Gallagher Benefit Services RenewalCopyright 2014
City of Dubuque ITEM# 10.
ITEM TITLE: Gallagher Benefit Services Renewal
SUMMARY: City Manager recommending approval of an Amendment to the
Administrative Services Agreement with Gallagher Benefit Services for
benefit consulting and actuarial services effective October 1, 2014, through
June 30, 2016.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ Gallagher Benefit Services Renewal Proposal -MVM Memo City Manager Memo
❑ Gallagher Benefit Services Renewal Proposal Staff Memo
❑ Gallagher Consulting and Actuarial Service Agreement Supporting Documentation
E Insurance Requirements Supporting Documentation
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Gallagher Benefit Services Renewal Proposal
DATE: September 18, 2014
Dubuque
2007.2012 .2013
Gallagher Benefit Services, Inc. submitted a renewal proposal for consulting and
actuarial services. The City's current agreement has been in effect since July 1, 2012,
with a current annual fee of $26,743. Gallagher Benefit Services has requested a 5%
increase effective October 1, 2014, for an annual fee of $28,080. The fee is guaranteed
through June 30, 2016. Additionally, October 1, 2014, Gallagher Benefit Services will
no longer charge for the travel outlined in the original agreement, which last year was
$556
Personnel Manager Randy Peck recommends City Council approval of an Amendment
to the Administrative Services Agreement with Gallagher Benefit Services for benefit
consulting and actuarial services at an annual fee of $28,080 effective October 1, 2014,
through June 30, 2016.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
li
Mic, al C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
TICE (1FYOF
1,0
tisterpiece an tile
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Gallagher Benefit Services Renewal Proposal
DATE: September 11, 2014
1)ubuque
*****
I received the attached renewal proposal from Gallagher Benefit Services, Inc., for
benefit consulting and actuarial services. Our current agreement has been in effect
since July 1, 2012. The current annual fee is $26,743. Gallagher Benefit Services is
requesting a 5% increase effective October 1, 2014, for an annual fee of $28,080. The
fee is guaranteed through June 30, 2016. Additionally, October 1, 2014, Gallagher
Benefit Services will no longer charge for the travel outlined in our original agreement.
Last year we reimbursed Gallagher Benefit Services $556 for travel expenses.
I recommend, and the Health Care Committee concurs, that we accept the proposed
fee increase from Gallagher Benefits Services Inc. for benefit and actuarial consulting
services in the amount of $28,080 per year with a guarantee that this fee will remain in
effect through June 30, 2016.
I recommend that the City Council pass a motion approving the Amendment to the
Administrative Services Agreement with Gallagher Benefit Services for benefit
consulting and actuarial services at an annual fee of $28,080 effective October 1, 2014
through June 30, 2016 and authorize you to sign the Amendment.
RP:Imh
alGallagher Benefit Services., Inc.
August 5, 2014
Mr. Randy Peck
Personnel Manager
City of Dubuque
50 West 13th Street
Dubuque, IA 52001-4864
Re: Consulting and Actuarial Services Agreement
Dear Randy:
A Subsidiary of Arthur J. Gallagher & Co.
Our current Consulting and Actuarial Services Agreement with the City expired June 30,
2014. As required by that agreement, we are providing you with a 60 notice of our request
for a fee adjustment.
Our current agreement has been effective since July 1, 2012. It calls for an annual fee of
$26,743. Due to increases in our costs of doing business and additional compliance service
requirements, we are requesting a 5% fee increase effective October 1, 2014. The increase
would make our annual fee $28,080. We will guarantee this fee through June 30, 2016.
Additionally, as of this fee increase Gallagher Benefit Services will no longer charge for the
travel outlined in our original agreement. Our request would modify Section 111. B 1 of our
original service agreement signed by the City on November 5, 2002. All other provisions of
the original agreement, including Scope of Services (Section 111 A) remain unchanged.
Gallagher Benefit Services and 1, personally, appreciate our relationship with you and the
District. We look forward to continuing this relationship into the future.
If our fee increase request is acceptable, please indicate below and return this to my
attention.
Sincerely,
Dutch Ross
Senior Consultant
Accepted on Behalf of City of Dubuque:
Name
Michael C. Van Milligen
6399 South Fiddler's Green Circle
Suite 200
Greenwood Village, Colorado 801114949
303.220.7575
Fax 303,220.7010
/a di
Title Dat
City Manager
City of Dubuque Insurance Requirements for Professional Services
1.
