rejects the revised service fees,then this Agreement shall terminate at the end of the 60 day notice period. V. CLAIMS PAYMENT ADVANCES&TAXES A. Claims Payment Advances. Under no circumstances shall Matrix be required to advance funds to pay for benefits administered under this Agreement. B. Taxes. Collier County, Florida as a political subdivision of the State of Florida, is exempt from the payment of Florida sales tax to its Contractors under Chapter 212, Florida Statutes, Certificate of Exemption#85-8015966531C-1. C. Allocated Lost Adjustment Expenses. Client shall be responsible for the payment of Allocated Loss Adjustment Expenses. D. Termination of Agreement. When this Agreement terminates, the method of providing funds for Plan benefits shall remain in place for the period of time as agreed to by the parties. VI. INSURANCE A. Fidelity Bond. Matrix, at its sole cost, shall procure and maintain in force during the term of this Agreement a fidelity bond in the amount of not less than one million dollars($1,000,000) covering all employees of Matrix. B. Insurance.Matrix,at its sole cost,shall maintain commercial general liability and professional liability insurance (errors and omissions liability) policies (or self-insurance programs) with a minimum limit of two million dollars ($2,000,000) per occurrence and annual aggregate, to insure against claims arising out of services performed under this Agreement. The general liability insurance policy should also include personal injury and contractual liability. The General Liability Policy maintained by Matrix shall name Collier County, Florida (Collier County Board of County Commissioners, or Board of Collier County Commissioners, Service Agreement 2018 7 16E3 or Collier County Government, or Collier County), as an addil:ional insured for any work performed on behalf of Collier County and shall contain a severability of interests clause. Matrix shall also maintain Workers' Compensation coverage for its employees in accordance with the statutory Limits of Florida Statutes, Chapter 440 and all Federal Government statutory limits and requirements. Evidence of Workers' Compensation coverage or a Certificate of Exemption issued by the State of Florida shall be provided to the Client. Matrix and/or its insurance carrier shall provide thirty (30) days written notice to the Client of policy cancellation or non-renewal on the part of the insurance carrier or Matrix. Matrix shall also notify the Client, in a like manner, within twenty-four (24) hours after receipt, of any notices of expiration, cancellation, non-renewal or material change in coverage or limits received by Matrix from its insurer and nothing contained herein shall relieve Matrix of this requirement to provide notice. VII. LITIGATION AND INDEMNIFICATION A. Indemnification of Client, To the maximum extent permitted by Florida law, Matrix shall indemnify and hold harmless and defend Collier County, its officers and employees from any and all liabilities,damages,losses and costs,including, but not limited to,reasonable attorneys' fees and paralegals'fees,to the extent caused by the negligence, recklessness,or intentionally wrongful conduct of Matrix. This indemnification obligation shall not be construed to negate, abridge or reduce any other rights or remedies which otherwise may be available to an indemnified party or person described in this paragraph. This section does not pertain to any incident arising from the negligence or willful misconduct of Collier County. B. Limitation of Liability Neither party shall be liable to the other for any indirect, special, incidental, exemplary, reliance or punitive or consequential damages arising out of or related to this agreement, even if advised of the possibility thereof. C. Plan Benefits Litigation. Subject to the Indemnification provisions above, if a demand is asserted or litigation proceedings or arbitration is commenced by a Participant or any other person to recover benefits("Plan Benefits Litigation")against Matrix,Client or any combination of the parties,the defense of that action will be borne by Client at its sole cost. Matrix will cooperate with Client in any defense of any action. In seeking any recovery under this Agreement, Matrix will not be required to take legal action on behalf of the Plan, but will consult with and defer to Client who will have the sole discretion and authority to compromise, settle, or both, any claim for recovery by the Plan. Under no circumstances will Matrix be responsible to pay any underlying Plan benefits. The Client's foregoing indemnification shall not constitute a waiver of sovereign immunity beyond the limits set forth in section 768.28, Florida Statutes, and is limited as otherwise provided by law. D. Employment Litigation. Subject to Section VII.A, Client agrees to hold Matrix harmless,defend and indemnify Matrix from and against any and all claims, liability, loss, obligation, suit, judgment, damage, expenses and costs, including reasonable attorneys' fees and cost of Service Agreement 2018 8 3 defense, which may be asserted against or incurred by Matrix, which arise out of or in connection with Client's decisions about the employment status of any employee of Client, except to the extent that the claim arises