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HomeMy WebLinkAbout11187RESOLUTION NO. 11187 A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND HUB INTERNATIONAL SOUTHWEST AGENCY LIMITED RELATING TO RISK MANAGEMENT SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Professional Services Contract between the City of Pueblo and HUB International Southwest Agency Limited relating to Risk Management services for the year 2008, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. The President of the City Council is authorized to execute and deliver the Professional Services Contract in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 2_ This Resolution shall become effective upon final passage and approval. INTRODUCED December 31. 2007 BY Randy Thurston Councilperson APPROVED: a #?ESIDEINTof City Council ATTESTED BY: CITY CLERK Res. 1118 D �I D r �J � ° Background Paper for Proposed RESOLUTION AGENDA ITEM # l'q DATE: December 31, 2007 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND HUB INTERNATIONAL SOUTHWEST AGENCY LIMITED RELATING TO RISK MANAGEMENT SERVICES ISSUE Should the City Council approve the Professional Services Contract? RECOMMENDATION Approve the Professional Services Contract. BACKGROUND HUB International Southwest Agency, the successor to Steel City Agencies, Inc., will provide risk management services for the City and its departments and agencies for a service charge of $7,000 per month during 2008, the same service charge paid to Steel City Agencies, Inc. In 2007. FINANCIAL IMPACT See Background. PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO AND HUB INTERNATIONAL SOUTHWEST AGENCY LIMITED THIS AGREEMENT is made as of the 31 a� day of December, 2007, by and between the City of Pueblo, a municipal corporation, hereinafter called "Pueblo" or "the City," and HUB International Southwest Agency Limited hereinafter called "HUB ". 1 SERVICE AGREEMENT HUB shall provide to the City and the City shall pay for specified risk management services, all in accordance with the terms of this agreement. 2 TERM The one -year term of this agreement will begin on January 1, 2008, and shall continue through December 31, 2008. The City may terminate this agreement upon sixty (60) days' written notice to HUB. HUB may withdraw from this agreement upon sixty (60) days' written notice to the City. 3 OBLIGATIONS OF HUB As consideration for payment of the fee by the City hereunder, HUB shall provide the following services to City: A. RISK MANAGEMENT SERVICES HUB shall provide Risk Management services relating to Workers' Compensation and third -party liability which will include: The evaluation of contractual insurance provisions relating to Workers' Compensation insurance or reinsurance. In consultation with the City attorney, review purchase orders for hold harmless agreements and the provisions relating to Workers' Compensation and liability exposures. Assist the CPA firm for the City in furnishing detailed information for each open claim year for the self- insured funds in response to the requirements of the Governmental Accounting Standards Board (GASB) Statements No. 10. Page 2 Assist the City in implementing loss prevention programs Implementation throughout the City of Safety Committees that will investigate and provide solutions for employee - related losses. This can also include third -party losses, at the option of the City. Investigate employee injuries as they occur, when called by the City to do SO. Assist in the development of a plan that will provide incentives to City departments and their employees for the reduction of workers' compensation claims. B. SELF- INSURED WORKERS' COMPENSATION SERVICES Obtain quotations for claims administration and reinsurance quotes for Self - Insured Workers' Compensation Program on an annual basis. Answer questions by phone or in writing (by fax or mail) as requested by the City from time to time. Provide information to National Council on Compensation Insurance (NCCI) so that experience modification can be developed. Review experience modification worksheets when completed by NCCI. Assist in tax computation with Department of Labor for self- insurance. Place self - insurers bond net of commission. City is under no obligation to purchase any insurance pertaining to the self - insured workers' compensation program through HUB in exchange for receiving the specific services outlined in this section. C. WORKERS' COMPENSATION MANAGEMENT HUB shall answer questions from the City Manager and Director of Human Resources relating to technical workers' compensation program and benefit issues and questions and respond in writing if deemed appropriate: HUB shall conduct safety meetings in conjunction with risk management meetings to assist in development and maintenance of a comprehensive program for employee safety. HUB shall review and evaluate not less than six times per year open and paid workers' compensation claims and reserves as to frequency and severity by specific department with the Director of Human Resources and at request with the City Manager. Page 3 D. INSURANCE MANAGEMENT HUB shall continue the review of opportunities for self - insurance, cooperative or pooled insurance buying, insurance and /or reinsurance of specific City activities and other methods of risk pooling or risk transfer. HUB will report on an annual basis at a Council work session in the month of November on the current risk management