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HomeMy WebLinkAbout54-16 RESOLUTIONc SarFi fr, <Rk,AWSP�i. 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 54-16 File Number: 2016-0087 HUB INTERNATIONAL CONTRACT: A RESOLUTION TO APPROVE A ONE YEAR CONTRACT WITH HUB INTERNATIONAL IN THE AMOUNT OF $13,000.00 WITH AUTOMATIC RENEWALS FOR THREE ADDITIONAL ONE YEAR TERMS FOR THE PROVISION OF INSURANCE BROKERAGE AND CONSULTATION SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a one year contract with HUB International in the amount of $13,000.00 with automatic renewals for three additional one year terms for the provision of insurance brokerage and consultation services. PASSED and APPROVED on 3/1/2016 Page 1 312116 Attest: r t Sondra E. Smith, City Clerk Treasurer 011111 r • � •. Y51 "��•iaYEE1ilLL1 ■., �ffrr rt �tf �A Printed on City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2016-0087 Agenda Date: 3/1/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 6 HUB INTERNATIONAL CONTRACT: A RESOLUTION TO APPROVE A ONE YEAR CONTRACT WITH HUB INTERNATIONAL IN THE AMOUNT OF $13,000.00 WITH AUTOMATIC RENEWALS FOR THREE ADDITIONAL ONE YEAR TERMS FOR THE PROVISION OF INSURANCE BROKERAGE AND CONSULTATION SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a one year contract with HUB International in the amount of $13,000.00 with automatic renewals for three additional one year terms for the provision of insurance brokerage and consultation services. City of Fayetteville, Arkansas Page 1 Printed on 3/2/2016 Andrea Rennie City of Fayetteville Staff Review Form 2016-0087 Legistar File ID 3/1/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 2/11/2016 Purchasing / Finance & Internal Services Department Submitted By Submitted Date Division / Department Action Recommendation: Award RFP 15-07 to HUB International for Insurance Broker and Consultant Services in the amount of $13,000 per year for a one year contract with three automatic one-year renewal options. Budget Impact: 1010.1610.5314.00 General Account Number Fund Project Number Budgeted Item? Yes Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? No Budget Adjustment Previous Ordinance or Resolution # Original Contract Number: Comments: 175-10 Remaining Budget Project Title $ 14,000.00 14,000.00 $ 13, 000.00 Approval Date: V20140710 CITY OF 17• ayve e1i ARKANSAS MEETING OF MARCH 01, 2016 TO: Mayor Jordan Fayetteville City Council THRU: Paul A. Becker, Finance Director FROM: Andrea Rennie, Purchasing Manager DATE: Friday, February 12, 2016 CITY COUNCIL AGENDA MEMO SUBJECT: RFP 15-07, Insurance Broker of Record Services Contract RECOMMENDATION: Staff recommends a contract for Insurance Broker of Record Services with Hub International. This contract is for one (1) year with three (3) one-year automatic renewal options. The contract fee is set at $13,000 per year. BACKGROUND: The City contracts with a broker -of -record for the marketing and placement of the City's professional and law liability, property, and casualty coverage and for providing other insurance - related broker, risk management and consultant services. DISCUSSION: In 2015 the City went out for a Request for Proposal (RFP) per RFP 15-07 and selected HUB International. Proposals were received from four (4) respondents including Arthur J Gallagher & Co., Farris Insurance Agency of Springdale, HUB International and Stephens Insurance, LLC. Fees ranged from $7,250 to $40,000 per year. HUB International was selected by the committee. Hub International is rated the 10th largest Insurance Broker in the United States. This provides the City with power when negotiating the City's insurance rates. Their office is located in Little Rock, Arkansas with offices all over the United States and Canada. They have approximately 8,000 employees. BUDGET/STAFF IMPACT: Funds exist for this purchase within budget approved by City Council. Attachments: - Signed contract by HUB International - RFP 15-07 Submittal by HUB International - PO Request to HUB International Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 CITY OF City of Fayetteville, Arkansas lieay Contract for Insurance Brokerage and Consultation Services ARKANSAS Renewal Terms: One year with three automatic one year renewals This contract executed this_ day of 2016, between the City of Fayetteville, Arkansas, and HUB International. In consideration of the mutual covenants contained herein, the parties agree as follows. WITNESSETH: WHEREAS, City has previously determined that it has a need for INSURANCE BROKERAGE & CONSULTATION SERVICES; and WHEREAS, City, aftersoliciting competitive proposals for such services pursuantto City of Fayetteville RFP 15-07 (herein after referred to as Request for Proposal or RFP), City has awarded this contract to HUB International; and WHEREAS, HUB International has represented that it is able to satisfactorily provide these services according to the terms and conditions of the RFP, which are incorporated herein by reference, and the terms and conditions are contained herein; and NOW THEREFORE, in consideration of the above and mutual covenants contained herein, the parties agree as follows: 1. Services to be Performed: HUB International hereby agrees to provide the City with INSURANCE BROKERAGE SERVICES, as requested and more specifically outlined in the RFP, this agreement, and all subsequent official documents that form the Contract Documents for this Agreement. HUB International shall provide, as a minimum, professional services and dedicated personnel necessary to perform the following: a. Develop a complete understanding of the City's areas of exposure and consult with City representatives about short and long term solutions. b, Evaluate existing insurance contracts, self -retained risk and claims history and make recommendations concerning any changes, modifications, and/or additions in the terms, conditions and coverage limits needed to yield a comprehensive risk management program to protect the interests of the City. C. Identify programs, products and insurers capable of meeting the City's insurance needs and prepare specifications for markets capable of quoting for upcoming renewals. City of Fayetteville, AR Renewable Contract for Insurance Brokerage and Consultation Services (RFP 15-07) Page 1 of 6 d. Approach appropriate markets on behalf of the City to obtain pricing with respect of the program adopted by the City. Competitive quotes from well rated insurance carriers will be obtained for each type of risk. e. Present for City consideration, in an understandable format, an evaluation of the results of each solicitation, with a comprehensive financial analysis and recommendations for selection of an insurer for each type of risk. f. Negotiate on the City's behalf the details of insurance contracts with selected carriers and audit resulting policies for accuracy of coverage, terms and conditions, and compliance with financial arrangements and administrative procedures acceptable to the City. g. Provide evaluation, basic training and education relative to loss control, safety, claims management, and related topics in the area of risk management. h. Provide assistance in the form of advisory services or written reports as is customarily expected from a professional insurance Broker/Consultant. i. Provide claims processing support with insurance carriers for all policies, and produce quarterly written reports with loss runs. Address areas of concern, including the need for training and other preventive measures. j. Annually, approximately first week in May, Broker/Consultant will prepare a stewardship report which will include a complete list of insurance in force, an evaluation of the overall insurance program, including recommendations for change and a forecast of market conditions and estimated premium for future budgeting purposes. HUB International assumes no liability in the event of inaccurate forecasts and premium estimates. At the time of the presentation of the stewardship report City personnel and Broker/Consultant will discuss any changes which are appropriate in services to be performed for the succeeding year. 2. Time of Service: Services shall be performed in a timely manner, as specified in the RFP. 3. Compensation: As compensation for HUB International providing services to the City as described herein, the City shall pay HUB International in arrears, based on the submission of invoices for work completed and properly authorized. a. Amount not to exceed $13,000 per year, not including policy premiums to be billed separately. Payments will be made within 30 days of receipt of invoice. City of Fayetteville, AR Renewable Contract for Insurance Brokerage and Consultation Services (RFP 15-07) Page 2 of 6 b. In the event that operations change substantially by either the addition or deletion of other operations or entities ora substantial change in the scope and nature ofthe City's insurance program, the City will negotiate in good faith to revise compensation upward or downward as appropriate. C. Broker/Consultant shall disclose commissions received. If commissions exceed agreed-upon compensation hereunder, excess commissions will be returned to the City if permitted by law. 4. Insurance: The HUB International shall provide and maintain in force at all times during the term of the services contemplated herein insurance for Workers' Compensation, Commercial General Liability, Automobile Liability, and Errors and Omissions Liability. Such policies shall be issued by companies authorized to do business in the State of Arkansas. Evidence of such coverage is to be submitted with contract approval. Minimum amount for Commercial General Liability and Errors and Omissions Liability is $1,000,000 aggregate. 