from Matrix's negligent acts or omissions. The Client's foregoing indemnification shall not constitute a waiver of sovereign immunity beyond the limits set forth in section 768.28, Florida Statutes, and is limited as otherwise provided by law. VIII. AUDITS The parties shall have the mutual right to inspect, audit and copy, upon no less than thirty(30) days prior written notice to the other party and during normal business hours or at such other times as may be agreed upon, said relevant books and records as they pertain to this Agreement. Such information shall be provided to each party hereto pursuant to procedures designed to protect the confidentiality of patient health care records in accordance with applicable legal requirements and recognized standards of professional practice. This right shall continue to be provided for a period of three (3) years after the termination of this Agreement. Matrix reserves the right to defer any requested audit for up to 60 additional days based upon then current business requirements. IX. DISPUTE RESOLUTION All disputes arising directly under the express terms of this Agreement or the grounds for termination thereof shall be resolved as follows: Prior to the initiation of any action or proceeding permitted by this Agreement to resolve disputes between the parties,the parties shall make a good faith effort to resolve any such disputes by negotiation. The negotiation shall be attended by representatives of Matrix with full decision-making authority and by Client's staff person who would make the presentation of any settlement reached during negotiations to Client for approval. Failing resolution, and prior to the commencement of depositions in any litigation between the parties arising out of this Agreement,the parties shall attempt to resolve the dispute through Mediation before an agreed- upon Circuit Court Mediator certified by the State of Florida. The mediation shall be attended by representatives of Matrix with full decision-making authority and by Client's staff person who would make the presentation of any settlement reached at mediation to Client's Board for approval. Should either party fail to submit to mediation as required hereunder, the other party may obtain a court order requiring mediation under section 44.102, Fla. Stat. X. RECORDS A. Maintenance. Matrix shall keep all books and records necessary to reflect accurately the business it transacts with respect to this Agreement and to determine the respective rights of the parties under this Agreement. Such books and records shall be kept at such location as shall be disclosed in writing. All records will be maintained for a period of at least seven (7) years after the date they are first prepared or for such longer period as may be required by law. Service Agreement 2018 9 16E3 B. Confidentiality. The parties each acknowledge and agree that each has developed certain trade secrets,client lists,software,knowledge, data,tools, methodologies, processes, plans, procedures, techniques, manuals, treatment protocols, clinical indicators, case rates, provider payment structure information, underwriting methodology, proprietary rating plans, provider practice data,Employee-outcomes data, audit reports, actuarial analyses and other proprietary information (collectively "Confidential Information"). For purposes of this Agreement, the party that has developed Confidential Information to which the other has access is referred to as the"Protected Party." Except with the express written consent of the Protected Party, or as provided herein,the other party shall not disclose to others or take or use for such other party's own purposes or the purposes of others at any time, any Confidential Information of the Protected Party not otherwise in the public domain that may have been or may be obtained by the other party by reason of its relationship with the Protected Party. The parties further agree that this provision shall also be applied to all information that is designated as confidential or proprietary in writing by the Protected Party, whether by letter or by use of a stamp or legend before or at the time any such information is disclosed or delivered to the other party. Notwithstanding the foregoing, the parties recognize that patient's medical records are confidential and are not to be disclosed to third parties without the consent of the patient, unless otherwise permitted or required by applicable law. Confidentiality of information contained in this agreement is subject to the requirements of the Florida Public Records Act, Chapter 1151, Fla. Stat., and the Florida Sunshine Law, Chapter 286, Fla. Stat. XI. INDEPENDENT CONTRACTORS/SUBCONTRACTING A. Independent Contractors. Matrix and Client are independent legal entities. Nothing in this Agreement shall be construed or be deemed to create a relationship of joint ventures, principal and agent, or employer and employee. Unless otherwise specifically authorized by Client in writing, Matrix shall have no authority to enter into contracts or otherwise deal with third parties on behalf of, or as agent for, Client. Although Matrix may hire its own independent contractors, agents, or employees to supply data processing, accounting, printing, and other services to it in