HomeMy WebLinkAboutJ&H MARSH & Mc LENNAN - 1999-10-040
Council/Agency Meeting Held: LDAL.6gp•�D
D/e rred/Continued to:
® Approved ❑ Cydi. Approve Denied d C Clerk's Signature
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Council Meeting Date: October 4, 1999 Department ID Number: AS 99-12
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS-0
SUBMITTED BY: RAY SILVER, City Administrator
PREPARED BY: JOHN REEKSTIN, Director of Adminstrative Services f
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SUBJECT: APPROVE PROFESSIONAL SERVICES CONTRACT BETWEEN
THE CITY AND J & H MARSH & MC LENNAN
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: Should the City select J & H Marsh & McLennan as its Employee
Insurance Consultant and Broker.
Funding Source: IA-AS-867-3-90-00 — Self Insurance Medical, Contractual Services.
Recommended Action: Approve the professional services contract between the City of
Huntington Beach and J & H Marsh & McLennan, and incorporate the following waiver
modifications to the City's standard consulting contract:
• Modifications to hold harmless language to incorporate similar language for
consultant.
Alternative Action(s): Do not approve the contract and distribute another Request for
Proposal.
Analysis: From the late 1970's through early 1999, the City retained the firm of Robert E.
French Services as its employee insurance broker. To ensure that the City receives the best
possible brokerage services at a competitive cost, a Request for Proposal for Employee
Benefits Insurance Broker was sent to fifteen firms in October 1998. Proposals were
received from nine firms, six of which were selected to be interviewed by a City staff
committee consisting of the Fire Chief, Economic Development Director, Director of
Administrative Services, Director of Finance and Risk Manager. As a result of these
QUEST FOR COUNCIL ACT
MEETING DATE: October 4, 1999
DEPARTMENT ID NUMBER: AS 99-12
interviews, J & H Marsh & McLennan was selected as the City's Broker of Record for all
employee benefits. The firm of J & H Marsh & McLennan is one of the largest insurance
brokerage companies in the world. They have a local office in Newport Beach that will
service our account. J & H Marsh & McLennan also has over 50 years of assisting and
advising clients with employee benefits issues, including a large number of public entity
clients throughout the country. Further, the "team members" assigned to our account were
highly recommended during reference checks. The annual compensation to J & H Marsh &
McLennan will be One hundred and Ten Thousand Dollars ($110,000). This amount will be
paid by the City's insurance carriers as commissions to J & H Marsh & McLennan. J & H
Marsh & McLennan will disclose, on a quarterly basis, the amount of commissions received.
In the event the commissions exceed the agreed upon compensation, the excess
commissions will be returned to the City.
J & H Marsh & McLennan has been working with City staff and the Insurance Advisory
Committee on the development of proposals and the evaluation of a Point -of -Service plan
and other cost containment measures for the City's indemnity medical insurance program.
Additionally, Marsh has saved the City $200,000 as a result of recent negotiations with the
City's HMO carriers for year 2000 medical coverage.
Environmental Status: Not applicable
AttachmentU:
1
K,
3
RCA Author: Karen Foster
Letter of Agreement
Professional services contract between the City and J & H Marsh &
McLennan for Employee Insurance Consultant and Broker
Certificate of Insurance
JHRCA-2 -2- 09/28/99 10:36 AM
CITY OF HLJNTINGTON BEACH
2000 MAIN STREET
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
CALIFORNIA 92648
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPI•IENT AGENCY OF THE CITY OF HUNTr GT01 BEACH
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City, Stak, tip
ATTENTION: /%%lGhgel hl 45he-�G1l
DEPARTMENT: / e < `
REGARDING: 14Lzimal
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See Attached Action Agenda Item Date of Approval
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
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Connie Brockway
City Clerk
Attachments: Action Agenda Page
Agreement
Bonds
Insurance
RCA
Deed
Other
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RCS
Ag:ecatcr.r
Insura^cc Other
Name
Department
RCA
Agrecn:ent
Insurance Other
Name
Department
RCA
Agee-,er.:
Insurance Other
Name
Department
Risk Management Dept.
RCA Agreement ]nst ,ante Other
Insurance
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Received by Name - CompanyName- Date
1 Telephone: 714.536.5227)
ATTACHMENT #1
Michael W. Stock -well i
Assistant Vice President
J&H Marsh &. McLennan, Inc. .
4695 MacArthur Court
Suite 700
Newport Beach, CA 92660
949 399 5831 Fax: 949 399 5960
Nfichae].Stoc",ell@-�r�c.com
California License: 0437153
April 27, 1999
John Reekstin
Director of Administrative Services
City of Huntington Beach
2000 Main Street
Huntington Beach CA 92648
Subject: Letter of Agreement
Dear John:
J&H MARSH &
MCLENNAN
All of us at J&H Marsh & McLennan, Inc. are proud to have been entrusted with the opportunity
to act as the insurance consultant and broker for the City of Huntington Beach.
J&H Marsh has adopted the practice of providing our clients with a Client Service Agreement
setting forth the terms of our engagement in an effort to clarify and define our professional
relationship with the City. This Agreement reflects our understanding with the City of
Huntington Beach (the City) regarding our services on the City's behalf.
1. JB:H Marsh & McLennan (J&H Marsh, we, us) will act as the City's representative to the
world insurance market with the objective of presenting to the City an insurance placement
opportunity which the City regards as appropriate considering cost, coverage and continuity. We
are first and foremost the City's representative in this function. As such, we do not speak for, and
are not bound to utilize, any particular insurance company. Accordingly, except under special
circumstances (which we will always endeavor to make known to the City), we do not have or
seek the authority to make binding commitments on behalf of insurance companies with respect
to policies or endorsements. It is our responsibility to negotiate on the City's behalf with the
City's insurance company and to keep the City informed of significant developments in those
negotiations which are likely to have a bearing on the City's insurance program. When in our
professional judgment it is necessary or appropriate, we Will utilize the services of other
intermediaries to assist in the marketing of the City's insurance. Such intermediaries may be
affiliates of ours or other intermediaries not related to us.