program. HUB will also report to the City upon finding any significant changes in the availability of or need for insurance or reinsurance; upon the request of the City, HUB will report from time to time on the availability of and need for insurance and reinsurance, regardless of whether there is a significant change. Ralph Williams or Don Learned of HUB shall represent the City as the voting member at any meetings of insurance cooperatives or pooling arrangements, including the Colorado Intergovernmental Risk Sharing Agency. HUB shall meet with City personnel, at their request, relating to Insurance Management program. City is under no obligation to purchase any insurance pertaining to insurance provided to City through HUB in exchange for receiving the specific services outlined in this Agreement. E. LOSS MANAGEMENT HUB shall receive and process information on all claims for the City or against the City involving property damage or third -party claims normally covered by property and casualty insurance including claims involving liability coverage for the Pueblo Memorial Airport and Pueblo Transportation; however, employee group health claims are specifically not covered by this agreement. Workers' compensation claims will be reported by employees directly to the City's Personnel Department. For each claim reported to HUB, HUB shall generate a loss notice and shall assign the claim to the Colorado Intergovernmental Risk Sharing Agency (CIRSA) or to other insurance carriers, as appropriate. The Colorado Intergovernmental Risk Sharing Agency monthly reports and workers' compensation reports will be reviewed with the appropriate City officials at least six times a year. F. RISK MANAGEMENT HUB shall inspect and update underwriting information and valuations for all City property on an annual basis. Loss control information shall be furnished to City departments and the Office of the City Manager. G. LOSS MANAGEMENT HUB shall evaluate loss settlements in relation to property schedule. HUB shall participate in settlements of third -party liability claims with City Attorney, CIRSA, and CIRSA legal counsel. H. MANAGE AIRPORT LIABILITY HUB shall manage the liability coverages, including Pollution Liability, for the airport owned and operated by the City of Pueblo. 4. SERVICES NOT INCLUDED HUB will provide only the services specified in this previous section and miscellaneous services incidental to such services. It is understood by the parties that the following essential services are NOT to be provided by HUB under this agreement: legal services related to claims. 5. COOPERATION OF CITY The City shall cooperate with HUB in carrying out their respective functions under this agreement. Specifically, the City shall: Designate HUB as Risk Management Officer for the City of Pueblo to administer the Risk Management Policy Statement adopted by the City. Provide to HUB without charge copies of all city documents, records, ordinances, resolutions and other information of any kind affecting HUB's duties under this agreement. Provide to HUB without charge a set of the Code of Ordinances of the City of Pueblo, including all updates and changes during the term of this agreement. Notify HUB as promptly as possible upon receiving information about a new claim or a potential claim against the City. Make its personnel and records available to HUB and the designated claims investigator for the purpose of investigating any claim. Operate under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) in making protected health information available to HUB. HUB is familiar with HIPAA's Privacy and Security Requirements and will secure and maintain privacy of any medical information made available to HUB by City. Page 5 Make diligent efforts to implement the risk management policy developed under this agreement and the reasonable risk management and claims handling procedures recommended from time to time by HUB. Upon termination of this agreement and request of the City, all City documents and ordinances shall be returned to the City. To the extent permitted by law all information and documents provided or furnished by the City under this agreement shall be treated by HUB as confidential. 6. SERVICES TO ENTERPRISE FUNDS All services included in this agreement will be provided to all Enterprise Funds. The City, at its option, can charge back to Enterprise Funds a portion of the fees in Paragraph 7. HUB shall provide a breakdown of Pool costs on Enterprise Funds and shall provide actual losses sustained by Enterprise Funds. 7. FEES HUB's monthly fee shall be Seven Thousand and No/ 100 Dollars ($7,000.00) for each month during the term of this agreement. Such fee shall be payable to HUB within fifteen (15) days after the end of the month for which the services were provided. The monthly fee for any partial month at the beginning or end of this agreement shall be pro -rated based on a 30 -day month. 7.1 COMMISSIONS Insurance, if any, purchased for City will be net of fees or commissions. All commissions otherwise payable to HUB shall be paid over to City as a credit to the annual fee. Indirect profit sharing, if any, earned by HUB will remain with HUB. Any direct profit sharing pertaining to the City, if any, earned by HUB will be disclosed to City. 7.2 NO INSURANCE HUB is not an insurance company. No insurance is to be provided by HUB and no insurance is included in the fee set for services under this agreement. 