connection with its performance of services for Client, it is expressly understood and agreed that such independent contractors, agents, and employees are those of Matrix and not of Client, and Client shall have no responsibility or obligation,financial or otherwise,to such independent contractors, agents, or employees. B. Assignment. Neither party can assign this Agreement or any rights or obligations under this Agreement to anyone without the other party's written consent, which shall not be unreasonably withheld.Any attempted assignment in violation of this Article shall be void. C. Data Transfer to Third Parties. It is acknowledged that it may be necessary from time to time for Matrix,in performing its duties hereunder,to make available to independent contractors, agents, or employees documents belonging to Client and/or containing data belonging to Client. Matrix agrees to secure from any such third parties their agreement to maintain the confidentiality of such documents and information. Service Agreement 2018 10 16E3 D. Subcontractors. Matrix can use its affiliates or other subcontractors to perform Matrix's services under this Agreement. However, Matrix will be responsible for those services to the same extent that Matrix would have been had it performed those services without the use of an affiliate or subcontractor. XII. PROPRIETARY RIGHTS Each of the parties reserves the right to control the use of any of their symbols, trademarks, computer programs, and service marks currently existing or hereafter established. Both parties agree that they will not use such computer programs, work, symbols,t-ademarks, service marks, or other devices of the other in advertising, promotional materials, or otherwise and will not advertise or display such devices without the prior written consent of the other party. In addition,both parties further agree that any such signs, displays, literature, computer programs, or material furnished to the other shall remain the property of the other party and shall be returned upon demand upon the termination of this Agreement. XIII.TERM AND TERMINATION A. Term. This initial term of this Agreement shall commence on the Effective Date and end on the first anniversary of the Effective Date. This Agreement may renew for successive one year terms, for four (4) additional years unless either party shall give the other party written notice of its intention to terminate at least 60 days prior to the end of the then current term. B. Termination. Except as provided for in XIII.A above, this Agreement may be terminated as provided below. 1. Either of the parties may terminate the Agreement at any time in the event of a material breach by the other which is not cured within thirty (30) days after written notice to the other. The termination shall be effective, without further notice,thirty (30) days after the initial written notice of the breach is given. Any and all performance or other penalties provided for in this Agreement shall be in addition to, and not in lieu of, any legal or equitable remedies either party may have in the event of a material breach of the Agreement by the other. 2. Either party may terminate this Agreement for convenience with a ninety (90) day written notice. 3. Notwithstanding any other provision in this Agreement, if Client fails to make funds available to pay claims or administrative fees as required under this Agreement within fifteen (15)days after Matrix gives Client written notice that Client has failed to do so, Service Agreement 2018 11 E 3 Matrix may terminate the Agreement. Such termination shall be effective as of the end of the fifteen (15) day notice period. 4. If any state or other jurisdiction penalizes a party for administering the Plans under the terms of this Agreement, the affected party may immediately discontinue the Agreement's application in such state or jurisdiction. Notice must be given promptly to the other party. The Agreement will continue to apply in all other states or jurisdictions. 5. If a party receives written notice of proven fraud or abandonment, that party may terminate immediately upon receipt of such written notice. 6. By either of the parties, immediately upon written notice, if the other party shall be adjudged bankrupt, become insolvent, have a receiver of its assets or property appointed, make a general assignment for the benefit of creditors, or institute or cause to be instituted any procedure for reorganization or rearrangement of its affairs. 