April 5, 2022, Item #6
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DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
CITY COUNCIL
April 5, 2022
Honorable Mayor and Members of the City Council
Jodene Dunphy, Director of Human Resources & Risk Management~ Emily Wolf, Management Analyst
(858) 668-4443 or [email protected]
Contract Agreement Between the City of Poway and HUB International Insurance Services, Inc. to Provide Employee Benefits Consulting and Insurance Brokerage Services
The City of Poway currently contracts with HUB International Insurance Services, Inc. (HUB) for employee benefits consulting and insurance broker services. The current contract expires April 30, 2022. It is in the City's best interest to enter into a new agreement with HUB for a term of five years.
The agreement secures broker consulting services, which include strategic planning and financial analysis of the City's benefit services and programs for employees, negotiating with insurance carriers, and support with regulatory compliance and account management services.
Recommended Action:
It is recommended that the City Council authorize the City Manager to enter into a new agreement with HUB International Insurance Services, Inc., effective May 1, 2022, through April 30, 2027, and authorize the City Manager to execute any necessary documents.
Discussion:
The City's current contract with HUB for employee benefits consulting and insurance broker services is expiring April 30, 2022. HUB provides a critical service to the Poway organization through strategic planning and financial analysis of the City's comprehensive benefit services and programs. They also act as the negotiator with the City's insurance carriers and vendors prior to renewal and open enrollment periods. The team members from HUB assigned to the City of Poway are experienced, professional brokers who understand the complex structure of not only the insurance industry but also public entities and are therefore constantly evaluating the cost of benefits versus effectiveness of plan designs. They have consistently met the annual strategic health and welfare plan objectives developed annually with City staff prior to insurance plan renewals, which has resulted in successful negotiations with insurance carriers for low renewal rates, solid plan designs and documents, and successful plan implementation and account management. The HUB team knows the City April 5, 2022, Item #6
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organization and employee culture, which contributes to creating a healthier and more productive City workforce.
The broker consulting fee stated in the proposed agreement with HUB is a flat fee not to exceed $12,333 per month, for a total of $147,996 per contract year. This includes fees for the City's Employee Assistance Program and Health Fairs. This is a 3% decrease in monthly costs from the current contract with HUB and is guaranteed for each of the five years of the contract.
After careful evaluation of various purchasing options and pricing staff determine that it is in the best interest of the City not to proceed with its own formal bid process and recommends the formal bidding procedures are waived for the following reasons:
1. HUB is a well-respected industry leader that has helped improve the City's benefit and insurance outcomes as described in this staff report;
2. The requirement of Poway Municipal Code Chapter 3.28 to formally bid these services will tie up staff resources from other projects and not likely result in a lower price for these services given staffs historical experience; and
3. Entering into the contract with HUB will save Poway resident tax dollars as the pricing for the contract represents a 3% decrease.
Environmental Review:
This action is not subject to review under the California Environmental Quality Act (CEQA).
Fiscal Impact:
The agreement is effective May 1, 2022, through April 30, 2027, for a flat fee not to exceed $12,333 per month, for a total of $147,996 per contract year. Funding for this contract service is budgeted in the departments' benefits accounts (various: 1300).
Public Notification:
A copy of this notice was provided to HUB International Insurance Services, Inc., 9855 Scranton Road, Suite 100, San Diego, CA 92121.
Attachments:
A. Agreement with HUB International Insurance Services, Inc.
Reviewed/ Approved By:
weny Kaserma n
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
April 5, 2022, Item #6
ATTACHMENT A
City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 1st day of May, 2022, by and between the CITY OF POWAY (hereinafter referred to as "City") and HUB INTERNATIONAL INSURANCE SERVICES, Inc. (hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to provide Employee Benefits Consulting and Insurance Brokerage Services;
WHEREAS, Consultant is an Employee Benefits consultant and has represented that Consultant possesses the necessary qualifications to provide such services; WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice.
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information 3 of 19
1 April 5, 2022, Item #6
Agreement for Insurance Brokerage Services
as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103. Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. "Consultant" means an individual who, pursuant to a contract with a state or local agency:
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Agreement for Insurance Brokerage Services
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or
(8) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code.
