HomeMy WebLinkAboutResolution - 2024-R0272 - K 17906, HUB International Texas, Inc., Empl. Benefits Consultant/Broker Serv. - 05/28/2024Resolution No. 2024-R0272
Item No. 7.18
May 28, 2024
RESOLUTION
BE 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 execute
for and on behalf of the City of Lubbock, Service Contract No. 17906 for Employee Benefits
Consultant/Broker Services, by and between the City of Lubbock and HUB International
Texas, Inc., and related documents. Said Contract is attached hereto and incorporated in this
resolution as if fully set forth herein and shall be included in the minutes of the City Council.
Passed by the City Council on May 28, 2024
•'
ATTEST:
Courtney Paz, City Secre
APPROVED AS TO CONTENT:
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Bill H erton, Deputy City M ger
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Satte�Gv�Ife, Interim City Attorney
ccdocs IIIRES.Contract-HUB International
May 3, 2024
Resolution No. 2024-R0272
Contract 17906
City of Lubbock
Employee Benefits Consultant/Broker Services
Agreement
This Service Agreement (this "Agreement") is entered into as of the2schday of May 2024
("Effective Date") by and between HUB International Texas, Inc. (the Contractor), and the City of Lubbock
(the "City").
RECITALS
WHEREAS, the City has issued a Request for Proposals 24-17906-KM, Employee Benefits
ConsultandBroker Services and
WHEREAS, the proposal submitted by the Contractor has been selected as the proposal which best
meets the needs of the City for this service; and
WHEREAS, Contractor desires to perform as an independent contractor to provide Employee
Benefits ConsultantBroker Services, upon terms and conditions maintained in this Agreement; and
NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and
Contractor agree as follows:
City and Contractor acknowledge the Agreement consists of the following exhibits which are
attached hereto and incorporated herein by reference, listed in their order of priority in the event of
inconsistent or contradictory provisions:
1. This Agreement
2. Exhibit A— General Requirements
3. Exhibit B— Best and Final Offer
4. Exhibit C= Insurance Requirements
Scope of Work
Contractor shall provide the services that are specified in Exhibit A. The Contractor shall comply with all
the applicable requirements set forth in Exhibit B and Exhibit C attached hereto.
Article 1
1.1 The contract shall be for a term of one (1) year, with the option of four (4), one year extensions, said
date of term beginning upon formal approval. This Contract will renew automatically for the
additional terms, unless either Party gives 90-day written notice to ternunate the Contract.
1.2 All stated annual quantities are approximations of usage during the time period to be covered by
pricing established by this bid. Actual usage may be more or less. Order quantities will be
deternuned by actual need. The City of Lubbock does not guarantee any specific amount of
compensation, volume, minimum, or maximum amount of services under this bid and resulting
contract.
1.3 The Contractor must maintain the insurance coverage required during the term of this contract
including any extensions. It is the responsibility of the Contractor to ensure that valid insurance is
on file with the Purchasing and Contract Management Department as required by contract or contract
may be terminated for non-compliance.
1.4 A) Prices quoted shall be guaranteed for a period for six (6) months upon City approval. The rate
may be adjusted at the City's discretion for the effective change in Consumer Price Index (CPI) or
Product Price Index (PPI) as appropriate.
B) Further, if the Contractor can provide documentation for actual charges for material, labor, etc.
that demonstrates that the change in CPI or PPI is not sufficient, the Contractor shall provide such
documentation to the City, and at the City's sole discretion, the contractual rate may be further
adjusted. If agreement regarding a new rate cannot be reached, the City shall terminate at the end of
the current contract period.
C) If an adjustment to pricing is granted under this section, the Contractor must provide the Director
of Purchasing and Contract Management written, quarterly documentation to justify the ongoing
adjustment. If no such documentation is timely received, the rate will automatically revert to the
initial, awarded rate. , ,
1.5 This contract shall remain in effect until the first of the following occurs: (1) the expiration date, (2)
performance of services ordered, or (3) termination of by either party with a 30 day written notice.
The City of Lubbock reserves the right to award the canceled contract to the next lowest and best
bidder as it deems to be in the best interest of the city.
Article 2 Miscellaneous.
2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in
accordance with the laws of said State, without reference to choice of law provisions.
2.2 This Agreement is performable in, and venue of any action related or pertaining to this
Agreement shall lie in, Lubbock, Texas.
2.3 This Agreement and its Exhibits contains the entire agreement between the City and
Contractor and supersedes any and all previous agreements, written or oral, between the
parties relating to the subject matter hereof. No amendment or modification of the terms of
this Agreement shall be binding upon the parties unless reduced to writing and signed by
both parties.
