TOWN OF MANCHESTER REQUEST FOR PROPOSAL RFP NO. 15/16-32 FOR RISK MANAGEMENT CONSULTANT SERVICES PROPOSALS DUE: NOVEMBER 13, 4:00 P.M.

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1 TOWN OF MANCHESTER REQUEST FOR PROPOSAL RFP NO. 15/16-32 FOR RISK MANAGEMENT CONSULTANT SERVICES PROPOSALS DUE: NOVEMBER 13, 4:00 P.M. GENERAL SERVICES DEPARTMENT 494 MAIN ST. MANCHESTER, CT (860) FAX (860) October 20, 2015

2 TABLE OF CONTENTS Page No. Section I. General Information 1 1. Introduction 1 2. Minimum Requirements 1 3. Methods of Evaluation 1 4. Term of Services 2 Section II. Scope of Services 3 1. Specific Services 3 2. Current Program 4 Section III. Submission of Proposal 5 1. Submission & Deadline 5 2. Questions 5 3. Content of Proposal 5 4. Timeline 6 5. General Provisions 6 6. Manchester Living Wage Ordinance 7 Section IV. Fee Proposal/Questionnaire 8 Attachment 1 - Insurance Requirements 10 Exhibit A Current Schedule of Insurance 11 Attachment 2 Living Wage Summary Description 12 i

3 SECTION I. GENERAL INFORMATION 1. INTRODUCTION These specifications are provided for the purpose of soliciting proposals from qualified firms to provide consultant risk management services to the Town of Manchester and the Manchester Board of Education herein after referred to as the Town. The types of coverages to be procured will typically consist of those in Exhibit A. Besides insurance procurement, other risk management services as outlined in the scope of services are requested. 2. MINIMUM REQUIREMENTS A Consultant, in order to be considered for selection, must satisfy the following minimum requirements: 1. Licensed in Connecticut 2. Five years or more in the Consulting business 3. Annual Commercial Premiums in excess of $2,000, Two qualified principals or account managers with at least five years experience in the Property & Casualty business and have a CPCU, ARM or CIC designation. 5. Municipal experience with three or more accounts of annual minimum premiums of $500,000 each of three of the past five years. 3. METHODS OF EVALUATION The following factors will be considered in evaluating proposals submitted. accuracy and professionalism with which the consultant responded to the specifications demonstrated understanding of the Scope of Services the qualifications and municipal experience of the designated account executive and other key personnel on the account reputation of the firm based on other municipal references the proposed fees for service familiarity with and proximity to the Town flexibility, efficiency and timeliness in providing day to day services to the Town Following review and evaluation of the proposals, the Town shall reserve the right to request certain additional information. Interviews of qualified firms may be scheduled and may be a part of the evaluation process. 1

4 4. TERM OF SERVICE The successful firms will be expected to commence services on January 1, 2016 subject to contract execution. The term of the contract will be for a period of three years. The Town shall have the option to renew the contract for three successive one-year periods under the same terms and conditions. The Town reserves the right to cancel this contract at any time should any of the following conditions exist: The Town, through changes in its requirements or method of operation, no longer has a need for this service The Town is not satisfied with the level of services provided under the contract or the contractor fails to comply with any terms and conditions outlined in the contract. 2

