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HomeMy WebLinkAboutHR18-352 - Original - Alliant Insurance Services, Inc. - Employee Benefit Plans - 09/01/2018 'NT Records Management Document CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to the City Clerk's Office. All portions are to be completed. If you have questions, please contact the City Clerk's Office at 253-856-5725. Vendor Name: Alliant Insurance Services, Inc. Vendor Number (JDE): Contract Number (City Clerk): HVRS - 35�Z, Category: Contract Agreement Sub-Category (if applicable): Other Project Name: Contract Execution Date: 9/1/18 Termination Date: 12/31/2021 Contract Manager: Laura Horea Department: HR Contract Amount: $85,000 Budgeted: ® Grant? Part of NEW Budget: ® Local: ❑ State: ❑ Federal: ❑ Related to a New Position: ❑ Approval Authority: ❑ Director ❑ Mayor ® City Council Other Details: REQUEST FOR MAYOR'S SIGNATURE 0 Print on Cherry-Colored Paper KENT Routing Information: (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Approved by Director_ rReturn inator: Laura Horea Phone (Originator): 253.856.5290 e Sent: 9/5/18 Date Required: 9/10/18 Signed Document to: Laura Horea Contract Termination bate: 12/31/2021 DOR NAME: Date Finance Notified: Alliant Insurance Services, Inc, (only required on contracts June 2018 $20,000 and over or on any Grant) DATE OF COUNCIL APPROVAL: 8/7/18 Date Risk Manager Notified:June 2018 Re uired;yn Non-City Standard Contracts A reemerats Has this Document been Specifficall(y Account Number: Authorized in the Bud et? YES i N0 �_..._ _._... Brief Explanation of Document: ...........__. Employee Benefit Plans Brokerage and Consulting Services All Contracts Must Be Routed Through The Law Department (This area to be C(? Ieted by the Law Department) Received: Approval of Law Dept.: Law De, t, Comments: Date Forwarded to Ma or: Shaded Areas T e o pleted By Administration Staff Received: umiou t �aiv � wwxre We nmiu r Recommendations and Comments: is G7 (p '� �015 Dlsposrtion: 'S3 Y /Zf `rity:Of Kent Offs EA the, Mayor Date Returned: rvn nsaumen eudn "� ayaau a� peua gne wa.am CITY OF KENT HUMAN RESOURCES Marty Fisher Director of Human Resources 400 West Gowe KENT Kent, WA 9B032 Fax: 253-856-6270 OFFICE: 253-856-5290 August 28, 2018 Keith Robertson, VP Alliant Insurance Services, Inc. 1420 5`h Avenue, Suite 1500 Seattle, WA 90101 RE: Employee Benefits Program Broker of Record Letter Dear Keith Robertson, We have appointed Alliant Insurance Services, Inc. as our exclusive Broker of Record effective September 1, 2018 for our employee benefits program. This appointment will rescind any previous appointment on file and will remain in full effect until cancelled in writing. Si cerely, Marty F her Director of Human Resources CONSULTING SERVICES AGREEMENT This Consulting Services Agreement("Agreement') is effective September 1, 2018 ("Effective Date'l between Alliant Insurance Services, Inc., a Delaware corporation with its principal place of business at 1301 Dove Street, Suite 200, Newport Beach, CA 92660 ("Alliant'j, and the City of Kent, a public employer with its principal place of business at 400 West Gowe Street, Kent, WA 98032 ("Client'). Alliant and Client may be referred to in this Agreement individually as a "Party"and together as the "Parties." 1. Services. a. Scone of Services. Alliant shall provide the services described in Schedule I (collectively, "Services') for Client's employee benefit plan(s) for which Alliant is designated as the broker of record ("Planfs)'�. b. Services Warranty. Alliant warrants that the Services will be performed in a professional and workmanlike manner in accordance with industry standards and in compliance with applicable laws and regulations. 2. Compensation. As consideration for the Services, Alliant shall receive the compensation described in Schedule ll. 3. Client Obligations. a. Service-Specific Obligations. Client shall be responsible for all client obligations identified in Schedule 1. b. Client-Provided Information. Client shall, promptly after the Effective Date and thereafter upon Alliant's request, provide all information requested by Alliant that may be necessary for Alliant to perform the Services, including, without limitation, information about Client, Client's existing employee benefits plans, loss experience, and risk exposures; provided that, Client shall not provide Alliant with any individual's personally identifiable information unless Alliant specifically requests such information in order to perform the Services. Client acknowledges that Alliant relies on such Client-provided information in order to perform the Services. Client confirms that all information it provides to Alliant will be complete and accurate. C. Material Changes. Client shall promptly report to Alliant in writing any significant changes in exposures, loss-related data, Client's