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HomeMy WebLinkAbout09527 ORDINANCE NO. 9527 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND HUB INTERNATIONAL INSURANCE SERVICES, INC., RELATING TO PROFESSIONAL BROKERAGE AND BENEFIT MANAGEMENT SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Agreement between Pueblo, a municipal corporation, and HUB International Insurance Services, Inc., a California corporation, having been approved as to form by the City Attorney, is hereby approved. The Mayor is authorized to execute and deliver said 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. The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Ordinance the attached contract which are necessary or desirable to implement the transactions described therein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on August 12, 2019 . Final adoption of Ordinance by City Council on August 26, 2019 . President of City Council Action by the Mayor: ☒ Approved on August 28, 2019 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-22 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: AUGUST 12, 2019 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Marisa Pacheco, Director of Human Resources, SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND HUB INTERNATIONAL INSURANCE SERVICES, INC., RELATING TO PROFESSIONAL BROKERAGE AND BENEFIT MANAGEMENT SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: The proposed Ordinance approves the Agreement between Pueblo, a municipal corporation (“City”), and HUB International Insurance Services, Inc. (“Consultant”). PREVIOUS COUNCIL ACTION: Not applicable. BACKGROUND: The Consultant has rendered professional brokerage and benefit management services for the City since 2010. Under the Agreement, Consultant would continue to provide such services for the term extending through December 31, 2020. The Agreement specifically reflects that the scope of services includes the Self-Funding Services to be provided in the event the City elects to provide a self-funded health benefit plan. FINANCIAL IMPLICATIONS: An annual fee of $35,000 is to be paid by City but said fee must be prorated by applicable commissions and fees. Based on such proration, the City has never had to pay an annual fee. BOARD/COMMISSION RECOMMENDATION: Not Applicable. STAKEHOLDER PROCESS: Not Applicable. ALTERNATIVES: Engage a different consultant to render professional brokerage and benefit management services for City. RECOMMENDATION: Pass and approve the proposed Ordinance. Attachments: Agreement AN AGREEMENT BETWEEN PUEBLO,A MUNICIPAL CORPORATION,AND HUB INTERNATIONAL,A CALIFORNIA CORPORATION,FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and entered this first day of July, 2019, by and between Pueblo, a Municipal Corporation ("City")and HUB International Insurance Services, Inc., a California corporation ("Consultant"), for Consultant to render professional brokerage and employee benefit management services for City. In consideration of the mutual covenants hereinafter set forth,the parties agree as follows: RECITALS A. The City needs the services of a Consultant to broker options for the City to purchase employee and retiree benefits and manage certain aspects of the City's employee benefit program. B. Consultant has experience providing the foregoing services to public and private entities. In consideration of the foregoing recitals, and the terms, conditions set forth herein, the Parties agree as follows: TERMS AND CONDITIONS SECTION 1: EXHIBITS TO AGREEMENT. The following exhibits are attached arid incorporated as part of this Agreement: Exhibit A: Basic Services Exhibit B: PERA Questionnaire SECTION 2. SCOPE OF SERVICES. (a) Consultant shall perform the Basic Services described in Exhibit A in the manner and according to the terms of this Agreement. (b) To the extent Consultant performs any of the Basic Services through subcontractors or subcontractors, Consultant shall be and remain as fully responsible for the full performance and quality of services performed by such subcontractors or subcontractors as it is fbr services performed directly by Consultant or Consultant's employees. (c) The Basic Services described in Exhibit A expressly includes advising the City with respect to transitioning from a fully-insured to a self-funded health insurance plan, ifrequested and directed by City,and the Self-Funding Services set forth in Exhibit A in the event the City elects to provide a self-funded health benefit plan. SECTION 3. CONSULTANT'S RESPONSIBILITIES. - 1 - (a) Consultant shall render the services provided in this Agreement according to the highest standards,care,skill,competence,prudence,and diligence of the profession,and shall be responsible for the quality, sufficiency, technical accuracy and timely completion of the Basic Services, including those performed by Consultant's subcontractors and subcontractors, and including calculations, estimates, projections, reports and other services, irrespective of City's approval of or acquiescence in same. (b) Consultant shall be responsible, in accordance with applicable law, to City for all loss or damage to City caused by Consultant's negligent act or omission;except that Consultant hereby irrevocably waives and excuses City and the City's attorneys from compliance with any requirement to obtain a certificate