Such intermediaries will be compensated by the insurance company out of paid insurance
premiums. Accordingly, their compensation is not addressed by our agreement with the City.
2. We will develop and recommend insurance and risk financing or loss funding programs,
contracts, techniques, and methods as directed by the City. Because we have taken over existing
programs or policies implemented by another broker, we will not assume any responsibility for
these programs. However, within 45 days, we will have completed a review of these programs
and policies and will make recommendations we believe are necessary.
F.",kLL_WDfti:,CLIE\'IIHT C;-BC9C413_AGILDOC
A Marsh &McLennan Company
' I I-k ' 1,RI I t f -,'Y---'I T
cFr y HUNTINGTON BEACH, CA
1999 JUM IS A 9: 09
. J&H Marsh & McLennan, Inc.
California License: 0437153
Page Two
April 13, 1999
John Reekstin
3. Other services provided from time to time by us at the City's request are not contemplated
within the scope of our compensation hereunder, Accordingly, before providing such additional
services, we will inform the City of the charge for such services and will undertake them only
with the City's agreement. By way of example, such services might involve special studies and
analyses, special projects or services, loss analyses and plan design consulting services, claims
services requiring an extraordinary expenditure of time or resources, insurance opinions to third
parties, and services related to property and casualty lines of insurance.
4. The term of this Agreement is for the calendar year 1999. Our compensation during the
period for services to be performed by us hereunder will be $110,000.00, payable as follows:
■ $11,000 due monthly, beginning March 1, 1999
Renewal will occur automatically for the succeeding calendar year unless either party provides
prior written notice, pursuant to section 7 below.
With respect to all insurance coverages placed by us during the term of this Agreement, on a
quarterly basis, we will disclose to the City commissions received by us and -will credit such
commissions against our compensation hereunder. In the event such commissions exceed our
agreed -upon compensation hereunder, then excess commissions will be returned to the City, if
permitted by law. Otherwise, excess commissions will be carried forward and applied against our
compensation for subsequent years of this Agreement. As used in this paragraph, the term
"commissions" does not include payments or allowances by markets contingent upon such factors
as the overall book of business placed by J&H Marsh and its affiliates, the performance of that
business or the aggregate commissions paid by the market for that book.
5. The service to be provided by us shall be related to the City's group employee benefit plans,
including medical, dental, r7sion, pharmacy benefit coverages. "Exhibit A," attached herewith,
provides an example of the services, functions and activities we are prepared to perform on
behalf of the City, and is not intended to limit or obligate us in the performance of responsibilities
under this agreement. We will provide the City with access to the resources of J&H Marsh &
McLennan, Inc. where appropriate and necessary to meet the City's needs.
In the event that the City's operations change substantially by either the addition or deletion of
other operations or entities, or there is substantial change in the scope and nature of the City's
insurance program, the City and we will negotiate in good faith to revise our compensation
upward or downward as appropriate.
iiSK ��E;�iF? C E �'':iji i
_ EitYOO
HUN E INGTON BE ..` !UM CA
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• J&H Marsh & McLennan, Inc. .
California License: 0437153
Page Three
April 13, 1999
John Reekstin
6. In certain cases, placements that we make on the City's behalf may require the payment of
taxes and/or fees to state regulators, boards or associations. Such taxes and/or fees will be
charged to the City and, when not included in premium payments to insurance companies, «rill be
identified separately on invoices covering these taxes or fees.
7. Notwithstanding the term of this Agreement, both parties have the right to terminate the
agreement at any time upon 90 days' prior N ritten notice. However, in the event of such midterm
termination by the City other than as a result of breach by us, we will be deemed to have earned
our annual compensation for that year in accordance with the following schedule:
60% at inception of that year;
73% after 4 months;
100% after 7 months;
8. Our obligation and the obligation of our affiliates to render services under this Agreement
will terminate simultaneously with the effective date of termination of this Agreement.
9. We will assist the City in the preparation of undenwiting information and in the completion
of insurance applications. Since we must rely upon information provided by the City and the
City's employees, we cannot assume responsibility for the accuracy or completeness of such
information. The City's designated employee will sign all applications.
10. To assist us to perform our services under this Agreement, we are authorized by the City to
obtain access to any and all insurance and risk management -related information relating to the
City's prior, current and future exposures, claims, liabilities, etc., whether prepared or maintained
by the City, the City's agents and representatives, insurance carriers, or any other third parties.
All such parties are authorized and directed by the City to identify and furnish such information
in such form(s) (e.g., electronic, printed or otherwise) and by such means as requested from time
to time by us. Upon request the City will provide written direction to said parties instructing
them to provide such information to us.
11. We do not make representations or warranties, express or implied, concerning the solvency
or ability to pay claims of any insurance company. It is our practice to make placements with
insurance companies that meet prevailing guidelines established by us from time to time as
circumstances and market conditions may warrant. As part of our basic services to the City
under this Agreement, at the City's request, our Market information Group will discuss with the
City our practices in this regard and review with the City financial information available to us
which bears upon the markets participating or quoting on the City's program. We encourage the
City to take advantage of this service and to discuss %kith us any special instructions which may
RISK MAlNAGc-;lEN'T
Cf OF
HUNTINGTON BELACH, CA
lqqq JUIN IS A OV 0
0
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. J&H Marsh & McLennan, Inc.