operations, coverages or limits, lines of coverage, or any other change that will change the scope or nature of Client's insurance plans. d. Review. Client shall promptly review coverage documents, templates, and other documents for the Plan(s) provided by Alliant, the insurer, or the third party administrator(TPA), to ensure that the documents are consistent with Client's specifications. Client shall promptly inform Alliant of any discrepancies or required changes. e. Delay. Client shall perform its obligations under this Section 3, including the obligation to provide all information requested by Alliant, as soon as practicable but no later than the dates agreed upon by Alliant and Client. Alliant is not liable for any delay or partial performance in performing the Services to the extent such delay or partial performance arises from Client's delay in performing its obligations under this Section 3 or promptly making decisions related to the Plan(s). Version 04.10.2018 .____ 1 4. Disclaimers. a. Not Legal or Tax Advice. Alliant is not responsible for Client's compliance with any laws, regulations, and/or statutes affecting the Plan(s). None of the services, advice, recommendations, or communications provided by Alliant constitutes legal or tax advice, analysis, or opinion, and Client shall not interpret or rely on any of Alliant's services, advice, recommendations, or communications as legal or tax advice, analysis, or opinion. b. No Fiduciary Relationship. Alliant will not have discretionary authority or discretionary control with respect to the administration or management of any of the Plan(s). Alliant also will not have authority to exercise any discretion or control with regard to the management, use, or disposition of any assets of the Plan(s) and will not render any investment advice with respect to the Plan(s) or any assets of the Plan(s).Alliant's performance of the Services will not make it a "fiduciary'for purposes of the Employee Retirement Income Security Act of 1974 ("ERlSA'), as amended. Client shall not represent that Alliant is a fiduciary for purposes of ERISA. C. Plan Recommendations and Funding. Any plans or plan provisions recommended by Alliant are solely recommendations, and Client, not Alliant, has the ultimate authority to select and modify the plans. Alliant shall have no responsibility, risk, liability, or obligation for funding the Plan(s). All responsibility, risk, liability, and obligation for funding the Plan(s) lies solely with the Plan(s) and the plan sponsor(s). d. father Brokers. Alliant is not responsible for, and hereby disclaims all liability for, any acts, errors, and/or omissions of Client's previous brokers, consultants, and/or advisors. If Client has any employee benefits plan(s) for which Alliant is not the broker of record, Alliant is not responsible for performing any services with respect to such plan(s) and hereby disclaims all liability for any acts, errors, and/or omissions of Client's other brokers, consultants, and/or advisors. The exclusions provided by this section shall not apply to any subcontractors or other agents Alliant may retain to perform the Services under this Agreement. 5. Contidentialit . a. Definitions. The Services and work product exchanged by the Parties under this Agreement are to be used exclusively to carry out the terms, conditions, and purposes set forth in this Agreement. However, as a public agency, records and information provided to or otherwise used by the Client may be subject to a request submitted under the Washington State Public Records Act. During the Term, the Parties may each exchange information considered and conspicuously marked .'confidential," "proprietary," and/or"trade secret," including, without limitation, financial information, pricing information, intellectual property, ideas, concepts, systems, designs, research and technical information, business and operational policies, plans, processes, procedures and strategies, system design and operating specifications, data, recommendations, proposals, reports and similar information (collectively, "Confidential Information'. For purposes of this Section 5, the Party disclosing Confidential Information is the "Disclosing Party"and the Party receiving Confidential Information is the "Receiving Party." b. Exclusions. Confidential Information does not include information that is (i) in, or that becomes part of, the public domain other than as a result of a breach of this Section 5; (ii) independently developed by the Receiving Party as demonstrated by Version 04.10,2018W�W W m 2 its records, (iii) lawfully known by the Receiving Party, without any obligation of confidentiality or other restriction on use or disclosure, prior to disclosure of the information by Disclosing Party; or(iv) disclosed by a third party whom the Receiving Party has no reason to believe has any confidentiality or