of review as a condition precedent to commencement of any civil action against Consultant to recover damages for any such negligent act or omission, including any such requirements set forth in Section 13-20- 602,C.R.S.or similar statute, whether now existing or hereafter enacted. (c) Before undertaking any work or incurring any expense which Consultant considers beyond or in addition to the Basic Services described in Exhibit A or otherwise contemplated by the terms of this Agreement,Consultant shall advise City in writing that(i)Consultant considers the work beyond the scope of this Agreement, (ii) the reasons that Consultant believes the out of scope or additional work should be performed,and(iii)a reasonable estimate of the cost of such work. Consultant shall not proceed with any out of scope or additional work until authorized in writing by City. (d) Consultant shall, upon request by City,no more than once every calendar year,provide to City all of Consultant's books, records, and accounts necessary for the City to conduct a complete audit of Consultant's services,work, invoices,practices and compliance with this Agreement. Failure to comply with this provision shall constitute a material breach of this Agreement. (e) Consultant shall keep all information collected from City and other sources under this Agreement strictly confidential and shall not disclose any of the same without the express written consent of the City. (f) Consultant shall, at all times that this Agreement is in effect, diligently avoid any actual or apparent conflict of interest,which does or could compromise or diminish Consultant's duty to obtain the best possible contract for the City to purchase the insurance, benefits, services and other products described in Exhibit A on terms and at prices most favorable to City. Notwithstanding the foregoing, Consultant's solicitation,negotiation,charge,and collection of commissions and fees from the insurance and other benefit carrirs as provided in this Agreement shall not be considered a conflict of interest. (g) Consultant is not an agent of the City and does not have the authority on behalf of the City to enter into any contract to purchase any insurance,product, or other service on behalf of the City and the City shall not be bound on any contract,agreement or arrangement to purchase the same except upon an ordinance of the City Council expressly approving a contract for the purchase of the same. Consultant shall expressly disclose this lack of authority to every vendor of any product or service that Consultant contacts or solicits on behalf of City under this Agreement. SECTION 4. FEES FOR SERVICES; PAYMENT. -2 - (a) City shall pay to Consultant as full compensation for the Basic Services to be performed by Consultant under this Agreement the sum of U.S. $35,000 each calendar year under this Agreement("Annual Fee"), subject to reduction of the Annual Fee through the credit of commissions and fees as provided in subsection(b)of this Section and subject to pro-ration of the Annual Fee as provided in subsection(c)of this Section. (b) Consultant shall collect commissions and fees from the insurance and employee benefit carriers on the contracts that Consultant brokers between the City and such carriers under this Agreement.The total commissions and fees paid to Consultant on such brokered contracts during each calendar year shall be credited against the Annual Fee. If the total commissions and fees collected during any calendar year exceed the Annual Fee,Consultant shall be entitled to keep the difference.If the total commissions and fees collected during any calendar year are less than the Annual Fee, the City shall pay Consultant the difference. (c) Compensation to Consultant for any period under this Agreement less than a complete calendar year shall be treated in the same manner as provided in subsection(b)of this Section,except that the Annual Fee payable to Consultant shall be pro-rated according to the following formula: Number of days in such period/365 x $35,000=Pro-rated Annual Fee. The commission and fees collected by Consultant during such period shall not be pro-rated, but instead the entire sum of such commissions and fees collected during such period shall be credited against the pro-rated portion of the Annual Fee. (d) Sixty(60)days after the end of each calendar year,including any period under this Agreement that is less than a complete calendar year, Consultant shall submit to the City an accounting of all commissions and fees collected from insurance and benefit carriers under this Agreement along with an invoice for any portion of the Annual Fee due to Consultant under this Agreement. City shall pay any sums due to Consultant under this Agreement, if any, within forty-five(45) days after receiving such invoice. (e) No separate or additional payment shall be made for Consultant's expenses,profits,overhead, local telephone expenses, travel, lodging, routine photocopying,computer time, secretarial or clerical time, subcontractors, or similar expenses. SECTION 5. CITY'S RESPONSIBILITIES. (a) City agrees to advise Consultant regarding the Basic Services requirements and to provide all relevant information, surveys,data and previous reports accessible to City which Consultant may reasonably require. (b) City shall designate a representative to whom