2.4 This Agreement may be executed in counterparts, each of which shall be deemed an original.
2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining
provisions of this Agreement shall not be affected thereby.
2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of
any parties otherwise to insist upon strict performance of any provision hereof shall not
constitute a waiver of any subsequent breach or of any subsequent failure to perform.
2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, representatives and successors and may be assigned by Contractor or the
City to any successor only on the written approval of the other party.
2.8 All claims, disputes, and other matters in question between the Parties arising out of or
relating to this Agreement or the breach thereof, shall be formally discussed and negotiated
between the Parties for resolution. In the event that the Parties are unable to resolve the
claims, disputes, or other matters in question within 30 days of written notification from the
aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies
available at law or in equity.
2.9 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit
representative of the City or the State of Texas, at its expense and at reasonable times,
reserves the right to audit Contractor's records and books relevant to all services provided to
the City under this Contract. In the event such an audit by the City reveals any errors or
overpayments by the City, Contractor shall refund the City the full amount of such
overpayments within 30 days of such audit findings, or the City, at its option, reserves the
right to deduct such amounts owing the City from any payments due Contractor.
2.10 The City reserves the right to exercise any right or remedy 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.
2.11 The contractor shall not assign or sublet the contract, or any portion of the contract, without
written consent from the Director of Purchasing and Contract Management. Should consent
be given, the Contractor shall insure the Subcontractor or shall provide proof of insurance
from the Subcontractor that complies with all contract insurance requirements document, this
provision shall control.
2.12 Contractor acknowledges by supplying any Goods or Services that the Contractor has read,
fully understands, and will be in full compliance with all terms and conditions and the
descriptive material contained herein and any additional associated documents and
Amendments. The City disclaims any terms and conditions provided by the Contractor unless
agreed upon in writing by the parties. In the event of conflict between these terms and
conditions and any terms and conditions provided by the Contractor, the terms and conditions
provided herein shall prevail. The terms and conditions provided herein are the final terms
agreed upon by the parties, and any prior conflicting terms shall be of no force or effect.
2.13 Contracts with Companies Engaged in Business with Iran, Sudan, or Foreign Terrorist
Organization Prohibited. Pursuant to Section 2252.152 of the Texas Government Code,
prohibits the City from entering into a contract with a vendor that is identified by The
Comptroller as a company known to have contracts with or provide supplies or service with
Iran, Sudan or a foreign terrorist organization.
2.14 Texas Public Information Act. The requirements of Subchapter J, Chapter 552, Government
Code, may apply to this contract and the contractor or vendor agrees that the contract can be
terminated if the contractor or vendor knowingly or intentionally fails to comply with a
requirement of that subchapter. To the extent Subchapter J, Chapter 552, Government Code
applies to this agreement, Contractor agrees to: (1) preserve all contracting information
related to the contract as provided by the records retention requirements applicable to the
governmental body for the duration of the contract; (2) promptly provide to the governmental
body any contracting information related to the contract that is in the custody or possession
of the entity on request of the governmental body; and (3) on completion of the contract,
either: (A) provide at no cost to the governmental body all contracting information related to
the contract that is in the custody or possession of the entity; or (B) preserve the contracting
information related to the contract as provided by the records retention requirements
applicable to the governmental body.
2.15 No Boycott of Israel. Pursuant to Section 2271.002 of the Texas Government Code, a) This
section applies only to a contract that: (1) is between a governmental entity and a company
with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be
paid wholly or partly from public funds of the governmental entity. (b) A governmental entity
may not enter into a contract with a company for goods or services unless the contract
contains a written verification from the company that it: (1) does not boycott Israel; and (2)
will not boycott Israel during the term of the contract.
2.16 Texas Government Code 2274. By entering into this Agreement, Contractor verifies that: (1)
it does not, and will not for the duration of the contract, have a practice, policy, guidance,
or directive that discriminates against a firearm entity or firearm trade association or (2)
the verification required by Section 2274.002 of the Texas Government Code does not apply
to the contract. If Contractor is a company with 10 or more full-time employees and if this
Agreement has a value of at least $100,000 or more, Contractor verifies that, pursuant to
Texas Government Code Chapter 2274, it does not have a practice, policy, guidance, or
directive that discriminates against a firearm entity or firearm trade association; and will not
discriminate during the term of the contract against a firearm entity or iirearm trade
association.
