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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 r 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 00000575 001 alrz> €::1417&- City Attorne HUB INTERNATIONAL INSURANCE SERVICES, INC Ler . 4)/(1 Name R a \e 11 ji (N t Hi A 45 Title c s /a/6h 2