7. As set forth in Article IV.B. (Changes in Service Fees). C. Prior Obligations. Termination of this Agreement for any reason shall not relieve any party of any obligation incurred by it prior to such termination. D. Runout Claims Processing. Matrix shall continue to provide claims administration for a period of three (3) months or (6) months after the termination of this Agreement for open claims reported by Participants to Matrix prior to the termination date. Client agrees to pay Matrix a fee for claims administration services during this Run-Out Period and as specified in Exhibit A. This fee shall be due and payable at the time of termination. E. Return of Records. Upon termination, Matrix will return all Client claim and other data stored electronically upon 60 days of written request by Client in Matrix's standard data format at no charge. Any physical files will be returned upon 60 days written request by Client. The Client will prepay for the cost of transportation (UPS or similar) from Matrix's office, or prepay the cost to have files moved from our Offsite Storage Facility. If Matrix does not have explicit instructions for disposition within 60 days of termination, we will ship all documents to the Client's last address Prepaid or COD. If the Client opts for us to destroy physical files on their behalf, Matrix will charge for actual retrieval and destruction costs at prevailing rates. Fees associated for the physical return of documents may include retrieval costs from the Matrix Offsite storage, packaging, shipping and insurance at prevailing rates. XIV. GENERAL PROVISIONS Service Agreement 2018 12 ja r: -7 A. Amendments. This Agreement may be amended from time to time by mutual agreement between the parties, which amendment shall be in writing and executed by an authorized representative of each party. B. Entire Agreement. This Agreement, including the exhibits and schedules supersedes any and all other agreements,either oral or in writing,between the parties with respect to the subject matter hereof, and contains all of the covenants and agreements between the parties with respect to such matters. Any inducements, promises, or agreements, oral or otherwise that have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, shall not be valid or binding. This Agreement shall be binding upon the parties,their successors and permitted assigns. C. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida and any action to enforce the terms of this Agreement shall be in the State and Federal Courts for Collier County, Florida. D. Waiver of Breach. Nothing in this Agreement is considered to be waived by any party unless the party claiming the waiver receives the waiver in writing. Waiver of a breach of any provision of this Agreement shall not be deemed a waiver of any other breach of the same or a different provision. E. Severability. In the event any portion of this Agreement is rendered invalid or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect. F. Headings. The headings of articles and sections contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. G. Notices. Any notices required to be given pursuant to the terms and provisions of this Agreement shall be in writing, postage prepaid, and shall be sent by certified mail, return receipt requested, to the parties at the addresses below. The notices shall be effective on the date indicated on the return receipt. To: Jeff Walker Director of Risk Management Division Collier County Government 3311 E. Tamiami Trail Naples, FL 34112 To: Matrix Absence Management, Inc. 2421 W. Peoria Ave. Suite 200 Phoenix, AZ 85029-4944 Service Agreement 2018 13 I E 3 With a Copy To: Matrix Absence Management, Inc. Attention: General Counsel 2001 Market Street,Suite 1500 Philadelphia, PA 19103 H. Counterparts. This Agreement may be executed in more than one counterpart,each of which shall be deemed to be an original and all of which, when taken together, shall constitute a single instrument. Information Exchange. Each party shall be responsible for liabilities arising from errors or omissions made by it in the transmission of information to the other party, and each party shall be entitled to assume the accuracy of all information transrnitted to it by the other party and to rely on such information for all purposes under this Agreement. 1. Force Majeure. Neither party shall be liable to the other for any failure of (or delay in performance of) its obligations hereunder due to any cause or circumstance which is beyond its reasonable control including, but without limiting the generality of the foregoing, any failure or delay caused by fire, explosion, shipwreck, act of God or the public enemy, war, riot, interference by the military or governmental authorities, act(s) of terrorism or compliance with the laws of the United States or with the laws or orders of any other government or regulatory authority. Each party agrees to consult, cooperate with and assist the other as reasonably necessary in the performance of its obligations under this Agreement. K. Representations and Warranties. In addition to other representations and warranties throughout this Agreement,each party represents and warrants that this Agreement and the transactions and activities contemplated hereby (i) are within il:s corporate powers; (ii) have been duly authorized by all of its necessary corporate action; (iii;l constitute its legal,valid and binding obligations, enforceable against it in accordance with its terms; and (iv) do not and will not conflict with or result in a breach of any of the provisions of, or constitute a default under the provisions of any law, regulation, licensing requirement, charter provision, by-law or other instrument applicable to it or its employees or to which it is a party or by which it may be bound. XV. SYSTEM ACCESS A. System Access. Subject to the terms of any applicable E-services Agreement, Matrix grants Client the nonexclusive, nontransferable right to access and use the functionalities contained within the web based systems Matrix