2.17 Contractor represents and warrants that: (1) it does not, and will not for the duration of the
contract, boycott energy companies or (2) the verification required by Section 2274.002 of
the Texas Government Code does not apply to the contract. If Contractor is a company with
10 or more full-time employees and if this Agreement has a value of at least $100,000 or
more, Contractor verifies that, pursuant to Texas Government Code Chapter 2274, it does
not boycott energy companies; and will not boycott energy companies during the term of the
Agreement. This verification is not required for an agreement where a governmental entity
determines that these requirements are inconsistent with the governmental entity's
constitutional or statutory duties related to the issuance, incurrence, or management of debt
obligations or the deposit, custody, management, borrowing, or investment of funds.
2.18 Confidentiality. The Contractor shall retain all information received from or concerning the
City and the City's business in strictest confidence and shall not reveal such information to
third parties without prior written consent of the City, unless otherwise required by law.
2.19 Indemnify. The Contractor shall indemnify and save harmless the city of Lubbock and its
elected officials, officers, agents, and employees from all suits, actions, losses, damages,
claims, or liability of any kind, character, type, or description, including without limiting the
generality of the foregoing, all expenses of litigation, court costs, and attorney's fees, for
injury or death to any person, or injury to any property, received or sustained by any person
or persons or property, to the extent arising out of, related to or occasioned by, the negligent
acts of the Contractor, its agents, employees, and/or subcontractors, related to the
performance, operations or omissions under this agreement and/or the use or occupation of
city owned property. The indemnity obligation provided herein shall survive the expiration
or termination of this agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed the
day and year first above written. Executed in triplicate.
CONTRACTOR
BY: ✓ s
�
Authorized Representative
Brent Weegar, SVP, HUB International Texas
Print Name
10000 N. Central Expy., #1200
Address
APPROVED AS TO CONTENT:
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Dallas TX 75231
City, State, Zip Code
Elizabeth Lara, Director of Human Resources
Exhibit A
City of Lubbock, TX
RFP 24-17906-KM
Employee Benefits Consultant/Broker Services
GENERAL REQUIREMENTS
1. INTENT
The City is seeking an Employee Benefits ConsultandBroker to assist with employee benefit plans and
services and is looking for continuity of services in the rapidly changing area of employee benefits. The
City is interested in an Employee Benefits ConsultandBroker who can offer creative, innovative
approaches with a proven track record that allows the City to maintain quality programs and contain or
reduce costs. Core services shall include, but are not limited to, preparing specifcations, soliciting
qualified providers, negotiating agreements/costs, evaluating and monitoring plan performance,
preparing actuarial studies and strategic planning, recommending plan structure changes to maximize
plan sa�ings, monitoring compliance requirements, and ensuring rharket competitiveness for the City's
health and welfare benefit plans. Additional services shall include premium rate analysis,
communication plans, and introducing the City to innovative programs designed to improve the City
employees' health while assisting in cost savings. We are looking for a consultant who can partner with
us to help identify the best providers and practices to help ensure our employees are getting the best care,
which will provide better outcomes and ultimately lead to healthier members and lower costs. The 2024
plan year was ushered in with significant increases to our health plan contributions. As part of the
response, please provide your company's perspective on the top three (3) things that we can and should
do to reduce overall healthcare costs for the City.
2. SCOPE OF WORK
1. Be�efits Philosophy
As part of this section, it is important to communicate where the City of Lubbock has come from
and its direction. To do this, we will start with 2018. This date is the last time plan design changes
were made to the current plan until 2024. From 2018 to 2023, no changes in healthcare plan design
were made. During the last five years, cost trends for medical have been 7.2 percent, pharmacy 5.7
percent, and denta16.2 percent annually. In the most recent three-year period, these costs rose 3.2%,
5.7%, and 4.9°/o respectively. The health fund budget has risen from $30,961.423 million in 2019
to $42,179,337 million in 2024. Nearly 85% of any municipality's budget is salaries and benefits.
With increasing pressure on wages, growing benefit costs take away from the City's ability to be
competitive in recruitment and retention.
Therefore, successful management of the City's health fund costs is essential to the City being able
to hire and retain the talent needed to serve the citizenry of Lubbock. To achieve this end, the City
has recently developed a philosophy that can be summed up in six words: Better Care. Better Benefit.
Lower Cost.
We believe that the proper management of the City's health fi.�nd is to steer employees to better
providers and provide a higher quality of care that will produce an overall lower cost of care. With
the employees doing their part, it is incumbent upon the Benefits Management team to find ways to
more effectively manage the elements (i.e., pharmacy, network, plan design, wellness, etc.) of the
health plan. The City is seeking a Consultant who will provide good ideas and execution and will
understand the City's culture.
