21-R-89 - Addition of six (6) EMS EmployeesRESOLUTION NO. 21 -R -90
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE CITY MANAGER TO RENEW THE AGREEMENT WITH
ARTHUR J GALLAGHER AND CO TO PROVIDE HEALTH INSURANCE BROKER
SERVICES AND OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City has a continuing need to contract with a professional consultant to
advise the City on medical plans, dental plans, and additional insurance plans and to represent
the City in finding, evaluating and negotiating with insurance provider; and
WHEREAS, the City entered into an agreement with Arthur J Gallagher and Co. in 2018
for health insurance broker services and the contact may be extended for an additional two one
(1) year terms with the mutual agreement of the City and Gallagher; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
continue the partnership with Arthur J Gallagher Pro, Inc.
- BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the City Manager to renew the
agreement with Arthur J Gallagher and Co. with an annual not to exceed of $75,000 unless
otherwise negotiated and approved by City Council.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
PASSED AND ADOPTED, this 24th day of August, 2021
ATTEST:
Brenda Dennis, City Secretary
(CI
CITY OF SCHERTZ, TEXAS
Ra l E i -ez, Mayor
L
-2-
CITY OF SCHERTZ
CONTRACT APPROVAL FORM
A. To be completed by Department
1. Contract with: Gallagher Benefit Services
2. Contract for: Insurance Broker Services for 2021
3. Fund/Account to be chamed:101- 866 - 531170
Contract amount: $ 75,000
Human Resources
4. Contract category and amount in the budget: N yes ❑ no - budget adjustment required
Budget Amendment Ord/Res Number. _ Date:
5. Contract required to be bid: ❑ yes W no (If unsure, contact Purchasing.)
Bidding completed: ❑ yes R NA (bidding not required)
Bidding exemption: (if bidding is not required state reason):
6. Contract termination date: ❑ NA
7. Terms of contract reviewed and approved by Department Head:
8. Is Asst. City Manager aware of contract? €i yes
9. If going to Council, is City Manager away - of contract? ❑ yes
10. Department Head's signature:
B. To be completed by Purchasing and Asset 4anagement
1. FINANCE
W yes
�-' NA
Date: . it ISO -W
a. Contract amount in the budget: ❑ yes ❑ no - budget adjustment required
b. Fund/Account to be charged:
c. Finance Director's signature: Date:
2. LEGAL
a. Contract reviewed and approved by City Attorney ❑ not requested ❑ yes (attach email approval)
b. Date Reviewed and Approved by City Attorney
3. PURCHASING
a. Vendor aggregate POs <$50K for budget period ❑ yes ❑ no
b. Contract reviewed for insurance, warranty, term, severability and indemnity requirements: ❑ yes
c. Contract properly bid in accordance with City Purchasing Policy ❑ yes ❑ NA
d. Vendor signature obtained ❑ yes ❑ no (other party requires signature by City first)
e. Purchasing and Asset Management Signature: Date:
4. COUNCIL APPROVAL REQUIRED? ❑ yes ❑ no ❑ NA (Required over $50,000)
a. Date of City Council approval: _ Res/Ord #: _ _ ❑ Attached
b. If not approved by City Council, state reason:
C. To be completed by Asst City Manager.
1. Final contract reviewed and recommend City Manager signature: ❑ yes ❑ no
2. Asst. City Manager's Signature:
D. To be completed by Assistant to the City Manager
1. Assistant reviews and obtains CM signature Assistant Signature:
2. Signed contract is given to Purchasing & Asset Management.
E. To be completed by Purchasing and Asset Management
1. Date fully- executed contract received by Purchasing.
2. Date filed to Laserfiche: Filed as:
Revised April 24, 2019
Date:
Gallagher
Insurance I Risk Management I Consulting
CLIENT COVERAGE ACKNOWLEDGMENT
AND COMPENSATION DISCLOSURE STATEMENT
FOR CITY OF SCHII2TZ
This form documents that Gallagher Benefit Services, Inc. (Gallagher) will apply its professional
judgment to access those insurance companies it believes are best suited to insure the Client's risks. The
final decision to choose any insurance company has been made by the Client in its sole and absolute
discretion. The Client understands and agrees that Gallagher does not take risk, and that Gallagher does not
guarantee the financial solvency or security of any insurance company. The Client is responsible for
immediate payment of premiums for all insurance placed by Gallagher on Client's behalf. If any premium
amounts are not paid in full when due, the applicable insurance company for the Client's risks may cancel
any applicable policies in accordance with the terms of such policies.
