Ordinance No. 8,456981124 -5
ORDINANCE NO. 8456
AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE A CONTRACT WITH HCC EMPLOYEE BENEFITS, INC., (FORMERLY
J.E. STONE & ASSOCIATES) TO PROVIDE CONSULTING SERVICES
PERTAINING TO THE CITY'S HEALTH BENEFIT PROGRAM; AUTHORIZING
PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF TWENTY -FIVE
THOUSAND AND NO /100 DOLLARS ($25,000.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section I: That the City Council of the City of Baytown, Texas, hereby authorizes and
directs the City Manager of the City of Baytown to execute a contract with HCC Employee Benefits, Inc.,
(formerly J.E. Stone & Associates) to provide consulting services pertaining to the City's health benefit
program. A copy of said contract is attached hereto as Exhibit "A," and made a part hereof for all intents
and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment to HCC
Employee Benefits, Inc., of the sum of TWENTY -FIVE THOUSAND AND NO /100 DOLLARS
($25,000.00), pursuant to the contract.
Section 3: That pursuant to the provisions of Texas Local Government Code Annotated §
252.048, the City Manager is hereby granted general authority to approve any change order involving a
decrease or an increase in costs of FIFTEEN THOUSAND AND NO /100 DOLLARS ($15,000.00) or
less, subject to the provision that the original contract price may not be increased by more than twenty-
five percent (25 %) or decreased by more than twenty -five percent (25 %) without the consent of the
contractor to such decrease.
Section 4: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 24'h day of November, 1998.
PETE C. ALFARO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
d1WACIO RAMIREZ, SR., ity ttorney
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CM OF BAYTOWN
Annual ConsultingBrokerage Agreement
HCC Employee Benefits, Inc, is currently recognized as the consultant for the following
City of Baytown employee group health & welfare benefit plans:
Medical and Dental Plan
Group Life and Accidental Death flan
Voluntary DentiCare Dental Plan
In consideration of the $25,000 fee paid by City of Baytown, HCC Employee Benefits,
Inc. will provide the following services in connection with the above referenced
employee group health & welfare plans during the December 1, 1998 to September 30,
1999 contract period:
Q Consul tingBrokerage Services Applicable to the Health & Welfare Plans
•
Annual review of benefit design
•
Annual renewal planning (identification of specific areas to review in renewal
process)
•
Self - funded medical /dental plan cost projections (November 1 and May 1)
•
LBNR (incurred but not reported reserve) estimation on November 1 and May
1)
-
Annual development of funding/budget rates
•
Annual development of COBRA rates
•
Annual assistance with development of employee contribution levels
•
Annual mid -year review of plan costs vs. budget, revise budget as needed
•
Annual service provider (claims administrator, managed care network, etc.)
evaluation and UP specifications and market analysis if requested
•
Annual evaluation and negotiation of insured plan renewals
•
Insured plan RFP specifications and market analysis if requested
• Additional
Services Applicable to the Health & Welfare Plans, including the
Flexible Benefit Plan (Fringe Benefit Plan)
•
Assistance with the preparation of Annual Report Form 5500 for the Section
125 premium conversion plan
•
Review of SPD (Summary Plan Description) drafts
•
Review of insurance policies/contracts
•
Review of service provider agreements
•
Day to day inquiries from Human Resources/Risk Management
•
L.egal1legislative updates
•
Coordinate activities with service providers
•
Assistance with drafting routine communications
• •
Assistance with drafting routine administrative forms
•
Periodic meetings with Trustees to discuss health benefits program and
present reports
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City of Baytown
Annual Consulting/Brokerage Agreement
Page 2
It is understood that additional engagements of HCC Employee Benefits, Inc. to provide
any of the following types of services would be consider to be separate
projects/engagements, and therefore, outside of the scope of this agreement:
Consulting Services/Engagements Outside of the Annual Health & Welfare
Consulting/Brokerage Agreement
• Outsourced benefit administration services
• Participation in collective bargaining negotiations
• Establishment of an entirely new benefit plan
• Special communications projects such as Summary Plan Description drafting,
design of a package of coordinated employee benefits communications, or
participation in a series of employee meetings
• Re- engineering of in -house benefits administration systems
• Services in other employee benefits and human resource areas (qualified plan
design, administration and investments, compensation, actuarial, etc.)
• Surveys and employee/city management focus groups
• Actuarial studies
This Annual Consulting/Brokerage Agreement shall be subject to the terms & conditions
specified on Exhibit "A ", which is attached hereto and incorporated herein for all intents
and purposes.
HCC Employee Benefits, Inc.
By:
Title: /�i���a4 /��� �� •Yc�er
Date:_
1LABAYTOWN0 ACOT`1RACT.dot
City of Baytown
Agreed By:
Title:
Date:
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® EXHIBIT «A»
This Exhibit "A" shall supersede and control over the terms and conditions contained in the
Annual Consulting/Brokerage Agreement between HCC Employee Benefits, Inc. ( "HCC "), and
the City of Baytown effective the 1" day of December, 1998, to the extent that there is conflict.
Such agreement and this Exhibit shall collectively be referred to herein as the "Contract."