2. Health Plan Structure
As of January 2024, the City has approximately 2,458 full-time health and welfare benefit
employees; 1,592 are full-time civilians (average age of 43), and 866 are Civil Service employees
(average age of 45.8). Approximately 790 retirees and surviving spouses are eligible for City health
and dental coverage.
The City pays 96°/0 of the employee-only health premium and 71 % of health premiums for
employees with spouses, children, and families. For retirees, the City pays 66% of the retiree-only
health premium, 70°/o for retirees' spouses, 65°/o for children, and 74°/o for families. The City ceases
to provide coverage to retirees aged 65 and who are Medicare-eligible. Instead, the City provides a
$150 stipend to these retirees through a Health Reimbursement Arrangements (HRA) plan. The City
also provides coverage for qualified survivors of vested employees or retirees.
The City has contracted with Marsh & McLennan Agency for benefits consulting services since
November 1, 2016, and the contract will expire on May 31, 2024.
The following attachments highlight the features of the Health Center and Consumer Choice (with a
Health Savings Account) Plans for active employees and pre-65 retirees; Medicare-eligible retirees
enroll in a fully-insured Preferred Provider Organization Medicare Advantage Prescription Drug
Plan.
• Exhibit A— 2024 Employee Benefits Guide
• Exhibit B— 2024 Retiree Non-Medicare Open Enrollment Guide
• Exhibit C— 2024 Employee Monthly Rates and 2024 Retiree Non-Medicare Monthly Rates
• Exhibit D— 2024 Medical Plan Summary
• Exhibit E— Plan Claims and Census Information
Note: Access to the Plan Claims and Census Information File. If a bidder wants to review the
Census Claims data, please contact Donna Price-English, Benefits Manager to obtain access to the
Census Information File. An email must be sent to Dprice almylubbock.us. Please list your name,
title, and company.
A signed Confidentiality and Non-Disclosure Agreement, must be signed and returned to the City
before you will be able to access the Plan Claims and Census Information. See Exhibit F for a
copy of the Confidentiality and Non-Disclosure Agreement.
In 2023, the medical plan was analyzed (Exhibit G), and the philosophy of providing better care to
employees to improve employee health and reduce costs was introduced. Along with this
philosophy, eleven recommendations were presented to management. Of those recommendations,
six were adopted:
• Adopting B1ueCross B1ueShield of Texas Flex-Access Program to reduce pharmacy costs
for the City and employees.
• Eliminating Airrosti co-pay to steer employees to this provider and reduce orthopedic costs.
• Change in Emergency Room benefits to steer employees to urgent care providers.
• Addition of Teledoc benefit to help address after-hours care
• Introduction of 2nd. M.D. to ensure employees had access to the best care possible.
• Facilitating on-site employee services to bring health care to employees to be proactive
around employee health status.
The City has no formal Wellness Program.
3. General Consulting Services
3.1. The Consultant shall confer with the City as needed regarding benefit programs;
3.2. Establish a strategy for benefits annually and three to five years in the future. Consider trends,
prospective legislations, new delivery systems, and geographic healthcare practices to make
long-term projections.
3.3. The Consultant shall assist in the review of health and welfare benefit programs and their cost
effectiveness, including the evolution of innovative solutions;
3.4. The Consultant shall provide innovative solutions to current benefit concerns;
3.5. The Consultant sh�ll provide a dashboard to allow the City to review claims data on an
aggregate basis to look at trends in medical conditions to assist in deciding what benefits to
target;
3.6. The Consultant shall assist in the general management of benefit plans, including but not
limited to developing and monitoring administrative processes to ensure performance by
selected Consultant(s);
3.7. The Consultant shall evaluate benefit trends and conduct benchmark surveys and market
surveys as needed;
3.8. The Consultant shall act as a contact between insurance agents and representatives who make
inquiries regarding the City's health and welfare benefits offered through the City;
3.9. The Consultant shall review the performance of the vendor(s) and shall negotiate contract
renewal rates for health and welfare benefit plans;
3.10. The Consultant shall assist in drafting and redrafting the health care plan's Plan Document and
its Summary Plan Description;
3.11. The Consultant shall attend and make presentations at meetings of any employee committee or
management regarding employee/retiree benefits;
3.12. The Consultant shall attend, participate, and make presentations at City Council and or Council
Committee meetings as needed;
3.13. The Consultant shall perform actuarial studies to determine the long-term cosUsavings of
benefts, benefit revisions, and proposed benefit enhancements and present findings;
3.14. The Consultant shall develop effective benefit communication plans and materials for
employees and retirees;
3.15. The Consultant shall provide general consultation on voluntary benefit products and health and
welfare benefits or wellness program incentives;
3.16. The Consultant shall assist with the preparation of Federal and State agency reports;
3.17. The Consultant shall provide information and advise the City on Federal and State regulations
impacting benefit plans.
