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Ordinance No. 8,99120000914 -9 ORDINANCE NO. 8991 ® AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE CITY OF BAYTOWN, TEXAS, TO EXECUTE A CONTRACT WITH HCC EMPLOYEE BENEFITS, INC., PERTAINING TO THE CITY'S HEALTH BENEFIT PROGRAM; AUTHORIZING PAYMENT BY THE CITY OF BAYTOWN, THE SUM OF THIRTY THOUSAND AND NO /100 DOLLARS ($30,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ************************************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the City Manager of the City of Baytown, Texas, to execute a contract with HCC Employee Benefits, Inc., pertaining to the City's health benefit program. A copy of said contract is attached hereto, marked 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., the sum of THIRTY THOUSAND AND N01100 DOLLARS ($30,000.00), 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 TWENTY -FIVE THOUSAND AND N01100 DOLLARS ($25,000.00) 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 14'h day of September, 2000. PETE C. ALFARO, Aayor ATTEST: GARY W. ITH, City Clerk APPROVED AS TO FORM: eIG-tACIO RAMIREZ, SR., Ci Attorney c:\MyDocuments\ Council \99 -00\ September\ HCCcontract4HealthBenefitsProgram CITY OF BAYTOWN Annual Consulting/Brokerage 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 Plan Voluntary DentiCare Dental Plan In consideration of the $30,000 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 October 1, 2000 to September 30, 2001 contract period: ' • Consulting/Brokerage 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) • 113NR (incurred but not reported reserve) estimation on November 1 and May ® 1) • Annual development of f inding/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 RFP specifications and market analysis, if requested • Annual evaluation and negotiation of insured plan renewals • 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 • Legal/legislative updates • Coordinate activities with service providers • 'Assistance with drafting routine communications • Assistance with drafting routine administrative forms Is • Periodic meetings with Trustees to discuss health benefits program and present reports CATEMMcorrrxncr.aot EXHIBIT A 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 considered 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. C HCC Employee Benefits, Inc. City of Baytown Title: Date: CATEMMONTRACT.dot Agreed By: Title: Date: 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 I't day of October, 2000, 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 State of Texas 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 runs (claims It listing) of any and/or all insurance coverage shall be furnished to City of Baytown's representative. HCC''s Initials City's Initials • 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. 1 • 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 5. 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 lb Houston, TX 77056 Fax: (713) 622 -6705 HCC's Initials- - City's Initials 2 0 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, Harris 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. 3 HCC's Initials City's Initials CITY OF BAYTOWN Annual Consulting/Brokerage 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 Plan Voluntary DentiCare Dental Plan In consideration of the $30,000 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 October 1, 2000 to September 30, 2001 contract period: Consulting/Brokerage 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) IBNR(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 RFP specifications and market analysis, if requested Annual evaluation and negotiation of insured plan renewals 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 Legal/legislative 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 F:\BAYTOWN\2000\CONTRACT.dot 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 considered 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 Emp oyee Benefits, Inc. City of Baytown By: (/:). ttS Agreed By: Title: ,fill[c,,' lv A'<--Title: City Managern Date: i/ii/D/ Date: January 18, 2001 F:\BAYTOWN\2000\CONTRACT.dot 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 1st day of October, 2000, 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 State of Texas 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 runs (claims listing) of any and/or all insurance coverage shall be furnished to City of Baytown's representative. HCC's Initials aow City's Initials /JIM 1 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 5.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 604 City's Initials`r' 2 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, Harris 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. HCC's Initials (‘ City's Initials 3