HomeMy WebLinkAbout1997-109
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R.so1ution No. 97-109
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION
OF AN AGREEMENT WITH AONRISK SERVICES TO PROVIDE PROPERTY
INSURANCE BROKERAGE SERVICES FOR A PERIOD OF TWO YEARS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF S
BERNARDINO AS FOLLOWS:
SECTION 1:
The Mayor of the City of San Bernardino is
8 hereby authorized and directed to execute on behalf of said City a
9 Agreement with AON Risk Services to provide property insurance
10 brokerage coverage, a copy of which is attached hereto, marked
11 Exhibit "A" and incorporated herein by reference as fully as thoug
12 set forth at length.
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SECTION 2:
The authorization to execute the above
14 mentioned agreement is rescinded if the parties to the agreement
15 fail to sign it within sixty (60) days of the passage of this
16 resolution.
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97-109
1 I HEREBY CERTIFY that the foregoing resolution was duly
2 adopted by the Mayor and Common Council of the City of San
3 Bernardino at a joint regular meeting thereof, held on the
21st day of April 1997, by the
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5 following vote, to wit:
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7 COUNCILMEMBERS ~ .HAYS. ABSENT ABSTAIN
NEGRETE x
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CURLIN x
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ARIAS x
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OBERHELMAN x
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DEVLIN x
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ANDERSON x
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MILLER x
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15 1( ardul Cl0JJ0
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CITY CLERK
17 !J YMd7Ju"rJudWflJ/ f2epu1fj
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The foregoing resolution approved this day of Apnl ,
19 1997.
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/ ~~1/'~
TOM MINOR, 0 "-
CITY OF SAN BERNARDINO
23 Approved as to
form and legal content:
24 JAMES F. PENMAN
25 city Attorney ~
:, B#~ 7 ie~
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97-109
1 AGREEMENT
2 THIS AGREEMENT is made and entered into this 15th day of April
3 1997, by and between the City of San Bernardino, a municipal
4 corporation, hereinafter referred to as "City," and AON Risk
5 Services, San Bernardino, hereinafter referred to as "Broker."
6 WHEREAS, CITY desires to obtain professional insurance
7 brokerage service on a contract basis; and
8 WHEREAS, after a selection process Broker has been selected by
9 the city and that Broker shall be AON Risk Services, San
10 Bernardino; and
11 WHEREAS Broker has experience and knowledge in performing
12 insurance brokerage services.
13 Now, therefore, for and in consideration of the mutual
14 promises, covenants and conditions herein contained, the parties
15 hereto agree as follows:
16 Under the direction of the City's Risk Manager, Broker shall
17 provide to city professional insurance brokerage services according
18 to the terms and conditions of this Agreement.
19 1. Acrre_ent.
City does hereby contract with Broker to provide professional
insurance brokerage services as hereinafter provided for a period
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of ~ ~ years, commencing on the 1st of May 1997, and
erminating on April 30, 1999. Broker hereby accepts said contract
nd agrees to perform all work and services in accordance with the
25 erms and conditions hereof. Broker is hereby appointed as City's
26 xclusive Broker of Record for the 2 year period for all forms of
27 roperty Insurance.
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EX'HI/3 rr ''A''
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2. Servioes to ~e Derformed.
A. Broker shall obtain insurance quotations on all property
insurance items maintained by city as of April 15, 1997, as well as
any insurance requested for consideration in city's request for
proposal for insurance brokerage services, to which Broker
responded.
B. Whenever m3.rket conditions permit, Broker shall obtain at
least two quotations on each separate insurance item or layer of
insurance.
c. Broker shall submit firm quotations to city's Risk
Manager at least thirty (30) days prior to expiration of existing
insurance, provided, however, that City's Risk Manager may waive
such 30 day notice in the event Broker can demonstrate to the
satisfaction of city's Risk Manager that there exists extenuating
circumstances which preclude or make undesirable such 30 day
notice.
D. Broker shall make a good faith effort to give notice to
city's Risk Manager of all favorable or unfavorable market
developments which might affect City's Risk Manager. Annually, on
March 1st, the Broker will provide a written assessment of policies
in force and include recommendations for improved risk coverage at
the lower price to the city. Annually, no later than November 1st
of each year, Broker will provide, in writing, Broker's best guess
estimates for the renewal premium costs of all city's insurance
policies to provide guidance to city for future budgeting purposes.
E. It is understood that, from time to time, Broker shall be
requested by city to obtain insurance quotations on certain items
not contained in section 2A, above.