3.18. As needed, provide on-site training to City staff regarding regulatory updates and/or Best
Practice plans for effective benefits plan administration.
3.19. Provide communication development and support for new benefit offerings and/or changes to
existing benefit offerings. Review and disseminate information to staff on new or revised State
and Federal legislation that impacts benefits programs.
3.20. Assisted in developing communication materials and tools for conducting open enrollment,
dependent verification audits, or other related activities.
3.21. Provide communication development and support for new'benefit offerings and/or changes to
existing benefit offerings.
4. Actuarial Services/Financial Services
4.1. The Consultant shall analyze the funding requirements of each plan, including funding levels
based on employee and employer contribution policy, projected claims, and other plan
expenses;
4.2. The Consultant shall provide actuarial services to assist the City in evaluating the differences,
including the relative value and relative cost, between various benefit plan designs;
4.3. The Consultant shall analyze paid claims, losses, and revenue projections monthly.
4.4. The Consultant shall provide actuariaUfinancial services, benefit-consulting services, examine
reports of exposures, expenses, and paid losses at appropriate intervals to determine patterns
of risk and assure conformity of the Consultant to the proposal;
4.5. The Consultant shall assist the City in the review, analysis, forecasting, and reporting of
financial plan solvency, which will include Government Accounting Standards Board (GASB)
evaluations and shall prepare incurred but not reported (IBNR) reports every quarter;
4.6. The Consultant shall assist the City with evaluating actual plan performance and the impact of
benefit, financial, and administrative modifications to the City's sponsored plans and with
compliance with contract requirements.
4.7. Act as liaison between the City and insurance providers.
4.8. Provide consultation on plan interpretation and problem resolution; provide customer service
and staff assistance; assist in vendor disputes; interpret contracts and services, changes, and
general troubleshooting.
4.9. Act as an advocate between the City and benefit providers on unresolved issues if needed.
4.10. Assist the City in proactively mitigating negative impacts or disruption of services to
participants from any benefit and/or provider network changes.
4.11. Negotiate rates and costs with providers to ensure the City is obtaining the best price for
services/products.
5. Contracting & RFPs
5.1. The Consultant shall support the City with the design, development, preparation, and review
of contracts and RFPs for new and existing benefit programs;
5.2. The Consultant shall develop bid specifications, which will include but not be limited to health
plan administration, Employee Assistance Program, pharmacy, dental, basic and supplemental
life insurance, wellness programs, disease management programs, site clinic, optional benefit
plans such as dental, long term and short-term disability and other benefits and services the
City deems necessary; �
5.3. The Consultant shall work with bidders during the RFP process to answer any questions to
ensure their complete understanding of the City's intent;
5.4. The Consultant shall evaluate bids/proposals received and offer recommendations;
5.5. The Consultant shall assist as needed in the transition between the Consultant if the RFP results
in a change of Consultant.
6. Audits
6.1. The Consultant shall perform, at the City's request, dependent eligibility verification audits
and financial and/or programmatic audits of the third-party administrators or insurance
companies under contract with the City or other benefit plans;
6.2. The Consultant shall audit a full review of administrative procedures, customer service
utilization review, case management, disease management, eligibility review, performance
contract guarantees, and other services by plan documents and Consultant contract
requirements;
6.3. The Consultant shall review and audit the benefits and services provided by the third-party
administrator and other Consultants under contract with the City. This shall involve readiness
and/or evaluations of Statement on Auditing Standards (SAS) reports;
6.4. The Consultant shall execute confidentiality agreements with the City and its Consultant when
the information made available as part of a consulting engagement is considered or has been
identified as proprietary by one of the parties. Proprietary data obtained while performing
services for the City shall be separated from other work not directly related to services
performed.
The City of Lubbock is seeking a contract for with one or more contractors. In order to assure
adequate coverage, the City may make multiple awards, selecting multiple vendors to provide the
products desired, if multiple awards are in the best interest of the City. A decision tu make a multiple
award of this proposal, however, is an option reserved by the City, based on the needs of the City.
I. City of Lubbock Claims Experience
o Attached you will find the last three years of Medical and RX paid claims experience by
month. See Exhibit H.
o Last three years of Participants enrollment by month. See Exhibit I.
o Listing of Large claimants with paid claims over 25°/0 (or over $15,000) of the specific
deductible (include following)
➢ Diagnosis and prognosis
See Exhibit J(2021), Exhibit K(2022), and Exhibit L(2023)
II. Census
To review a copy of the Census claim data, Exhibit E: Please contact Donna Price-English, Benefits
Manager to obtain access to the Census File and receive the required password to view the file. Please
send an email to Dprice(a�mvlubbock.us and request the password for the census fle. Please list your
name, title, and company.
