HomeMy WebLinkAboutResolution - 2015-R0130 - Professional Services Agreement: MHBT, Inc. - 04/23/2015No. 2015-RO130
. 23, 2015
No. 5.9
RESOLUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
ate for and on behalf of the City of Lubbock, a Professional Services Agreement for
h benefits brokerage and consulting services, by and between the City of Lubbock
MHBT, Inc., and related documents. Said Agreement is attached hereto and
porated in this resolution as if fully set forth herein and shall be included in the
rtes of the City Council.
by the City Council on April 23, 2015
GLEN OB , TSON, MAYOR
Garza, City Secretary
AS TO
of Human Resources & Risk Management
AS TO
Assistant City Attorney
grmt-MHBT, Inc. [services]
24,2015
Resolution No. 2015-R0130
Consulting and Confidentiality Agreement
This Consulting and Confidentiality Agreement, hereinafter referred to as "Agreement" is between
City of Lubbock, hereinafter referred to as "Client" and MHBT Inc., hereinafter referred to as
"Consultant."
WHEREAS, the parties wish to set forth their respective expectations;
Now, therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby
mutually acknowledged, the parties hereby agree as follows:
1. Scope of Services to be Provided by Consultant
Consultant will provide Client with consulting and brokerage services for the following
compensation and benefit programs:
A. Strategic Benefit Planning. Consultant will provide guidance in identifying market trends and
assistance in developing overall plan benchmarks and targets to ensure that the plan meets the
objectives of Client and its employees.
B. Benefit Design. Consultant will help to ensure that benefit designs are consistent with the
strategic benchmarks and targets set forth in the strategic benefit planning process.
C. Administration. Consultant will identify core administrative services, assess vendor
performance, and manage vendor relationships to provide appropriate program administration.
D. Funding. Consultant will advise and counsel regarding program funding alternatives, including
as appropriate, the review of fee proposals, recommending budget rates, reviewing employee
contribution rates, calculating COBRA rates; selecting and procuring appropriate stop loss
terms; and monitoring program costs against expectations.
E. Communication. Consultant will assist in drafting employee communications regarding benefit
program performance and changes, and assist in the review of plan documents and insurance
certificates during the planning and enrollment process.
F. Compliance Tools & Legislative Information. Consultant will provide informational materials
on legislative developments impacting employee benefit plans, including topics such as FMLA,
COBRA, HIPAA, HIPAA Privacy, Section 125 and PPACA. A database with online access
will also be available for Human Resource topics and materials.
G. Meetings with Client and Vendors. Services will include attendance at and facilitation of
regular meetings with Client and vendors as needed to facilitate program management including
day-to-day operations and planning program changes.
Consultant shall meet with Client on an as -needed or requested basis to review all activities
performed by Consultant during the prior period. The meetings will include discussion of
business concerns, including presentations of options and recommendations.
Consultant shall meet with Client semi-annually to discuss review of the program, state of
the marketplace, progress made toward strategic plan, and developments within Client's
organization.
• Consultant shall meet with Client annually to review the stewardship for the preceding
year, define the goals and objectives for the upcoming year, and agree upon Consultant's
compensation for the next twelve month period.
H. Day -to -Day Administrative Issues. Consultant shall provide assistance in the daily
administration of programs, including resolution of vendor service issues and addressing
questions and concerns raised by Client's employees and management.
2. Disclosure, Intermediaries and Record Keeping
A. Full Disclosure/Intermediaries. Client has the right to approve any arrangements and/or the
utilization of any intermediaries in connection with, or arising out of, or in any way related to
Client's employee benefit program. Consultant must seek approval from Client prior to the use
of any of the above in connection with the Client's insurance programs.
B. Record Keeping. Consultant will maintain accurate and current files including, but not limited
to, insurance policies and correspondence with insurers in accordance with industry standard
record retention practices or as otherwise directed by Client.