California License: D437153
Page Four
April 13, 1999
John Reekstin
be appropriate for the City's particular insurance and risk management program. In the absence
of contrary instructions from the City, it is agreed that insurers with whom the City's risk is
placed are acceptable to the City.
12. We will review all policies and endorsements delivered by insurance companies or vendors
for the purpose of confirming their accuracy and conformity to specifications and negotiated
coverages.
13. The City will also review all policies and endorsements delivered to the City by us and will
advise us of anything which the City believes is not in accordance with the City's order or
specifications within thirty days following receipt.
14. Annually during the time this Agreement is in effect, we will prepare a report which will
include a complete list of insurance in force, an evaluation of the overall insurance program,
including recomrnendations for change, and a forecast of market conditions and estimated
premiums for future budgeting purposes. At the time of the presentation of the report, the City
and we «rill discuss any changes which are appropriate in services to be performed and our
compensation for the succeeding year.
16. With respect to those claims which are within the scope of our services hereunder and in any
attachments, we urill participate in the documentation, presentation, negotiation and settlement
communications with insurance carriers. In the event that we are excluded from any settlement
discussions and/or communications with insurance carriers, we shall not be responsible for any
deficiency in payment or failure to collect the claim or claims which are the subject of such
negotiations, discussions or other communications, whether such deficiency or failure is alleged
to arise out of the conduct of negotiations or the placement of the insurance, or otherwise.
17. During the term of this Agreement and for a period of twelve (12) months after termination
or expiration hereof, the City or the City's authorized representative shall have the right to audit
all records and accounts directly related to this Agreement. The City will bear the expense of
such audit.
18. This letter, die attached exhibit, and that certain document entitled Professional Services
Contract Between the City of Huntington Beach and J&HMarsh & McLennan for Insurance
Consulting Servhres, contain the entire Agreement between the City and us concerning the
provision of the services which are the subject hereof. It may be amended only by an agreement
in writing signed by both us and the City or our and the City's respective successors and assigns
upon whom this Agreement also shall be binding.
� ( i': A r .
Ri31'l M. f� 1AG7 - 'IEt7 t
CITY C
HUNTINGTON EACH. CA
1449 jUjj 15 A q- 09
. J&H Marsh & McLennan, Inc.
California License: 0437153
Page Five
April 13, 1999
John Reekstin
J&H MARsu & MrURNNAN
Michael W. Stockwell, Assistant Vice President
ACCEPTED AND AGREED:
CITY OF HUNTINGToN BEACH
By:
John Reekstin, Director of Administrative Services
Date: S o - 9
MWSIPVMIms
A Marsh & McLennan Company
RIJii I-{;iKAG;EM
CITY OF
HUNTINGTON BEACH. CA
099 AN IS A a, 09
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ATTACHMENT #2
IS K I.A A T
cl
1HUNTINGTOIN, BEACH, CA
lqqq jU, .1 15 A q: Oq
PROFESSIONAL SERVICES CONTRACT BETWEEN THE CITY OF
HUNTINGTON BEACH AND J & H MARSH & MCLENNAN FOR
INSURANCE BROKERAGE AND CONSULTING SERVICES
THIS AGREEMENT, made and entered into this day of 0ghbzX-J
1999, by and between the City of Huntington Beach, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and J & H MARSH & MC CLENNAN, INC., a
corporation, hereinafter referred to as "CONSULTANT."
WHEREAS, CITY desires to engage a consultant to provide insurance brokerage
services related to the CITY's group employee benefit plans including medical, dental, vision
and primary benefit coverage, in the City of Huntington Beach; and
Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC
Chapter 3.03 relating to procurement of professional service contracts has been complied with;
and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as follows:
1. WORK STATEMENT
CONSULTANT shall provide all services in a form and manner as described in
the Scope of Services and letter dated April 27, 1999, both of which are attached hereto as
Exhibit "A" and incorporated into this Agreement by this reference.
manner.
All work required hereunder shall be performed in a good and workmanlike
CONSULTANT hereby designates Michael Stockwell who shall represent it and
be its sole contact and agent in all consultations with CITY during the performance of this
Agreement. CITY hereby designates John Reekstin as its sole contact and agent in all
consultations. with CONSULTANT during the term of this Agreement
glagree/in surance!05%21 /99
2. CITY STAFF ASSISTANCE
CITY shall assign a staff coordinator to work directly with CONSULTANT in the
performance of this Agreement.
3. TIME OF PERFORMANCE
Time is of the essence of this Agreement. The services of the CONSULTANT
are to commence as soon as practicable after the execution of this Agreement.
4. COMPENSATION
In consideration of the performance of the services described herein, CITY
agrees to pay CONSULTANT a fee not to exceed One Hundred Ten Thousand Dollars
($110,000), payable according to the terms of Section 4 of the abovementioned letter of April
27, 1999. 5. EXTRA WORK
In the event CITY requires additional services not included in Exhibit "A," or
changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such
work after receiving written authorization from CITY. Additional compensation for such extra
work shall be allowed only if the prior written approval of CITY is obtained.
6. METHOD OF PAYMENT
With respect to all insurance coverages covered under the Agreement during the
term of this Agreement, on a quarterly basis, CONSULTANT will disclose to the CITY
commissions received by us and will credit such commissions against CONSULTANT's
compensation hereunder. In the event such commissions exceed the agreed -upon
compensation hereunder, then excess commissions will be returned to the CITY, if permitted by
law. Otherwise, excess commissions will be carried forward and applied against
CONSULTANT's compensation for subsequent years of this Agreement. As used in this
paragraph, the term "commissions" does not include payments or allowances by markets
contingent upon such factors as the overall book of business placed by CONSULTANT and its
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affiliates, the performance of that business of the aggregate commissions paid by the market
for that book.