NOTE* Before a copy of the Census claim data is released, the bidder must also sign and return the
Confidentiality and Non-Disclosure Agreement, see Exhibit F— Confidentiality and Non-Disclosure
Agreement.
III. Funding Rates
Contribution Strategy (Employee Premium)
Documents for Review
• Exhibit M— BCBS Pharmacy Plan Description, pages 64 through 108.
• Exhibit N- Stop Loss Policy (should include rateslcontract terms) (for most recent three years) (if
applicable)
• Exhibit O- ASO Agreement (should include all fees) (for most recent three years) (if applicable)
• Exhibit P- Pharmacy contract with PBM (should include rateslcontract terms) (for most recent three
years) (if applicable)
• All ancillary policies in force (should include rateslcontract terms)
o Exhibit Q- Dental
o Exhibit R- Vision
o Exhibit S- Life
o Exhibit T- Disability
o Exhibit U- Voluntary Worksite (ex. critical illness, accident, hospital indemnity)
• Exhibit V- Most recent invoice for all lines of coverage and fees
Additional Items
Any Plan changes over the latest 3 years. This is used to adjust the claims used to determine the
aggregate factors.
2023-2024
• Adopting B1ueCross B1ueShield of Texas Flex-Access Program to reduce pharmacy costs for the
City and employees.
• Eliminating $50 Airrosti co-pay to steer employees to this provider and reduce orthopedic costs.
• Change in Emergency Room beneiits to steer employees to urgent care providers.
• Addition of Teledoc benefit to help address after-hours care
• Introduction of 2nd. M.D. to ensure employees had access to the best care possible.
• Facilitating on-site employee services to bring health care to employees to be proactive around
employee health status.
Exhibit B
HV6
April 17, 2024
City of Lubbock
Purchasing & Contract Management
P.O. Box 2000
Lubbock, Texas 79457
Transmitted via Electronic Email: kmor4anCc�mvlubbock,us
HUB International — Texas
10000 North Central Expressway Suite 1200
Dallas, TX 76116
hubinternational.com
SUBJECT: Response to Best and Final Offer for RFP 24-17906-KM Employee Benefits
ConsultanUBroker Services
Dear Kiara Morgan and Selection Committee,
Thank you for your interest and consideration of HUB International's proposal for Employee
Benefits Consultant/Broker Services (RFP 24-17906-KM Employee Benefits Consultant/Broker
Services). We sincerely appreciate the due diligence on our proposal by the City of Lubbock Selection
Committee. We are pleased to confirm our Best And Final Offer and answer your questions surrounding
our proposal.
As the premier brokerage trusted by over 500 public sector clients across Texas, we are fully
equipped and eager to address any inquiries you may have. Our extensive experience and proven track
record in serving cities like Lubbock and public entities positions us uniquely to meet your needs with
excellence. We look forward to the opportunity to demonstrate our commitment to outstanding service and
to furthering the goals of your organization.
If you have any questions or concerns regarding this letter, you may contact me at 214-364-6864
or brent.weeqar(c�hubinternational.com. Your interest is sincerely appreciated.
Sincerely,
�2G.rZ'��2Q,�QiL
O
HV6
HUB Internationa� — Texas
10000 North Central Expressway Suite 1200
Dallas, TX 76116
hubinternational.com
City of Lubbock, TX
RFP 24-17906-KM
Employee Benefits Consultant/Broker Services
BAFO & Clarifications
1. What justification can the submitter give for increasing 5% after year two to five and is the increase an
annual fee of 5% for a total of 15% at year 5?
A: Typically, HUB International increases fees in years 3-5 in anticipation of costs associated with
inflation and the general increase in the cost of providing top-tier service. This adjustment
ensures that our service pricing remains aligned with market conditions.
However, in recognition of your interest in our fee structure HUB International would be willing to
Guarantee our rate for 3 years and increase 5% year 4 and 5% in year 5.. For a total increase of
10% in year 5. It is important to note that our fee is not compounding.
Additionally, under the both fee structures proposed we are willing to decrease our base fee an
additional $2,500/year for our best and final offer.
2. The flat fee structure includes all requested services that the City of Lubbock required in the RFP?
A: HUB has reviewed you scope of services closely only point out that HUB is equipped to
provide the requested services under the flat fee schedule.