DISCLOSURE DETERMINATION:
[8J 1. Consultant/Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and 8 above.
No disclosure required.
D 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law.
Department Director
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void.
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three (3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested.
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April 5, 2022, Item #6
Agreement
for
Insurance
Brokerage
Services
Page
4 of
17 12.
Independent
Contractor.
At
all
times
during
the
term
of
this
Agreement,
Consultant
shall
be
an
independent
contractor
and
shall
not
be
an
employee
of
the
City
of
Poway.
City
shall
have
the
right
to
control
Consultant
only
insofar
as
the
results
of
Consultant's
services
rendered
pursuant
to
this
Agreement;
however, City
shall
not
have
the
right
to
control
the
means
by
which
Consultant
accomplishes
such
services.
13. Licenses,
Permits,
Etc.
Consultant
represents
and
declares
to
City
that
it
has
all
licenses,
permits,
qualifications,
and
approvals
of
whatever
nature
that
are
legally
required
to
practice
its
profession.
Consultant
represents
and
warrants
to
City
that
Consultant
shall,
at
its
sole
cost
and
expense,
keep
in
effect
at
all
times
during
the
term
of
this
Agreement,
any
license,
permit,
or
approval
which
is
legally
required
for
Consultant
to
practice
its
profession.
14. Consultant's
Insurance.
Consultant
shall
provide
insurance
as
set
forth
in
Exhibit
"A"
entitled
"Special
Provisions"
attached
hereto
and
made
a
part
hereof.
15. Indemnification.
(a)
For
Claims
(as
defined
herein)
other
than
those
alleged
to
arise
from
Consultant's
negligent
performance
of
professional
services,
City
and
its
respective
elected
and
appointed
boards,
officials,
officers, agents,
employees
and
volunteers
(individually
and
collectively,
"lndemnitees")
shall
have
no
liability
to
Consultant
or
any
other
person
for,
and
Consultant
shall
indemnify,
protect
and
hold
harmless
lndemnitees
from
and
against,
any
and
all
liabilities,
claims,
actions,
causes
of
action,
proceedings,
suits,
damages,
judgments,
liens,
levies,
costs
and
expenses,
including
reasonable
attorneys'
fees
and
disbursements
(collectively
"Claims"),
which
lndemnitees
may
suffer
or
incur
or
to
which
lndemnitees
may
become
subject
by
reason
of
or
arising
out
of
any
injury
to
or
death
of
any
person(s),
damage
to
property,
loss
of
use
of
property,
economic
loss
or
otherwise
occurring
as
a
result
of
Consultant's
negligent
performance
under
this
Agreement,
or
by
the
negligent
or
willful
acts
or
omissions
of
Consultant,
its
agents,
officers,
directors,
sub-consultants
or
employees.
(b)
For
Claims
alleged
to
arise
from
Consultant's
negligent
performance
of
professional
services,
lndemnitees
shall
have
no
liability
to
Consultant
or
any
other
person
for,
and
Consultant
shall
indemnify
and
hold
harmless
lndemnitees
from
and
against,
any
and
all
Claims
that
lndemnitees
may
suffer
or
incur
or
to
which
lndemnitees
may
become
subject
by
reason
of
or
arising
out
of
any
injury
to
or
death
of
any
person(s),
damage
to
property,
loss
of
use
of
property,
economic
loss
or
otherwise
to
the
extent
occurring
as
a
result
of
Consultant's
negligent
performance
of
any
professional
services
under
this
Agreement,
or
by
the
negligent
or
willful
acts
or
omissions
of
Consultant,
its
agents, officers,
directors,
sub-consultants
or
employees,
committed
in
performing
any
of
professional
services
under
this
Agreement.
For
Claims
alleged
to
arise
from
Consultant's
professional
services,
Consultant's
defense
obligation
to
lndemnitees
shall
include
only
the
reimbursement
of
reasonable
defense
costs
and
attorneys'
fees
to
the
extent
caused
by
Consultant's
negligence.
(c)
The
foregoing
obligations
of
Consultant
shall
not
apply
to
the
extent
that
the
Claims
arise
from
the
sole
negligence
or
willful
misconduct
of
City
or
its
elected
and
appointed
boards,
officials,
officers,
agents,
employees
and
volunteers.
