HomeMy WebLinkAbout12029RESOLUTION NO. 12029
A RESOLUTION APPROVING A PROFESSIONAL
SERVICES CONTRACT BETWEEN THE CITY OF PUEBLO
AND HUB INTERNATIONAL INSURANCE SERVICES INC.
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 Insurance Services Inc. relating to Risk Management services for the year
2011, 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 13, 2010
BY: Chris Kaufman
COUNCILPERSON
Background Paper for Proposed
RESOLUTION
DATE:AGENDA ITEM #M-3
December 13, 2010
DEPARTMENT:
Law Department
Thomas J. Florczak, City Attorney
TITLE
A RESOLUTION APPROVING A PROFESSIONAL SERVICES CONTRACT
BETWEEN THE CITY OF PUEBLO AND HUB INTERNATIONAL INSURANCE
SERVICES INC. RELATING TO RISK MANAGEMENT SERVICES
ISSUE
Should the City Council approve the Professional Services Contract with HUB
International Insurance Services for risk management?
RECOMMENDATION
Approve the Professional Services Contract.
BACKGROUND
HUB International Insurance Services Inc. 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 2011. This
is the same monthly charge as in 2010.
FINANCIAL IMPACT
See Background
.
, s .11
Interna • nal
PROFESSIONAL SERVICES CONTRACT
BETWEEN
THE CITY OF PUEBLO
AND
HUB INTERNATIONAL INSURANCE SERVICES INC.
THIS AGREEMENT is made as of the 13th day of December, 2010, 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, 2011, and shall
continue through December 31, 2011 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
71 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.
Page 6
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
By /CELe-,
ATTEST
Ci lerk
APPROVED AS TO FORM
CITY ATTORNEY
HUB INTERNATIONAL INSURANCE HUB INTERNATIONAL INSURANCE
SERVICES INC SERVICES INC
O
By B f A AL
Chief Sales Officer and P&C V ce esident
Practice Leader - Colorado
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EXHIBIT "A"
STATE - MANDATED OR RELATED CONTRACT CLAUSES
As used in this section, "Contractor" shall mean the firm or entity (whether referred to as
Consultant, Company, Contractor, Architect, Accountant or by other term) entering into
this Agreement with Pueblo, a Municipal Corporation (which may be referred to in this
Agreement as City, Client, Customer or by other term).
PERA LIABILITY Contractor shall reimburse the City for the full amount of any
employer contribution required to be paid by City to the Public Employees' Retirement
Association ( "PERA ") for salary or other compensation paid to a PERA retiree
performing contracted services for the City under this Agreement. Contractor shall fill
out the questionnaire attached as Exhibit "1" and submit the completed form to City as
part of the signed Agreement.
STATE - IMPOSED MANDATES PROHIBITING ILLEGAL ALIENS FROM
PERFORMING WORK UNDER THIS CONTRACT
(a) At or prior to the time for execution of this Contract, Contractor shall
submit to the Purchasing Agent of the City its certification that it does not knowingly
employ or contract with an illegal alien who will perform work under this Contract and
that the Contractor will participate in either the "E- Verify 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
or the "Department Program" established pursuant to section 8- 17.5- 102(5)(c), C.R.S
that is administered by the Colorado Department of Labor and Employment in order to
confirm the employment eligibility of all employees who are newly hired for employment
to perform work under this Contract.
(b) Contractor 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
Contractor 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 Contractor shall have confirmed the employment eligibility of
all employees who are newly hired for employment to perform work under this
Contract through participation in either the E- Verify Program or Department
Program
r
(II) The Contractor is prohibited from using either the E- Verify
Program or Department Program procedures to undertake pre - employment
screening of job applicants while this Contract is being performed
(III) If the Contractor obtains actual knowledge that a subcontractor
performing work under this Contract knowingly employs or contracts with an
illegal alien to perform work under this Contract, the Contractor shall be required
to
A Notify the subcontractor and the Purchasing Agent of the
City within three (3) days that the Contractor has actual knowledge that
the subcontractor is employing or contracting with an illegal alien, and
B Terminate the subcontract with the subcontractor if within
three (3) days of receiving the notice required pursuant to subparagraph
(c)(III)A. above the subcontractor does not stop employing or contracting
with the illegal alien, except that the Contractor shall not terminate the
contract with the subcontractor if, during such three (3) days, the sub-
contractor provides information to establish that the subcontractor has not
knowingly employed or contracted with an illegal alien.
(IV) The Contractor 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 of this Section by the Contractor shall constitute a breach of
contract and grounds for termination. In the event of such termination, the Contractor
shall be liable for City's actual and consequential damages.
(e) Nothing in this Section shall be construed as requiring the Contractor to
violate any terms of participation in the E- Verify Program.
s
i.