5 SECTION II. SCOPE OF SERVICES 1. SPECIFIC SERVICES While the exact range and extent of services is subject to negotiation, the selected consultant shall provide, as a minimum, professional services and dedicated personnel necessary to perform the following: a. Develop a complete understanding of the Town's areas of exposure and self-insurance methodology. b. Evaluate existing insurance contracts and claim histories and make recommendations concerning any changes, modifications, consolidations, and/or additions in the terms, conditions and coverage limits needed to yield a comprehensive risk management risk funding program to protect the interests of the Town. c. Identify programs, products and insurers capable of meeting the Town's insurance and TPA needs and prepare bid specifications for markets capable of quoting for upcoming renewals. d. When authorized by the Town, approach appropriate markets on behalf of the Town to obtain pricing with respect to the risk management program decided by the Town. If and when available, a minimum of at least two (2) quotes from reputable carriers will be obtained for each type of risk for each fiscal year of the contract. This also includes specialty insurance coverages that may be outside the normal market. e. Present for Town consideration, in an understandable format, an evaluation of the results, including a comprehensive financial analysis, and a recommendation for selection of an insurer and/or TPA for each type of risk. Results will be due 30 days prior to policy expiration. f. Negotiate on the Town's behalf the details of insurance contracts with selected carriers and/or TPA s and audit resulting policies, rates, coverage terms and conditions for compliance. g. Provide verification of coverage as needed by the Town to satisfy lessors, contractors and other parties by means of preparing insurance certificates or endorsements. h. Provide training and education relative to loss control, safety, claims management and related topics in the area of risk management. i. Provide answers to Town staff and obtain clarification from Underwriters claim adjusters or TPA s on coverage or claim questions. j. Provide premium allocation services so that costs may be properly charged back to appropriate departments. 3

6 k. If requested, provide quarterly summaries on claims and work on behalf of the Town to ensure proper handling and of reserving claims. 2. CURRENT PROGRAM Refer to exhibits A for a current schedule of insurance. It should be noted that employee benefits is outside the scope of this contract. 4

7 1. SUBMISSION AND DEADLINE SECTION III. SUBMISSION OF PROPOSAL All proposals must be received by 4:00 PM, November 13, Four (4) copies shall be submitted to: HAND DELIVERY U.S. POSTAL MAIL DELIVERY Town of Manchester, Connecticut Town of Manchester, Connecticut Gerald Dupont Gerald Dupont Director of General Services Director of General Services 494 Main Street P.O. Box 191 Manchester, CT Manchester, CT All proposals shall be opened publicly and recorded as received. Proposers may be present at the opening; however, there will be no public reading of Proposals. Proposals received later than time and date specified will not be considered. 2. QUESTIONS Questions about this RFP may be directed to Greg Simmons, Director of Finance, at ( ) no later than five (5) calendar days prior to the proposal submission date. All information given by the TOWN except by written addenda shall be informal and shall not be binding upon the TOWN nor shall it furnish a basis for legal action by any Proposer or prospective Proposer against the TOWN. This Request for Proposal and any addendum shall be issued on the Town web page It shall be the responsibility of all interested firms to check the website for addenda prior to submitting a response to this Request for Proposal. No addendum shall be issued less than 2 calendar days before the due date unless it is to postpone the due date. All proposals shall remain firm and cannot be withdrawn for a period of 90 days after receipt of proposals. 3. CONTENT OF PROPOSAL All firms are required to submit the information detailed below. The information shall be organized in the order listed below to assist the Town in reviewing all proposals received. a. Table of Contents to include clear identification of the material provided by section and number. 5

8 b. A letter of transmittal indicating the firm's interest in providing the service and any other information that would assist the Town in making a selection. This letter must be signed by a person legally authorized to bind the firm to a contract. c. A statement demonstrating understanding and your capability of providing required services identified in Section II. d. A written description of the firm's qualifications and experience. e. Completion of the Fee Proposal/Questionnaire. 4. TIMELINE November 13, 2015 Proposals due by 4:00 p.m. January 1, 2016 Contract Effective Date June 30, 2016 Current coverage expiration 5. GENERAL PROVISIONS 1. Municipalities are exempt from any sales, excise or federal taxes. Fees must be exclusive of taxes and will be so construed. 2. Firms should familiarize themselves with the items and/or conditions set forth in the RFP specifications. Failure to be to informed will not be accepted as an excuse from fulfillment of the requirements. The Town will not be subject to any price increases after an award if not part of the original proposal terms. 3. This request for proposal does not commit the Town of Manchester to award a contract or to pay any costs incurred in the preparation of a proposal to this request. The Town of Manchester reserves the right to accept or reject any or all proposals received as a result of this request, waive any informalities or technical defects in any proposal, to negotiate with the selected respondents, to extend the contract for an additional period, or to cancel in part or in its entirety the request for proposal, if it is in the best interests of the Town to do so. 4. Respondents are advised that any and all materials submitted in response to this RFP shall become the sole property of the Town of Manchester and shall be subject to Freedom of Information requests after evaluation and award decisions have been made. 5. The Town of Manchester is an equal opportunity employer, and requires an affirmative action policy for all of its Contractors and Vendors as a condition of doing business with the Town, as per Federal Order By submitting a Proposal for this Request for Proposal, all vendors and contractors agree to this condition of doing business with the Town and should the Town choose to audit their compliance, the vendor agrees to cooperate fully. 6