makes available to the Client for the purpose of accessing Client's data and reports, under the terms set forth in this Agreement. Client agrees that all rights,title and interest in the systems and all rights in patents,copyrights,trademarks and trade secrets encompassed in the systems will remain Matrix's. Client shall not(a)access Service Agreement 2018 14 E 3 systems or use, copy, reproduce, modify, or excerpt any of the systems documentation provided by Matrix in order to access or utilize systems,for purposes other than as expressly permitted under this Agreement; or (b) share, transfer or lease Client's right to access and use systems,to any other person or entity which is not a party to this Agreement. Upon prior written consent by Matrix, Client may designate any third party to access systems on Client's behalf, provided the third party agrees to these terms. B. Security Procedures. It is Client's responsibility to ensure that Client employees who are provided access to eServices do not share or misuse the information.Client shall notify Matrix immediately if non-authorized access to eServices has occurred. C. System Access Suspension/Termination. Matrix reserves the right to suspend Client's system access (a) on the date Client fails to accept the hardware, software and browser requirements provided by Matrix, including any amendments thereto or (b) immediately on the date Matrix reasonably determines that Client has breached,or allowed a breach of, any applicable provision of this Agreement or any applicaible E-Services Agreement. Such access shall be restored on the date that Matrix determines, in its sole discretion, that Client has cured the deficiency or breach cited above. Upon termination of this Agreement, Client's system access will be terminated. Client agrees to cease all use of systems, and Matrix shall deactivate Client's identification numbers and passwords and access to the system. Service Agreement 2018 15 , 1 6 E 3, IN WITNESS WHEREOF, authorized representatives of the parties have confirmed the Agreement of the parties to the foregoing terms by affixing their signatures below: AlTEST: 7A. BOARD 0 COU COMM I ... c - CRYSTAL K.KINZEL, •" •.•,. COLLI • CO , « • .• / INTERIM CLERK>) _ I% .. - • 01 By .....• I, ftlf. Andy Sobs,Chairman Datedd 01 ' a5) 4'1 : . •C., ?i (SEAL) ttest aslO'Chairman's Contractor's lignfiet142:°111Y. Matrix Absence Management, Inc. _ t 1 By: 'Pi 404 jjkfimin Contrac • " frir ness Signature i Mike Askins CFO Vit4A1 adrZLIT(61 I li 1'Type/print signature and titlet CT f,eiprint witne namet i • , A • tontractor's Second Wit ess tType/print witness namet k i A roiteilfs t•fr d gLy: 44 1 Derk$ County Attorney .7;4 I L- Print Name I I 1 0 4 I Service Agreement 2018 16 eigl i I , 16E3 E 3 Exhibit A Service Fees I Service Assumed Number of I Rate Per Employee Estimated Annual Fee Covered Lives* Per Month FMLA(State/Federal) 2232 $1.75 $46,872.00 STD 2232 $1.72 $46,068.48 ADA 2232 $0.88 $23,569.92 If ADA incidence exceeds 2% an additional fee of $275.00 per event will apply. Payroll Tax Service $2,750.00 Annually. One-Time $5,000.00 implementation fee (applicable only to FMLA offering One-Time _ $3,500.00 implementation fee (applicable only to ADA offering) If at any time during the life of the agreement, the FMLA/LOA incidence rate for Collier County Government exceeds 10% Matrix reserves the right to review, and if necessary, revise the pricing reflected above. Client shall be provided 60 days' notice of such revision as set forth in Article IV (8) (4). For purposes of this calculation the FMLA/LOA incidence rate shall be the total number of annucl claims divided by the total number of billed lives. *Assumed Number of Covered Lives will be invoiced based upon headcount as reported from client supplied data eligibility feeds. Service Agreement 2018 17 16E Terms and Conditions: • All fees outlined above in Exhibit A will be paid in Monthly installments beginning upon agreement and written notice to the County. • The above rates are guaranteed from January 1, 2019 through December 31, 2021. Matrix will provide the County written notice in advance of any price increases after the December 31, 2021 term. • Administration fees are inclusive of all standard services as outlined above. • Run-out Services are not included as part of this proposal and are priced separately below. • All non-standard fees or unallocated expenses associated with the routine management of claims (i.e. Specialty Exams, Attorney Fees etc.) are invoiced at cost. Optional Value Added Services& Expenses: Premium Billing Services Priced separately Takeover of existing STD Claims -$265 per claim Run Out of Claims at Termination -$265 per claim for 3 months period -$350 per claim for 6 months period Takeover of existing FMLA Claims/Run Out of Claims at Termination -$165 per claim STD Appeal $370 per appeal Banking Services $2,750 annually Payroll Services(if Matrix issues checks) $2,750 annually Non-Standard Billing,Administrative Fee Billing that requires filtering and manipulating data from the detailed data feed, as opposed to billing using the totals provided on the summary data feed. $40 per invoice Benefit Deduction Service(if Matrix issues checks) Post tax only—included with Payroll Services Service