7. HOLD HARMLESS
CONSULTANT shall protect, defend, indemnify and hold harmless CITY, its
officers, officials, employees and agents from and against any and all liability, loss, damage,
expenses, costs (including without limitation, costs and fees of litigation of every nature) arising
out of or in connection with CONSULTANT's performance of its services under this Agreement,
or its failure to comply with any of its obligations contained in this Agreement by
CONSULTANT, its officers, agents or employee, except such loss or damage which was
caused by the negligence or willful misconduct of the CITY.
CITY shall protect, defend, indemnify and hold harmless CONSULTANT, its
officers, officials, employees and agents from and against any and all liability, loss, damage,
expenses, costs (including without limitation, costs and fees of litigation of every nature) arising
out of or in connection with CITY's performance of its services under this Agreement, or its
failure to comply with any of its obligations contained in this Agreement by CITY, its officers,
agents or employee, except such loss or damage which was caused by the sole negligence or
willful misconduct of the CONSULTANT.
8. TAXES AND FEES
In certain cases, placements that CONSULTANT makes on the CITY's behalf
may require the payment of taxes and/or fees to state regulators, boards or associations. Such
taxes and/or fees will be charged to the CITY and, when not included in premium payments to
insurance companies, will be identified separately on invoices covering these taxes or fees.
9. AUDITING OF RECORDS
During the term of this Agreement for a period of twelve (12) months after
termination or expiration hereof, the CITY or the CITY's authorized representative shall have
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9
the right to audit all records and accounts directly related to this Agreement. The CITY will bear
the expense of such audit.
10. PROFESSIONAL LIABILITY INSURANCE
CONSULTANT shall furnish a professional liability insurance policy covering the
work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's
professional liability in an amount not less than $1,000,000 per occurrence and in the
aggregate. A claims made policy shall be acceptable if the policy further provides that:
A. The policy retroactive date coincides with or precedes the professional
services contractor's start of work (including subsequent policies
purchased as renewals or replacements).
B. CONSULTANT will make every effort to maintain similar insurance during
the required extended period of coverage following project completion,
including the requirement of adding all additional insureds.
C. If insurance is terminated for any reason, CONSULTANT agrees to
purchase or maintain an extended reporting provision of at least two (2)
years to report claims arising from work performed in connection with this
Agreement.
D. The reporting of circumstances or incidents that might give rise to future
claims.
11. CERTIFICATES OF INSURANCE
CONSULTANT shall furnish to CITY certificates of insurance subject to approval
of the City Attorney evidencing the foregoing insurance coverages as required by this
Agreement; said certificates shall:
A. provide the name and policy number of each carrier and policy;
B. shall state that the policy is currently in force; and
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•
C. shall promise that such policies shall not be suspended, voided or
canceled by either party, reduced in coverage or in limits except after thirty days
prior written notice; however, ten days prior written notice in the event of
cancellation for nonpayment of premium.
CONSULTANT shall maintain the foregoing insurance coverages in force until
the work under this Agreement is fully completed and accepted by City.
The requirement for carrying the foregoing insurance coverages shall not
derogate from the provisions for indemnification of City by CONSULTANT under the
Agreement. City or its representative shall at all times have the right to demand the original or
a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely
manner, the premiums on all insurance hereinabove required.
12. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in the performance of this
Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be
responsible for any and all payment of all taxes, social security, state disability insurance
compensation, unemployment compensation and other payroll deductions for CONSULTANT
and its officers, agents and employees and all business licenses, if any, in connection with the
services to be performed hereunder.
13. TERMINATION OF AGREEMENT
Either party may terminate this Agreement at any, time with or without cause,
upon ninety (90) days prior written notice.
In the event of such midterm termination by the CITY, other than as a result of
breach by CONSULTANT, CONSULTANT will be deemed to have earned or annual
compensation for that year in accordance with the following schedule:
60% at inception of that year,
75% after 4 months;
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glagreeh n suranca105l21199
100% after 7 months.
CONSULTANT's obligation and the obligation of its affiliates to render services
under this Agreement will terminate simultaneously with the effective date of termination of this
Agreement.
14. ASSIGNMENT AND SUBCONTRACTING
This Agreement is a personal service contract and the supervisory work
hereunder shall not be delegated by CONSULTANT to any other person or entity without the
consent of CITY.
15. CITY EMPLOYEES AND OFFICIALS
CONSULTANT shall employ no CITY official nor any regular CITY employee in
the work performed pursuant to this Agreement. No officer or employee of CITY shall have any
financial interest in this Agreement in violation of the applicable provisions of the California
Government Code.
16, NOTICES
Any notice or special instructions required to be given in writing under this
Agreement shall be given either by personal delivery to CONSULTANT's agent (as designated
in Section 1 hereinabove) or to CITY's Director of Administrative Services as the situation shall
warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the
same in the United States Postal Service, addressed as follows:
TO CITY: TO CONSULTANT:
John Reekstin
Director of Administrative Services
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92647
Michael W. Stockwell, Vice President
J & H Marsh & McLennan
4695 MacArthur Court, Ste. 700
Newport Beach, CA 92660
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17. IMMIGRATION
CONSULTANT shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
18. LEGAL SERVICES SUBCONTRACTING PROHIBITED
CONSULTANT and CITY agree that CITY is not liable for payment of any
subcontractor work involving legal services, and that such legal services are expressly outside
the scope of services contemplated hereunder. CONSULTANT understands that pursuant to
Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for
CITY; and CITY shall not be liable for payment of any legat services expenses incurred by
CONSULTANT.
19. ATTORNEY'S FEES
In the event suit is brought by either party to enforce the terms and provisions of
this agreement or to secure the performance hereof, each party shall bear its own attorney's
fees.
