HomeMy WebLinkAbout11757RESOLUTION NO. 11757
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 2010, 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 14, 2009
BY: Randy Thurston
COUNCILPERSON
APPR D' } �-
PRESIDENTaf Cfty Council
A77TSTED DY:
CITY CLERK
WIN
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # M -1
DATE: December 14, 2009
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 will provide risk management services relating to
workers' compensation and third -party liability for the City and its departments and
agencies for a service charge of $7,475 per month during 2010.
FINANCIAL IMPACT
See Background.
PROFESSIONAL SERVICES CONTRACT
BETWEEN
THE CITY OF PUEBLO
AND
HUB INTERNATIONAL INSURANCE S
INC.
THIS AGREEMENT is made as of the 14th day of December, 2009, by and between
the City of Pueblo, a municipal corporation, hereinafter called "Pueblo" or "the City,"
and HUB International Insurance Services Inc., 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, 2010, and shall
continue through December 31, 2010. 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, net of
commission.
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 Transit;
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.
Page 4
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 AND PUEBLO TRANSIT, A NON - PROFIT
CORPORATION
All services included in this Agreement will be provided to all Enterprise Funds
and Pueblo Transit, a non - profit corporation. The City, at its option, can charge
back to Enterprise Funds a portion of the fees in Paragraph 7. Any commission
received for Workers' Compensation placed for Pueblo Transit under separate
Workers' Compensation program through Pinnacol Assurance will be returned to
City as a credit to fee.
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 Four Hundred Seventy -Five and
No/ 100 Dollars ($7,475.00) 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. HUB is a multi - national insurance
brokerage that places insurance coverages. No insurance is included in the fee
paid by City for services provided by HUB under this Agreement.
•.:
8 KEY PERSONNEL
It is understood by the parties that the City is relying on the availability of Ralph
Williams, CPCU; Don Learned, CIC; or Brian Mayer, 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 Insurance Services Inc.
P.O. Box 58
Pueblo, CO 81002
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.
Page 7
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."
IN WITNESS WHEREOF, this agreement has been executed by the parties on the day
and date first set forth.
CITY OF PUEBLO
A Municipal Corporation
President of City Council
ATTEST:
City erk
APPROVED AS TO FORM:
CITY ATTORNEY
HUB INTERNATIONAL INSURANCE
SERVICES INC.
By:
Chief Sales Officer and P &C
Practice Leader - Colorado
B
HUB INTERNATIONAL INSURANCE
SERVICES INC.
By:
V ce resident