Ordinance No. 9,221ORDINANCE NO. 9221
® 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 1100 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 NO /100 DOLLARS ($30,000.00), pursuant to the
contract.
Section 3: That 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 N011 00 DOLLARS
($25,000.00) or less; however, 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 1331' day of September, 2001.
Z?4� !. ouAt'� —
PETE C. ALFARO, M or
ATTEST:
- r9-sn,
GAR W. S ITS_ = City Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, SR., ty Attorney
0 dAMyDocuments\ Coun61\00 -01\ September\ HCCcontract4HealthBenefitsProgram
SEP OG '01 a3':3SPN Hi--,-- EMPL WEE BENEFir
HCC EMPLOYEE BENEFITS, INC.
Marathon Oil Tom+r, 5555 San Felipe, Srire 1100. Nowuon. Texas 771156 Telephone 0131 6 ?J -8930 Fauimilc (713) 622 -6705
September 6, 2001
Ms. Alison Froehlich -Smith
City of Baytown
PO Box 424
Baytown, TX 77522 -0424
Re: Consulting Services
Dear Alison-
This letter will confirm our offer to provide health and welfare benefit plan consulting services
for the City of Baytown for the contract period October 1, 2001 through September 30, 2002. • .
Services to be provided will be the same as outlined in the current Annual Consulting/Brokerage
Agreement between HCC Employee Benefits, Inc. and the City of Baytown. The fee for these
services will be $30,000 for the 2001/2002 contract year;
We look forward to our continued relationship. Please feel free to contact Phil Peters or me with
any questions.
Sincerely,
Valerie M. Ardoin, CEBS
Consultant
cc: Phil Peters
A SUBSIDIARY OF HCC INSURANCE HOLDINGS, INC.
E=IA A
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
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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 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: (114 A S Agreed By: /2
Title: ��,At C - Title: City Manager
Date: //z/D/ Date: January 18, 2001
F:\BAYTO W N\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 ask
City's Initials Mit'l
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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
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 �y
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City's Initials __
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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,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.
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