April 15, 1997
97-109
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1 F. At the request of City's Risk Manager, Broker shall
2 include said Risk Manager in negotiations with underwriters
3 involving placement of all of the City's insurance programs. It is
4 intended that Broker will utilize insurers that will have a Best
5 rating of A, as well as any acceptable financial category such as
6 7 or higher. Any exceptions require the approval of the Risk
7 Manager. For all insurance quotations, Broker will apprise the
8 Risk Manager of the company's Best rating.
9 G. It is agreed and understood that the Broker account team
10 for the City of San Bernardino will consist of Kennen B. Staley,
11 Senior Vice-President.
12 H. It is the team responsibility, under the direction and
13 control of the officer in charge, to perform the following
14 functions:
15 L continually analyze the City of San Bernardino exposures
16 and recommend coverages consistent with these exposures, to provide
17 the highest level of coverage at the least possible cost to the
18 City .
19 2. Oversee and coordinate all relevant services performed b:t
20 AON Risk services, underwriters or service agencies arranged by the
21 team on behalf of the city.
22 3. Be available for advice and information as requested by
23 the City.
24 4. Check and bill regularly, deposit, and audit premiums.
25 If premiums are to be allocated by department or program, these
26 allocations will, at the request of the City, be performed by the
27 account service team.
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April 1.5, 1.997
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97-109
5. Collect the data necessary, and prepare professional
quality insurance proposal submission packages, for the proper
marketing of the various coverages.
6. Perform the administrative and clerical services
relative to account management, such as certificate issuance,
coverage descriptions and policy changes. By October 10th of each
year, Broker will provide city with a complete insurance summary,
including coverages for Economic Development Agency. Broker will
provide city with a complete insurance summary, including coverage
for Economic Development Agency. Broker will provide City with an
updated insurance summary within thirty days of any change in the
latest insurance summary.
7. Respond to any extraordinary needs of the city, as
necessary.
I. It is agreed and understood that the Broker account team
shall meet with city's Risk Manager no less often than quarterly,
commencing in the third quarter of 1997. Any change in the accoun
team format will require approval by the City'S Risk Manager.
3. Work to be Der~ormed bv citv.
City shall cooperate with Broker by timely providing all
information necessary for Broker to obtain insurance quotations.
4. Extra Services.
It is agreed that Broker
appraisal, BY ~~f;""'l "'FE
will arrange for a property
)~er, of all City, Water
Department, and Economic Development Agency properties which wil
be completed by Novemeber 1, 1997.
April 15, 1997
97-109
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5. Broker's Fees and PaYment.
City shall compensate Broker annually for insurance brokerage
services pursuant to this Agreement as follows:
A. For the performance of all services contemplated under
this Agreement, including but not limited to the marketing and
placement of all insurance or bond coverage contemplated under thi
Agreement, Broker shall be paid by commissions from carrier under
this Agreement.
B. The City is presently a member of BICEP, an insurance
JPA, which provides general, law enforcement, automobile, public
officials, and personal injury liability coverage at $25,000,000
excess of $1,000,000. Should the City request Broker to market
coverage for these exposures excess of the BICEP program, Broker
shall be paid from commissions from insurance carriers.
C. On matters in which it is illegal, or is not in the best
interest of the City, for a line of coverage to be issued net of
commission, Broker will negotiate the lowest commission possible
and shall make full disclosure of any and all commissions to City.
No coverage shall be issued inclusive of commission without prior
approval of the Risk Manager.
7. Termination.
Either party may terminate this agreement as of May 1st of
each year by giving the other party notice on or before March 1st
preceding the May 1st anniversary.
8. Amendment.
The terms of this Agreement can only be amended by written
agreement between the parties hereto.
April 15,1997
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97-109
9. Assianment.
Neither city nor Broker shall assign or transfer its interest
in this Agreement without written consent of the other.
10. ComDliance 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.
11. Professional Liabilitv Insurance.
Broker shall maintain throughout the term of this Agreement
professional liability errors and omissions insurance with coverag
limits in amounts not less than $5,000,000, Broker shall furnish t
city a certificate issued by Broker's professional liability
insurance carrier, showing that the above mentioned insurance has
been issued and is in full force and effect; and providing thirty
(30) days' written notice to the Risk Manager of City prior to any
cancellation, termination, non-renewal, or reduction of said
insurance.
12. Hold Harmless.
Broker agrees to defend, indemnify, and hold harmless the
city, its officials, employees, representatives, and volunteers
from and against any and all claims, demands, defense costs,
liability, or consequential damages of any kind or nature arising
out of or in connection with the Broker's performance, or failure
to perform, under the terms of this Agreement.
April 15, 1997
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97-109
13. ComDlet. Aareement.
This Agreement shall be the entire Agreement between the
parties and shall supersede any prior written or oral communicatio
between parties.
ATTEST:
CITY OF SAN BERNARDINO
Municipal Corporation of
the Sta e 0 California
~,~k
BROKER~g,v~ J),o"S I ~Lt
"SR., viCe fILs. I
AON Risk Services
San Bernardino
Approved as to form
and legal content:
JAMES F. PENMAN
city A torney
?Ie~
By:
April 15, 1997