In regard to Audit services requested, it is important that we are transparent that HUB works with
independent claims and dependent eligibility auditors that have a minimum +15 years audit
experience, state of the art technology/algorithms and have a proven track record successfully
auditing large self-insured health plans. Our preferred auditors include TFG Partners, Partners
Plus Consulting (MWBE Certified), Consova, AECRx, and more.
As part of negotiation process with your providers, we require the incumbent / winning providers
to allocate Audit Allowances for your Health and Pharmacy Programs to fund any audits needed
over the contract period. They include but are not limited to eligibility (including dependent),
100% electronic claims audits, large claims audit, targeted random sample on-site audit,
performance / discount guarantee audit, SPD / Plan Administration audits, rebate audits, report
and recommendation. HUB and the auditors work hand in hand from the start of the audit to final
resolutions including remediation of audit findings.
3. Is the fee for the call center negotiable?
A: Yes. The fee for the call center is negotiable. HUB International is willing to lower the rate for
our customized call center to $1.25 PEPM.
H � � HUB International — Texas
10000 North Central Expressway Suite 1200
Dallas, TX 76116
hubinternational.com
4. In your submission, you highlight several municipalities that you service, the majority of them being
partially self-insured. The largest city that you service on the list is Corpus Christi. Do you anticipate
any issues or concerns with servicing a municipality of our size that is self-insured?
A: HUB International's team is poised and ready to service a large self-insured client such as the
City of Lubbock. In addition to the clients listed in the RFP, the HUB team service other large self-
insured clients across the state such as EI Paso County (2,600 Employees), EI Paso ISD (6,400
Employees), the City of Arlington (2,800 Employees), and the City of Garland (3,500 Employees)
without failing to meet their expectations and needs. As a note, the Team's largest employer
serviced has over 18,�00 employees.
5. Is the GASB valuation fee negotiable?
A: Unfortunately, we are firm on price. However, HUB International believes we offer a best in
class valuation and its cost is truly reflective of its value.
V�F.�IUOR ACKNOWLEDGEM�Nd'
In compliance with this procurement, the undersigned offeror having examined the request for
proposal, instructions to offerars, documents associated with the request for proposals, and being
familiar with the conditions to be met, has reviewed the information regarding:
• Insurance Requirements
• Suspension and Debarment Certification
• Texas Government Code Section 2252.152
• Texas Government Code SecNon 2271.002
• Texas Government Code 2274
An individual authorized to bind the company must sign the following section. Failure to execute this
portion may result in proposal rejection.
uthorized Signature
Senior Vice President
Title
Brent Weegar
Print/Type Name
HUB International Texas, Inc.
Company Name
3/14/2024
Date
10000 N Central Expressway, Suite 1200
Address
Dallas, TX 75231
City, State Zip Code
Contact for questions, clarifications, etc.
Name and Title: Brent Weegar, Senior Vice President
Mailing Address: 10000 N Central Expressway, Suite 1200
City, state, zip: Dallas, TX 75231
Telephone No: 214-443-2429
Fax No: 214-443-2424
E-Mail: brent.weegar@hubinternational.com
L-xhibit C
INSURANCE REQUIRENiENTS
Prior to the approval of this contract by the City, the Contractor shall furnish a completed Insurance
Certificate to the City, which shall be completed by an agent authorized to bind the named
underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall
furnish and contain all required information referenced or indicated thereon. THE CITY SHALL
HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH
CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY.
The City reserves the right to review the insurance requirements of this section during the effective
period of the contract and to require adjustment of insurance coverages and their limits when
deemed necessary and prudent by the City based upon changes in statutory law, court decisions,
or the claims history of the industry as well as the Contractor.
Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are
approved by the City, the Contractor shall obtain and maintain in full force and effect for the
duration of this contract, and any extension hereof, at Contractor's sole expense, insurance
coverage written by companies approved by the State of Texas and acceptable to the City, in the
following type(s) and amount(s):
Commercial Liabilitv Requirements: $1 M occurrence /$2M aggregate (can be combined with an
Excess Liability to meet requirement). CGL is required in ALL contracts. It is perhaps the most
important of all insurance policies in a contractual relationship. It insures the Contractor has
broad liability coverage for contractual activities and for completed operations. Commercial
General Liability to include Products — Completion/OP, Personal and Advertising Injury,
Contractual Liability, Fire Damage (any one fire), and Medical Expenses (any one person).
Auto Liabilitv Requirements: $1 M/occurrence is needed
Workers Compensation Requirements: Statutory. If the vendor is an independent contractor with
no employees and are exempt from providing Workers' Compensation coverage, they must sign
a waiver (obtained from COL Purchasing) and include a copy of their driver's license. Employer
Liability ($1 M) is required with Workers Compensation.