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April 5, 2022, Item #6
Agreement
for
Insurance
Brokerage
Services
Page
5 of
17 (d)
In
any
and
all
Claims
against
City
by
any
employees
of
the
Consultant,
anyone
directly
or
indirectly
employed
by
it
or
anyone for
whose
acts
it
may
be
liable,
the
indemnification
obligation
under
this
Section
15 shall
not
be
limited
in
any
way
by
any
limitation
on
the
amount
or
type
of
damages,
compensation
or
benefits
payable
by
or
for
the
Consultant
under
worker's
compensation
acts,
disability
benefit
acts
or
other
employee
benefit
acts.
(e)
Consultant
shall,
upon
receipt
of
written
notice
of
any
Claim,
promptly
take
all
action
necessary
to
make
a
claim
under
any
applicable
insurance
policy
or
policies
Consultant
is
carrying
and
maintaining;
however,
if Consultant
fails
to
take
such
action
as
is
necessary
to
make
a
claim
under
any
such
insurance
policy,
Consultant
shall
reimburse
City
for
any
and
all
costs,
charges,
expenses,
damages
and
liabilities
incurred
by
City
in
making
any
claim
on
behalf
of
Consultant
under
any
insurance
policy
or
policies
required
pursuant
to
this
Agreement.
(f)
The
obligations
described
in
Section
15(a)
through
(e)
above
shall
not
be
construed
to
negate,
abridge
or
otherwise
reduce
any
other
right
or
obligation
of
indemnity
which
would
otherwise
exist
as
to
any
party or
person
indemnified
pursuant
to
this
Section
15. (g)
The
rights
and
obligations
of
the
parties
described
in
this
Section
15 shall
survive
the
termination
of
this
Agreement.
16. Assumption
of
Risk.
Except
for
injuries
to
persons
caused
by
the
willful
misconduct
of
any
lndemnitee
and
not
covered
by
insurance
maintained,
or
required
by
this
Agreement
to
be
maintained,
by
Consultant:
(a)
Consultant
hereby
assumes
the
risk
of
any
and
all
injury
and
damage
to
the
personnel
(including
death)
and
property
of
Consultant
that
occurs
in
the
course
of,
or
in
connection
with,
the
performance
of
Consultant's
obligations
under
this
Agreement,
including
but
not
limited
to
Consultant's
Scope
of
Services;
and
(b)
it
is
hereby
agreed
that
the
lndemnitees
are
not
to
be
liable
for
injury
or
damage
which
may
be
sustained
by
the
person,
goods
or
property
of
Consultant
or
its
employees
in
connection
with
Consultant's
performance
its
obligations
under
this
Agreement,
including
but
not
limited
to
Consultant's
Scope
of
Services
.
17. Consultant
Not
an
Agent.
Except
as
City
may
specify
in
writing,
Consultant
shall
have
no
authority,
expressed
or
implied,
to
act
on
behalf
of
City
in
any
capacity
whatsoever
as
an
agent.
Consultant
shall
have
no
authority,
expressed
or
implied,
pursuant
to
this
Agreement
to
bind
City
to
any
obligation
whatsoever.
18. Personnel. Consultant
shall
assign
qualified
and
certified
personnel
to
perform
requested
services.
The
City
shall
have
the
right
to
review
and
disapprove
personnel
for
assignment
to
Poway
projects.
City
shall
have
the
unrestricted
right
to
order
the
removal
of
any
person(s)
assigned
by
Consultant
by
giving
oral
or
written
notice
to
Consultant
to
such
effect.
Consultant's
personnel
shall
at
all
times
comply
with
City's
drug
and
alcohol
policies
then
in
effect.
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April 5, 2022, Item #6
Agreement
for
Insurance
Brokerage
Services
Page
6 of
17 19.
Notices. Notices
shall
be
given
as
described
on
Exhibit
"A"
entitled
"Special
Provisions"
attached
hereto
and
made
a
part
hereof.
20. Governing
Law,
Forum
Selection
and
Attorneys'
Fees.