Agreement 2018 18 1 6 E 3 eServices Access Up to 25 users included. Additional users available in blocks of 10 users @$2,500 per block Data Feeds—Including but not limited to:Custom Payroll Feeds& "Reverse Feeds" $200/hour plus$200 per exception Changes to Data Feeds-$5,000 Ad Hoc Reporting Services (Customized Programming and Reporting); • An Ad Hoc report writing tool is provided to all our clients free of charge, this gives access to all major data elements and allows users to generate their own reports. • Reports that require complex logic, scheduling, distribution or data encryption will be custom developed after sign off by the client on a report specification. This specification will be produced by Matrix/Reliance Standard in conjunction with client representatives. Such reports shall be subject to a fee mutually agreed upon by the parties. LOA Data File Transfer Fee File transfer, upon termination. One-time transfer in Matrix standard format—No charge. Customization and/or increased frequency—At Cost Service Agreement 2018 19 1 6 E Exhibit B Requirements Document A. General Obligations Matrix shall administer the Plans in accordance with the terms and conditions of the Plans and this Agreement. In carrying out its responsibilities under this Agreement, Matrix shall provide the following general administrative services: (a) When requested by Client, Matrix shall use commercially reasonable efforts to assist Client with respect to its Plan on issues of program design, including benefits and eligibility and other related administrative services. (b) Matrix shall design communication materials subject to prior approval by Client as related to the Plans implementation process. Client agrees to cooperate in the review and approval of such materials in a timely manner. It is the Client's responsibility to distribute implementation materials to Employees and Participants. (c) Matrix is responsible for maintaining and training adequate levels of staff and providing a toll-free customer service telephone number for responding promptly to inquiries from Client, Client's administrative staff, Employees,former Employees that have or have had an active claim under the Plan, Participants and providers concerning the Plans. (d) Matrix shall provide assistance to Client's staff during the Plan's implementation process. Ongoing assistance with training as reasonably requested by Client upon mutual agreement of the parties will be provided ai: a fee to cover associated expenses. (e) Matrix shall provide assistance with review of the Summary Plan Descriptions developed by Client for each product line. Client is responsible for the costs of printing and distributing the Plan, Summary Plan Description and related documents to its participants. (f) Matrix shall prepare and distribute to Participants, as appropriate, forms and related materials required for processing claims. (g) Matrix shall provide information as permitted by law to assist Client in preparing reports required to be furnished to governmental entities regarding the Plans. (h) Matrix agrees to provide standard web based reports that are available without modification. Customized reports may be available by mutual agreement at an additional charge. (i) Non-Standard and Custom reports will be produced upon mutual agreement for an additional charge as set forth in Exhibit A. (j) Use of web-based services shall be subject to the current terms and conditions as posted on the Matrix web site. Service Agreement 2018 20 16E3 E 3 B. Disability Claim Management Services Matrix shall provide the following services with respect to the claims submitted under the Plan: (a) Matrix will evaluate each disability claim and provide clinical duration management advice that conforms to Matrix and industry standards and practices. Matrix will recommend the disability duration and will provide appropriate information to Client to facilitate RTW. (b) Matrix will make disability determinations regarding claims presented under the Plan to facilitate the issuance of benefits in accordance with the Plan. (c) During the term of this Agreement and any renewals thereof, all initial requests for claims under the Plan will be made by the Participant through the toll—free number provided or on the Matrix website. (d) Matrix will obtain all necessary medical information from the Participant and the appropriate medical provider(s)and advise Client as to the continued disability status of Participants. Client and Matrix will distribute the necessary "release of medical information" authorizations to the Participant. (e) Matrix will provide assistance to Participants regarding eligibility and application for Social Security Disability benefits, as appropriate. (f) At Client's expense, Matrix will arrange special investigative services, IMEs, rehabilitative services, or any other services constituting Allocated Loss Adjustment Expenses as an allocated expense to the Plan. (g) As per the fees outlined in Exhibit A, and with Client's advance approval, Matrix will administer the Claims Appeals Briefs. All initial claims shall be reviewed by Matrix. Matrix shall respond to such claims within a reasonable period of time, but not later than 45 days after the claim is submitted, provided that this