5. Term of Agreement: Services performed pursuant to this Contract shall commence upon execution of this agreement and continue for a period of ONE (1) year, unless canceled or terminated within thirty (30) days written notice by either party. This contract may be automatically renewed for three (3) additional one (1) year terms. This option shall be exercised only if all prices, terms and conditions remain the same. In the event of contract cancellation, claims for compensation owed by the City shall be limited to verifiable services rendered. 6. Amendment of Contract: This Contract may be amended only by mutual agreement of the parties. 7. Legal Compliance: HUB International is responsible for full and complete compliance with all applicable laws, rules, regulations and licensing requirements imposed by any public authority having jurisdiction. 8. Approval of Agent: The City The City reserves the right to require the Broker/Consultant to replace the assigned agent with another agent of the same company if, in the opinion of the City staff, the agent is not rendering or is incapable of rendering the quality of service and cooperation required. 9. Auditable Records: The HUB International shall maintain such accounts and records in connection with its performance of services forth e City as may reasonably be required by the City. HUB International shall, at any reasonable time during the term and for a period of one year following the completion of work under the contract, afford the City's agents and auditors reasonable facilities and access for examination and audit of its records pertaining to its performance and shall, upon request by the City, produce and exhibit all such records. 10. Assignment and Subcontracting: HUB International shall perform this contract. No assignment or subcontracting shall be allowed without the prior written consent of the City. In the event of a corporate acquisition and/or merger, HUB International shall provide written notice to the City within thirty (30) business days of such notice of action or upon the occurrence of said action, whichever occurs first. The right to terminate this contract, which shall not be unreasonably exercised by the City, shall include, but not be limited to, instances City of Fayetteville, AR Renewable Contract for Insurance Brokerage and Consultation Services (RFP 15-07) Page 3 of 6 in which a corporate acquisition and/or merger represent a conflict of interest or are contrary to any local, state, or federal laws. Action by the City awarding a proposal to a Proposer, which has disclosed its intent to assign or subcontract in its response to the RFP, without exception shall constitute approval for purposes of this Agreement. 11. Cancellation: The City of Fayetteville reserves the right to cancel this Contract, without cause, by giving thirty (30) days' notice to HUB International of the intent to cancel, or with cause if at any time HUB International fails to fulfill or abide by any of the terms or conditions specified. Failure of the HUB International to comply with any of the provisions of this contract shall be considered a material breach of contract and shall be cause for immediate termination of the contract at the discretion of the City of Fayetteville. In addition to all other legal remedies available to the City of Fayetteville, the City reserves the right to cancel and obtain from another source any services which have not been provided within the period of time stated in the proposal, or if no such time is stated, within a reasonable period of time from the date of order or request, as determined by the City. In the event that sufficient budgeted funds are not available for a fiscal period, the City shall notify HUB International of such occurrence and the Contract shall terminate on the last day of the then current fiscal period without penalty or expense to the City. The City reserves the right to terminate within the thirty (30) day notice because of budgetary issues. 12. Permits & Licenses: HUB International shall secure and maintain any and all permits and licenses required to complete this contract. 13. Minimum Insurance Requirements: HUB International shall maintain insurance in at least the amounts required in the RFP throughout the term of this contract. HUB International must provide a Certificate of Insurance in accordance with the insurance requirements listed within the RFP, evidencing such coverage prior to issuance of a purchase order or commencement of any work under this contract. HUB International shall ensure that any subcontractors or persons hired by subcontractors maintain the same level of insurance coverage as HUB International. 14. Indemnification: HUB International shall indemnify, pay the cost of defense, including but not limited to attorneys' fees, and hold harmless the City from all suits, actions or claims of any character brought on account of any injuries or damages received or sustained by any person, persons, or property by or from the said HUB International; or by, or in consequence of any neglect in safeguarding the work; or on account of any act or omission, neglect or misconduct of HUB International; or by, or on account of, any claim or amounts recovered City of Fayetteville, AR Renewable Contract for Insurance Brokerage and Consultation Services (RFP 15-07) Page 4 of 6 under the Workers' Compensation Law or of any other laws, by-laws, ordinances, order of decree, except only such injury or damage as shall have been occasioned by the sole negligence of the City of Fayetteville. The first ten dollars ($10.00) of compensation received by HUB International represents specific consideration for this indemnification obligation. Furthermore, HUB International, in performing its obligations under this contract, is acting independently and the City assumes no responsibility of liability for the HUB International's acts or omissions to third parties, and HUB International shall agree to indemnify and hold harmless, the City, its officers and employees against any and all claims, lawsuits, judgments, costs and expenses for which recovery of damages is sought, suffered by any person or persons, that may arise out of or be occasioned by HUB International's breach of the terms or provisions of contract, or by any negligent act or omission of HUB International, its officers, agents, employees, or invitee, in the performance of this contract; except that the indemnity specified in this paragraph shall not apply to any liability resulting from the sole negligence of the City, its officers, or employees. In the event of joint and concurrent negligence of both HUB International and the City, responsibility and indemnity, if any, shall be apportioned comparatively in accordance with the laws of the State of Arkansas, without, however, waiving any governmental immunity available to the City under Arkansas law and without waiving any defense of the parties under Arkansas law. This paragraph is solely for the benefit of HUB International and the City and is not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 15. Governing Law & Jurisdiction: Legal jurisdiction to resolve any disputes shall be Washington County, Arkansas with Arkansas law applying to the case. 16. Severability: The terms and conditions of this agreement shall be deemed to be severable. Consequently, if any clause, term, or condition hereof shall be held to be illegal or void, such determination shall not affect the validity of legality of the remaining terms and conditions, and notwithstanding any such determination, this agreement shall continue in full force and effect unless the particular clause, term, or condition held to be illegal or void renders the balance of the agreement impossible to perform. 17. Changes in Scope or Price: Changes, modifications, or amendments in scope, price, or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 18, Freedom of Information Act: Documents prepared while performing City contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, HUB International will do everything possible to provide the documents in a prompt and timely City of Fayetteville, AR Renewable Contract for Insurance Brokerage and Consultation Services (RFP 15-07) Page 5 of 6 manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.) Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 19. Documents Comprising Contract The contract shall include this Agreement for INSURANCE BROKERAGE SERVICES, as well as the following documents, which are incorporated herein by reference. City of Fayetteville's Request for Proposal and all of its addenda and attachments; HUB International's Certificate of Insurance as required, listing the City as an additional insured; c. ' HUB International's Proposal. If there is a conflict between the terms of this Agreement and the above referenced documents, the conflict shall be resolved as follows: the terms of this Agreement shall prevail over the other documents, and the terms of the remaining documents shall be given preference in their above listed order. WITNESS OUR HANDS THIS I DAY OF IY1 i1.fe} --,2016. HUB INTERNATIONAL By: f Printed Contractor Nam Title c l Vf 8us[ness Adddress LAPt 0WlLip-3 City, State & Zip Code Date Signed: Of" 16 ' I ATTEST: Sondra E. Smith, City Clerk Date Signed: City of Fayetteville, AR Renewable Contractfor Insurance Brokerage and Consultation Services (RFP 15-07) Page 6 of 6 •* G•'• IY • 4 FAYETTEVILLE # l�nr• 7 4A �y 'J • � 4` G TON Nreparea by HUB International Limited 9/18/2015 Eric Herget HUB International of Arkansas 425 W. Capitol Ave. Little Rock, AR 72201 501-801-5700 eric.herget@hubinternational.com www.hubinternational.com International Executive Summary: HUB International Limited is committed to exceeding the service requirements of the City of Fayetteville. We welcome the opportunity to contribute to the improvement and expansion of risk management services provided to your organization. We Understand Your Needs Your Hub team knows the public entity business. We have worked with many communities in AR through the years. We understand the processes that your purchasing department must adhere to. Budgets are tight in most cities and towns across the country. We suspect Fayetteville is no different. You have a set amount of money available to fund your risk management program and you do not like surprises that impact the risk budget. You are insuring your buildings and other physical assets. You protect your city officials and your law enforcement team. You have parks and trails that are near railroad tracks and this poses certain risks which we understand. You have data that is on servers and laptops that is highly confidential. If there is a breach of this data, we can guide you through the process. Our risk control team can help you with emergency response, business continuity and disaster recovery planning. We can help you determine the proper values for insuring your buildings, park facilities, hangars and waste water plants. You will occasionally have special projects. I recall a rubber gorilla that needed physical damage coverage while it was in your possession. We are advising another Arkansas city on insurance for their floating WWII Submarine that accommodates overnight groups. We are insuring a Tug boat that is being towed from CA to AR through the Panama canal for this same city as well. Hub is a global insurance leader and our over 1 million clients have many needs. We are ready to work with the City of Fayetteville to customize a program that achieves your goals. Our Goal Is To Help You Achieve Your Goals Your goals for your insurance and risk management program are: Know the City's exposures, evaluate the current program Know the markets and prepare quality submissions Assist with claims, loss control and safety The HUB Solution Will Deliver The Following Results The HUB Solution allows you to meet your needs and achieve your goals in the following ways: • We know the markets for coverage's you currently purchase, we will have competitive options • We understand the Municipal League and how their program works • We know the City is afforded certain immunity and understand how to blend this into your liability program • We are available to interact with your City Attorney's office as needed • We can attend council meetings if needed • The team assigned to your account has the experience you need and want • We promise to handle many of your needs within minutes and I am your 24/7 contact You can count on your team of HUB specialists for expertise, market knowledge and creativity as well as access to the collective knowledge of thousands of HUB experts across the U.S. and Canada. This proposal describes some of the HUB resources particularly relevant to your current insurance needs and risk management concerns. As your business changes your HUB Client Service Team will also change to include specialists in each line of coverage and risk management function critical to your success. We are confident that HUB International Limited is uniquely qualified to provide the customized portfolio of top quality insurance and risk management services you need to achieve your strategic goals cost-effectively. We welcome the opportunity to put our resources to work for you. Regards, Eric Herget President Hub International of AR Part I - Business Organization: The proposal shall include relevant historical data and identification of the office or subordinate element which will perform the work contemplated herein. The owners and principal management personnel of the firm shall be identified fully. Annual market volume by line of coverage and the number and size of accounts shall be disclosed and provided. The History of HUB international Limited HUB International started with the merger of 11 independent, privately held insurance brokers in Canada in 1998. Today, we continue to grow both organically and through acquisition. We are the largest middle -market broker in Canada, the 10(h largest broker in North America and ranked 11 m in the world. Our acquisition strategy is focused on completing our U.S. presence as well as targeting acquisitions that advance our position in specific business channels. HUB International is a privately held global broker, headquarted in Chicago Illinois. a Ig EMPLOYEES 49000+ HUB Organizational StmCtUre 0 /I 0o a -r.. 1!R'ES Client FnARCMEE RetentiaE X11 fflion+k n premium HUB International is structured around large regional "hubs" with satellite offices strategically located throughout the United States and Canada. The "hub" that will be servicing the City of Fayetteville is located in Little Rock Arkansas under the management of Eric Herget. We understand that local presence provides a significant competitive advantage. Personal service, individual attention and the ability to respond quickly to changing insurance needs and market influences are just a few of the benefits of our local presence. Dur E xect hive Mancage1 neat Stf[_ ctt,,if We overlay our HUB structure with key areas of expertise at the corporate level that are leveraged through the organization to provide our customers with the best possible combination of local relationships and global resources. Collectively, our hubs are a knowledge powerhouse providing clients with tailor-made solutions. Our Diversified Revenue Base HUB International has a diversified base of revenue showing our depth in multiple disciplines to meet client needs. Revenue by Line Wholesale ICRC 4% Financial Institutions 2% P&C Revenue — $ 5.813 _ Benefits Revenue - $ 2B _ Personal - $1.9B _ Wholesale - $770MM ICBC - $440MM _ Financial Institutions $220MM Part II - Concept and Solution: The respondents understanding of the tasks presented shall be defined in detail and proposed solutions outlined. A description of the firm's strengths in the marketplace should be included, along with an explanation of how the City's insurance program would be marketed. Any restrictions or limitations should be defined. Insurance Marketing Philosopht, As your partner, HUB International Limited takes a proactive approach to creative program design and marketing. ttate{ay HUB approaches the marketing of any program from a risk management standpoint. Together we will: • Review your existing exposures • Review appropriate risk management alternatives • Review marketing options in the current insurance environment • Prepare a professional submission, targeting your goals • Negotiate with underwriters for the most favorable terms and conditions • Analyze and compare the quoted programs • Present options Markets HUB has access to virtually all major insurance carriers and has effective working relationships with over 650 insurers. The volume of business we represent for these insurers further enhances the knowledge and experience 4 we bring to the marketing effort. Where needed, we have access to their top management and home -office decision makers. As a result, we have effectively negotiated programs of coverage for even the most difficult risks. Did you know an estimated 70% of commercial buildings .are Linder -insured by cep to 40% of the replacement cost value? Understated property values can result in protracted claim settlements and significantly reduced settlements. Overstated values translate to higher insurance premiums. Insurance to Building Valuation Check-up Building valuations should be updated at least every 3 to 5 years and, in specific situations, more frequent updates may be wise. 2. A building's ISO construction classification impacts valuation. If a building is classified incorrectly if can have a significant impact on the valuation. For example, the valuation difference between an ISO 1 and ISO 3 classification for a Business/Office building is $38/square foot**. Valuation errors on buildings with multiple types of construction are common. 3. Special buildings need special valuation treatment. Valuation increases when a building has special features such as atriums or clock towers, is irregularly shaped, sits on a steep grade, or has congested areas. Using a simple $/square foot estimate will result in inaccurate valuation. 4. Not all valuations are created equal. It's important that a qualified party conduct the valuation. 5. Actual Cash Value (ACV) vs Replacement vs Reconstruction Cost The way a building is valued will depend on the type of coverage provided by the insurance policy. Owners may think that they're covered for Replacement (with "like kind and quality" materials at current prices) or Reconstruction Cost (which also includes demolition, debris removal and rebuilding to current construction standards). However, they may be covered only for ACV which provides only "like kind and quality" materials less depreciation. Clearly, the difference in valuation can be very significant. Some policies exclude rebuilding to current building codes. Coverage endorsements can be purchased to bridge this gap. However, valuation should take into account the cost of bringing the building the current codes. 