fiduciary obligation to such information's owner. C. Legal Compulsion. A Receiving Party may disclose Confidential Information only to the extent necessary to comply with a valid order of a court or governmental agency with proper jurisdiction or as required by law or regulation, provided that, the Receiving Party shall, to the extent allowed by law, make reasonable efforts to promptly advise the Disclosing Party of the order, subpoena, or request in order to enable the Disclosing Party to employ lawful means to avoid or limit disclosure. In the event Alliant takes action to avoid or limit the Client's disclosure of information Alliant claims is Confidential Information, Alliant agrees to defend, indemnify, and hold the Client, its officers, officials, employees, and agents harmless from any and all claims, injuries, damages, losses or suits including all legal costs, attorney fees, and penalties, arising out of or in connection with Alliant's efforts to avoid or limit disclosure of claimed Confidential Information. Either Party is also entitled to release Confidential Information as required to prosecute or defend any claim under this Agreement; provided however, that the Party seeking to release or use the information shall take all reasonable steps necessary to avoid disclosing Confidential Information, including filing documents and papers under seal. d. Non-Disclosure: Reasonable Efforts. Except as otherwise provided in this Agreement or as required by applicable law, a Receiving Party shall not knowingly distribute, use, or rely upon Confidential Information without the Disclosing Party's permission. Additionally, except as otherwise provided in this Agreement, a Receiving Party shall not directly or indirectly communicate, divulge, or otherwise disclose the Confidential Information to any unauthorized person or entity. The Parties shall employ reasonable and customary business practices to protect and secure Confidential Information from unauthorized release or distribution and to limit access and usage of Confidential Information to those employees, officers, directors, agents, subcontractors, representatives, and advisors (including, without limitation, attorneys, accountants, and financial advisors) (collectively, its "Represenfatives'� who have legitimate"need to know"the information in order to perform under this Agreement and who are bound by obligations of confidentiality no less restrictive than this Section 5. The Receiving Party will be liable for any breach of this Agreement by any of its Representatives. e. Ownership of Confidential Information. Except as otherwise provided in this Agreement, Confidential Information is and remains the absolute and exclusive property of the Disclosing Party and its unique and variable asset. f. Return of Confidential Information. Upon the Disclosing Party's request at the time of this Agreement's termination, or earlier,the Receiving Party shall promptly return all Confidential Information, including all copies, received in non-electronic form and shall destroy all information received electronically. Notwithstanding anything to the contrary in this Agreement, the Receiving Party may retain copies of Confidential Information in order to comply with legal or regulatory requirements and any electronic files automatically saved pursuant to its archiving and document retention procedures and that cannot reasonably be deleted; with respect to all such retained copies, the Receiving Party will remain subject to the confidentiality obligations stated in this Section 5 for so long as the copies are retained. Version 04.10.2018 3 g„ Survival. The obligations contained in this Section 5 will survive termination of this Agreement for a period of two years or longer as required by law. Nothing in this section limits or otherwise diminishes the protections afforded to trade secret information or by applicable law. h. injunctive Relief. A breach of this Section 5 may cause irreparable injury to a Disclosing Party. For this reason, in the event of a breach, a Disclosing Party is entitled to seek injunctive relief or other equitable relief, without prejudice to any other remedies that may be available. 