period may be extended by up to 30 days if Matrix determines that such an extension is necessary due to matters beyond the control of the Plan and Matrix notifies the Claimant and Client of the extension before the expiration of the initial 45-day period. If before the end of the 30-day extension period, Matrix determines that due to matters beyond the control of the Plan,a decision cannot be rendered within the extension period, Matrix may extend the period for up to an additional 30 days, provided that Matrix notifies the Claimant and Client of the extension before the end of the first 30-day extension period. All such initial claim reviews and notifications shall be performed by Matrix in a manner consistent with the Plan document. (h) Matrix shall process claims for covered benefits under the Plan for Participants.Claims for Plan benefits must be submitted in a form that is satisfactory to Matrix. Matrix will use claim procedures and standards that Matrix develops for claim benefit determination. Client delegates to Matrix the discretion and authority to use such procedures and standards. Service Agreement 2018 21 1E 3 (i) Client delegates to Matrix the discretionary authority to determine the validity of claims under the Plan. This delegation is subject to Client's retention of full responsibility as Plan Administrator for the final review of claims, and Client has the discretionary authority to administer, construe and interpret the terms of the Plans and to make final, binding determinations concerning the availability of Plan benefits. (j) It is expressly agreed by the parties that Client will be the Plan Administrator and named fiduciary of the Plan, as those terms are defined by ERISA or any similar or successor law(collectively referred to as ERISA)with the exclusive authority to control and manage the operation of the Plan and that Matrix will be a fiduciary with respect to the Plan solely for purposes of,and to the extent that,its services relating to claims processing and review of appeals are considered fiduciary functions under ERISA and Matrix will have no other fiduciary obligations under the Plan on account of this Agreement. In reviewing and making decisions on claims for benefits,Matrix will have the discretionary authority to interpret the terms of the Plan and to make factual determinations, including determining eligibility for benefits and validity of charges submitted for reimbursement subject to Client's responsibility as Plan Administrator as set forth in Section (i)above. (k) Matrix shall determine Participant benefits payable, if any, for each claim and shall notify the Participant of the payment or if there is a denial or partial denial in accordance with the provisions of the Plan. Where no benefits are payable, Matrix shall notify the participant of the denial and any right to appeal the denial as prescribed in the Plans, set forth in the Summary Plan Descriptions, this Agreement and/or which are required under applicable law.This notification will be designed to comply with the ERISA requirements for claim denial notices. In processing claims under this Agreement, Matrix shall adhere to the Plan provisions relating to third party liability for such claims, including without limitation non-duplication of benefits, Worker's Compensation, and subrogation. Service Agreement 2018 22 1 6 E 3 Exhibit C FMLA Management Services Matrix shall provide the following services with respect to the Leave of Absence claims submitted under the Plan for the Federal and State Leave laws and Employer Policies Identified in the Business Process Document to be completed during implementation: (a) Accept and receive all Leave of Absence requests under the Policy. (b) Provide necessary forms to Employees. (c) Examine all Leave of Absence requests and follow-up information, as appropriate. (d) Adhere to the U.S. Department of Labor's federal regulations including regulations for FMLA. (e) Obtain additional information, as needed, by correspondence with Claimants, physicians and others. (f) Determine an Employee's eligibility for leave and amount in accordance with the Client's Policy and information provided by Client and the Employee. (g) Send pending notice of Leave of Absence to Client designated contacts within two (2) days of notice. (h) Send formal FMLA approval letter and all follow up notices and FMLA letters to Employee during duration of Leave of Absence. (i) Evaluation and notification of approvals or denials of FMLA Leave of Absence Requests,within 2 business days. (j) Calculation of Leave of Absence duration. (k) Provide Notice of eligibility for Leave of Absence Requests. (I) Provide adequate notice to Client on Leave of Absence Requests. (m) Continue to provide documentation on Employee Leave of Absence Requests to Client until FMLA leave duration ceases. (n) Maintain complete and accurate tracking for purposes of establishing Employee eligibility for a Leave of Absence and records and files on each Leave of Absence Request in accordance with applicable statutory requirements. (o) Give timely written notice to Employee of any denial of a Leave of Absence Request in accordance with applicable law. (p) Maintain records of family and medical leave utilization. (q) Coordinate Return-to-Work