Cvber Liabilitv Requirements: $2M of coverage is needed for Cyber Liability
Professional Liability Requirements: $1 M occurrence 1$2M aggregate
Crime Protection Coverage Requirements: Employee Dishonesty or Fidelity Bond coverage
REQUIRED in an amount equal to the maximum exposure.
* The City of Lubbock (including its officials, employees and volunteers) shall be afforded
additional insured status on a primary and non-contributory basis on all liability policies except
professional liabilities and workers' comp.
* Waivers of Subrogation are required for CGL, AL, and WC.
* To Include Products of Completed Operations endorsement.
* Carrier will provide a 30-day written notice of cancellation, 10-day written notice for non-
payment.
* Carriers must meet a A.M. Best rating of A- or better.
* Subcontractors must carry same limits as listed above.
IMPORTANT: POLICY ENDORSEMENTS
The Contractor will provide copies of the policies without expense, to the City and all
endorsements thereto and may make any reasonable request for deletion, revision, or modification
of particular policy terms, conditions, limitations, or exclusions (except where policy provisions
are established by law or regulation binding upon either of the parties hereto or the underwriter of
any of such policies). Upon such request by the City, the Contractor shall exercise reasonable
efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. Any costs
will be paid by the Contractor.
REQUIRED PROVISIONS
The Contractor agrees that with respect to the above required insurance, all insurance contracts
and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment,
the following required provisions:
a. Name the City of Lubbock and its officers, employees, and elected representatives
as additional insureds, (as the interest of each insured may appear) as to all
applicable coverage;
b. Provide for 30 days notice to the City for cancellation, nonrenewal, or material
change;
c. Provide for notice to the City at the address shown below by registered mail;
d. The Contractor agrees to waive subrogation against the City of Lubbock, its officers,
employees, and elected representatives for injuries, including death, property
damage, or any other loss to the extent same may be covered by the proceeds of
insurance;
e. Provide that all provisions of this contract concerning liability, duty, and standard
of care together with the indemnification provision, shall be underwritten by
contractual liability coverage sufficient to include such obligations within applicable
policies.
NOTICES
The Contractor shall notify the City in the event of any change in coverage and shall give such
notices not less than 30 days prior the change, which notice must be accompanied by a replacement
CERTIFICATE OF INSURANCE.
All notices shall be given to the City at the following address:
Marta Alvarez, Director of Purchasing & Contract Management
City of Lubbock
1314Avenue K, 9�' Floor
Lubbock, Texas 79401
Approval, disapproval, or failure to act by the City regarding any insurance supplied by the
Contractor shall not relieve the Contractor of full responsibility or liability for damages and
accidents as set forth in the contract documents. Neither shall the banka-uptcy, insolvency, or denial
of liability by the insurance company exonerate the Contractor from liability.
CERTIFICATE OF INTERESTED PARTIES
FORnn 1295
lofl
Complete Nos.1- 4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos. �, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number:
of business. 2024-1155070
HUB International Texas, Inc.
Dallas, TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 05/01/2024
being filed.
Ciry of Lubbock Date Acknowledged:
05/02/2024
3 Provide the idenYification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
#17906
Employee Benefits ConsultanUBroker Services
4 Nature of interest
Name of Interested Party Ciry, State, Country (place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party. ❑
X
6 UNSWORN DECLARATION
My name is , and my date of birth is
My address is
(street) (city) (state) (zip code) (country)
I declare under penalty of pery'ury that the foregoing is true and correct.
Executed in Counry, State of , on the day of , 20
(month) (year)
Signature of authorized agent of contracting business entiry
(Declarant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V3.5.1.5b35d027
CERTIFICATE OF INTERESTED PARTIES FORnn 1295
1 of 1
Complete Nos. l- 4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos. l, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number:
of business. 2024-1155070
HUB International Texas, Inc.
Dallas, TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 05/01/2024
being filed.
City of LubboCk Date Acknowledged:
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
#17906
Employee Benefits ConsultanUBroker Services
4
Nature ofinterest
Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party. ❑
X
6 UNSWORN DECLARATION
Brent Wee ar 9/14/1981
My name is g , and my date of birth is
Myada�ess;s 10000 N. Central Expy., #1200, Dallas, TX 75231 USA
(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct.
Executed in Dallas counry, State of TeXaS , on the � day of May 20 24
(month) (year)
�
Signature of authorized agent of contracting business entiry
(Declarant)
Forms provided by � exas tthics c;ommission www.etnics.state.bc.us Version V3.5.1.5b35d027