6. Licenses and Ownership. a. Media License. To the extent that Alliant will prepare benefit brochures, open enrollment materials, or other benefit communications for Client's employees (collectively, "BenetitMaterials'l, and Client has or will provide photographs, images, other media, trademarks, and/or logos (collectively, "Media') to include in the Benefit Materials, Client hereby grants Alliant a worldwide, perpetual, royalty- free, non-exclusive, sublicensable right and license to use the Media in the Benefit Materials. This license includes the right to use, reproduce, edit, crop, retouch, distribute, and create derivative works of the Media as needed to incorporate the Media into the Benefit Materials and to otherwise prepare and distribute the Benefit Materials. Client represents and warrants that(i) it is the owner of the Media or has the right to grant Alliant the licenses to use the Media, free of all liens, claims, and encumbrances; and (ii) Alliant's use of the Media as specified in this Agreement will not infringe the rights, including the personal or proprietary rights, of any other party. b. Other Client information. Client hereby grants Alliant a worldwide, royalty-free, non-exclusive, sublicensable, and revocable license to use all Client-provided information as necessary to provide the Services. Client represents and warrants that it has or will obtain the necessary consents from each individual before providing or otherwise disclosing any of the individual's personally identifiable information to Alliant. C. Ownership. Except as otherwise expressly stated in this Agreement, Client will retain all ownership rights in the Media and other Client-provided information. Alliant will retain all ownership rights to all information, data, benefit analysis, materials, specifications, and products supplied by Alliant(collectively, "Work Product'j, together with all intellectual property rights in the Work Product. Work Product is solely for use by Client and its Plan(s) and may not, without Alliant's prior written consent, be shared with anyone other than Client's employees and advisors who have a legitimate need to know, Plan participants and beneficiaries, or as required by law. 7. Term and Termination. a. Term. Unless terminated in accordance with this Section 7, this Agreement will have an initial term of three years and 4 months (3.3)years from the Effective Date ("Initial Term'), after which the Parties agree the Agreement may be extended, at the Client's discretion, for one (1) additional three-year period, under the same pricing and terms, for a total contract duration of six years and four months (6.3) years. ("Renewal Term(s)'). The Initial Term and all Renewal Term(s) are collectively the "Term." Version 04,10.2018 4 1 b. Termination. Either Party may terminate this Agreement,with or without cause, upon providing the other party thirty (30) days advance written notice to its address set forth in this Agreement. C. Final Fees. No later than 30 days after this Agreement's termination, Alliant shall issue a final invoice for any services performed and expenses incurred by Alliant on or before the Agreement's effective date of termination and that remain payable by Client. The Client shall pay such invoice within 45 days of its receipt of the invoice. d. Survival. Except as otherwise stated in this Agreement, the rights and obligations contained in Sections 1, 5, 7, 8, 9. 10, and 11 of this Agreement shall survive the termination of this Agreement. 8. Indemnification. a. Claims Subject to Indemnification. Alliant shall defend, indemnify and hold the Client, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with Alliant's negligent performance of this Agreement, except for that portion of the injuries and damages caused by the Client's negligence. The Client's inspection or acceptance of any of Alliant's work when completed shall not be grounds to avoid any of these covenants of indemnification. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES ALLIANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event Alliant refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on Alliant's part, then Alliant shall pay all the Client's costs for defense, including all reasonable expert witness fees and reasonable attorneys' fees, plus the Client's legal costs and fees incurred because there was a wrongful refusal on Alliant's part. b. Process. The Client will promptly notify Alliant in writing of any claims subject to indemnification under this Section 8, provided that the Client's delay in providing such notice will not relieve Alliant of its indemnification obligations except to the extent that Alliant is materially prejudiced by the delay. Alliant, at its sole expense, will have the right to control the defense and settlement of the claim. Alliant may settle or consent to the entry of any judgment with respect to any claim involving only the payment of money, but shall not, without the Client's prior written consent, which shall not be unreasonably withheld, settle any other claim or consent to any judgment that obligates the Client to take any independent action or pay money. The Client shall reasonably cooperate with Alliant, at Alliant's expense, in connection with the defense of any claim subject to this Section 8 and shall, at Alliant's expense, provide all information reasonably requested for defense of such claim. The Client may, at its own expense, retain separate counsel and participate in (but not control) any action under this Section 8, unless that separate counsel is required due to any legal conflict of interest that prohibits dual representation of both Alliant and the Client. Version 04.10.2018 5 9. Insurance. Alliant shall procure and maintain for the duration of this agreement, insurance of the types and in the amounts described in Exhibit A attached and incorporated by this reference. 