6. Indexing valuation, i.e., increasing the value by an arbitrary percentage annually, is a common practice but has pitfalls since actual construction costs may change at a different rate. Iristirance to Vetoer Building, Vakies Reported property values with a reasonable degree of accuracy are important to your insurance coverage. Understated values have resulted in protracted claim settlements and significantly reduced settlements. Overstated values mean higher insurance cost. Insurance companies typically use Marshall and Swift/Boeckh's (MSB) Building Valuation Software (BVS) to help them determine Insurance to Value at policy inception or renewal. The information presented here is an overview of the use of MSB BVS outlining some of its features and results and using some information from MSB documentation. DEFINITIONS: Actual Cash Value: Cost to repair or replace the damaged property with like kind and quality materials, less depreciation (impacted by effective age and condition). Replacement Cost: Cost to construct or replace the damaged property with like kind and quality materials. This does not take into account improvements to conform to current building codes, demolition, debris removal, etc. Reconstruction Cost: Cost to re -build at current prices and construction standards with like kind and quality materials. It also includes several site specific costs such as site access, demolition, debris removal, etc. These cost definitions above do not include land costs and should not be confused with "Appraised Value" or "Fair Market Value" (both of which do take land into consideration. Note, an "appraisal" can only be completed by a licensed or certified individual. Most buildings have a base reconstruction cost between $100 - $300 per square foot based on building class and occupancy. Factors other than class and occupancy (many noted above) will increase reconstruction costs beyond that range. Shown below (for illustrative purposes only) are national average square foot reconstruction costs including an additional12% (amount will vary depending on site conditions/access, etc.) for demolition, debris removal, etc. These are rough estimates. Specific variances in location (regional cost differences and site characteristics), construction, etc. can significantly impact valuation. For an accurate estimate, the building must be evaluated by a professional, familiar with insurance building valuations. Square Foot Construction Cost from Intern ationaICode CounciI Building vaaianon uata rec zu m krounueatoine nearest$)with 12%addedfordemolition. debris removal. site access, etc Iso 1 ISG 2 IS03 — IS%4 IS0 5 IS0 6 Occupancy Group (2012 18C) Frame Joisted Masonry Non- Combustible Masonry � Non- Combustible - Modified Fire Resistive Fire Resistive A2 Assembly, restaurants, bars $148 5165 $179 We $19-1 $197 B Business (offices) $139 $159 $191 5190 $197 $205 E Education $155 5174 $196 $205 $212 '$220 F1 Industry moderate hazard $74 $91 5105 silt} Vie $127 12 Hospitals NPt NPt 5323 $332 $338 $346 M Nfercantile $99 5115 $130 $137 $143 $149 R1 Hotels 3147 $165 3183 $192 $197 $205 R2 Multiple Family (apartment) $114 $149 $149 $158 $164 1 $175 R3 1-2 famityhomes 5127 $140 - 514.9 $153 $157 $161 S2 Storage low hazard $f4 $81 S95 $101 1 $106 $112 t NP = Not Permitted Customer er Centric Carriers (3C) HUB International fosters a strong collaboration with insurance carriers who understand and share our vision. In order to meet the needs of our customer segments and deliver an enhanced customer experience, we have sought out strategic relationships with a select group of carriers. We refer to these carriers as Customer Centric Carriers (3C Carriers). We have established Customer Centric Carriers on both a national and regional level. The 3Cs are leaders in product development, underwriting, and customer service, who have the capacity to insure our customers against a diverse array of risks. These carriers share our philosophy of delivering an enhanced customer experience through the development of industry leading products, service, and competitive pricing. There are many benefits to working closely with 3C Carriers as we build a customer -centric organization. In addition to executive -level focus on the needs of our business, these carriers have committed to helping HUB in the following ways: • Provide access to the most experienced underwriters and claims resources • Jointly develop and market industry leading co -branded products • Integrate technology and increase information sharing • Improve alignment of carrier product segments • Provide deeper access to risk management and other customer services • Provide the highest level capacity for future risks • Help fund the development of new resources for our customers. We will continue to do business with many other insurance companies in order to meet our customers' needs, however, our philosophy is to focus on fewer markets but always do the right thing for the customer. Customer Centric Carriers (3C) 09 A11101h, CNA ZURICH 8TRAVELERSJ THE HARTFORD C::HUE3E3 Lily Muttial 4=4 Fireman's Fund' CHARTIS �.4 Il sura 'Ile Ilk, Hanover�/,,,,��, fRONSHORE"A_ Arch nce GrOLIJV�' y Allied K 4 A�0� 's INSURANCE COMPANIES nU PHILADELPHIA Insurac:e SENTRY, One Beacon a Nationwide Insurance'company INSURANCE I N S I R A N ( E, 11101vaileso Infora"ro THE SOVIERE'IGN nsuranc mical <%ozk Group THE OOMINION PEACE HILLS N 9U Northbridge OWNED11V intact Insurarice 'S" MSON CRFe HATION' - [ INSURANCE I GORE MUTUAL, INSURNNCE C0X1RJkNY 8 HUB 2.0 — A Service Philosophy HUB International's service philosophy HUB 2.0 is the driving force behind our culture. It is a business philosophy that says, "Our Client Always Comes First." It means expertise, communication and responsiveness. HUB 2.0 is the name we use to describe our vision of transforming HUB International into the leading customer -centric company in the insurance industry. We are evolving the way we do business for growth now and in the future. People • Recruit new talent to broaden the expertise available to our customers • Offer enhanced training and development opportunities for all employees to enable us to keep current on things our customers need to know about • Empower individuals and teams to define and shape the customer experience — allowing us to tailor our solutions to your needs • Foster interaction among customers, communities, carriers and colleagues — to leverage all available resources on your behalf • Gain a deeper understanding of customer needs and build solutions and products specific to each customer segment — this means we are committed to being more than your insurance broker — we want to be a solution provider. Mobilize resources to focus on fewer insurance carriers within both retail and wholesale businesses. This allows us to focus on delivering the full range and depth of offerings from a narrower group of insurers. While we continue to represent all carriers, we feel a stronger partnership with a few provides delivers a better overall product and experience to our customer. • Using our income to enable additional investment in our people and technology, leading to better customer solutions Process • Develop new and effective ways to communicate with and serve our customers — this has led to development of key tools such as our HUB Connects newsletters, customer portals, RMIS systems and other key resources that we deliver to help make your customer experience unique. • Achieve greater efficiency and accuracy through the use of new technology — this allows us to better manage the quality of the service that we provide our customers and assure quality and timeliness. • Share best practices, re -design systems and consolidate operations in order to deliver a more consistent and rewarding customer experience Doing business with HUB means you can be assured that we will deliver constant innovation, integrity, and partnership. This discipline keeps us focused on providing state-of-the-art insurance and risk management services to all of our clients. Part III - Program: The respondent's technical plan to accomplish the work shall be presented, including time -related displays, graphs and charts showing tasks, subtasks, milestones, and decision points, including the point at which deliverable reports will be provided. The scope of services available in the area of risk management, loss control services, claims management, and associated functions should be described in detail. Client Service Standards HUB International Limited is committed to the achievement of excellence in service to your organization via our: • Experienced, qualified team • Knowledge of the marketplace • Commitment to quality • Sense of urgency • Creativity • Professionalism • Communication skills We understand that your account requires a special kind of service. You want us to understand the marketplace, know your underwriters and be a partner with your brokerage team. Price is always an issue, but it is not the basis on which we sell and retain business. By making the buyer part of the ongoing servicing and planning of the program, HUB achieves a level of communication and trust which bonds our relationship. Because of the importance and unique nature of your account, HUB has established performance standards that will communicate to you our commitment to excellence in client service. These standards are: A. The Account Manager will visit you at least once a month to review open items B. The Account Director will contact you at least twice a year for an appraisal of HUB service C. The Renewal Timeline will be followed. Special emphasis will be given to pre -renewal meetings to review the program with your Client Service Team. These meetings will include: 1. A recap of current program 2. A review of the current marketplace a) alternative markets b) alternative programs 3. Status Report on Services a) provided by HUB b) provided by insurer c) provided by other third parties 4. A discussion of HUB projects completed during previous year 5. Developments and trends within your operation 6. New projects with clearly defined deadlines and responsibilities 7. A preliminary renewal strategy with goals and deadlines including discussion of any potential competition 8. A detailed written summary of this meeting will be prepared by the Account Manager and sent to you D. A minimum of an annual meeting will be planned between you and insurance company personnel. E. Where required, written claim and loss control procedures will be developed and distributed to your claims administrator, insurers and other service providers F. Stewardship meetings will be held with your senior management annually Account Renewal Process HUB International Limited has designed a Renewal Timeline to ensure complete and thorough attention to necessary details of your account. The Renewal Timeline spells out responsibilities and periods beginning five months before renewal and involves both the HUB Client Service Team and client representatives in the process; the Renewal Timeline was developed to allow sufficient time for all concerned to examine past programs and consider future alternatives. Once a program is designed, it is examined and adjusted as needed. As market conditions change, HUB studies the effects these changes will have on your organization's program. Developments and trends within your organization are also examined to determine the need for new programs and approaches. The Renewal Timeline will be provided to you and all members of the HUB Client Service Team prior to any renewal meetings. The initial renewal meeting will recap the terms of the existing program and examine current market conditions. The time to look at alternative markets and programs might not have been suitable for the previous policy period but may be effective for one upcoming term. Necessary renewal activities will be identified and assigned to HUB, insurers and other service providers. CA Below is a table of coverage's in which HUB International would handle. Insurance Company Annual Premium Effective Date Coverage Type Amount or Limit Lexington/Chartis/AIG $121,255.00 09/30/2014 Public Official Liability $1m/3m Lexington Insurance $200,166.00 10/01/2014 Proeerty Coverage $208,258,482 Lexington Insurance $3,000.00 07/10/2014 Railroad Protective $5m/$10m National Insurance $500.00 04/06/2014 Accident Policy $50,000/$10,000 Travelers Insurance $13,000.00 08/01/2015 Employee Fiduciary $5,000,000 Ace Property & Cas $12,900.00 03/15/2015 Hangar Keepers Liability $5m/&1m S Months MonthsMonths Y MonthwFctS lWeek, Prior Prior Irl for Prior Prior f'r'iar • Develop • Execute on • Analyze and • Presentproposals• Bind your • Activate Post Renewal: strategy, strategy and evaluate to you and coverage and services. timely policies marketing marketyour proposals and finalize finalize Prepare all and plan, establish account. preliminary negotiations premiums. certificates, 3LAO surnmar es, performance Carrier- indications/ based on your ID cards, binders daily services criteria, and meetings take negotiate feedback. Begin and other and 6 month assign tasks. place. terms. program necessary meeting. implementation. documentation. Detailed Renewal Timeline 5 months prior to renewal Establish preliminary strategy for renewal 4'/z months prior to renewal • Review marketplace • Review alternatives • Summarize changes in client operations • Review results of projects • Analyze current carriers • Review support services (claim handling procedures, cost- containment methods, loss prevention and location coding) provided by underwriter • Review support services provided by HUB • Identify all renewal data and deadlines for securing information HUB Assign tasks and deadlines for account • Meet with entire Client Services Team to discuss strategy HUB managers and marketers, claim • Establish deadlines for all tasks analysts and loss control engineers 4% months prior to renewal Establish final marketing (including . You and HUB meet to agree on marketing and support services HUB support services) strategy plans • Receive renewal data from your organization 4 months prior to renewal Begin marketing and support services • Submissions sent to markets HUB processes • Ongoing communication and data clarification 2 months prior to renewal Secure proposals and analyze • Markets and support services present proposals HUB • Proposals are refined and summarized • Comparisons are developed • Improvements are negotiated 1 month prior to renewal Present proposal to you Proposals are summarized and compared HUB • HUB presents recommendations • Proposals are fine-tuned to meet requirements Your Decision • All questions are answered HUB • Your organization makes final decision Begin program implementation Program implementation begins - policies ordered and support services put in place • Premium financing offered on all accounts if financing is not offered by carrier 2 weeks prior to renewal Contact carrier to confirm premium • Broker contacts the carrier in writing two weeks prior to the effective HUB/Carrier date to obtain finalized premium amount in writing 12 1 week prior to renewal Stewardship The Stewardship Process The stewardship process is an essential part of the HUB partnership with your organization. This process provides an opportunity for two-way feedback between your team and your HUB Client Service Team. This process facilitates open dialogue with regard to accomplishments over the past year, status of ongoing projects and prioritization of new concerns relating to your risk management and insurance program. Because our environment is not static, your risk management strategies must be revisited frequently to ensure the most effective program is in place. By following this process, we feel that the client takes a more active role in creating an action plan for the year, thereby ensuring that the needs of your organization are met. The process consists of two parts — a meeting with your team six months into the policy year to discuss all elements of the Stewardship Report and a presentation of the report to appropriate personnel within your organization 120 days prior to renewal of your program. The proper completion of this process helps to solidify the partnership between you and HUB International Limited. Suggesle,,d topics for a yid -year stewardship meeting include: • A discussion of your operational goals and philosophies, changes in your business and how we can assist you in maximizing these opportunities • A review and evaluation of completed projects from the previous year • An open discussion of how you perceive the Client Service Team has met your service requirements • The status of new and ongoing projects • The review of the services provided by any outside sources • A discussion and outline of strategies for the coming year and beyond • A presentation of new trends in the marketplace and new products and services that are available 13 • Set up claims reporting procedures, provide forms to client and meet HUB with the client claims coordinator • Prepare Certificates of Insurance, auto identification cards and posting notices for issuance Inception Program takes effect • All renewal terms and conditions are fully documented HUB • Services begin functioning smoothly • All binders and invoices are sent to you on or before the effective date • You are informed of all installment due dates • Policies are prepared 1 month after renewal • Account executives send installment invoices to you 45 days prior to HUB the installment due date • Prepare or update insurance summaries 6 months after renewal Analyze prior renewal and agree on • Meeting between you and HUB Client Service Team HUB new projects • Review and summarize renewal activities • Provide policy digests and plan summaries Stewardship The Stewardship Process The stewardship process is an essential part of the HUB partnership with your organization. This process provides an opportunity for two-way feedback between your team and your HUB Client Service Team. This process facilitates open dialogue with regard to accomplishments over the past year, status of ongoing projects and prioritization of new concerns relating to your risk management and insurance program. Because our environment is not static, your risk management strategies must be revisited frequently to ensure the most effective program is in place. By following this process, we feel that the client takes a more active role in creating an action plan for the year, thereby ensuring that the needs of your organization are met. The process consists of two parts — a meeting with your team six months into the policy year to discuss all elements of the Stewardship Report and a presentation of the report to appropriate personnel within your organization 120 days prior to renewal of your program. The proper completion of this process helps to solidify the partnership between you and HUB International Limited. Suggesle,,d topics for a yid -year stewardship meeting include: • A discussion of your operational goals and philosophies, changes in your business and how we can assist you in maximizing these opportunities • A review and evaluation of completed projects from the previous year • An open discussion