HomeMy WebLinkAbout1999-132
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3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH AON RISK SERVICES TO PROVIDE
4 PROPERTY INSURANCE BROKERAGE SERVICES FOR A PERIOD OF ONE YEAR.
Resolution No, 1999-132
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BE IT RESOLVED BY THE MAYOR AND COMMON OF THE CITY OF SAN
6 BERNARDINO AS FOllOWS:
7 SECTION 1: The Mayor of the City of San Bernardino is hereby authorized and
8 directed to execute on behalf of said City an Agreement with AON Risk Services to
9 provide property insurance brokerage coverage, a copy of which is attached hereto,
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marked Exhibit "A" and incorporated herein by reference as fully as though set forth at
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length,
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SECTION 2: The authorization to execute the above mentioned agreement is
14 rescinded if the parties to the agreement fail to sign it within sixty (60) days of the
15 passage of this resolution,
16 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
17 Common Council of the City of San Bernardino at a
joint- TPqnl:lT
meeting thereof,
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held on the 7th
day of
June
, 1999, by the following vote,
to wit:
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III
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1999-132
1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH AON RISK SERVICES TO PROVIDE
2 PROPERTY INSURANCE BROKERAGE SERVICES FOR A PERIOD OF ONE YEAR.
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COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT
ESTRADA x
LIEN x
MCGINNIS x
SCHNETZ x
DEVLIN x
ANDERSON x
MILLER x
()~ ~,~
RaChel Clark, City Clerk
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The foregoing resolution is hereby approved this
June
,1999,
-, :-.t.~~
Valles, Mayor
f San Bernardino
Approved as to form and
21 Legal content:
22 JAMES F. PENMAN,
23 City Attorney
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4ht
of
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1999-132
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AGREEMENT
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3 ! I THIS AGREEMENT is made and entered into this seventh day of June, 1999, by
41, and between the City of San Bemardino, a municipal corporation, hereinafter referred to
511 as "City," and AON Risk Services, San Bernardino, hereinafter referred to as "Broker,"
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WHEREAS, after a selection process, Broker has been selected by the City and
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that Broker shall be AON Risk Services, San Bernardino; and,
WHEREAS, Broker has experience and knowledge in performing insurance
10 brokerage services,
11 Now, therefore, for and in consideration of the mutual promises, covenants and
12 conditions herein contained, the parties hereto agree as follows:
13 Under the direction of the City's Director of Human Resources, Broker shall
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provide the City professional insurance brokerage services according to the terms and
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conditions of this Agreement.
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AQreement.
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City does hereby contract with Broker to provide professional insurance
19 brokerage services as hereinafter provided for a period of one (1) year, commending on
the one (1) year period for all forms of Property Insurance.
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2.
Services to be Performed.
A.
Broker shall obtain insurance quotations on all property insurance
27 items maintained by City as of April 30, 1999, as well as any insurance requested for
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. 1999-,132
I , consideration in City's request for proposal for insurance brokerage services, to which '
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Broker responded,
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B, Whenever market conditions permit, Broker shall obtain at least two
(2) quotations on each separate insurance item or layer of insurance.
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C.
Broker shall submit firm quotations to City's Director of Human
7 Resources at least thirty (30) days prior to expiration of existing insurance, provided
8 however, that City's Director of Human Resources may waive such thirty (30) day notice
9 in the event Broker can demonstrate to the satisfaction of City's Director of Human
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Resources that there exists extenuating circumstances, which preclude or make
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undesirable such thirty (30) day notice.
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Broker shall make a good faith effort to give notice to City's Director
14 of Human Resources of all favorable or unfavorable market developments which might
15 affect City's Director of Human Resources. Annually, on March 1, the Broker''''i11
I 6 provide a written assessment of policies in force and include recommendations for
17 improved risk coverage at the lower price to the City. Annually, no later than November
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1 of each year, Broker will provide in writing, Broker's best guess estimates for the
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renewal premium costs of all City's insurance,
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E.
It is understood that from time to time, Broker shall be requested by
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insurance quotations on certain items not contained in Section 2, A,
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F.
At the request of City's Director of Human Resources, Broker shall
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include said Director of Human Resources in negotiations with underwriters involving
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placement of all of the City's insurance programs, It is intended that Broker will utilize
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1999-'132
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insurers that will have a Best rating of A, a well as any acceptable financial category ,
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such as 7 or higher, Any exceptions require the approval of the Director of Human
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Resources. For all insurance quotations, Broker will apprise the Director of Human
4 I Resources of the company's Best rating
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It is agreed and understood that the Broker account team for the
7 City of San Bernardino will consist of Kennen B. Staley, Senior Vice-President.
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H.