20. ENTIRETY
The foregoing, and Exhibit "A": attached hereto, set forth the entire Agreement
between the parties.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by and through their authorized offices the day, month and year first above written.
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J & H MARSH & MC LeANAN, INC.
By:�4: � I
re &-L-
print name
ITS: (circle one) G4a4ffwiA,aesidnbice President
AND
ITS: (circle ne) Secretary) ief Financial
Officer/Asst. ary - Treasurer
REVIEWED AND APPROVED:
Cit dministrator
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
pa—
frCity Attorney
INITIATED AND APPROVED: !/Gj
A /7
Director of Administrative Services
g/agree:ins urance 07:28 99
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aBlInCA
The uaders4mtd Asasmi Secr+etaary of Marsh U5A Im hereby mds a tbat by
miclutiorsa datod June 24,1998, the Board of Ditccuus of Mush USA Inc., fiotm sly
kttowrt as Jd-H Mmh dt McLeawn, Inc. ("Mar*"). daly al proved amd adopwd .
ram dum awbariAng any Mawing Director ofmarsh to MCPAc acts wd Oaww
UwAunow is the mw and behalf of Marsh.
The =4ft*pMd famwer suers The 3M Ma3ao is a Manaons Director of
Mar b, that the above audwrizadon ima rot been amended oar mochAed aMd rawa®s to
full rmw and . and accordlWy said officer is duly authorised to sign in Marsh's
came the wafted between Mmsh and the City of Huntington Bacb.
David: New Ytuk,Ntw Yc*
Jyiy A 1999
As
7L� �6-1999 @9�2fi Lam. URULP
Tar L P.e2
96x PAP
Exhibit
•
•
CITY OF HUNTINGTON BEACH
J & H MARSH & MCLENNAN
EXHIBIT A
Scope of dices
Page 1 of 2
COMPLETE SERVICES
(Includes Marketing and Renewals)
ANALYSIS
Evaluate Funding Arrangement & Alternatives
• Self-funding/partial funding/fully insured
• Risk/exposure analysis
Review Plan Performance/Analyze
Recommend Plan Design Changes if Appropriate
• Project savings/cost
• Access to providers/quality of care
• Provide industry/survey data
• Enrollment risK analysis
Employee Contribution Level
• Determine corporate objectives
• Establish rates
• Provide industry/survey data
MARKETING
Marketing, Evaluation, Negotiations
• Prepare bid specifications
• Obtain competitive quotes
• Analyze results, limit finalist analysis to 3 vendors
Financial/Risk assessment
✓ Benefit comparison
✓ Network availability (zip code matrix)
✓ Enrollment projections
• Prepare marketing report
• Interview finalists with client
• Recommend course of action
Assist with plan compliance filings
• Preparation and review of form 5500, if necessary
• Prepare SAR'sISMM's as needed
EXHIBIT A
giagreelins urance.;:05%21199
RISK, MANAGEMENT
MAY P 3 oe PH '99
0
CITY OF HUNTINGI ON BEACH
J & H MARSH & MC ELAN
EXHIBIT A
Scone of Services
Pacte 2 of 2
COMPLETE SERVICES
(continued)
Financial reporting and analysis
• Monitor monthly claim data
• Quarterly/annual summary
• Monitor utilization
• Monitor financial Status
Employee Communications
• Assist with overall communication strategy
• Assist with Southern California open enrollment meetings
✓ Coordinate with carriers
✓ Review drafts of communication materials
(Announcements, election/waiver forms, presentation materials,
memos, announcements, notices, etc.)
• Provide discounted access to benefit communication templates
Ongoing Service Support
• Problem solving
• Claim disputes
• Compliance issues
• Miscellaneous inquiries
Compliance/Legislative Assistance
• Notification of new state and federal legislation
• Compliance assistance
(ERISA, ADA, COBRA, ADEA, FMLA, etc.)
EXHIBIT A
g'agreelinsuranrel092 U99
#hr 3 ag
I*
C�
ATTACHMENT #3
Cl i v OF
HUNTINGTON EEACH. CA
1999 JUN 15 A q- 09
ti
.0
J
CERTIFICA—TUNUMB'ER d
.... .... .. . ..
... .. . .... . .... WWO: 21001-01384
PRODUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATIIOONLY AND CONFERS
jklarizh USA Ir.,
�f'
NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN
THE POLICY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE
151e
1166 Avenue the Americas
New York, NY
COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN.
_1506-2774IYIA
49,0. / 0 COMPANIES AFFORDINGCOVERAGE
COMPANY A/111
A TRAVELERS INDEMNITY OF ILL.
INSURED-
COMPANY
MRSH USA INC.-
B TRAVELERS INDEMNITY CO OF CT
-- -- - -
4b
CcSuIIr I �!/ / fle
COMPANY
..
C
COMPANY
11
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT,
TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS
OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
COPOLICY
R
TYPE OF INSURANCE
I
EFFECTIVE POLICY EXPIRATION
POLICY NUMBER DATE (MM/ODNYj DATE (MMiDDNY)
L I
LIMITS
I
A GENERAL LIABILITY
I TC2J-GL5A-229T369-7-99 9130199 I 9130100 GENERAL AGGREGATE 4.000.000
X COMMERCIAL GENERA I _IAB LITY
PRODUCTS - COMP/OP AGG e 4, 900.