10. Resolution of Disputes. If the Parties are unable to resolve any dispute, difference or claim arising from the Parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County,Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the Client's right to indemnification under this Agreement. 11. Miscellaneous. a. lndeaendent Contractor. Alliant is an independent contractor for Client. This Agreement does not create a partnership,joint venture, franchise, employment, or any agency relationship between the Parties. Neither Party has any authority to act on behalf of the other Party or bind the other Party in any respect, provided, however, that Alliant has the authority to act as a broker on behalf of Client as contemplated hereunder. b. Notice. All notices given under this Agreement shall be in writing and deemed given: (i) on the business day when delivered personally, (ii) one business day after being sent by a reputable overnight courier services (charges prepaid), or(iii) five business days after being sent by certified mail (charges prepaid). Notices must be sent to the Party's following address or any other address that the Party designates by proper notice: If to Client: If to Alliant: City of Kent Alliant Insurance Services, Inc. 400 West Gowe Street 1420 511 Avenue, Suite 1500 Kent, WA 98032 Seattle, WA 98101 Attn: Marty Fischer Attn: Keith Robertson With a copy to: General Counsel 701 B Street, 6`n Floor San Diego, CA 92101 C. Governing Law;; 'Venue. This Agreement will be governed by and construed in accordance with the laws of the State of Washington without regard to its conflicts of law principles, and the Parties each consent to the exclusive jurisdiction of the state and federal courts in Washington. d. Assignment. Neither Party may assign this Agreement without the prior written consent of the other Party, except that prior written consent will not be required for a Party to assign this Agreement to its successor in interest after a merger, consolidation, reorganization, or sale of substantially all of that Party's assets. Version 04,102018 6 i Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the Parties and their permitted successors and assigns. e. Waiver. A Party's failure to enforce any provision of this Agreement shall not be construed as a waiver of that provision and shall not prevent the subsequent enforcement of each and every provision of this Agreement, f. No Third Party Beneficiaries. Except as stated in this Agreement, this Agreement does not create any right or cause of action in or on behalf of any person or entity other than the Parties. g. EnliEtAgreernen ndmentsma2vgEgbility. This Agreement, together with its. attached schedules and incorporated documents, constitutes the entire agreement between the Parties relating to its subject matter and supersedes all prior or contemporaneous agreements, negotiations„representations and proposals of any kind,whether written, oral,express or imptled, related to its subject matter,Any modification to this Agreement must be in writing and signed by authorized representatives of both Parties. If any provision of this Agreement is declared invalid by a court of competent jurisdiction„ that provision will'be severed from this Agreement without affecting the validity or enforceability of all other'provisions of this Agreement,which will remain in full force and effect. h. Construction.The Parties faintly negotiated the terms of this Agreement and each Party has had an opportunity to review and discuss each provision with legal counsel, to the extent desired,Therefore, the normal rule of construction that construes any ambiguities against the drafting party shall not be employed in the interpretation of this Agreement. SO AGREED: City of Kent Name Dana Ralph M „ Title: Mayor Alliant Insu nee S rvicest,Inc. A , By , / .,.._._ ..... ...; __w.._...... � _............ ._, Name: fCel-S2 91lyya -q6 ma- Title: ViAt Vl,IA i Version 04 .....,_...�...........,_i02018 . '"""""""""""""'7 SCHEDULEI SERVICES In accordance with the Client's Request for Proposals for Benefits Consulting and Actuarial Services ("RFP"), Alliant's Response to that RFP, and any supplemental documentation and information Alliant provided during the RFP process, all of which are incorporated herein by this reference, Alliant shall perform the following Services during the term of this Agreement. "Standard" services as indicated in this Schedule I are included in fees. If an additional fee applies, it is indicated below. Except where specified, the services set forth below do not include the provision of third-party administrator services. A. Strategic Benefit Consulting 1. Quarter One -Annual benefit objective setting and Standard development of strategic plan with post-open enrollment review, if applicable. 