EXHIBIT "1"
COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION
SUPPLEMENTAL QUESTIONNAIRE TO BE ANSWERED BY
ANY BUSINESS PERFORMING SERVICES FOR THE CITY OF PUEBLO
Pursuant to section 24 -51- 1101(2), C.R.S., salary or other compensation from the
employment, engagement, retention or other use of a person receiving retirement benefits
(Retiree) through the Colorado Public Employees Retirement Association (PERA) in an
individual capacity or of any entity owned or operated by a PERA Retiree or an affiliated
party by the City of Pueblo to perform any service as an employee, contract employee,
consultant, independent contractor, or through other arrangements, is subject to employer
contributions to PERA by the City of Pueblo Therefore, as a condition of contracting for
services with the City of Pueblo, this document must be completed, signed and returned
to the City of Pueblo
(a) Are you, or do you employ or engage in any capacity, including an
independent contractor, a PERA Retiree who will perform any services for the City of
Pueblo? Yes , No
(b) If you answered "yes" to (a) above, please answer the following question Are
you an individual, sole proprietor or partnership, or a business or company owned or
operated by a PERA Retiree or an affiliated party? Yes , No If you
answered "yes" please state which of the above entities best describes your business
(c) If you answered "yes" to both (a) and (b), please provide the name, address
and social security number of each such PERA Retiree
Name Name
Address Address
Social Security Number Social Security Number
(If more than two, please attach a supplemental list)
Failure to accurately complete, sign and return this document to the City of Pueblo
may result in your being denied the privilege or doing business with the City of Pueblo
If you answered "yes" to both (a) and (b), you agree to reimburse the City of Pueblo
for any employer contribution required to be paid by the City of Pueblo to PERA for
salary or other compensation paid to you as a PERA Retiree or paid to any employee or
independent contractor of yours who is a PERA Retiree performing services for the City
0
of Pueblo You further authorize the City of Pueblo to deduct and withhold all such
contributions from any moneys due or payable to you by the City of Pueblo under any
current or future contract or other arrangement for services between you and the City of
Pueblo
Signed , 20
By
Name
Title
For purposes of responding to question (b) above, an `affiliated party' includes (1) any person who
is the named beneficiary or cobeneficiary on the PERA account of the PERA Retiree; (2) any person who is
a relative of the PERA Retiree by blood or adoption to and including parents, siblings, half - siblings,
children, and grandchildren, (3) any person who is a relative of the PERA Retiree by marriage to and
including spouse, spouse s parents, stepparents, stepchildren, stepsiblings, and spouse s siblings; and (4)
any person or entity with whom the PERA Retiree has an agreement to share or otherwise profit from the
performance of services for the City of Pueblo by the PERA Retiree other than the PERA Retiree s regular
salary or compensation.
AMENDMENT NO 1 TO
PROFESSIONAL SERVICES CONTRACT
THIS AMENDMENT NO 1 to Professional Services Contract ( "Amendment No 1") is
made and entered into as of the 27th day of December, 2011 by and between the City of Pueblo,
a Municipal Corporation ( "City ") and HUB International Insurance Services, Inc , a Colorado
corporation ( "Contractor ")
WHEREAS, City and Contractor entered into a Professional Services Contract dated as
of December 13, 2010 (the "Contract ") under which Contractor was to provide risk management
and other insurance related services for the City and
WHEREAS, the City and Contractor desire to extend the term of the Contract for one
additional year through December 31 2012, subject to the terms and conditions of the Contract
hereby modified, and
WHEREAS, this Amendment No 1 constitutes a "minor amendment" to an agreement
within the meaning of Section 1- 5- 2(2)(f) of the Pueblo Municipal Code, as amended, under
which the City Manager has authority to make minor amendments to contracts without obtaining
the approval of City Council
NOW, THEREFORE, in consideration of the foregoing and the terms and conditions set
forth herein, the parties agree as follows
1 Section 2 of the Contract is amended to add the following text thereto
"The term of this Contract shall be extended for one (1) year, to and until
December 31, 2012 "
2 Except as expressly modified by this Amendment No 1, the Contract shall
remain in full force and effect. Except as modified by this Amendment No 1, any obligations to
be performed under the Contract by either party are not waived nor excused in any manner, but
shall be performed in accordance with the terms and conditions of the Contract as it existed prior
to this Amendment No 1
IN WITNESS WHEREOF, Contractor and City have executed this Amendment No 1 as
of the date first written above.
CI • • .
ATTEST . Munici4 .. Co r0 'ion
By
City Jerk == City Man. ':e
APPROVED AS TO FORM
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City Attorne
HUB INTERNATIONAL INSURANCE
SERVICES, INC
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