dates with Employee and Client, five (5) days prior to Service Agreement 2018 23 1 6 3 scheduled return and on the Employee date of return. (r) Accumulate and store in database all applicable leave o`absence time in accordance with FMLA regulations. (s) Notify Employee and Client when FMLA leave of absence duration is exhausted. (t) Provide support for FMLA conflict resolution process. (u) Provide contact with Employee by phone or letter to establish/re-assess the Leave of Absence Request and for Employee inquiries concerning leave request status with copies of all written communication. (v) Assign a leave coordinator to act on behalf of Employee by responding directly to all FMLA requests. (w) Standardize forms to assist in managing FMLA policy. (x) Completion, distribution and coordination of all standard forms. Matrix is responsible for the recording,tracking, and reporting of employee absences from various sources as reported through the toll-free number or any other approved media. (y) At Client's request and expense, Matrix will arrange special investigative services, 2nd and 3rd FMLA Medical opinions, or any other requested services as an allocated expense to the Plan. Service Agreement 2018 24 6 t APPLICABLE x NOT APPLICABLE Exhibit D Payroll Tax Service (I) Matrix Payroll Services, Inc. is a wholly owned subsidiary of Matrix Absence Management, Inc. The Client is provided IRS Form 2678, Employer Appointment of Agent, authorizing Matrix Payroll Services to act as agent on Client's behalf. (II) Once an executed copy of this form is received, Matrix will send it to the proper IRS office. (III) Matrix will insure the withholding of Federal Income Taxes, Social Security Taxes, and Medicare Taxes from Disability payments administered by Matrix. (IV) Matrix will deduct these amounts from Client's Account, including the employer portion of the Social Security and Medicare taxes, and transmit the funds to the IRS by EFT. (V) Matrix will prepare the quarterly Form 941 and annual W2's. (VI) All reporting is done under the Matrix Payroll Services FEIN. Service Agreement 2018 25 1...... ..111..m11711.7., 6 um .041 APPLICABLE x NOT APPLICABLE Exhibit E ADA Management Services Matrix shall provide the following services with respect to all workplace accommodation requests submitted to Matrix for handling on behalf of the Client under the Americans with Disabilities Act ("ADA"): (a) Client launches the non-leave related ADA accommodation request through Matrix's Web Portal, MatrixAbsence.com. (b) Matrixassigns an ADA Specialist to manage employee Workplace Accommodation requests. (c) Matrix provides forms and letters to assist the Client in managing Workplace Accommodations and documenting its compliance with the ADA and applicable state laws. (d) Matrix provides Employees who request accommodation(s)with,where applicable, a form to provide Client and Matrix a specific written request for accommodation(s) sought, a release for the Employee to execute to enable Matrix to obtain clarification or supporting medical documentation and, the certification form to be completed by the Employee's treating provider to support his or her request for accommodation(s). Matrix will include job description for the Employee's position, if the Client has provided one to Matrix. (e) Matrix and Client agree that all employee requests for accommodation shall be processed in accordance with current EEOC regulations, federal and applicable state law. (f) Matrix provides Client with online access to Matrix's ADA management system for purposes of entering information, including but not limited to: detailed job descriptions that describe the essential functions of the employee's position,whether or not the Client accepts the employee's request for accommodation, or if the employer would like more information or for the assigned ADA Specialist to arrange and facilitate an interactive discussion. Client shall also be responsible for keeping Matrix and the assigned ADA Specialist apprised of all relevant information they learn which will assist the handling of the employee's request for accommodation(s). (g) Matrix gathers, reviews, and clarifies information, as needed, from Employees and their treating providers, regarding: the nature, severity, and duration of the employee's impairment; the activity or activities which the impairment limits; and substantiates why the requested accommodation is needed. (h) Matrix provides information to Client for review and use in Interactive Process with Service Agreement 2018 26 16E3 Employees for the purpose of the Client determining approval or denial of requests for Workplace Accommodation under ADA. (i) Matrix coordinates and participates in,as needed,Interactive Process with Employees and Client. (j) Matrix sends employer's approval/denial decision in a letter to employee. (k) Matrix enters approval or denial letter into system. (I) Matrix follows up on accommodations to determine effectiveness. (m) Matrix assists Client in identifying alternative accommodations that might be reasonable and effective. (n) Matrix maintains complete and accurate tracking of actions taken and communications on each Workplace Accommodation. (o) Matrix maintains records of Workplace Accommodations. Service Agreement 2018 27