CLAIMS MADE XOCCUR
I PERSONAL& ADV INJURY Is 2,000.000
OWNER'S & CONTRACTOR'S PROT
I I EACH OCCURRENCE 1 2.000.000
FIRE DAMAGE (Any ore tire) 10 2, 000. C. 0 9
MED EXP rAny one person) e 25.000
A AUTOMOBILE LIABILITY
Tl2jCAP229T373A99 (ALL Si 9130199 9 / 3 57 0. 0
B ANY AUTO
I 1 COMBINED SINGLE LIMIT
TC,2ErAP229T3Z! 639 (TX) 9130199 9135109 2. .1-0,11, 009
A I ALL OWNED AUTOS
ITJEAP229T374199 (MA 1 9130199 9130100
BODILY INJURY
SCHEDULM AUTOS
(Per personi
HARED ALTOS
BODILY INJURY
NON -OWNED AUTOS
I I IPer accioerm
PROPERTY DAMAGE
GARAGE LIABILITY
GA IT HIJITTO
i N
AUTO ONLY - EA ACCIDENT
OTHER THAN AUTO ONLY: F:.:-
ANY AUTO
C TY Al%
ly
EACH ACCIDENT
A
AGGREGATE
EXCESS LIABILITY I
P LtC tylAttorney
EACH OCCURRENCE •
UMBRELLA FORM I
I AGGREGATE
• OTHER THAN UMBRELLA FORM
A 1 WORKER'S COMPENSATION AND
TC2JUB229T367399 (DEDUCT) 9130199 9130100 IX I WC STATLI_ TORN LIMITS I
A EMPLOYERS' LIABILITY
7DRJUB229 'i_364599 CRETIRO) 9110199 91301010 EL EACH ACCIDENT 2, 016 5. :nj 0 b,
THE PROPRIETOR! INCL
I I EL DISEASE - POLICY LIMIT 2.000,090
PARTNERS ' FEXECUTIVE
OFFICERS ARE: 1 jEXCLj
EL DISEASE - EA EMPLOYEE .6 L. 000, 050
OTHER
DESCRIPTION OF OPERATIONS I LOCATIONS j VEHICLES I SPECIAL ITEMS
Pic-ase refer all finquiries tn: Risk i4anagement Department
Marsh & McLennan Co-,panles, Inc.
1166 Avenue of the Americas
(See reverse andlor attached for
additional information.)
:CERTIFICATE: HGLIJEFVT�
... ..... .... .. ... ..........
:CANCELtATION . . ....... .... ....... .. ........
SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE
CITY CF HUNTING70N
EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILLMNEHNMR
BEACH
AT TN: KAREN FOSTER RISK MGR XdE MAIL 30_ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED
200 MAIN STREET
HEREIN,
HUNTINGTON BEACH. CA 92648
0al
0e)
Mereh USA Inc. 1114-It-
....... ...... .... .......... .
.. ..... ......... ............ .... ....... ...........
... .. ....... .. . ....... ..... .... . ... .....
. ..........
Certificate No. G221GC-1-gl 11ARS-' USA INS. s 11/02/99 Pa
Certificate Holder
CITY OF HUN—:NSTC•,N BEACH
ATTN: KAREN FOSTER - RISK MGR
200 MAIN STREET
�jNTINGTON BEAC CA 92548
DESCRIPTION OF OPERATIONS/LOCAT?ONS/VEHICLES Cont'd.
New Yor<. VV 1rr36-2774
Workers' Compensation Policy No. 7C2J-UB-229T367-3-99 (Deauctible) is
applicable to the following states: AL AK, AR. CA. CO, CT, DE, DC. FL,
GA. IL. IN. IA. KS. KY. LA. ME. MD. MI, MN. MS, MT. MO. NE. NH. NM. NY.
NJ, NC, OK, PA. RI, SC, TN, TX. LET, UT, VA.
Workers' Compensation Policy No. TDRJ-UB-229T364-8-99 (Retro) is applicable
to the follo+virg states: AZ. HI. NA, M. NV. WI.
The Cancellat'on Cause has beer revisec. to strike the words "w';,. eroeavor
to" and the remainder of the clause beginnirg with "but failure to ma '."
'ne City cr h:an.ingtcn Beach, =ts Agents. Offices and Employees a^e
included as additional insureds but only to the extent required by
written contract.
# S v bbbl
A A !��
MAY -IS -SE) 20,38 FROM- ID: FACE 5/5
UM*g
- '::I � s_�{:r' •i.'Y;. ���;; CERrIPICATF NR g'.
�::�.�.'�:NF��.�..• .wA��...._..x,,.... _IY�:.���.,:I�•�:•�li:�r�a :�r w.:l.. ,.,�.< '�. YCe'.#4"�g 0�10C�1•C.38a
TM C WWWATE IE 195t= AS A MATTER C! PWOS AATION My MA Coilil
NO RIGHTS WON TfiB CEPTUVATE KOLDER OTHO THAN TH039 PROVOSO IN
II66 Ar4r�of the Al lt' NG TW POLICY. Y41S CgFWWATr. DIM NOT AM6NG. WIrJ,RD OR ALYM THE
NEW Yerlc, e if?0SG-d'�� Q �/� / coWRAGH APfOROED DY Tm PESuc= 11rfm Hmat,
%ili'ra (odD./O ; COMP NIES AF DING COV RACE
���rAl/2r.L /0%�99
�f°MPA"Y
A rRiaY� ERs rN�7 I-,, m.