of how you perceive the Client Service Team has met your service requirements • The status of new and ongoing projects • The review of the services provided by any outside sources • A discussion and outline of strategies for the coming year and beyond • A presentation of new trends in the marketplace and new products and services that are available 13 HUB Risk Services Division Overview The HUB Risk Services Division is based out of our offices in Tulsa Oklahoma with personal assigned to Arkansas, with consultants located throughout the United States and Canada. The HUB Risk Services Division comprises corporate leadership, regional leadership, local consultants and specialty practices. This structure provides a standardized approach and creates a number of core services, but allows our local team members to be responsive to your needs, creating solutions to address your specific risk issues. This also allows HUB the flexibility to connect to you with the specific HUB Risk Services Team Member that can best fulfill your goals and objectives. Specialty }areas HUB Risk Services has a number of specialty areas that can be leveraged to complement your internal capabilities, and provide niche expertise for specific issues. Our specialty areas include: • Regulatory Compliance • Best Practices / World Class Safety • Safety/Environmental Management • Enterprise Risk Management • Ergonomics Improvement • Fleet Safety Management • Behavior -Based Safety • Construction Safety Management • Property Protection Engineering • Security Assessments / Planning • Crisis Management • Emergency Response Planning • Business Continuity Planning • Disaster Recovery Planning • Environmental Compliance • Industrial Hygiene • Training (Management / Employee) • Clinical Risk Management This variety of disciplines enables HUB to respond to your specific needs and objectives. Results are achieved through reduction in your Total Cost of Risk (TCOR). Identity 14 Team Capabilities The HUB Risk Services Team includes board-certified and degreed claims, safety, security, property, and environmental professionals with an average of over 20 years of experience in a variety of industries. • Board-certified safety professionals • Certified risk managers • Certified property and casualty underwriters • Certified occupational health nurses • Certified hazardous materials managers • Fire protection / professional engineers • Business continuity planning professionals • Attorneys • Former corporate safety and environmental directors • Former human resources managers • Former healthcare administrators • Former firefighters, EMTs, hazardous material responders • Former Directors of Security • Former risk managers • Former carrier claims managers • Fleet safety professionals • Product liability professionals • General liability professionals • Tribometrists (slip/fall experts) • Environmental experts Our team members have the proven knowledge and experience to assist you in identifying current and/or potential risks, implementing controls to reduce exposure to loss, as well as collaborating with you to create claims management processes. Available Risk Services HUB is committed to providing a wide range of services to your organization to assist with targeting your risk issues, minimizing your exposure to loss, and addressing losses as they occur. The following types of services available include, but are not limited to, the following: • Client advocacy / carrier oversight 0 Product liability assessments • Compliance assistance (U.S , Canada, 0 General liability assessment / controls international) 0 Fleet safety management program development • Best practice assessments 0 Slip / fall prevention • Safety program development 0 Safety engineering services • Outsourced safety / risk management 0 Life safety evaluations • Development / implementation of audit and 0 OCIP / CCIP safety management inspection processes 0 Safety committee development • Training development and implementation 0 Loss analysis / trending (conventional and web -based) Employee perception surveys • OSHA 10/30 hour courses 0 New facility construction reviews • Ergonomics improvement 0 Real property replacement cost appraisals • Behavior -based safety 0 Warning system evaluations • Product liability assessments a Protection system evaluations • Client advocacy / carrier oversight a Human -element program development • Property audits / inspections 0 Impairment program design / monitoring • Facility hazard evaluations 0 Equipment breakdown analysis • Fire protection engineering 0 Crisis management planning • Loss investigations / analysis 0 Security consulting • Natural hazard assessments 0 Industrial hygiene / environmental compliance • Enterprise risk management 0 RMIS system providers • Emergency response planning 0 High-risk claims identification tools • Business continuity planning / disaster recovery 0 Pre -hire screening tools planning 0 Actuarial / forensic accounting firms • Online training systems providers / developers a Online virtual consulting tools • Property / process engineering firms 0 Driver accountability programs • Crisis notification system providers 0 Online fleet risk management systems • Web -based BCP systems • First aid / CPR / AED suppliers / training firms • Environmental / industrial hygiene testing firms 15 Advanced Risk Management Information Systems (RMIS) To meet your advanced risk management needs, HUB has partnered with Origami Risk Management to provide a complete RMIS system. Origami helps reduce the Total Cost of Risk by helping you identify: • Premiums that are a function of claim costs • Medical and legal costs that are continuing to increase faster than the overall economy • The cost drivers that allow you to develop a process to manage and mitigate the Total Cost of Risk Risk dashboard • Shows trends, exceptions, performance against benchmarks and notable events • Can be customized by user to reflect individual areas of focus • Allows users to "drill down" into specific losses or events for more detailed analysis • Can include policies, claims, incidents, exposures, values, policies and locations Policies and programs • Includes policies and programs for an unlimited number of years of history • Scanned submissions, policies and endorsements to create a virtual electronic file • Graphical view of policy programs • Links to claims data for reporting across policy layers and managing costs within the retention Collaboration • Supports the design and implementation of sophisticated claims and loss control programs • Includes advanced program design tools to help identify and compare various risk retention strategies • Enables broad communication not only between broker and insured but also with field operations, legal, finance, HR and other stakeholders Reporting and analytics • A complete suite of reports and graphs that makes sophisticated reporting easy • Advanced features for program analysis, safety, finance and legal reporting • Supports "drill down" into reports that are more detailed and to a claim or location • Easy export to Excel or PDF formats • Scheduling of reports to a distribution list Focus on risk • View risk at different levels in the organization • Controlled, secure access to users across the organization • Flexible tools to manage changes in the organizational structure Claims Service Claims must be carefully managed to control costs and reduce the impact of loss on an organization. To assist you in this vital activity, HUB International Limited maintains a skilled team of claims management professionals. The following claim services are available: Claim Service Agreements — Create instructions detailing responsibilities and procedures for all parties directly involved with the claim handling process. Loss Analysis — At the inception and at mid-term, a "roll up your sleeves meeting" is held to review your program, conduct analysis of the frequency, severity, and trends of loss activity for past policy periods and suggest methods for more effective claim management. Loss Information Systems —Assess the current loss information reporting methods to determine if more effective data compilation and reporting may be needed. Cost Containment Coordination — Work with you and your Third Party Administrator to identify and communicate the locations of the nearest capable preferred provider organizations and medical services. Litigation Monitoring — Follow cases in litigation to monitor the effectiveness of your claims administrator in controlling litigation cost on selected cases. Training — Provide training in effectively managing workers' compensation claims. Monitor claims trends and analyze loss experience of companies, with emphasis on repeat claimants, repetitive motion injuries, demographic peculiarities, high/low paid trends and high/low turnover trends. InsureriTPA Evaluation — Review the capabilities of a current or prospective claim service provider to determine whether they meet your needs. Claims Service Provider Audit — Conduct an audit of your workers' compensation claims at the claim service providers location. Review numerous aspects of the claim handling process, including: • Initial contact • Investigation • Reserving • Medical • Cost containment We at HUB International Limited would welcome the opportunity to put our claims expertise to work for your company. 