8 KEY PERSONNEL It is understood by the parties that the City is relying on the availability of Ralph Williams, CPCU; John Putnam, CPCU; and Don Learned, CIC, as key personnel under this contract. If at any time any two of these persons cease to be active in the business or their respective agencies and to be reasonably available to supervise the services contemplated by this agreement, the City shall have the right to terminate this agreement upon thirty (30) days notice to HUB. 9 DUTIES OF HUB HUB shall have the duty under this agreement to carry out their respective obligations diligently, in good faith and in a professional manner. It is understood by the parties that the City, and not HUB, will continue to have control of the facilities, employees, agents and activities of city government that lead to claims and potential claims against a municipal government. In this context, HUB shall be liable to the City only for their respective negligent acts or omissions in carrying out their duties under this agreement. 10 NOTICES Any notices sent under this agreement shall be sent by certified mail, return receipt requested, to: HUB International Southwest Agency Limited P.O. Box 4316 Pueblo, CO 81003 -0316 City of Pueblo City Manager 1 City Hall Place Pueblo, CO 81003 11 COMPLETE AGREEMENT, CONSTRUCTION This agreement contains the complete agreement between the parties and shall be amended only by a writing signed by all parties. However, as an agreement for professional services, it cannot contain every detail of the continuing professional relationship between the parties; thus, it should be implemented and construed broadly to achieve the intent of the parties as reflected in the agreement. All words shall be given their common and ordinary meanings unless the context otherwise requires. The singular includes the plural and words of one sex include other sexes, as the context may suggest. Captions are finding aids only and are not to be used in the construction of the agreement. 12 Exhibit "A" attached hereto is incorporated herein as if set forth herein in full. HUB shall meet and comply with the provisions of Exhibit "A." 9 Page 7 IN WITNESS WHEREOF, this agreement has been executed by the parties on the day and date first set forth. - - ATTEST: City rk APPROVED AS TO FORM: HUB INTERNATIONAL SOUTHWEST AGENCY LIMITED, By• al Vice President CITY OF PUEBLO A Municipal Corporation President of City ncil By: HUB INTERNATIONAL SOUTHWEST AGENCY LIMITED, By-.0 S ni r Executive Vice - President j . EXHIBIT "A" STATE IMPOSED MANDATES PROHIBITING ILLEGAL ALIENS FROM PERFORMING WORK Consultant, as used herein, means Steel City Agencies, Inc. (a) Consultant certifies that it does not knowingly employ or contract with an illegal alien and that the Consultant has participated or attempted to participate in the "Basic Pilot Program" created in Public Law 208, 104' Congress, as amended and expanded in Public law 156, 108 Congress, as amended, that is administered by the United States Department of Homeland Security. (b) Consultant shall not: (I) Knowingly employ or contract with an illegal alien to perform work under this contract; (II) Enter into a contract with a subcontractor that fails to certify to Consultant that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. (c) The following state- imposed requirements apply to this contract (I) The Consultant shall have verified or attempted to verify through participation in the Basic Pilot Program that the Consultant does not employ any illegal aliens and, if the Consultant is not accepted into the Basic Pilot Program prior to entering into this contract that the Consultant shall apply to participate in the Basic Pilot Program every three months until the Consultant is accepted or this Contract has been fully completed, whichever occurs earlier. This provision shall not be required or effective if the Basic Pilot Program is discontinued. (II) The Consultant is prohibited from using the Basic Pilot Program procedures to undertake pre- employment screening of job applicants while this Contract is being performed. (III) If the Consultant obtains actual knowledge that a subcontractor performing work under this contract knowingly employs or contracts with an illegal alien, the Consultant shall be required to: A. Notify the subcontractor and the Engineer within three (3) days that the Consultant has received such knowledge; and B. Terminate the subcontract with the subcontractor if within three (3) days of receiving the notice - required- pursuant-to- subparagraph- (c)(IH)A, above-the subcontractor- does -not stop employing or contracting with the illegal alien; except that the Consultant shall not terminate the contract with the subcontractor if, during such three (3) days,, the subcontractor provides information to establish that the subcontractor has not. knowingly employed or contracted with an illegal alien. (1V) The Consultant is required to comply with any reasonable request by the Colorado Department of Labor and Employment (hereinafter referred to as "CDLE ") made in the course of an investigation that CDLE is undertaking pursuant to its authority under §8 -17.5- 102(5), C.R.S. (d) Violation oftheprovisions.ofthis Exhibit "A" by the Consultant shall constitutea breach ofcontract and grounds for termination. In the event of such termination, the Consultant shall be liable for City's actual and consequential damages.