INSURED COMPANY
& .y."lash & .t4 rer.- Inc. (SrJII�✓� �GJ�714 j 13 TRAV!LERS IN^EMNrr' Cu 0.- 7
COMPANY
tiC
COMPANY
':.s.w ' .• s �'.`ax. . yYia .Y rM•p Itb - jI;xL� .N P..y rH :i a-�.4,M311yMYYxW►+IYq I:1-:. walk. i •twlxl ik%y•wA�A-Y..-........ {
w
I q::li.a} .-�. I.y -Y /lx i Is .•_`N I� k »Y»x.. r kfF:iw, •.il{Y• yl ` w IWT M••5 ,:mow luW-' M+imldSi,«r�+
.,..,, .,... ,
TH16 IS TO CERTIFY THAT pCL1C1E6 OP 1Ys v LANCE LISTED MIREN HAVE BEEN 188uQa TO THE INSJPtlb NAMED HEREIN FOR THE POLICY PIR:QD INDII
NOTWRIHSTANDIPtG ANY RAQUIRSMENT, TERM OR CONGITiov OF ANY COwmC7 OR OTHER DOCUMENT W17H RISPECT TO WHICH THE CERTIFICATE MAY
BI ISSUED OR NAY PERTAIN, THE INIuRANCI AFFORDED BY THE POLICIES LISTED HIRBIN IS SUILICT TO ALL THE TERMS. CL`NCSTIONS AND &X; LUSIOUS
OF SUCH P01.ICI>:S, 1-11ii S SHQWN MAY HAVE BEEN RIDUC-ED BY PAID CJ,l
I TYPE OF utsug"CE I POLICY NUmmm i D " � m Y� �
WNET6
A �Gmmv-L UAWLM ;13?I99 911
C*K.M C:AL aEnIRAL LjAOV rfY '
CLANK; MADE I Y I
aENuu: AWRIIIISATI I• 4, 000.000
PAppYCE'>S • COMfiKiP AGO Two. a
MO. PERSONA- 6 aDV WIVRr • 2. �. ��
Owla couTRI.'CT00A'9- PROT
EACH OCCU"KCE is 2, OX .CDC
4 4
FlRi OAmNx Wri any f.0 a 2. 00a. oICL-
jjj��l
MOO W IAnr imm Pena+1 Is 25.000
A AuTalmora1 L APILrrY rC2JW229r373A96 9!30198 9130199
COMINNED W448 uMrr Ia
S X ANY AUTO TUEEC ?29r37106 9130!98 9130199 2,000,000
A � ALL Owl AUTOa 4 7jrAP 7.1 74-1-96 9!30!98 913011" BODILY owlilkY :
F ECHI> ura AUTO* i I wwr PROW
I ,NAM A;n'OS OWLY INJURY
I VN-I 1) AU'06 I f►FM ioE�ilr'+r�l
4
1 4
QJutAm L 1111AU V I AUTO ONLY • IA AC,^,.DW
F;1 ANYALITO I I WHO "AM All':0 Wi
a
t P1crr oCr�DpJY
a
I AGOREa V
a
W(CE*B L ANU Y i I "CK CCGL'RREYCE i
I UMBRA P0l1M A00REGA-1 a
11 � OT'WR TMAN UMPAiLIA. FORM
A I WORacr" COMMIMATP .4 AND T;2 '�'13229T367398 9i3019$ 9!30/99 X M 1 I rw
A I EMPLOYERS, wmurrr I TGlu%-L'B229T36f$-98 9l3hi 9$ 9!30l99 IL EACH ACCIDWVT
°`i a w ' +III' t�
a 2.000 000
9 I Tx6 M ill'Fi 'ION � w,L i X?_rEL&I77D64M8 9130198 ✓l30199 11 IL DISUU • POLICY LIMIT
fART1ut9R$ 6kltGLtrIVE
I OPPICQiS AM- f I DCCL I I III.DtSiAt1 • L► 6NPLOYa
a 2,000,000
a 2, 000.000
I GT1Ed� I I I
I �
VEW,ail ION Of OPFAATE_7NE i LOCATOWS 1 VENIOLD 15PlCU4L ITS"
;Tease refer W mic-uirles to: Risk Mairil rtt Departmart
Marsh. 6 Melennan •*zanies. rx.
1166; Avi of the ,i-ericas �.
A4w York, NY 10036-27.74
- h..T.k!-•r..d�'l �JPi2'IR •y w Ik!:7
SHOULD ANY OF THE POLICIES Li6TleL' MIRIIN N CANCELLED REPO HE EXPIRATION
CI r`• 0,F 45, TI1r0Y SAV
AM': WE M ER - Rill Mir?
2L'0 lYkrN S TREE7
At%7 jn4j jQrj BFAOf. CA 926M
DATS rwmcF, THE INBuI1ER APP=IN3 COVERAGE V R TO MAIL
30 QAYS WRITTEN NOTICE Ti CIRTIRCATE I-100eft NAMED HEREIN. B:JT
PAIWAII TO MAL SUCK NCT16" 6Kiki IWQSI NO 015MATION OR LIARIILITY
OF ANY KIKO UPON THE INSURER APPORLOING COVERAGE, ITS MIEN OR
R!PREBINTATIVES. OR THE ISSUER OP I}II3
AM -AREH it IROM111M. WCaW&*AWP
IYc
..- L y�,jyj»yL�� q� �� ffi1!r w P•rw,•y�• yy�y yI� �
lxe:•J"N x - f%:�i Ewx •k>I 1F i �+�'CMVRIR
�' '^,."`-rri : -'-ia:ii -
p _� i ' • kY� !N
'Ri: K MANAGEMENT
CITY OF
HUN 1 INGTON BEACH, CA
199q JUN IS A 9- 0 q
MAY-18—SS 20-38 FROM: ITS PAGE 4/6
MEMORANDUM OF LYSURAI`CE
�kw**w**:Y**Kwwwwww####+#*+�rwwsr+eww*�►**w+#i�ww*w*w�N+**•F�r*w*�twr�w+4++w*w*#****+wwMc
INSURED: J&H Marsh &;McLennan, Inc.
INSL'RER: Epsilon Insurance Company, Ltd.