all communications from Consultant shall be directed and who shall have limited administrative authority on behalf of City to receive and transmit information and make decisions with respect to the Basic Services. Said representative shall not, however, have authority to bind City as to matters of governmental or fiscal policy,nor to agree to additional terms or obligations. (c) City shall examine all documents presented by Consultant and render decisions pertaining thereto within a reasonable time. The City's approval of any specifications,projections,reports,documents or - 3 - other materials or product furnished hereunder shall not in any way relieve Consultant of responsibility for the professional adequacy of its work. SECTION 6. TERM AND TERMINATION. (a) The term of this Agreement shall be from July 1,2019 to December 31, 2020, unless earlier terminated as herein provided. (b) City reserves the right to terminate this Agreement and Consultant's performance hereunder at any time upon written notice,either for cause or for convenience. Upon such termination,Consultant and its subcontractors shall cease all work and stop incurring expenses, and shall promptly deliver to City all data, drawings,specifications,reports, plans,calculations,summaries and all other information,documents,work product and materials as Consultant may have accumulated in performing this Agreement, together with all finished work and work in progress. (c) Consultant's professional responsibility for its completed work and services shall survive any termination. SECTION 7. USE OF DOCUMENTS. Plans,tables,specifications,estimates,projections,technical data, reports and all other documents and work product prepared or provided by Consultant hereunder,whether in draft or final form, shall become the sole property of City. City shall have access at all reasonable times to inspect and make copies of all notes, projections, estimates, reports, technical data, documents, and work product prepared by Consultant, whether preliminary or final,pertaining to the Basic Services. hi no event shall Consultant publish work product developed pursuant to this Agreement except(i)with advance written consent of City,which consent may be granted or withheld in City's sole and absolute discretion and (ii) in full compliance with the requirements of this Agreement and applicable federal regulations. SECTION 8. INSURANCE AND INDEMNITY. (a) Consultant shall,within ten(10)days after this Agreement is executed by both parties,provide to the City the following Certificates of Insurance showing that Consultant has obtained the following insurance coverages.Consultant shall maintain all such insurance coverages at all times during the term of this Agreement: (1) Workers'Compensation Insurance complying with statutory requirements in Colorado and in any other state or states where the work is performed.The Workers' Compensation Insurance policy shall contain an endorsement waiving subrogation against the City. (2) Commercial General Liability("CGL")Insurance issued to and covering the liability of Consultant,and naming the City of Pueblo and its officers and employees as additional insureds with respect to all work performed by Consultant and its subcontractors and subcontractors under this Agreement, to be written on a Commercial General Liability policy form CG 00 01, with coverage limits of not less than One Million Dollars($1,000,000)per person and occurrence for personal injury, including but not limited to death and bodily injury, and One Million Dollars ($1,000,000) per occurrence for property damage.This CGL policy shall also provide coverage for contractual liability assumed by Consultant under the provisions of this Agreement. -4 - (3) Professional Liability Insurance with coverage of not less than One Million Dollars ($1,000,000), and with a deductible of not more than Twenty-Five Thousand Dollars ($25,000). (4) Comprehensive Automobile Liability Insurance effective during the period of the Agreement,covering the liability of Consultant, and naming the City of Pueblo and its officers and employees as additional insureds with limits of liability for injury to one person in any single occurrence of not less that$500,000 and for any injury to two or more persons in any single occurrence of not less than One Million Dollars($1,000,000). This insurance shall include uninsured/underinsured motorist coverage and shall protect the Consultant from any and all claims arising from the use both on and off the Basic Services site of motor vehicles,including any automobiles,trucks,tractors,backhoes and similar equipment whether owned, leased, hired or used by Consultant. (b) Every insurance policy and certificate of insurance specified in subsection(a)of this Section shall contain a provision requiring the that Insuror shall notify the City in writing, in the manner provided in this Agreement, in the event that any such policy or coverage is revoked,terminated, rescinded, or lapses. (c) Consultant forever releases and waives any and all claims, known and unknown, presently existing or arising in the future, and any suit or action in law or equity against City and its officers, employees, agent and independent Consultants('Released Parties") in any court or tribunal, based on tort, statute, violation of civil rights, or any other legal theory, for