17 Risk Management Consulting Services The Consulting Group focuses on the special and complex needs of larger clients and its resources are available to all HUB clients. Risk Management Consulting Services is an integral part of the HUB Client Service Team, working together to assist our clients in meeting their goals. Products and services available through Risk Management Consulting Services include: Coverage/Program Analysis — A thorough review is made of your current insurance program. The evaluation encompasses adequacy of coverage and limits, appropriateness of terms and conditions and identification of potential gaps or duplication. Where applicable, comments are offered on the desirability of the risk financing methods in place for a particular client. Policy Form Comparisons — A side-by-side comparison of coverage terms and conditions is designed to assist in identifying differences between forms. Where possible, comments are offered regarding the significance of these differences for the specific client. Risk Management Consulting — A wide array of services are available to assist you in establishing and achieving your strategic risk management goals. Risk management professionals within HUB can work with our clients on an individual project basis or on a long-term contracted arrangement. Services include risk management audits, assistance with strategic planning, due -diligence reviews for mergers and acquisitions as well as providing regular on-site expertise where needed. The level and type of services provided are tailored to support the organizational goals of the individual client more effectively. Benchmarking — A broad-based comparison of your own historical performance and pertinent industry statistics as well as comparative peer group analysis. These benchmarks form the foundation for future benchmarking analysis and action planning. Cost of Risk Allocations — Client -specific computer models are developed for the allocation of premiums, losses and expenses to operating units based on exposure, losses or a combination thereof. Where the allocation involves experience as well as exposure, your company may also determine the relative weight of each. Allocation of costs is one of the most effective methods of supporting loss control efforts and better matching revenues and expenses. Workers' Compensation Feasibility Studies — These studies are designed to assist you in determining whether self-insurance of their workers' compensation exposure in a specific state or states would be a desirable option versus the current plan in force or compared to other options available. The report discusses the financial, administrative and coverage issues associated with such a change. The options are reviewed on a current dollar after-tax and net present value basis. Alternative Funding Studies — Computer models allow HUB consultants to evaluate the relative desirability of various cash flow alternatives on a current dollar, after-tax and net present value basis. The fixed costs and typical flow of funds under each alternative are identified. Workers' Compensation Test Experience Modifications — Using "SmartComp" computer software, we can develop test experience modifications with a very high degree of accuracy. This information is useful if an error has been made in the calculation of a client's modification or if there is a delay in calculating the modification. It can also assist you in evaluating acquisition and divestiture candidates. 18 Part IV - Account Team Personnel: The names and titles of the team proposed for assignment to the City's account shall be identified in full, with a description of team leadership, interface and support function, and reporting relationships, along with individual backgrounds of personnel who will be actively engaged in work related to the account. The primary work assigned to each person and the corresponding amount of time shall be indicated. While HUB resources are available on a global basis, the service team designated to coordinate services for you is located in Little Rock, AR, allowing HUB to respond to your needs with local, timely and personal service. Your HUB Service Team prides itself on a rapid response time to any and all of your insurance needs. We strive for a response time to be less than four hours but we guarantee a time less than 24 hours. Account Director — The Account Directors are responsible for developing and maintaining a strategic focus for HUB's partnership with your organization. Our Account Directors offer diverse risk management and insurance experience as well as superior leadership ability, which enable them to lead Client Service Teams in providing the highest quality service to our clients. Eric Herget is available 24/7 to help assist in your insurance needs. Account Executives — Account Executives work closely with your staff and coordinate all elements of the HUB Client Service Team. HUB Account Executives are leaders in the insurance industry. They are versed in a variety of disciplines, allowing them to respond to a wide range of your needs. Your Account Executives will be your daily contact for your insurance needs. Account Executives are responsible for marketing your insurance program, issuing certificates and negotiating with the carriers. Claims Service Team - Claims must be carefully managed to control costs and reduce the impact of loss on an organization. To assist you in this vital activity, HUB International Limited maintains a skilled team of claims management professionals. Risk Services Division — Our highly experienced and credentialed claims, safety, security, fleet, business continuity, emergency response, fleet, enterprise risk management, and environmental professionals with hands-on experience in a wide variety of industries. Located throughout North America with partnerships around the globe they will assist your in-house resources to help prevent losses, and to better manage claims. Risk Services will connect you with the expert who can best address your needs. These solutions developed by the Risk Services Division will be scaled to fit your needs. 19 City of Fayetteville Service Team Eric Herget 501.801.5701 — Office 501.773.7468 - Cell eric.herget(Dhubinternational.com Eric leads The HUB International Arkansas office, based in Little Rock. His expertise is in Energy / Power, Municipalities and Utility. Eric works in the London and Bermuda markets regularly. Complex property and casualty placements are a specialty practice area for Eric. He also has experience in manufacturing, transportation, aviation, construction and healthcare. This "Hub" is a full service brokerage for personal and commercial lines located in downtown Little Rock. Bonnie Powell, CIC, CISR 918.359.6151 bonnie.powellAhubinternational.com Bonnie has been in the insurance industry for more than 20 years, serving customers at a number of agencies. Her main role HUB International is to leverage that experience to assist producers and ensure prompt, quality service to our customers. Bonnie has obtained both her Certified Insurance Service Representative (CISR) and Certified Insurance Counselor (CIC) designations. Diane Kern, CIC, CISR 918.359.6118 diane.kern aahubinternational.com Diane handles in-house support including pre -underwriting and marketing accounts, as well as coverage analysis and account service. Her 25 plus years of experience in the insurance industry includes 2 years with a multi -line insurance company and 20 years with HUB International. Diane holds the Certified Insurance Representative (CISR) and Certified Insurance Counselor (CIC) designations and is working on her Charter Property Casualty Underwriter (CPCU) designation. City of Fayetteville Service Team — Claims Cheryl King 918.359.6129 cheryl. king —hubinternational.com Cheryl has more than 20 years' experience in worker's compensation and insurance risk management, including time as the worker's compensation manager for a 17 -hospital, 7,000 -employee healthcare system. As claims consultant, her responsibilities include reviewing claims made by our clients and facilitating the responsiveness of the carrier's claims management team in order to resolve the issue as quickly as possible. A member of the Oklahoma Self Insured Association and the Oklahoma Safety Council, Cheryl holds a Bachelor's Degree in Business Administration from Friends University in Wichita, KS. 20 City of Fayetteville Service Team — Risk Services Division Win Williams, CSP, CHMM, ARM win.williams fthubinternational.com Win Williams brings over 18 years of experience in the environmental health and safety industry to HUB International, currently serving as Vice President and Senior Risk Consultant in the Risk Services Division (HUB Risk Services). His team serves as a resource for the brokerage operations, providing risk control, safety, property, environmental, and workers compensation reduction guidance to HUB's clients. In his career, Mr. Williams has served as a Safety/Environmental Consultant and Manager of Training Services for several large environmental health and safety consulting firms in the Chicago, St. Louis and Houston areas, and as a Peace Corp Volunteer working with local leaders on improving water, sanitation and hygiene conditions in rural Peru. As a consultant, Mr. Williams performed a wide array of safety/environmental services in a variety of industries. This included safety services such as audits/inspections, training, regulatory/compliance reviews, and program development, and environmental services such as Environmental Site Assessments (ESA) and industrial hygiene exposure monitoring of industrial, agricultural, and commercial properties. Mr. Williams also has performed asbestos inspection, design, and project management activities. As the manager of an environmental health and