9 6. Any act or acts of misrepresentation of collusion shall be a basis for disqualification of any proposal or proposals submitted by such persons guilty of said misrepresentation or collusion. In the event that the Town enters into a contract with any bidder who is guilty of misrepresentation or collusion and such conduct is discovered after the execution of said contract, the Town may cancel said contract without incurring liability, penalty or damages. 7. Selected consultants shall at its own expense and cost, obtain and keep in force, insurance per the attached limits during the duration of the project. Insurance coverage shall cover the consultant, all of its agents, employees, sub contractors and other providers of services (Attachment 1). 6. MANCHESTER LIVING WAGE ORDINANCE This RFP is subject to the provisions of the Town of Manchester Living Wage Ordinance. A summary description of the ordinance and the certification form is attached. Contractors are asked to indicate on the attached Certification Form if your firm would be considered a covered employer. The Certification Form shall be returned to the Town with the proposal (Attachment 2). 7

10 SECTION IV. FEE PROPOSAL/QUESTIONNAIRE (Please respond in the order requested and number your responses) 1. Provide a brief description and history of your firm, and the servicing office, including any specialization(s), employee size, number of offices and locations. 2. Please indicate the premium volume of the servicing office and the three largest private and public sector accounts. 3. Please describe the background experience and qualifications of the primary account executive who will be specifically assigned to the Town's account along with one backup. Please provide their resumes and document the chain of command for these individuals. 4. Describe in detail the experience and knowledge of the firm and Account Manager on municipal risk, including the number of municipalities serviced, the premium size of that business and the lines or types of coverage. 5. Provide three (3) municipal references (including contact and phone number), describe your successes with that municipality and the lines of coverage involved. 6. Provide a copy of your most recent financial report. 7. Describe in detail, your servicing capabilities with regard to automation, claims management and loss control. Describe the services which would be included in your annual fee and any which would involve additional fees. 8. Describe your firm's marketing technique and strategies and how they have been successful. 9. Provide a list of available markets for each coverage listed in Exhibit A, the servicing office's premium volume and if any of it is municipal specific. Also please disclose any financial arrangement/incentive programs you may have with any of these companies. Also advise as to your relationship with any of the underwriters responsible for CT municipal business at these companies. 10. Provide a one-page discussion on your assessment of the market conditions which will affect the insurance placement of the listed coverage over the next few years for municipalities. List any innovative insurance and risk management solutions you will recommend. 11. Please discuss what will be in the underwriting application package, when it will be completed, and if your company is willing to complete all insurance applications. 12. Explain your experience with municipalities and in particular, self-insured or large deductible municipalities. 8

11 13. Please indicate if your firm would order motor vehicle records on all current employees who drive Town vehicles on a regular basis (approximately 300) and if a fee would be involved. Also indicate how you would proceed to ensure compliance with the U.S. Fair Credit Reporting Act. 14. If your firm is selected as the Town consultant, please discuss how you will familiarize yourself with our properties, policies etc. in order to make effective risk management recommendations. 15. Indicate your annual fee for each of the first three contract years. Said fee shall be inclusive of all areas of service to be provided and shall not limit the number of meetings required during the contract term. No fees for mileage, copying, faxing or telephone charges will be permitted. This annual fee shall be in place of any or all insurance placement commissions and/or bonuses or remunerations of any kind. If any fee or monetary recognition is given to the consultant due to any dealings with the Town, the annual fee will be adjusted by this amount. 9