It is the team responsibility, under the direction and control of the
of coverage at the least possible cost to the City.
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2)
Oversee and coordinate all relevant services performed by
15 AON Risk Services, underwriters or service agencies arranged by the team on behalf of
16 the City,
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3) Be available for advice and information as requested by the
4) Check and bill regularly, deposit and audit premiums, If
21 premiums are to be allocated by department or program, these allocations will, at the
22 request of the City, be performed by the account service team.
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5)
Collect the data necessary and prepare professional qualify
24 insurance proposal submission packages for the proper marketing of the various
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coverages.
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1 i I 6) Perform the administrative and clerical services relative to .
21 account management, such as certificate issuance, coverage descriptions and policy
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changes. By October 10 of each year, Broker will provide City with a complete
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insurance summary, including coverages for Economic Development Agency. Broker
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6 will provide City with an updated insurance summary within thirty (30) days of any
i change in the latest insurance summary.
7) Respond to any extraordinary needs of the City, as
It is agreed and understood that the Broker account team shall
Director of Human Resources no less often than quarterly,
13 commencing in the third quarter of 1999. Any change in the account team format will
14 require approval by the City's Director of Human Resources,
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3.
Work to be Performed by City.
City shall cooperate with Broker by timely providing all information
1 i necessary for Broker to obtain insurance quotations.
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4.
Broker's Fees and Payment.
City shall compensate Broker annually for insurance brokerage services
21 pursuant to this Agreement as follows:
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A.
For the performance of all services contemplated under this
23 Agreement, including but not limited to, the marketing and placement of all insurance or
24 Ibond coverage contemplated under this Agreement.
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B,
The City is presently a member of BICEP, an insurance JPA, which
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provides general, law enforcement, automobile, public officials and personal injury
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1,1 . 1999-132
1 liability coverage at $25 million excess of $1 million, Should the City request Broker to
2 market coverage for these exposures excess of the BICEP program, Broker shall be
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paid from commissions from insurance carriers,
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C, On matters in which it is illegal or is not in the best interest of the
6 City for a line of coverage to be issues net of commission, Broker will negotiate the
7 lowest commission possible and shall make full disclosure of any and all commissions
8 to City. No coverage shall be issues inclusive of commission without prior approval of
9 the Director of Human Resources.
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5.
Termination.
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This agreement shall terminate on April 30, 2000, unless the parties agree
in writing to extend this agreement.
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Amendment.
The terms of this Agreement can only be amended by written agreement
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6, Assiqnment.
Neither City nor Broker shall assign or transfer is interest in this
Agreement without written consent of the other.
7. Compliance with Laws.
In the performance of this Agreement, Broker shall abide by and conform
to any and all applicable laws of the United States, State of California and ordinances,
regulations and policies of the City of San Bernardino,
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liability of errors and omissions insurance with coverage limits in amounts not less than
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1,999:"l32
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Professional Liabilitv Insurance.
Broker shall maintain throughout the term of this Agreement professional
$5 million; Broker shall fumish to City a certificate issued by Broker's professional
liability insurance carrier, showing that the above-mentioned insurance has been issued
7 and is in full force and effect; and, providing thirty (30) day's written notice to the
8 Director of Human Resources of City prior to any cancellation, termination, non-renewal
9 or reduction of said insurance.
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10, Hold Harmless.
Broker agrees to defend, indemnify and hold harmless the City, its
officials, employees, representatives and volunteers from and against any and all
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14 claims, demands, defense costs, liability or consequential damages of any kind or
15 nature arising out of or in connection with the Broker's performance or failure to perform
16 under the terms of this Agreement.
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11, Comolete Aareement.
This agreement shall be the entire Agreement between the parties and
shall supersede any prior written or oral communication between parties.
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. 1999-132
1 ATTEST:
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5 ~Ity Clerk
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1411 Approved as to form
I And legal content:
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: JAMES F, PENMAN
16 i City Attorney
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CITY OF SAN BERNARDINO
Municipal Corporation of the
State of California
BROKER
Kennen B. Staley
Senior Vice President
AON Risk Services
San Bernardino
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