This
Agreement
shall
be
governed
by,
and
construed
in
accordance
with,
the
laws
of
the
State
of
California. Each
party
to
this
Agreement
consents
to
personal
jurisdiction
in
San
Diego
County,
California,
and
hereby
authorizes
and
accepts
service
of
process
sufficient
for
personal
jurisdiction
by
first
class
mail,
registered
or
certified,
postage
prepaid,
to
its
address
for
giving
notice
as
set
forth
in
Exhibit
"A"
hereto.
Any
action
to
enforce
or
interpret
the
terms
or
conditions
of
this
Agreement
shall
be
brought
in
the
Superior
Court
in
San
Diego
County,
Central
Division,
unless
the
parties
mutually
agree
to
submit
their
dispute
to
arbitration.
Consultant
hereby
waives
any
right
to
remove
any
such
action
from
San
Diego
County
as
is
otherwise
permitted
by
California
Code
of
Civil
Procedure
section
394.
The
prevailing
party
in
any
such
action
or
proceeding
shall
be
entitled
to
recover
all
of
its
reasonable
litigation
expenses,
including
its
expert
fees,
attorneys'
fees,
courts
costs,
arbitration
costs,
and
any
other
fees.
Notwithstanding
the
foregoing,
in
the
event
that
the
subject
of
such
an
action
is
compensation
claimed
by
Consultant
in
the
event
of
termination,
Consultant's
damages
shall
be
limited
to
compensation
for
the
60-day
period
for
which
Consultant
would
have
been
entitled
to
receive
compensation
if
terminated
without
cause,
and
neither
party
shall
be
entitled
to
recover
their
litigation
expenses. 21.
Gender. Whether
referred
to
in
the
masculine,
feminine,
or
as
"it,"
"Consultant"
shall
mean
the
individual
or
corporate
consultant
and
any
and
all
employees
of
consultant
providing
services
hereunder.
22. Counterparts. This
Agreement
(and
any
amendments)
may
be
executed
in
multiple
counterparts,
each
of
which
shall
be
deemed
an
original,
but
all
of
which,
together,
shall
constitute
one
and
the
same
instrument.
Documents
delivered
by
telephonic
facsimile
transmission
shall
be
valid
and
binding.
23. Entire
Agreement.
This
Agreement
shall
constitute
the
entire
understanding
between
Consultant
and
City
relating
to
the
terms
and
conditions
of
the
services
to
be
performed
by
Consultant.
No
agreements,
representations
or
promises
made
by
either
party,
whether
oral
or
in
writing,
shall
be
of
any
force
or
effect
unless
it
is
in
writing
and
executed
by
the
party
to
be
bound
thereby.
24. Certification
and
Indemnification
Regarding
Public
Employees'
Retirement
Law/Pension
Reform
Act
of
2013.
Contractor
hereby
certifies
that
all
persons
providing
services
to
City
by
Contractor
are
not
current
members
of
the
California
Public Employees'
Retirement
System
(Cal
PERS)
and
shall
not
become
members
of
CalPERS
while
providing
services
to
City.
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Agreement for Insurance Brokerage Services
Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B."
Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect.
(Remainder of page intentionally left blank)
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April 5, 2022, Item #6
Agreement for Insurance Brokerage Services
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written.
CITY OF POWAY
By:----------
Chris Hazeltine, City Manager
Date: ------------
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
By: ___________ _
Alan Fenstermacher, City Attorney
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CONSULTANT
8 By: ___________ _
Shannon Taylor, Executive Vice
President & Pacific Region President
Date: ___________ _
April 5, 2022, Item #6
A.
"SPECIAL PROVISIONS"
EXHIBIT "A"
Scope of Services.
Consultant agrees to perform consulting services as required by City, which shall consist of the Employee Benefits Consulting and Insurance Brokerage Services further described in the Scope of Services submitted, which is included in this document as Attachment 1, and incorporated by reference, as if its contents were fully set forth herein. Consultant shall provide the necessary qualified personnel to perform the services.
B. Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Fee Proposals submitted, which are included in this document as Attachment 2. Total fee is not to exceed $12,333 per month. Consultant's fee shall include, and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received.
C. Term of Agreement.
This Agreement shall be effective from the period commencing May 1, 2022, and ending April 30, 2027, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." Upon expiration or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement.
D. Consultant's Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive General Liability. including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate.