any physical injury, psychological injury, death, or property damage or loss that Consultant may suffer, related to or caused by the Released Parties, or any vehicle, object, thing,or activity in any building or facility owned, leased, operated or controlled by the Released Parties. (d) Consultant shall not file, pursue or prosecute any suit, action or proceeding, in law or in equity, in any court or tribunal, against the Released Parties, based on tort, statute, violation of civil rights, or any other legal theory, for any physical injury, psychological injury, death, or property damage or loss that Consultant may suffer related to or caused by the Released Parties, or any vehicle, object, thing, or activity in any building or facility owned, leased,operated or controlled by the Released Parties. (e) Consultant shall indemnify, defend and hold harmless the Released Parties against any liability for any damages, attorneys fees, and restitution that may be imposed by any court or tribunal in any suit,action or proceeding in law or equity filed by any person or entity based on tort, statute, violation of civil rights, or any other legal theory, for any physical injury, psychological injury, death, or property damage or loss that Consultant may suffer, related to or caused by the Released Parties, or any vehicle, object,thing, or activity in any building or facility owned, leased, operated or controlled by the Released Parties. SECTION 9. SUBCONTRACTS. (a) City'acknowledges that Consultant is the prime Consultant and the only party with whom City has a contract under this Agreement. To the extent Consultant performs any services under this Agreement through subcontractors or subcontractors, Consultant shall contractually bind each of its subcontractors and subcontractors by subcontract to all of the terms of this Agreement which are for the benefit of City,and City shall be a third party beneficiary of those subcontracts. - 5 - (b) Consultant shall indemnify and defend City from all claims and demands for payment for services provided by subcontractors of Consultant. (c) Consultant acknowledges that, due to the nature of the services to be provided under this Agreement, the City has a substantial interest in the personnel and consultants to whom Consultant assigns principal responsibility for services performed under this Agreement. Consequently,Consultant represents that it has selected and intends to employ or assign the key personnel and consultants identified in its proposal submitted to City prior to execution of this Agreement to induce City to enter this Agreement. Consultant shall not change such consultants or key personnel except after giving notice of a proposed change to City and receiving City's consent thereto. Consultant shall not assign or reassign Basic Services work to any person to whom City has reasonable objection. SECTION 10. STATE-IMPOSED MANDATES PROHIBITING ILLEGAL ALIENS FROM PERFORMING WORK (a) At or prior to the time this Agreement is executed, Consultant shall submit to the Purchasing Agent of City its certification that it does not knowingly employ or contract with an illegal alien who will perform work under this Agreement and that the Consultant will participate in either the "E-Verify Program"created in Public Law 208, 104`"Congress, as amended and expanded in Public Law 156, 108th Congress, as amended, that is administered by the United States Department of Homeland Security or the"Department Program"established pursuant to §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 Agreement. (b) Consultant shall not: (1) Knowingly employ or contract with an illegal alien to perform work under this Agreement; (2) Enter into an Agreement with a subcontractor that fails to certify to Consultant that the subcontractor shall not knowingly employ or Agreement with an illegal alien to perform work under this Agreement. (c) The following state-imposed requirements apply to this Agreement: (1) The Consultant shall confirm the employment eligibility of all employees who are newly hired for employment to perform work under this Agreement through participation in either the E-Verify Program or Department Program. (2) The Consultant is prohibited from using either the E-Verify Program or Department Program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. (3) If the Consultant obtains actual knowledge that a subcontrator performing work under this Agreement knowingly employs or contracts with an illegal alien,the Consultant shall: - 6 - A. Notify the subcontractor and the City's Purchasing Agent within three(3)days that the Consultant 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 Consultant shall not terminate the Agreement with the subcontractor/subcontractor if, during such three(3) days, the subcontractor/subcontractor provides information to establish that the subcontractor/subcontractor has not knowingly employed or contracted with an illegal alien. (4) 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 of this Section by the Consultant shall constitute a breach of Agreement and grounds for termination. In the event of such termination, the Consultant shall be liable for City's actual and consequential damages. (e) As used in this Section, the terms "subcontractor" and "subcontractor" shall mean any subcontractor or subcontractor of Consultant rendering