12 ATTACHMENT 1 INSURANCE REQUIREMENTS The firm shall be responsible for maintaining insurance coverage in force for the life of this contract of the kinds and amounts requested below. Insurance companies must have an AM Best Rating of A-,VII or better and be licensed to write such insurance in Connecticut. As to all insurance required, the firm's insurer or agent shall provide to the Director of Finance, Certificates of Insurance prior to execution of this contract, describing the coverage and providing that the insurer shall give to the Town written notice at least thirty (30) days in advance of any termination, expiration, or any and all changes in coverage. Deductibles and self-insurance shall be declared in the Certificate of Insurance and are subject to approval of the Town. The firm at their own expense, shall procure and maintain all insurance's required and shall name the Town of Manchester and Manchester Board of Education as an additional insured. Workers' Compensation - as required by law. General Liability - Comprehensive Broad Form with minimum limits of $ 2,000,000 per occurrence. Auto Liability/Property Damage - covering any auto with minimum limits of $2,000,000 per accident. Professional Liability - minimum limits of $3,000,000 per occurrence. If the policy is on a claims made basis, the policy shall be continually renewed for two (2) years from the date of this contract. If the policy is replaced and/or retroactive date is changed, then the expiring policy shall be endorsed to extend the reporting period for claims, for the policy in effect during this agreement for two (2) years from the date of this contract. The firm shall require the same insurance that it is required to carry by the Town to be carried by any subcontractors and independent contractors and to obtain Certificates of Insurance before subcontractors and independent contractors are permitted to begin work on the Town account. The firm provides that its insurance coverage is primary and that any insurance of self-insurance maintained by the Town, its officers, agents, servants, and employees shall be excess of the firm's insurance and shall not contribute to it. 10

13 Exhibit A CURRENT SCHEDULE OF INSURANCE for TOWN OF MANCHESTER (including the Board of Education) Effective COVERAGE COMPANY DEDUCTIBLE ANNUAL PREMIUM Property (Bldg. CIRMA 50, ,412 & Contents Inland Marine CIRMA 1,000 in above (Equipment) Boiler & CIRMA 50,000 28,487 Machinery Auto Physical CIRMA 1,000 7,300 Damage Law CIRMA 250,000 32,507 Enforcement Liability (1M) Public Officials CIRMA 250,000 64,810 Liability (1M) School Leaders CIRMA 250,000 20,685 Liability (1M) Excess Auto CIRMA 250, ,789 Liability/GL (1M) Umbrella (10M) CIRMA ,8551 Crime Workers Comp. TRAVELERS (3 yrs.) CIRMA 2, ,000 3, ,426 11

14 ATTACHMENT 2 Summary Description for Vendors Regarding Manchester s Living Wage Ordinance Effective February 1, 2010, the Town of Manchester adopted a living wage ordinance. This Summary Description is designed to provide any vendor bidding on a Town of Manchester contract with the key provisions of that ordinance. It does not contain the full ordinance. LIVING WAGE REQUIREMENT: The ordinance requires that companies awarded service contracts by the Town of Manchester exceeding $25,000 in any one fiscal year pay their Eligible Employees a living wage. Companies considered Covered Employers subject to this requirement are defined below. The Town of Manchester has determined that the contract resulting from this bid or Request for Proposals will be subject to the ordinance if the total contract value is $25,000 or more in any one fiscal year. The living wage is currently calculated to be $13.41/hour for employees that are provided comprehensive health care benefits, or $17.13/hour for employees that are not provided comprehensive health care benefits. The living wage and health benefit requirements are adjusted annually each July, effective July 1, Companies will be required to pay the applicable living wage rate in effect during the term of their contracts. COVERED EMPLOYERS AND EXEMPTIONS: The ordinance requires that Covered Employers pay the living wage rate. Certain employers are excluded from paying the living wage rate. They are as follows: - Non-profit organizations as defined by the ordinance, and - Entities that employ less than 25 eligible employees. ELIGIBLE EMPLOYEES: Eligible employees are all permanent, full time employees of the company (defined as a normal work week of at least 30 hours), working in the State of Connecticut, not just those working on the Town contract. The following are not considered eligible employees for the purposes of the living wage requirement: - Employees with a normal work week of less than 30 hours. - Seasonal or temporary employees. - Employees under the age of