safety training center, Mr. Williams' primary responsibilities included developing health and safety training courses, managing a staff of instructors, and the marketing of consulting and training services. He developed and instructed EPA -approved courses and is an Illinois and Missouri approved instructor for a number of asbestos-related courses. Mr. Williams reviewed safety programs, assessed training needs and developed safety training programs for a variety of manufacturing facilities, construction trades, energy companies, government entities, hospitals and schools. He instructed training courses including confined space entry/attendant, powered industrial truck, lead and asbestos awareness, bloodborne pathogens, among others. He has developed fleet safety and ergonomics programs for clients in a variety of industries. As a volunteer in the Peace Corp, Win was stationed in Peru for two years focusing on water, sanitation, and environmental initiatives. In this role he worked with municipalities, health posts, and water committees to improve the amount and quality of potable water, and helping to improve hygiene practices. Mr. Williams is a Board Certified Safety Professional (CSP), a Certified Hazardous Materials Manager (CHMM), and achieved his Associate in Risk Management (ARM) designation. He holds a Bachelors of Science degree in Biology from Texas Tech University. Mr. Williams is also an OSHA -authorized Instructor for the 10- and 30 -hour general industry and construction safety courses, an authorized instructor for defensive driving courses, and an Illinois Department of Public Health (IDPH) licensed asbestos building inspector, project manager and air sampling professional. Mr. Williams is a Professional Member of the American Society of Safety Engineers (ASSE) and an active member of the American Industrial Hygiene Association (AIHA). RX Part V - Corporate Experience: Relevant Public Sector insurance placement and account handling experience and client references shall be presented in detail, with all experience cited to be recent in time and to have been performed, to a considerable degree, by members of the proposed account team. Emphasis shall be given to identifying comparable services for public sector organization and educational institutions. For each client reference, the scope of service, time performed, and name, title, address and phone number of the principal contact person should be shown. North Little Rock Electric Department Ms. Jessica Stephens 501.975.8882 P.O. Box 5757 City of North Little Rock, AR 72119 Arkansas Regional Innovation HUB Warwick Sabin 501.225.5600 201 East Broadway North Little Rock, AR 72114 Tulsair Beechcraft Airport Fixed Based Operator J.J. Lester 918.835.7651 P.O. Box 582470 Tulsa, OK 74158 Arkansas Inland Maritime Museum Mr. Greg Zonner 521.371.8320 P.O. Box 5757 City of North Little Rock, AR 72119 City of North Little Rock Mr. Joe Folen P.O. Box 5757 City of North Little Rock, AR 72119 Part VI - Authorized Negotiator: The proposal shall provide the name, title, address, and telephone number of the person authorized to negotiate contract terms and render binding decisions on contract matters. Eric Herget Account Director 501.801.5701 — Office 501.773.7468 — Cell 425 W. Capital Ave. Suite 3550 Little Rock, AR 72201 22 Part VII - Cost Proposal: The City seeks an all-inclusive cost structure which will allow predictability of fees and accuracy in budget planning. The respondent's plan of compensation for insurance placement and consulting services preferably should be quoted in aggregate as a flat annual fee as full remuneration for performing all services. The successful broker/consultant will be required to disclose in detail all compensation received from any source resulting from the marketing of insurance programs for the City. Whenever it is in the City's best interest to permit commissions to be paid to broker, such commissions shall be utilized to reduce the fixed price or will be rebated back to the City. If there are expenses which are considered reimbursable and are not included in the fixed fee, such expenses shall be identified and quantified in their entirety. Year 1: $13,000 11 Option Year 2: $13,000 Option Year 3: $13,000 Option Year 4: $13,000 Option Year 5: $13,000 23 Part VIII - Proof of Insurance: Evidence of the respondent's own liability coverage, Errors and Omissions policy, and Workers' Compensation insurance as required by Arkansas State law shall be submitted prior to award of contract (not required with RFP). To be provided before award of contract 24 City of Fayetteville RFP 15-07, Insurance Brokerage and Consultation Services SECTION C: Signature Submittal 1. DISCLOSURE INFORMATION Proposer must disclose any possible conflict of interest with the City of Fayetteville, including, but not limited to, any relationship with any City of Fayetteville employee. Proposer response must disclose if a known relationship exists between any principal or employee of your firm and any City of Fayetteville employee or elected City of Fayetteville official. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a purchase and/or contract as a result of your response. This form must be completed and returned in order for your bid/proposal to be eligible for consideration. PLEASE CHECK ONE OF THE FOLLOWING TWO OPTIONS, AS IT APPROPRIATELY APPLIES TO YOUR FIRM: X 1) NO KNOWN RELATIONSHIP EXISTS 2) RELATIONSHIP EXISTS (Please explain): I certify that; as an officer of this organization, or per the attached letter of authorization, am duly authorized to certify the information provided herein are accurate and true; and my organization shall comply with all State and Federal Equal Opportunity and Non -Discrimination requirements and conditions of employment. 2. PRIMARY CONTACT INFORMATION At the discretion of the City, one or more firms may be asked for more detailed information before final ranking of the firms, which may also include oral interviews. NOTE: Each Proposer shall submit to the City a primary contact name, e-mail address, and phone number (preferably a cell phone number) where the City selection committee can call for clarification or interview via telephone. Corporate Name of Firm: HUB International Primary Contact: Eric Herget Phone#1 (cell preferred) 501-773-7468 Title of Primary Contact: Account Director Phone#2: 501-801-5700 E -Mail Address: eric.herqet@hubinternational.com 3. ACKNOWLEDGEMENT OF ADDENDA Acknowledge receipt of addenda for this invitation to bid, request for proposal, or request for qualification by signing and dating below. All addendums are hereby made a part of the bid or RFP documents to the same City of Fayetteville, AR RFP 15-07, Insurance Brokerage and Consultation Services Page 18 of 25 23 extent as though it were originally included therein. Proposers/Bidders should indicate their receipt of same in the annrnnriate hlank listed herein. Failure to do so may subiect vendor to disqualification. ADDENDUM NO. SIGNATURE AND PRINTED NAME DATE ACKNOWLEDGED 1 09/02/2015 2 09/10/2015 4. PRICING: Pricing shall be attached as a separate form and shall be inclusive of any and all charges, fees, expenses, etc. 5. DEBARMENT CERTIFICATION: As an interested party on this project, you are required to provide debarment/suspension certification indicating in compliance with the below Federal Executive Order. Certification can be done by completing and signing this form. Federal Executive Order (E.O.) 12549 "Debarment and Suspension" requires that all contractors receiving individual awards, using federal funds, and all sub -recipients certify that the organization and its principals are not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency from doing business with the Federal Government. Signature certifies that neither you nor your principal is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. Questions regarding this form should be directed to the City of Fayetteville Purchasing Division. NAME OF COMPANY: HUB International PHYSICAL ADDRESS: 425 W. Capital Ave. -Suite 3550, Little „Rock, AR 72201 MAILINGADDRESS: 425 W. Capital Ave. Suite 3550, Little Rock, AR 72201 PRINTED NAME: Eric Herget PHONE: 501-801-5700 FAX: 918-359-6001 E-MAIL: eric.herget@hubinternational.com SIGNATURE: TITLE: Account Director City of Fayetteville, AR RFP 15-07, Insurance Brokerage and Consultation Services Page 19 of 25 DATE: 09/18/2015 24 City of Fayetteville - Purchase Order Request (PO) Requisition o.:ate: (Nat a Purctwse Order) 211212016 P,q Number: All PO Requests shall be scanned to the Purchasing e-mail: Purchasing@fayetteville-ar.gov. Purchase shall not be made until an actual PO has been issued, Vendor #: 26153 Vendor HUB International Name: Mail ©rs ❑.40 Legistar#: �-087 Address; 1350 S. Boulder Ave., Suite 1000 FOB Point:. Taxable Ell rs L1 No Expected Delivery Date: City: Tulsa State: OIC Zip Code: Ship to code: Quotes Attached 74119 Q Yrs © No Requester; Andrea Rennie Requester's Employee #: Extension: 2570 8289 Item Description Quantity Unit of Issue Unit Cost Extended Cost Account Number Project.Sub# Inventory # Fixed Asset # 1 2016 Broker Consulting Fees 9130116 through 09130/17 1 JOB 13,000.00 $13,000.00 1010.1610.5314.00 NIA NIA NIA 2 $0.00 3 $0.00 4 $0.00 5 $0.'04 6 $0.00 7 $0.00 8 $0.00 9 $0.00 10 $0.00 ShippinglHandling Lot 50.00 Special nstructions. Per RFP 15-07, Resolution Subtotal: $13,000.00 Tax: $0.00 Total: $13,000.00 ..Approvals: Mayor: Department Director: Purchasing Manager: Chief Financial Officer: Budget Director: IT Director Dispatch Manager: Utilities Manager: Other: Revised 112 112 0 1 5