services within the scope of this Agreement. SECTION 11. NOTICES. (a) Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by certified mail or registered mail, postage and fees prepaid, addressed to the party to whom such notice is to be given at the following address or at such other address as may be subsequently furnished in writing to the other party: If to City: City Manager City of Pueblo One City Hall Place Pueblo, CO 81001 With an additional copies to: City Attorney City of Pueblo 503 N. Main St. Suite 203 Pueblo,CO 81003 If to Consultant: HUB International - 7 - 1414 W. 4th street Pueblo, CO 81004 (b) Such notices shall be deemed to have been given when deposited in the regular United States mail. SECTION 12. PERA LIABILITY. Consultant shall reimburse the City for the full amount of any employer contribution required to be paid by the City of Pueblo 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. The Consultant shall fill out the questionnaire attached as Exhibit B and submit the completed form to City as part of the signed Agreement. SECTION 13. MISCELLANEOUS. (a) Additional Documents. The Parties agree to execute any additional documents or take any additional action that may be necessary to carry out this Agreement. (b) Force majeure. Any delays in or failure of performance by any party of its obligations under this Agreement shall be excused if such delays or failure are a result of acts of God, fires, floods, storms, lightning strikes, labor strikes, labor disputes,accidents,regulations or orders of civil or military authorities, shortages of labor or materials, or other causes, similar or dissimilar, which are beyond the control of such party. (c) Binding Effect. This Agreement shall inure to the benefit of,and be binding upon,the Parties, their respective legal representatives, successors, and assigns; provided, however, that nothing in this paragraph shall be construed to permit the assignment of this Agreement except as otherwise expressly authorized herein. (d) Section Captions. The captions of the paragraphs are set forth only for the convenience and reference of the Parties and are not intended in any way to define, limit or describe the scope or intent of this Agreement. (e) Integrations, Severability,Amendment, and Counterparts. This Agreement represents the entire agreement between the Parties and supersedes all prior discussions and written agreements or understandings. "This Agreement may be amended only by an instrument in writing signed by the Parties. If any provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect. This Agreement may be executed in multiple counterparts,each of which shall be deemed an original, and all of which together constitute one and the same agreement. (0 No Third Party Beneficiaries; No Waiver of Immunities. Nothing in this Agreement is intended, nor should it be construed,to create any rights, claims,or benefits or assume any liability for or on behalf of any third party, or to waive any immunities or limitations conferred under federal or state law, - 8 - including but not limited to the Colorado Governmental Immunity Act, § 24-10-101 et seq., C.R.S. (g) Waiver of Breach. A waiver by any party to this Agreement of the breach of any term or provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party. (h) Authority of Signers. Each person signing this Agreement on behalf of a party represents and warrants that he or she has the requisite power and authority to enter into, execute, and deliver this Agreement on behalf of such party and that this Agreement is a valid and legally binding obligation of such party enforceable against it in accordance with its terms. (i) Attorney's Fees and Costs of Collections. In the event that it becomes necessary for the City to bring any action or proceeding to collect unpaid utilities, damages,janitorial fees,costs, or other sums due under this Agreement,to enforce any provision of this Agreement,to recover damages for Club's breach of this Agreement, or to seek specific performance of this Agreement, the City shall be entitled to collect its reasonable attorneys fees,costs of suit, and costs of collection as part of the judgment in such action or proceeding. (j) Relationship. Nothing in this Agreement is intended to, or shall be deemed to constitute, a partnership or joint venture between the Parties,or to create any agency or partner relationship between the Parties. Neither Party shall hold itself out as a partner,joint venture, agent, or representative of the other under this Agreement. (k) Assignment. This Agreement shall not be assigned by Consultant without the prior written consent of the City, which consent may he granted,denied, or conditioned in City's sole and absolute discretion. (I) Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado. Venue for any action arising under this Agreement or for the enforcement of this Agreement shall be in a state court with jurisdiction located in Pueblo County, Colorado. (m) Certain Provisions Survive Expiration of Term and Termination. The provisions of this Agreement pertaining to indemnification, releases,covenants not to sue, providing draft and completed work product to the City, and liability, shall survive both the expiration of the term of this Agreement and termination of this Agreement, and such terms shall continue in effect