15 - Employees hired as part of a school-to-work program. - Students who serves in a work-study program or as an intern. - Trainees participating for not more than six months in a training program. - Employees enrolled in a governmentally funded vocational rehabilitation program. - Volunteers working without pay. - Employees exempted under Section 14(c) of the Fair Labor Standards Act due to disabilities. - Any person whose wage rate is subject to a federal or State of Connecticut statute or regulation mandating a prevailing wage rate. EMPLOYER OBLIGATIONS: Covered Employers are required to do the following pursuant to the ordinance. - Certify with the submission of their bid or proposal a) that they will pay the required living wage to eligible employees if awarded a contract, or b) that they are exempt from requirements of the ordinance, - Upon award, covered employers shall provide the Town a sworn affidavit affirming that all eligible employees of the covered employer working in the State of Connecticut are receiving the living wage and health benefits required by this ordinance. - This sworn affidavit shall be provided thereafter on an annual basis within 30 days of a request being made by the Town if the duration of the contract exceeds one (1) year. - Notify their employees of their rights under the Living Wage Ordinance by posting a copy of the ordinance and other materials prepared by the Town of Manchester in locations where employees will see them. - Make best efforts to attempt to hire residents of the Town of Manchester for all new positions which result from a service contract subject to the ordinance. PROHIBITED PRACTICES: - Covered Employers cannot decrease non-wage benefits (such as insurance, vacation, or pension) as a means of complying with the living wage requirements. - Covered Employers cannot retaliate or discriminate against any employee for making a complaint against the covered employer regarding compliance with living wage requirements. 13

16 ENFORCEMENT: The Town may enforce the provisions of this ordinance by the imposition of fines, suspension of contract or declaring the Covered Employer ineligible for future contracts. WAIVERS: The ordinance provides for the waiver of certain requirements in the ordinance. However, no waivers will be considered until the bidding process has been completed and a contract has been awarded. Requests for waivers must be made by the Covered Employer, in writing, to the General Manager. The General Manager shall submit the waiver request to the Board of Directors, which shall have the sole discretion as to whether it is granted. The above is intended to be a summary of the requirements of the living wage ordinance as they affect covered employers and is provided for informational purposes only. Employers should read the entire Living Wage Ordinance. It can be found online at on the left side of the page. Click on Document Center, scroll to General Services and click on Living Wage Ordinance. 14

17 TOWN OF MANCHESTER LIVING WAGE CERTIFICATION FORM The Town of Manchester has determined that this contract may be subject to the provisions of the Manchester Living Wage Ordinance, Chapter 212 of the Manchester Code of Ordinances, Sections through Bidders are required to indicate whether they are a Covered Employer as defined by the Manchester Living Wage Ordinance or are exempt from the requirements by marking the appropriate section below. FAILURE TO INDICATE MAY RESULT IN THE REJECTION OF YOUR BID. I/We are a covered employer and shall pay the required living wage to eligible employees and comply with the requirements of the ordinance during the term of the contract. Or that: I/We are not a Covered Employer and therefore not subject to Manchester s Living Wage Ordinance for the reason indicated below: Charitable foundations, charitable trusts or nonprofit agencies or nonprofit corporations, provided that the foundation, trust or nonprofit agency or corporation is exempt from federal income taxation and may accept charitable contributions under Section 501 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. Bidder employs less than twenty five (25) eligible employees. Annual contract value is less than $25,000. I, of do hereby certify Officer, Owner, Authorized Rep. Company Name that the representations made above are accurate for : Bid Name or RFP Name Signed by: Dated: TO BE RETURNED WITH BID OR RFP SUBMISSION. 15