2. Quarter Two Meeting— Planning or Pre-renewal Standard ......................_............... ............................................ ......... 3. Quarter Three Meeting - Pre-renewal or Renewal Standard 4. Quarter Four Meeting — Renewal or Open Enrollment Standard 5. Agenda, meeting notes and project management Standard 6. Annual service/benefit calendar Standard 7. Introduction to new and progressive benefit innovations Standard 8. Benchmarking Standard ................ -- ---- B. Health & Productivity Consulting _ ......................... ...................................... 1. Development and alignment of health and productivity Standard strategy including incentive design in coordination with annual benefit planning and goal setting ................... 2. Annual review of Incentive design review in partnership with Standard compliance team, if needed 3. Assistance in procuring carrier dollars for wellness and Standard leveraging carrier solutions 4. Access to annual benchmarking reports, updates on industry Standard trends and proprietary health and wellness toolkits and templates 5. Assistance in implementing wellness champion programs, Standard facilitating meetings and implementing culture building policies and strategies 6. Access to health education library includes posters, Standard pamphlets and monthly employee facing newsletter 7. Vendor review, market assessment and project management Standard of implementation, as needed C. Annual Renewal Report& Financial Analysis ..............__ ........................... ......................... 1. Vendor marketing (as required) Standard .-............. Schedule I Version 04.10,2018 I a. Pre-qualify potential vendors and develop bid specs Standard b. Detailed evaluation of plan design, cost and funding Standard alternatives 2. Premium rate and service fee negotiation Standard 3. Benefit analysis and plan design modeling (self-funded) Standard 4. Employee contribution strategy Standard 5. Annual cost summary Standard 6. Underwriting calculations a. Annual Renewal Projection Standard —Self-funded b. Annual High Claims Analysis Standard—Self-funded c. Quarterly IBNR Standard—Self-funded 7. Experience Reports (monthly, quarterly) Standard —Quarterly/Monthly ......m.m..............................___ D. Plan Implementation &Administration Support 1. Project Management of vendor relationship a. Regular evaluation of service providers Standard b. Resolve problems relating to vendor performance Standard c. Network updates Standard d. Assist in resolving claim problems or procedures, Standard plan design issues, billing problems, etc. — _..... 2. Create custom employee communication campaign and materials to include: a. Branded benefit summary Standard b. Open enrollment memos Standard c. Annual notices (i.e. Medicare Part D, CHIP, etc.) Standard d. Open enrollment PPT presentations Standard e. Ben-IQ Mobile application_._. ...... Standard — ....................... f. Employee portal Standard g. Home mailings Standard h. Wallet cards Standard i. Total compensation statements Standard 3. Coordinate/conduct open enrollment meetings and/or benefits fairs a. WebEx Standard b. Travel for meetings Standard c. Travel for meetings in locations with less than 25 Standard employees Schedule I Version 04.10.201 B 4. Benefit Advocate Department—Assist HR, employees and Standard families with benefit questions, claims issues, appeals a. Quarterly utilization reports Standard E. Compliance Consulting ---------------------------- 1. Plan Administration Support Standard a. Integrated daily support from assigned in house compliance professional b. Risk analysis and recommendations for short term and long term plan design strategies 2. Ongoing Client Education Standard a. Compliance Alerts b. Compliance Updates c. Alliant Insights (white papers) d. Friday Fast Facts e. Quarterly HRCI accredited webinars f. Compliant with Alliant Podcast 3. Annual Reporting and Disclosure Support Standard a. Facilitate annual 5500 Preparation and Filing b. Wrap SPD Plan Document c. Summary Material Modification d. Customizable Compliance Calendar and Checklist e. Annual Notices Package f. PCORI Fee Calculation Support 4. HIPAA Compliance Infrastructure Standard a. Review plan design and recommend HIPAA compliance strategy b. Implementation-ready HIPAA Privacy& Security Policies and Procedures c. HIPAA Training for Benefits Team 5. Practical Compliance Tools Standard a. Cadillac Tax Modeler b. ACA Employer Reporting Guide c. Pay or Play Risk Assessment d. ACA Health Care Reform Review Analysis F. Human Resources Consulting (ThinkHR) Standard G. Benefit