for a period of five years following the termination of this Agreement and for such further time as it may take to completely and finally negotiate, settle, or litigate any claim or suit concerning the same. (n) No Multi-Fiscal Year Obligation on City.This Agreement is expressly made subject to the limitations of the Colorado Constitution.Nothing herein shall constitute, nor deemed to constitute, the creation of a debt or multi-year fiscal obligation or an obligation of future appropriations by the City Council of Pueblo, contrary to Article X, §20 Colorado Constitution or any other constitutional, statutory or charter debt limitation. Notwithstanding any other provision of this Agreement, with respect to any financial obligation of the City which may arise under this Agreement in any fiscal year after 2010, in the event the budget or other means of appropriations for any such year fails to provide funds in sufficient amounts to discharge such obligation, such failure shall not constitute a default or breach of this - 9 - Agreement, including any sub-agreement, attachment, schedule, or exhibit thereto, by the City. Executed the date and year first above written. PUEBLO, a Municipal Corporation BY: - #44114•44c' Mayor ATTEST: 43.62,n City Clerk HIJB INTERNATIONAL INSURANCE SERVICES INC.,A CALIFORNIA CORPORATION Signature Danny Talley Senior Vice President ATTEST: - 10 - EXHIBIT A: BASIC SERVICES A. Research, seek out, find, negotiate, and broker options and contracts for the City to purchase, on terms most favorable to the City, employee and retiree benefits, including: • Medical • Dental • Vision • Short term disability • Salary continuation • Long term disability • Group life insurance • Voluntary life insurance • Flexible spending accounts • Health savings accounts B. Provide the following services related to employee and retiree benefits: 1. Advise and consult with City Human Resources Staff concerning the City's employee benefit programs, including but not limited to: • Advising the City with respect to transitioning from a fully-insured to a self-funded health insurance plan if requested and directed by City. • Review the City's benefit plans and make recommendations. • Attend quarterly meetings with City Human Resources Staff and City Benefits Committee to discuss benefit utilization and review claims. • Review contracts with carriers of employee benefits. • Update City Human Resources Staff on regulatory changes. • Make recommendations to City Human Resources Staff concerning compliance - Il - with employee benefit laws and regulations including the provision of sample notices to fulfill legal compliance requirements • Supply City Finance department with benefit plan data and information to facilitate actuarial valuations and underwriting analyses of employee benefit programs as outsourced by City Finance. 2. Manage and oversee carrier performance guarantees. 3. Cooperatively, in conjunction with City Human Resources Staff,conduct the City's annual enrollment of all employees in the City's benefit programs, including but not limited to employee and retiree selection of benefits, adding or dropping dependents, advising employees concerning benefits.This must include both a paper component for employees who wish to enroll through that format, and a web- based component that permits employees to enroll via the internet. 4. Work collaboratively with City Human Resources staff to mediate all employee claims concerning employee benefits through research and communication with appropriate carriers. 5. In concert with City Human Resources staff, conduct the day to day service on employee benefits, including but not limited to eligibility, enrollment, answering questions, and troubleshooting coverage and claims issues with carriers. 6. Serve as wellness advisor to the City. Recommend improvements to the City's Wellness Program including coordination of on-site health assessments, review of carrier benefits in relationship to wellness for integration into City program and to maximize benefits. Recommend and facilitate local partnerships for wellness events such as counseling,coaching and learning sessions appropriate for City employees and dependents. 7. Provide communications with City employees and retirees concerning benefits, including: (a) A customer service representative who will be available to the City employees and retirees to assist them. The customer service representative must be available to answer questions,track down claim problems,help with provider questions and problems,and address other issues,which may arise through the administration of the employee insurance through multiple carriers. Specifically,the selected provider must have a toll free or local phone number (preferred) to address claims issues, coverage concerns or questions. The customer service representative must provide timely, responsive customer service to City administrators and employees. The Customer Service Representative must respond to all employee and retiree inquiries within one business day; (b) Booklets, brochures, enrollment materials and bi-monthly newsletters to all City employees and retirees concerning benefits; (c) Timely, customized, and informative written and web-based communication with employees and retires concerning the value of their benefit package; - 12 - (d) At least six classes each calendar year for City employees in a "lunch and learn" or similar format to educate employees on their benefits,the impact of legislation on their benefits,and other related topics. Open enrollment sessions does not count towards this total; and (e) At least two visits per month to employee work-sites throughout the City, to be designated by City Human resources Staff, to listen to any concerns that employees at the site may have concerning their benefits. Visits can be counted towards quarterly claims review meeting with City Benefits Committee. 