POLICY NUMBER: E099990930
POLICY PERIOD: 30 September,1999-30 September, I999
LIMIT OF LIABILITY: Fach Claim Aggregate
$10,000,000 $10,000,000
TYPE OF INSURANCE: Professional Liability
�:»*wssww*wwMwwrww+++wwwwwwwww*wwww*#+++++�ww**#wf*+#rt*#*#wwswwwsww*****�cwwr*w
HOLDER: City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92649
Att`n: Karen Foster
Risk Manager
This Memorandum of Insurance is issued for information only and does not amend, extend or
alter the coverage afforded by the policy.
Should the above described policy be cancelled before the expiration date thereof, the Issuer Will
endeavor to mail 30 days written notice to the holder named above, but failure to raell such
notice shall impose no obligation or liability of any kind upon the Insured, the Insurer, the Issl,cr,
their manager, agents or representatives.
MANAGER: J&H Marsh & McLennan Management Ser-6cas (Cayman) Limited
Barclays House, 3rd Floor
Shedden Road
Box 21 %
Grand Ca5m=, Cayman Islands
Date: A4xg29,1999
PLEASE REFER ALL NQMRIES TO MARSH & MCLENNAN COMPANIES, INC., RISK
MANAGEMENT DM., 1166 AVENUE OF THE AMERICAS. NEW YORK, NEW YORK
10036
R i 5, K, H A I- A G E- m L �i
Cl TY OF
HUNTINGTON BEA.U. LCA-
Iqqq jUj IS A 9- 0 9
Pi
•
EXHIBIT H
CITY OF HUNTINGTON BEACH
APPLICATION FOR INSURANCE REQUIREMENTS WAIVER OR MODIFICATION
1. Name'Title/Department of Requesting Staff Member:
2. Date of RequestA j 1 l Yl
3. Name of Contractor/Permittee:
4. Description of work to be performed: `12 L
5. Length o Contract: t A, —
6. Type of Insurance Waiver or Modification Requested: 0 ��.c Cd t� •y r1't—C , '�
(a) Limits: (b) Coverage:
7, Reason for Request for Waiver or Reduction of Limits:
8. Identify the risks to the City if this request for waiver or modifications granted:
Department Head Signature:
(This section to be completed by the Risk Manager)
Recommendation: �7
Approve ✓" Deny Risk Manager's Signature/Date C7�-
(This section to be completed by the Cite Attorney)
Recommendation :
Approve '� Denv City Attorney's Signature/ l�l�
Settlement Committee approval [is] [is not] required for this waiver. If Settlement Committee approval is required, submit
form to City Attorney's Office to be placed on the agenda. Recommendation: Approve Deny
City Council approval [is] [is not] required for this waiver. If City Council approval is required, attach this form to the
RCA after consideration by the Settlement Committee. This insurance waiver [is] [is not] on City Council agenda.
implklresoutionlinsreg1216198
7
L
CITY OF
I9l9 JUN I5 A 9. 04
.-�y. y..4.� •t"ems
i
), �- W 16VL"a 6�"CL�
INSURANCE BROKER PROPOSALS
P.ro osa15 Mailed =Toc
:Received
AON Risk Services
Yes
Arthur Galla er & Co. Diane Adams Ins.
Yes
J & H Marsh & McLennan
Yes
Corporate Benefits America
Yes
Seagate Marketing Group
Yes
Garner Consulting/French Ins. Services
Yes
Willis Cooroon Corporation
Yes
HCM Benefits Inc.
Yes
Robert Driver & Associates
Yes
Kennan & Associates
No
Shirrell Consulting Services
No
Acordia of California
No
Price Raffel Brown Administrators
No
Sher Company Insurance Services
No
Sed wick
No
a
Kuhnke, Elaine
From: Foster, Karen
Sent: Monday, September 27, 1999 2:59 PM
To: Kuhnke, Elaine
Subject: RE: J & H Marsh Contract
Elaine: TitZ. a iproposalstdolnoticontainTtlollar amounts. The brokers are paid via commissions from the various insurance
companies that we eontrac#with. Theirifees+fib-uiltjinto the�p'remiums we pay fn empl tnsurance be efits.
-----Original Message -----
From: Kuhnke, Elaine
Sent: Monday, September 27, 1999 2:29 PM
To: Foster, Karen
Subject: RE: J & H Marsh Contract
The listing is fine, but we need to add the dollar amounts for each proposal.
-----Original Message ----
From: Foster, Karen
Sent: Monday, September 27, 1999 2:06 PM
To: Kuhnke, Elaine
Subject: J & H Marsh Contract
Elaine: I am attaching a listing of the brokers who were sent the RFP. Is this good enough?
Let me know. Karen
<< File: INSURANCE BROKER PROPOSALS.doc >>
RCA AOUTING SHEET
INITIATING DEPARTMENT:
Administrative Services
SUBJECT:
Professional Services Contract
COUNCIL MEETING DATE:
October 4, 1999
RCA ATTAC H M ENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution wlexhibits & legislative draft if applicable)
Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (wlexhibits if applicable)
(Signed in full by the City Attorney)
Attached
Subleases, Third Party Agreements, etc.
(Approved as to form bX City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
Financial Impact Statement Unbud et, over $5,000
Not Applicable
Bonds If applicable)
Not Applicable
Staff Report If applicable)
Not Applicable
Commission, Board or Committee Report If applicable)
Not Applicable
Findings/Conditions for Approval andlor Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED
RETURNED ,. FORWARDED
Administrative Staff V3LIPI-
Assistant City Administrator Initial
Administrator Initial
,v,U
-City
City Clerk
( )
EXPLANATION FOR RETURN OF ITEM:
RCA Author: Karen Foster
l�
file Notes �//?q'
-Office of the City CCerk LE-3
Huntington Beach, California
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