3. Term & Termination
A. Term. This Agreement shall be effective upon the execution by the parties. This Agreement
shall continue in effect on an annual basis, unless one of the parties indicates in writing to the
other party their intent to terminate this Agreement.
B. Termination. This Agreement may be terminated at any time, with or without cause, by either
party giving thirty (30) days advance written notice to the other party. Termination under this
section shall have the effect of ending future joint purchases, but it shall in no way render the
obligations of a party to a vendor or the other party on existing purchases void or ineffective.
4. Cost of Services
The determination of the fee level is based upon several factors — a) the size and characteristics of
the group, b) where the group's facilities are located, c) the capacity and resource needs of the
Human Resources staff, d) specific services to be delivered e) the extent of vendor interaction and
support required.
Client agrees to pay Consultant twenty-five thousand dollars ($25,000) in increments of two -
thousand eighty-three dollars and thirty-three cents($2,083.33) paid on a monthly basis for the term
defined above. This fee arrangement will remain in effect for subsequent years unless
modifications are agreed to by both parties and such modifications are included as an amendment to
this document.
Additional programs and services may be provided on a project basis for an additional fee to be
disclosed in writing and shall be undertaken upon mutual agreement between Consultant and Client.
5. Personnel
Consultant will assign its personnel according to the needs of Client and according to the disciplines
required to complete the appointed task in a professional manner. Consultant retains the right to
substitute personnel with reasonable cause.
6. Client's Responsibilities
Client will make available such reasonable information as required for Consultant to conduct its
services. Such data will be made available as reasonably as possible. It is understood by Consultant
that the time availability of Client's personnel is finite, and judicious use of that time is a
requirement of this Agreement. Client will make timely payments of the service fees as set forth
elsewhere in this Agreement but no later than 30 days after the receipt of the consulting invoice or
the carrier/vendor billing statement, if the billing is administered by the carrier/vendor.
7. Confidentiality
Consultant agrees that all non-public information communicated to Consultant by Client with
respect to Client's ongoing business operations is Confidential, whether that information was
directly or intentionally communicated, and whether the information was otherwise obtained by
Consultant or its staff. Consultant agrees that it shall not disclose any Confidential Information to
any other person unless specifically authorized by Client. Confidential information shall not be
deemed to include any information that: (a) was already lawfully known to Consultant at the time of
disclosure by Client as reflected in written records of the Consultant; (b) was or has been disclosed
by Client to a third party without obligation of confidence; (c) was or becomes lawfully known to
the general public without breach of this Agreement; (d) is independently developed by Consultant
without access to, or use of, the Confidential Information; (e) is approved in writing by Client for
disclosure by the Consultant; or (f) is required to be disclosed by law or by the order of a court or
similar judicial or administrative body, however, Consultant shall notify Client of such requirement
promptly and shall cooperate reasonably with Client, at Client's expense, in obtaining a protective
or similar order with regard thereto. If an authorized representative of Client gives consultant
written authorization to make disclosures, Consultant shall do so only within the limits and to the
extent of that authorization. Consultant shall use its best efforts to prevent inadvertent disclosure of
Confidential Information to any third party and will be guided by the parameters of the privacy
language of The Health Insurance Portability and Accountability Act (HIPAA). Consultant shall
instruct its staff to treat Confidential Information with the same care and discretion that they use
with similar data designated by Consultant as Confidential. Consultant agrees that all of
Consultant's obligations with respect to Confidential Information shall survive the termination of
this Agreement and any relationship with Client.
H. Independent Contractor
It is understood and agreed that Consultant is engaged by Client to perform services under this
Agreement as an independent contractor. Consultant shall use its best efforts to follow written,
oral, or electronically transmitted (i.e., sent via facsimile or e-mail) instructions from Client as to
policy and procedure.