The follow itng is the disclosure of fees and/or commissions to be paid to Gallagher as a result of its
Broker of Record relationship to Client's Group Health and Welfare Plan and any relationships, or
agreements Gallagher has with any insurance companies selected by Client as noted above. Gallagher, as
Broker of Record, will receive the following initial and renewal sale commissions expressed as percentage
of gross premium payments, or fees as agreed upon by Client:
Line of
Third
Cove e /
Company
Commission 1
Supplemental
Compensatioe
Party
Direct Fees 3
Effective
Date
Services
Compensation
Consulting
Gallagher
n/a
n/a
n/a
$75,000 per
09/24/202
Services
ear
1
Medical
Blue Cross Blue
0%
$0.00 to $15.00
n/a
n/a
01/01/202
Shield of Texas
PEPY
1
Dental
Unum
0%
0% to 1.25% of
n/a
n/a
01/01/202
- ,r emium
1
Vision
Unum
0%
0% to 1.25% of
n/a
n/a
01/01/202
premium
1
FSA/HSA
Discovery
0%
0%
n/a
n/a
01/01/202
Benefits
1
Worksite
Allstate
Heaped
0 %to5%of
n/a
n/a
01/01/202
premium
n/a
1
01/01/202
Disability
Unum
0%
0% to 1.25% of
n/a
premium
1
It should also be noted that:
Commissions include all commissions/fees paid to Gallagher that are attributable to a contract or policy between a plan and an insurance
company, orinsurance service. This includes indirect lees that are paid to Gallagher paid by a third party, and includes, among other things, the
payment of "finders' fees" or other fees to Gallagher for a transaction orservice involving the plan.
! Gallagher companies may receive supplemental compensation reErred to in a variety of terms and definitions, such as contingent commissions,
additional commissions and supplemental commission.
3 Direct Fees include compensation to Gallagher paid for directly by the plan sponsor /Client.
Ca020AAIru J. Gallagher & Co. All rlo is reserved. i Crent Coverage AdmWedgenwd and Conpensdcn Disdoum 09232020
Gallagher
Insurance I Risk Management I Consulting
• Gallagher is not an affiliate of the insurer whose contract is recommended. This means the insurer
whose contract is recommended does not directly or indirectly have the power to exercise a controlling
influence over the management or policies of Gallagher. Gallagher's ability to recommend other
insurance contracts is not limited by an agreement with the insurance company.
• Gallagher is effecting the transaction for the Plan(s) in the ordinary course of Gallagher business. The
transaction set forth is at least as favorable to the Plan(s) as an arm's length transaction with an unrelated
party.
• Gallagher is not a trustee of the Plan(s) and is neither the Plan Administrator of the Plan(s), a named
fiduciary of the Plan(s), nor an employer which has employees in the Plan(s). Gallagher shall not
exercise discretionary authority or control with respect to plan management, the disposition of plan
assets or plan administration.
• Gallagher's liability to Client, or any party claiming by or through Client, on account of or relating to
the provision of services to Client during the period of the relationship between Gallagher and Client
shall not exceed $1 million in the aggregate. Without limiting the foregoing, Gallagher shall only be
liable for actual damages incurred by Client, and shall not be liable for any indirect, consequential or
punitive damages.
For Employers and Plan Sponsors Subject to ERISA: This Disclosure Statement is being given to the Client
(1) to make sure Client knows about Gallagher's and Gallagher affiliates' income before purchasing the insurance
product and (2) for plans subject to ERISA, to comply with the disclosure, acknowledgment and approval
requirement of Prohibited Transaction Class Exemption No. 84 -244, which protects both Client and Gallagher5.
Disclosure must be made to an independent plan fiduciary for the ERISA Plan(s), and Client acknowledges and
confirms that this is areasonable transaction in the best interest of ilartici1 -lants in its ERISA Plan(s).
For more information on Gallagher's compensation arrangements, please visit
www.ajg.com /compensation. In the event a Client wishes to register a formal complaint regarding
compensation Gallagher receives, please send an email to Compensation Complaints @ajg.com.
Thank you for your business and continued confidence in the services Gallagher provides to you
and your employees. We sincerely appreciate the opportunity to serve City of Schertz. Please let us know
if you have any questions regarding this information or would like more detail.
Accepted by: CITY OF SCHERTZ
GALLAGBER BENEFIT SERVICES, INC.
BY:
Nett'1 G% 1114
Name
Betty Gwinn
Title
Area President
4 Which allows an exemption from a prohibited transaction under Section 408(a) ofthe Employee Retirement Income Security Act of 1974
(ERISA).
' In making these disclosures, no position is taken, nor is one to be inkrred, regarding the use of assets of a plan subject to ERISA to purchase
such insurance.
02020 k hw J. Gdlagher & Co. A11 rights rewr%ed. i Cfent Cowage AdrnwAedgerrwd errd Compensation Disdosure 04232020
Gallagher
Insurance I Risk Management I Consulting
Date: Date: December 11, 2020
02020 Arthur J. GWIagW & Co. Al rights resarued. I Cift Courage Admowledgena t and Canpffma0on Disclosure 04232020