(b) Automobile Liability. including owned, hired, and non-owned vehicles: $1,000,000 combined single limit.
(c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. (d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance.
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April 5, 2022, Item #6
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following three provisions:
(a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement.
E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the following addresses:
To City:
To Consultant:
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City of Poway
P.O. Box 789
Poway, CA 9207 4
HUB International Insurance Services, Inc.
9855 Scranton Road
Suite 100
San Diego, CA 92121
April 5, 2022, Item #6
EXHIBIT "B"
Cal Gov Code§ 7522.56
Deering' s California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section.
( c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e)
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(l)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with 1 April 5, 2022, Item #6
Cal
Gov
Code§
7522
.56
a public
employer.
A
retiree
shall
certify
in
writing
to
the
employer
upon
accepting
an
offer
of
employment
that
he
or
she
is
in
compliance
with
this
requirement.
(2)A
retired
person
who
accepts
an
appointment
after
receiving
unemployment
insurance
compensation
as
described
in
this
subdivision
shall
terminate
that
employment
on
the
last
day
of
the
current
pay
period
and
shall
not
be
eligible
for
reappointment
subject
to
this
section
for
a period
of
12 months
following
the
last
day
of
employment.
(f)A
retired
person
shall
not
be
eligible
to
be
employed
pursuant
to
this
section
for
a period
of
180
days
following
the
date
of
retirement
unless
he
or
she
meets
one
of
the
following
conditions:
14 of
19 (1
)The
employer
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
position
before
180
days
have
passed
and
the
appointment
has
been
approved
by
the
governing
body
of
the
employer
in
a public
meeting.
The
appointment
may
not
be
placed
on
a consent
calendar.
(2)
(A)Except
as
otherwise
provided
in
this
paragraph,
for
state
employees,
the
state
employer
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
state
employment
position
before
180
days
have
passed
and
the
appointment
has
been
approved
by
the
Department
of
Human
Resources.
The
department
may
establish
a process
to
delegate
appointing
authority
to
individual
state
agencies,
but
shall
audit
the
process
to
determine
if
abuses
of
the
system
occur.
If
necessary,
the
department
may
assume
an
agency's appointing
authority
for
retired
workers
and
may
charge
the
department
an
appropriate
amount
for
administering
that
authority.
(B)For
legislative
employees,
the
Senate
Committee
on
Rules
or
the
Assembly
Rules
Committee
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
position
before
180
days
have
passed
and
approves
the
appointment
in
a public
meeting
. The
appointment
may
not
be
placed
on
a consent
calendar
.
(C)For
employees
of
the
California
State
University,
the
Trustees
of
the
California
State
University
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a
critically
needed
position
before
180
days
have
passed
and
approves
the
appointment
in
a public
meeting.
The
appointment
may
not
be
placed
on
a consent
calendar.
(3)The
retiree
is
eligible
to
participate
in
the
Faculty
Early
Retirement
Program
pursuant
to
a
collective
bargaining
agreement
with
the
California
State
University
that
existed
prior
to
January
1,
2013,
or
has
been
included
in
subsequent
agreements.
( 4)The
retiree
is
a public
safety
officer
or
firefighter
hired
to
perform
a
function
or
functions
regularly
performed
by
a public
safety
officer
or
firefighter.
2 April 5, 2022, Item #6
Cal Gov Code § 7522.56
(g)A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply.
(h)This section shall not apply to a person who is retired from the State Teachers' Retirement System, and who is subject to Section 24214, 24214.5 or 26812 of the Education Code.
(i)This section shall not apply to (1) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System 11 who is assigned to serve in a court pursuant to Section 68543.5.
History
Added Stats 2012 ch 296 § 15 (AB 340), effective January 1, 2013. Amended Stats 2013 ch 528 § 11 (SB 13), effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January 1, 2013; Stats 2014 ch 238 § 1 (AB 2476), effective January 1, 2015.
Annotations
Notes
Amendments:
Note-
Amendments:
2013 Amendment:
Substituted (1) "have passed" for "has passed" in the first sentence of subds (f)(l) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)( 4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i).
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April 5, 2022, Item #6
Attachment 1
Scope of Services
Consultant agrees to perform consulting services as required by City of Poway.
Consultant shall provide the necessary qualified personnel to perform the services. In performance of the services Consultant services include:
1. Strategic Planning
• Assist in defining and prioritizing strategic health & welfare plan objectives • Assist in the evaluation of internal technical capabilities to determine increased/improved applications for administrative processes • Identify underperforming vendor relationship
• Assess carrier/vendor customer service levels
• Develop project action timelines
• Periodic review of employee demographics
• Discuss relevant benchmarking data
2. Financial Analysis
• Perform financial review and analysis of experience reports • Assess current funding arrangements for appropriateness and make recommendations as needed
• Evaluate current costs of benefits versus effectiveness of plan design • Analyze utilization data and cost containment results of medical management • Forecast projected benefit costs to include maximum exposure • Prepare experience reviews as directed
• Perform trend analysis from available diagnostic and normative data
3. Renewal
• Analyze and negotiate renewals with vendors
• Review vendor renewal methodology, experience data, and assumptions for accuracy and logic
• Compare vendor renewal HUB projections
• Develop and present alternative plan designs and provisions with associated financial and member impact analysis
• Finalize program design, rates, and fees a minimum of 60 days prior to effective date • Prepare an accurate renewal document with recommendations for delivery to senior management (as needed)
4. Marketing
• Develop plan specification based on feedback from strategic planning meeting 16 of 19
April 5, 2022, Item #6
• Jointly determine list of vendors best suited to meet plan goals and objectives • Develop vendor performance guarantees with monetary penalties as necessary • Assist in the review of current electronic data transfer processes with vendors • Perform pre-marketing evaluation of census data, network service areas, and administrative needs
• Evaluate carrier client support services
• Evaluate vendor financial ratings and accreditation
• Review provider network accessibility/employee match
• Perform critical analysis and comparison of plan features and costs • Assist in the scheduling of selected finalist site visits • Assist in conducting finalist negotiations
• Prepare and submit a summary report with recommendations to management • Assist in the notification of all bidders as to the final outcome
5. Annual Enrollment
• Assist in the planning of employee meetings, round tables, and health seminars • Provide guidance on delivering a comprehensive communication strategy • Introduce workable technology solutions for communications and enrollment where appropriate
• Coordinate vendor sponsored communication material
6. Compliance
• Provide legislative updates as needed
• Review plan documents and summary plan descriptions for regulatory compliance from a non-legal perspective (client would need to retain legal advice) • Provide access to periodic web casts compliance sessions
7. Account Management Services
• Serve as a liaison between the client and all insurance companies/vendors • Monitor administrative process and assist in the smooth resolution of elevated issues • Act as an employee/employer advocate in the resolution of ongoing claims issues • Audit, confirm, and manage all changes in legal documents (contracts, policies, SPDs, etc.)
• Set and monitor vendor goals and performance and report findings at quarterly meetings
• Review plan performance as directed
• Review and provide guidance of diagnostic data
• Identify and monitor potential catastrophic claims
• Review large claims management activity
• Review network utilization
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April 5, 2022, Item #6
8. Additional Services
• Fund monthly Employee Assistance Plan monthly costs
• Create and fund Mobile Wallet Card
• Provide professionally crafted text and design for employee communication. Includes printing costs of brochures (New Hire and Open Enrollment Brochures) • Provide funding and assistance with the Annual Health Fair (if requested) • Create Wrap Plan/Summary Plan Description (SPD) Amendment • Compliance Manual -provide access to updated Compliance Manual • Provide access to Mineral HR sites upon request
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April 5, 2022, Item #6
Attachment 2
Fee Proposal
Proposed Term Proposed Monthly Fee
5/1/2022 -4/30/2023 $12,333
5/1/2023 -4/30/2024 $12,333
5/1/2024 -4/30/2025 $12,333
5/1/2025 -4/30/2026 $12,333
5/1/2026 -4/30/2027 $12,333
HUB will also provide the below services at no additional cost to the City:
Services Carrier HUB Funded
Annual Value
Employee Assistance Program Services Anthem $3,700
Open Enrollment & New Hire Brochures (Printing) HUB $100 Customized Wrap Doc/SPD Wrangle $400
Health Fair (if requested) TBD $800
TOTAL $5,000
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