Administration Outsourcing 1. Vendor RFP and evaluation Standard 2. Implementation support Standard Schedule I Version 04.10.2018 SCHEDULEII COMPENSATION 1. Compensation. As consideration for the Services, Alliant shall receive the following compensation: a. Fees and Payment. L Fees. The fee for the standard Services will be $85,000 per year or $7,083.33 per month. ii. Payment. Client shall pay any fee hereunder within 45 days of its receipt of Alliant's invoice. b. Changes in Services. If Client requests a change in Services or if changes in Client's size, operations, or organization require a change in the scope and/or nature of the Services and/or Plans, the compensation described in this Section 1 will be adjusted accordingly. 2. Transparency and Disclosure. Upon Client's reasonable request, Alliant will disclose compensation it receives, where possible, in connection with any insurance placements on behalf of Client under Alliant's"Transparency and Disclosure" policy, a copy of which is made available upon request. Pursuant to its policy, Alliant will conduct business in conformance with all applicable insurance regulations and in advancement of the best interests of its clients. In addition, Alliant's conflict of interest policy precludes it from accepting any form of broker incentives that would result in business being placed with carriers in conflict with the interests of Alliant's clients. 3. Services Included in Cost of Premium. In addition to the compensation described in this Schedule II, Alliant and/or its related entities may receive additional compensation for underwriting, program administration, and other services that are (a) provided to either Client or the insurance carrier, (b) not contracted for directly by Client, and (c) outside the scope of Services described in Schedule I. This additional compensation, if any, will be included in the cost of the premium Client pays to the carrier and accordingly, will create no additional cost for Client. Notwithstanding this paragraph, any services contracted for directly by Client may be subject to additional costs, as provided in Section 1 above. 4. Indirect Income. Alliant has provided the City of Kent with an "opt-out" form for review and sign off. The form may also be found on Alliant's website: httpr/Cwww.alliant.ccjn/Le(al- NoticesdPaaes/Disclosu!re-Policy.aspx. The City of Kent has elected to have the premium associated with all policies managed by Alliant excluded from consideration in any and all contingent and supplemental income. Schedule II Version 04.10.2018 EXHIBIT A INSURANCE REQUIREMENTS FOR CONSULTANT SERVICES AGREEMENTS Insurance The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, their agents, representatives, employees or subcontractors. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non- owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liabilit insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City using ISO additional insured endorsement CG 20 10 11 85 or a substitute endorsement providing equivalent coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professionail (Liability (Errors & Omissions) insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: EXHIBIT A (Continued) 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $15,000,000 each occurrence, $15,000,000 general aggregate and a $2,000,000 products- completed operations aggregate limit. 3. Professional Liability (Errors & Omissions) insurance shall be written with limits no less than $10,000,000 per claim and $10,000,000 policy aggregate limit. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City of Kent shall be named as an additional insured on all policies (except Professional Liability) as respects work performed by or on behalf of the Consultant and a copy of the endorsement naming the City as additional insured shall be attached to the Certificate of Insurance. The City reserves the right to receive a certified copy of all required insurance policies. The Consultant's Commercial General Liability insurance shall also contain a clause stating that coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respects to the limits of the insurer's liability. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. EXHIBIT A (Continued) F. Subcontractors Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the same insurance requirements as stated herein for the Consultant. ADDITIONAL COMMISSION "OPT OUT" Attn: General Counsel Alliant Insurance Services, Inc. 701 B Street, 6t° Floor San Diego, CA 92101 RE: Additional Commission "Opt Out" Please be advised that the City of Kent has elected to have the premium associated with any and all insurance policies where Alliant is the broker of record excluded from consideration in any and all: -'Contingent income agreements ✓Supplemental income agreements City ry ''t t Signature: Printed game: _ Dated: