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RESOLUTION NO. 2018-43
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA AUTHORIZING THE EXECUTION OF A FIRST
AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT BETWEEN AON
RISK INSURANCE SERVICES WEST, INC. AND THE CITY OF SAN
BERNARDINO
WHEREAS, the Mayor and City Council previously authorized the execution of a
consultant services agreement between Aon Risk Insurance Services West, Inc., and the City
of San Bernardino ("Agreement"); and
WHEREAS, the services provided by Aon Risk Insurance Services West, Inc.
pursuant to the terms of original Agreement resulted in significant insurance cost savings to
the City of San Bernardino; and
WHEREAS, the term of the original Agreement expired on January 30, 2018; and
WHEREAS, staff have determined that an extension of the original Agreement with
certain modifications to the term and annual amount will result in continued cost savings and
improvement of the City's all risk property insurance program.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager is hereby authorized and directed to execute this First
Amendment to Consultant Service Agreement between AON Risk Insurance Services West,
Inc. and the City of San Bernardino, a copy of which is incorporated herein and attached
hereto as Exhibit "A."
SECTION 2. The Purchasing Manager is hereby authorized to issue a Purchase Order
to AON Risk Insurance Services West, Inc. for property insurance broker services for a total
annual amount not to exceed $85,000.00 annually with three (3) one (1) year options to
extend.
SECTION 3. The authorization granted hereunder shall expire and be void and of no
further effect if the Agreement is not executed by both parties and returned to the Office of the
City Clerk within sixty (60) days following the effective date of this Resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA AUTHORIZING THE EXECUTION OF A FIRST
AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT BETWEEN AON
RISK INSURANCE SERVICES WEST, INC. AND THE CITY OF SAN
BERNARDINO.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the
21' day of February 2018, by the following vote, to wit:
Council Members:
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL
AYES NAYS
_A
x
A
ABSTAIN ABSENT
-k
Georgeani4i anna, C ; City Clerk
The foregoing Resolution is hereby approved this 21 St day of February 2018.
R. Carey Davij( Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
2
,
By:
2
EXHlB1 T A
Broker Services Scope of Work Scope of Work
AON will act as the City's Property Insurance Broker, as applicable, with respect to the
following lines of insurance and their respective dates of coverage:
a. Property All Risk Insurance
b. Auto/Motor liability Physical Damage
c. Lead Umbrella Excess Liability
d. Fidelity Bond Crime Insurance
e. Boiler & Machinery
f. Difference in Conditions
g. Surety Bonds
AON shall provide the following services as to respects the lines of insurance In Section 1,
above:
a. Work with the City to assess the City's risk exposures;
b. Work with the City to design and develop the City's insurance program;
c. Assist with documentation and other steps to obtain commitments for and
implementation of the City's insurance program upon the City's instructions;
d. Keep the City informed of significant changes and/or trends in the insurance
marketplace and provide the City with annual information on market trends;
e. Assist the City in identifying insurers. Solicit quotations from insurers for selection by
the City for the placement of City's insurance program in accordance with the
City's instructions;
f. Conduct a Renewal Strategy Meeting in advance of each placement;
g. Negotiate on City's behalf with insurers and keep the City informed of significant
developments in the negotiations;
h. Assist the City with the evaluation of options received from the insurance market
best efforts to place insurance on behalf of the City as directed by the City and
secure the City's approval prior to requesting insurers to bind coverage;
j. Follow up with insurance carriers for timely issuance of policies and endorsements;
k. Promptly respond to City's questions related to coverage placed by AON or the
placement process;
I. Deliver binders on or before the effective date of coverage being placed, subject to
placement;
m. Processor facilitates the processing and delivery of certificates or memoranda of
insurance and auto identification cards with respect to insurance policies placed by
AON, as requested by the City;
n. Review policies and endorsements for conformity to agreed terms and coverages;
o. Provide coverage summaries for all new placements and updates on changes to
existing policies;
EXHIBIT A
p. Review premium and exposure audits, rating adjustments, dividend calculations
and loss data;
q. Assist the City in establishing claims reporting procedures to insurers;
r. Monitor published financial information of the City's current insurers and alerts the
City when the status of one or more of such insurers falls below AON's minimum
financial guidelines. Insurers with whom the City's risks have been placed will be
deemed acceptable to the City, in the absence of contrary instructions from the City.
Provide the City with detailed invoices, except in the case of direct billing by
insurers. Remit premiums to insurers and taxes and fees to the relevant authorities
on a timely basis, following receipt thereof from the City;
t. Provide the following property loss control services as respects locations facilities in
San Bernardino:
Evaluate internal hazards of the City's operations,
Evaluate external exposures of the City's operations,
Provide City with information relating to government regulations which may affect
property loss control, Assist City in City's efforts to comply with or mitigate insurer
recommendations, Perform one loss control review of the City's facilities, Prepare
specialized underwriting information, and Perform special studies relating to
Seismic Assessment;
u. Assist the City in the development and implementation of internal claims handling
procedures;
v. Assist the City with initial reporting of claims to Insurers as follows:
Evaluate coverage applicability with the exception of Workers' Compensation and
or Primary Casualty claims, Prepare loss notices to insurers,
Notify insurers of claims, provided that the City's AON claims representative is
informed of the claim in writing by the City, with details of the claim;
w. Assist the City with the settlement of claims with Insurers as follows:
Assist in the development of settlement strategies, Assist with insurer negotiations,
Assist the City with litigation management issues that impact claim settlement;
x. Provide benchmarking information for lines of insurance placed by AON and;
y. Upon the City's request, review City's contracts with respect to Insurance and risk
management related issues.
FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO AND
AON RISK INSURANCE SERVICES WEST, INC.
This First Amendment is made and entered into as of March 7, 2018 by and between the City
of San Bernardino, a charter city ("City"), and AON Risk Insurance Services West, Inc.
("Consultant"), collectively referred to as the ("Parties"). In consideration of the mutual
covenants and conditions set forth herein, the parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
a. On January 22, 2014, the City and Consultant entered into an agreement entitled
"Consultant Services Agreement between The City of San Bernardino and AON Risk
Insurance Services West, Inc., for a total amount of fifty thousand dollars and no cents
($50,000.00) Plus 20% Commission on Premium Savings.
c. The parties now desire to amend the Agreement for an annual amount not to exceed
eighty five thousand dollars and no cents ($85,000.00) with three (3) one (1) year
options to extend and amend the Agreement as set forth in this Amendment.
2. Compensation. The Agreement is hereby amended to increase the amount of
compensation that the City agrees to pay the Consultant. City shall pay to Consultant a fixed
flat fee not -to -exceed the annual amount of eighty five thousand dollars and no cents
($85,000.00). City shall pay Consultant for services rendered pursuant to this Agreement at
the time and in the manner set forth in the Agreement.
3. Term. The Agreement is hereby amended to extend the term of the Agreement to March 7,
2019. The Agreement shall also include three (3) options to extend the Agreement for one
(1) year, at the option of the Parties.
4. Termination. The Agreement may be terminated as provided for pursuant to the terms of
the Agreement.
5. Except for the changes specifically set forth herein, all other terms and conditions of the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their respective authorized officers, as of the date first above written.
1 CITY O S N BERN fR O
Date:.26.a By:
Andrea M. Miller, City Manager
Dated: - 02laa
Approved as to Form:
Gary D. Saenz, City Attorney
1
By:
CONSULTANT
AON
� �Risk
Insurance Services West, Inc.
By: �J` "�`" 1jW
Billy Deeb; Principal