Insurance Schedule C
shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the
coverage required in Exhibit I prior to commencing work and at the end of the project if the term of work
is longer than 60 days. Providers presenting annual certificates shall present a Certificate at the end of
each project with the final billing. Each Certificate shall be prepared on the most current ACORD form
approved by the Iowa Department of Insurance or an equivalent. Each certificate shall include a
statement under Description of Operations as to why issued. Eg: Project >i or Lease of premises
at or construction of
2. All policies of insurance required hereunder shall be with a carrier authorized to do business in Iowa and
all carriers shall have a rating of A or better in the current A.M. Best's Rating Guide.
3. Each Certificate shall be furnished to the contracting department of the City of Dubuque.
4. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the City of
Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of
this agreement.
5. Subcontractors and sub subcontractor performing work or service shall provide a Certificate of Insurance
in accord with Exhibit I.
6. All required endorsements to various policies shall be attached to Certificate of insurance.
7. Whenever a specific ISO form is listed, an equivalent form may be substituted subject to the provider
identifying and listing in writing all deviations and exclusions that differ from the 150 form.
8. Provider shall be required to carry the minimum coverage/limits, or greater if required by law or other
legal agreement, in Exhibit I.
9. Whenever an ISO form
s reference
he current edition of the form must be used.
Page 1 of 3 Pdfconvert.12667.1.Schedule_C,_ Professional _ Services_October_2013.Doc
City of Dubuque Insurance Requirements for Professional Services
Insurance Schedule C (continued)
Exhibit I
A) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products -Completed Operations Aggregate Limit $1,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence $1,000,000
Fire Damage Limit (any one occurrence) $ 50,000
Medical Payments $ 5,000
a) Coverage shall be written on an occurrence, not claims made, form. All deviations from the
standard 150 commercial general liability form CG 0001, or Business owners form BP 0002,
shall be clearly identified.
b) Include ISO endorsement form CG 25 04 "Designated Location(s) General Aggregate Limit"
or CG 25 03 "Designated Construction Project Is) General Aggregate Limit" as appropriate.
c) Include endorsement indicating that coverage is primary and non-contributory.
d) Include endorsement to preserve Governmental Immunity. (Sample attached).
e) Include an endorsement that deletes any fellow employee exclusion.
f) Include additional insured endorsement for:
The City of Dubuque, including all its elected and appointed officials, all its employees
and volunteers, all its boards, commissions and/or authorities and their board members,
employees and volunteers. Use 150 form CG 2026.
B) AUTOMOBILE LIABILITY $1,000,000 (Combined Single Limit)
C) WORKERS' COMPENSATION & EMPLOYERS LIABILITY
Statutory benefits covering all employees injured on the job by accident or disease as prescribed by
Iowa Code Chapter 85 as amended.
Coverage A
Coverage B
Statutory—State of Iowa
Employers Liability
Each Accident 5100,000
Each Employee -Disease $100,000
Policy Limit -Disease 5500,000
Policy shall include an endorsement providing a waiver of subrogation to the City of Dubuque.
Coverage B limits shall be greater if required by Umbrella Carrier.
D) UMBRELLA LIABILITY 51,000,000
Umbrella liability coverage must be at least following form with the underlying policies included
herein.
E) PROFESSIONAL LIABILITY
Page 2 of 3 Pdfconvert.12667.1.Schedule_C,_ Professional _ Services_October_2013.Doc
City of Dubuque Insurance Requirements for Professional Services
Preservation of Governmental Immunities Endorsement
1. Nonwaiver of Governmental Immunity. The insurance carrier expressly agrees and states that the
purchase of this policy and the including of the City of Dubuque, Iowa as an Additional Insured does
not waive any of the defenses of governmental immunity available to the City of Dubuque, Iowa
under Code of Iowa Section 670.4 as it is now exists and as it may be amended from time to time.
2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only
those claims not subject to the defense of governmental immunity under the Code of Iowa Section
670.4 as it now exists and as it may be amended from time to time. Those claims not subject to
Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy.
3. Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible for asserting any
defense of governmental immunity, and may do so at any time and shall do so upon the timely
written request of the insurance carrier.
4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the
insurance carrier shall not deny any of the rights and benefits accruing to the City of Dubuque, Iowa
under this policy for reasons of governmental immunity unless and until a court of competent
jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of
Dubuque, Iowa.
No Other Change in Policy. The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
SPECIMEN
Page 3 of 3 Pdfconvert.12667.1.Schedule_C,_ Professional _ Services_October_2013.Doc