• Throughout the term of this Contract, HCC at its own expense shall purchase, maintain and
keep in force and effect errors and omissions insurance coverage to protect against damages
which may arise out of or result from HCC's performance of services under this Contract.
Further, HCC shall furnish separate certificates for each of its subcontractors, if any. All
coverage for subcontractors shall be subject to all of the requirements stated herein.
The errors and omissions. coverage required herein shall, at a minimum, meet the
following requirements:
• Errors and Omissions
• Limit: $500,000 for this Contract.
• Claims -made form is acceptable.
• Coverage will be in force for two (2) years after expiration of this Contract.
Upon execution of this Contract, HCC shall file with the City valid certificates of
insurance and endorsements acceptable to the City. Such certificates shall contain a
provision that coverage afforded under the policies will not be canceled, suspended,
voided, or reduced until at least sixty (60) days' prior written notice has been given to the
City via certified mail, return receipt requested.
HCC shall also file with the City valid certificates of insurance covering all
subcontractors if any.
The following are general requirements applicable to the required policy:
a. AM Best Rating of A: VII or better.
b. Insurance carriers licensed to do business in the Stare of Te. as will be
accepted.
C. Upon request of and without cost to City of Baytown, certified copies of
all insurance policies and/or certificates of insurance shall be furnished to
City of Baytown's representative. Certificates of insurance showing
evidence of insurance coverage shall be provided to City of Baytown's
representative prior to execution of this Contract.
d. Upon request of and without cost to City of Baytown, loss nuns (claims
listing) of any and/or all insurance coverage shall be furrished to City of
Baytown's representative.
HCC's [nitials�
C-ty's midi/.
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• HCC shall comply with all rules, regulations and laws of the United States of America, the
State of Texas, and all laws, regulations and ordinances of the City of Baytown as they now
exist or may hereafter be enacted or amended.
• It is expressly agreed and understood by all parties hereto that HCC is an independent
contractor in its relationship to the City. Nothing herein contained at any time or in any
manner shall be construed to effect a contract of partnership or joint venture or render any
party hereto the employer or master of any other party and /or its employees, agents or
representatives. All necessary personnel shall be deemed employees of HCC.
• The City, besides all other rights or remedies it may have, shall have the right to terminate
this Contract with or without cause upon thirty (30) days written notice from the City
Manager to HCC of the City's election to do so. Furthermore, the City may immediately and
without notice terminate this Contract if HCC breaches this Contract. A breach of this
Contract shall include, but not be limited to, the following:
1. failing to pay any payments due the City, State or Federal Government from
HCC, or its principals, including, but not limited to, any taxes, fees, assessments,
liens, or any payments identified in this Contract;
2. the institution of voluntary or involuntary bankruptcy proceeding against HCC;
3. the dissolution of HCC;
4. the violation of any provision of this Contract; and /or
S. the abandonment of the Contract or any portion thereof and discontinuance of
HCC's services or any portion thereof.
Upon delivery of any notice of termination required herein, HCC shall discontinue all
services in connection with the performance of the Contract. Within thirty (30) days after
receipt of the notice of termination, HCC shall refund any monies prepaid by the City
prorated to the date of the termination.
• All notices required to be given hereunder shall be given in writing either by telecopier,
overnight, or facsimile transmission, certified or registered mail at the respective addresses of
the parties set forth herein or at such other address as may be designated in writing by either
party. Notice given by mail shall be deemed given three (3) days after the date of mailing
thereof to the following addresses:
HCC EMPLOYEE BENEFITS. INC.
HCC Employee Benefits, Inc.
Attn: C. Phil Peters, III
5555 San Felipe, Suite 1100
Houston, TX 77056
• Fax: (713) 622 -6705
HCC's Initials
City's Ini
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•
CITY
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, TX 77522
Fax: (281) 420 -6586
HCC shall not sell, assign, or transfer any of its rights or obligations under this Contract in
whole or in part without prior written consent of the City, nor shall HCC assign any monies
due or to become due to it hereunder without the previous consent of the City.
• Failure of either party hereto to insist on the strict performance of any of the agreements
herein or to exercise any rights or remedies accruing thereunder upon default or failure of
performance shall not be considered a waiver of the right to insist on and to enforce by an
appropriate remedy, strict compliance with any other obligation hereunder to exercise any
right or remedy occurring as a result of any future default or failure of performance.
• This Contract shall in all respects be interpreted and construed in accordance with and
governed by the laws of the State of Texas, regardless of the place of its execution or
performance. The place of making and the place of performance for all purposes shall be
Baytown, Hams County, Texas.
• All parties agree that should any provision of this Contract be determined to be invalid or
unenforceable, such determination 'shall not affect any other term of this Contract, which
shall continue in full force and effect.
• This Contract contains all the agreements of the parties relating to the subject matter hereof
and is the full and final expression of the agreement between the parties. This Contract shall
not be amended or modified without the express written consent of both parties hereto.
• The officers executing this Contract on behalf of the parties hereby represent that such
officers have full authority to execute this Contract and to bind the party he/she represents.
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3
HCC's Initiai
City's Init'