9. Fiduciary Responsibility
Client acknowledges that: (i) Consultant shall have no discretionary authority or discretionary
control respecting the management of any of the employee benefit plans; (ii) Consultant shall
exercise no authority or control with respect to management or disposition of the assets of Client's
employee benefit plans; and (iii) Consultant shall perform services pursuant to this Agreement in a
non -fiduciary capacity. Client agrees to notify Consultant as soon as reasonably possible of any
proposed amendments to the plans' legal documents to the extent that the amendments would affect
Consultant in the performance of its obligations under this Agreement. Client agrees to submit (or
cause its agent, consultants, or vendors to submit) all information in its (or their) control reasonably
necessary for Consultant to perform the services covered by this Agreement.
10. Hold Harmless
Consultant shall indemnify, defend, release from liability, protect and hold harmless the Client, its
managers, shareholders, partners, employees, officers, trustees, directors and agents from and
against any and all liability, or incurred by reason of any act, error or omission arising out of this
agreement, except to the extent caused by the negligence of the Client, its managers, shareholders,
partners, employees, officers, trustees, directors and agents from and against any and all liability,
or incurred by reason of any act, error or omission arising out of this agreement.
To the extent permitted by law, the Client shall indemnify, defend, release from liability, protect
and hold harmless the Consultant, its managers, shareholders, partners, employees, officers,
trustees, directors and agents from and against any and all liability, or incurred by reason of any
act, error or omission arising out of this agreement, except to the extent caused by the negligence
of the Consultant, its managers, shareholders, partners, employees, officers, trustees, directors and
agents from and against any and all liability, or incurred by reason of any act, error or omission
arising out of this agreement.
Consultant and Client agrees to maintain appropriate statutory Workers Compensation Insurance
(including a waiver of subrogation in favor of the other ), Commercial General Liability Insurance
with limits of $1,000,000 (naming Client and Consultant, as the case may be as an additional
insured when appropriate under each's policies). Client and Consultant shall supply each other a
certificate of insurance upon each's request.
11. Controlling Law, Jurisdiction and Venue
This Agreement shall be interpreted, enforced and governed under the laws of the State of Texas,
excluding its principles of conflicts of law. The Parties expressly agree that venue for any action
brought to enforce this Agreement or any part hereof shall be maintained exclusively in a court of
competent jurisdiction in federal district court, North District of Texas, Lubbock Division. In the
event that federal court does not have the subject matter jurisdiction over the claim, the dispute will
be resolved in state court in Lubbock County, Texas.
12. Non -Arbitration
The City of Lubbock reserves the right to exercise any right or remedy available to it by law, contract, equity,
or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent
jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted
right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be
exercised concurrently. To the extent of any conflict between this provision and another provision in, or related
to, this document, this provision shall control.
Entire Agreement
This constitutes the entire Agreement between the parties, and any other warranties or agreements
are hereby superseded.
Subsequent amendments to this Agreement shall only be in writing signed by both parties.
Client:
/Stgnature
Glen C. Robertson
Name
Mayor
Title
Signature
Brad Van Winkle
Name
Senior Vice President
April 23, 2015
Date
Date
ATTEST:
r
Reb tc
a Garza, City Secretary
APPROVED AST CONTENT:
Leisa Hutcheson, Director Human Resources
and Risk Management
APPROVED AS •FORM:
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ACO/70 CERTIFICATE OF LIABILITY INSURANCE DATE IMMAXWYYYI
3!26/2014
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the pollcy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to
the temis and conditions of the policy, certain policies may require an endorsement. A statement on this certificab does not confer righb to the
certificate holder In lieu of such endorsamen a .
PRODUCER
MHBT Inc. PnonE —T—FAX _
8144 Walnut HIII Lane, 16th FI "C -
Dallas TX 75231 AMBERS,
INSURED
MC&H Life Agency, Inc.
8144 Walnut HIII Lane
Suite 1600
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THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
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CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCTS DESCRIBED HEREIN iS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
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reserved.
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