9. Conduct compliance audits on all employee and retiree benefits each calendar year to ensure that the City is complying with: (a) all contracts the City has with employee unions; and (b) all state and federal laws, including but not limited to ERISA. HIPAA and Patient Protection and Affordable Care Act(PPACA), as amended by the Health Care and Education Reconciliation Act(HCERA). 10. Maintain positive relationships with existing and new employee benefit carriers. I I. Administer COBRA benefits for all former eligible employees, including but not limited to notifications, enrollment, processing claims, billing premiums, and collecting premiums in accordance with mandated timelines. SELF- FUNDING SERVICES In addition to the Basic Services, Consultant shall perform the following services in the event the City elects to provide a self-funded health benefit plan: 1. Recommend based on best value to City and represent City, as needed, in negotiating contractual services necessary to establish and administer the self-funded health benefit plan including but not limited to Third Party Administrator(TPA),stop loss insurance,pharmacy benefit management and network and other services including, if requested, third party audit of the TPA (collectively the"Contractual Services"). 2. Conduct financial underwriting and claims analysis for self-funded health benefit plan, including renewal analysis and negotiations, budget projections, funding levels and alternatives, large claims analysis and reporting of the plan's financial performance, and inform the City of any issue that could cause a financial impact to the City. 3. Provide appropriate cost analysis of the City self-funded health benefit plan. Provide cost impact analysis as benefit changes are anticipated or recommended. Calculate, with the City, the appropriate employee funding and premium requirements, as well as case specific trend factors and reserve calculations. 4. Evaluate and provide information regularly on health benefit plan design in light of industry trends and labor market conditions, claims cost trends, alternative delivery systems and legal requirements. Evaluate eligibility, cost sharing and benefits structure and network savings. 5. Discuss cost containment alternatives to help control current and future plan costs in conjunction with the rate review. Review plan documents for content and legal requirements to ensure compliance. - 13 - 6. Review and analyze claims experience data,claims service,efficiency and accuracy ofclaims administration to ensure that City is receiving optimum service and benefits from all carriers and vendors. Annually review insurance carrier's contracts and TPA contract to assure the most cost-effective provider utilization. Review specific stop loss limits. 7. Review contracts for Contractual Services and with other relevant vendors to insure accuracy and comprehensiveness of coverage and provide guidance in contract interpretation as needed. 8. Assist in COBRA,1-11PAA,DOL,and other regulatory compliance and reporting relative to the self-funded health benefit plan including Summary Plan Descriptions and other Plan Documents and amendments thereto. 9. Provide high-level customer service and day-to-day support,as needed,in claim administration including all phases of claim adjudication with the TPA. 10. Provide City staff orientation and training regarding their role and duties as well as a pertinent orientation covering auditing, legal, personnel and TPA. - 14 - EXHIBIT B: 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, Agreement employee, consultant, independent Consultant, 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 Consultant,a PERA Retiree who will perform any services for the City of Pueblo? Yes , No) (Must sign below whether you answer "yes"or "no".) (b) If you answered "yes" to (a) above, please answer the following question: Are you I) an individual, 2) sole proprietor or partnership, or 3) a business or company owned or operated by a PERA Retiree or an affiliated party'? Yes No x . If you answered "yes" please state which of the above listed entities (1, 2, or 3) 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) If you answered "yes"to both (a)and (h),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 Consultant of yours who is a PERA Retiree performing services for the City 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 fixture Agreement or other arrangement for services between you and the City of Pueblo. Failure to accurately complete,sign and return this document to the City of Pueblo may result in your being denied the privilege of doing business with the City of Pueblo. - 15 - Signed / � , 20 /P . By: — — Name: /2tihny l e' Title: 5 1,//5 /_ 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. - 16 -