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HomeMy WebLinkAbout16-Human Resources i I"'^ f "° I A" d G~~~~~~,~~L CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION From: EDWARD S. RAYA Subject: RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING Dept: HUMAN RESOURCES THE SELECTION OF ROBERT F. DRIVER COMPANY AS THE CITY'S Date: MARCH 1, 2001 PROPERTY INSURANCE BROKER M/CC Meeting Date: MARCH 19, 2001 Synopsis of Previous Council Action: N/A Recommended Motion: Adopt Resolution. Signature Contact person:-Tnrr, nna~ek Phone: 384-5090 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: None Source: (Acct. No.) ~Arrt rlwcrr' 4in Finance: Council Notes: Agenda Item No. ~- 3119~~1 CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION Staff Report Subiect: Resolution of the City of San Bernardino Authorizing the Selection of Robert F. Driver Company as the City's Property Insurance Broker. Backeround• The City of San Bernardino has been in a multi-year agreement with AON Risk Services to provide property insurance coverage. The coverage expires Apri130, 2001. A Request for Qualifications (RFQ) was sent to 13 insurance firms (seven firms are located in San Bernardino) with responses due by March 9, 2001. The following seven firms responded: 1. AON Risk Services, Costa Mesa 2. CALCO Insurance Brokers & Agents, Inc., Orange 3. Caldwell & Moreland Insurance Services, San Bernazdino 4. Davis & Graeber Insurance Services, Inc., Redlands 5. Hamilton Brewart Insurance, Upland 6. Marsh Risk & Insurance Services, Newport Beach 7. Robert F. Driver Company, Newport Beach The responses were evaluated by a panel of five evaluators on the following factors: • The firm's responsiveness in cleazly stating the understanding of the scope of services in the RFQ. • The firm's size and structure. • The firm's experience with public entities and cities. • The firm's established contact with property insurance mazkets. The following three firms were invited to participate in interviews: 1. AON Risk Services 2. Marsh Risk & Insurance Services 3. Robert F. Driver Company A panel consisting of the City's Risk Management Coordinator, the City's Liability Claims Adjuster, the Safety Program Manager for the Water Department, and the Risk Manager for the Alvord School District conducted the interviews. The panel rated the firm of Robert F. Driver Company, located in Newport Beach, California, as the best qualified. The Robert F. Driver Company was determined to be the best property insurance broker because it is one of the largest brokers specializing in public entity business. Established in 1925, Robert F. Driver Company ranks among the twenty lazgest insurance brokerage firms in the United States. It has experience in working with virtually every insurance carrier and has been very successful in placing different types of insurance for California cities, counties and schools. They have a high client retention rate (96%) and an experienced professional staff (over 15 years on average). The IVDA and SBIAA have recently selected Robert F. Driver Company as their broker for all their insurance. This action is to select the City's property insurance broker. The next step will be for the selected broker to secure a firm quote for renewing the City's coverage by Apri130, 2001, which is the date the current policies expire, with the same terms, conditions, and limits as last yeaz. The City, the Water Department and EDA each budget annually for this coverage. The total City budget for insurance premiums is $735,000, which includes approximately $240,000 for property insurance. Financial Impact: None at this time. Recommendation: Adopt Resolution. c~©~~ 1 Resolution No. • 2 3 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH ROBERT F. DRIVER COMPANY TO 4 PROVIDE PROPERTY INSURANCE BROKERAGE SERVICES FOR A PERIOD OF THREE YEARS. 5 ti BE IT RESOLVED BY THE MAYOR AND COMMON OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 7 SECTION 1: The Mayor of the City of San Bernardino is hereby authorized and 8 9 directed to execute on behalf of said City an Agreement with Robert F. Driver 10 Company to provide property insurance brokerage coverage, a copy of which is 11 attached hereto, marked Exhibit "A" and incorporated herein by reference as fully as 12 though set forth at length. 13 SECTION 2: The authorization to execute the above mentioned agreement is • 14 rescinded 'rf the arties to the a reement fail to si n it within si P 9 9 xty (60) days of the 15 passage of this resolution. 16 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 25 /// 26 /// • 27 /// 28 y~~a I~ ,~~iq/o~ 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE • 2 EXECUTION OF AN AGREEMENT WITH ROBERT F. DRIVER COMPANY TO PROVIDE PROPERTY INSURANCE BROKERAGE SERVICES FOR A PERIOD OF g THREE YEARS. 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 5 Common Council of the City of San Bemardino at a meeting 6 thereof, held on the day of 2001, by the 7 following vote, to wit: 8 9 COUNCILMEMBERS: AYES NAYES ABSTAIN ABSENT ESTRADA 10 LIEN 11 MCGINNIS 12 SCHNETZ 13 SAUREZ • 14 ANDERSON 15 MCCAMMACK 16 17 Rachel Clark, City Clerk 18 19 The foregoing resolution is hereby approved this of 20 , 2001. 21 22 Judith Valles, Mayor 23 City of San Bernardino 24 Approved as to form and Legal content: ~ ~I 26 JAMES F. PENMAN, City Attorney • 27 By: • ~~ivvr, 28 i 1 AGREEMENT 2 3 THIS AGREEMENT is made and entered into this day of 4 2001, by and between the City of San Bernardino, a municipal 5 corporation, hereinafter referred to as "City," and Robert F. Driver Company, hereinafter 6 refereed to as "Broker." 7 WHEREAS, after a selection process, Broker has been selected by the City and 8 9 that Broker shall be Robert F. Driver Company; and, ~ 10 WHEREAS, Broker has experience and knowledge in performing insurance 11 brokerage services. 12 Now, therefore, for and in consideration of the mutual promises, covenants and 13 conditions herein contained, the parties hereto agree as follows: • 14 Under the direction of the City's Director of Human Resources, Broker shall 15 16 provide the City professional insurance brokerage services according to the terms and 17 conditions of this Agreement. 18 i. Agreement. 19 City does hereby contract with Broker to provide professional insurance 20 brokerage services as hereinafter provided for a period of three (3) years, commencing 21 on the first day of May 2001, and terminating on April 30, 2004, Broker hereby accepts 22 said contract and agrees to perform all work and services in accordance with the terms 23 24 and conditions hereof. Broker is hereby appointed as City's exclusive Broker of Record ~ for the three- (3) year period for all fom7s of Property Insurance. 26 • 27 28 1 • 1 2. Services to be Performed. 2 A. Broker shall obtain insurance quotations on all property insurance 3 items maintained by City as of April 30, 2001, as well as any insurance requested for 4 5 consideration in City's request for quaycations for insurance brokerage services, to 6 which Broker responded. ~ B. Whenever market conditions permit, Broker shall obtain at least two 8 (2) quotations on each separate insurance item or layer of insurance. 9 C. Broker shall submit firm quotations to City's Director of Human 10 Resources at least thi 30 da s rior to ex iration of existin rty ( ) y p p g insurance, provided 11 however, that City's Director of Human Resources may waive such thirty (30) day notice 12 13 in the event Broker can demonstrate to the satisfaction of City's Director of Human • 14 Resources that there exists extenuating circumstances, which preclude or make 15 undesirable such thirty (30) day notice. 16 D. Broker shall make a good faith effort to give notice to City's Director 17 of Human Resources of all favorable or unfavorable market developments which might 18 affect City's Director of Human Resources. Annually, on March 1, the Broker will 19 provide a written assessment of policies in force and include recommendations for 20 21 improved risk coverage at the lower price to the City. Annually, no later than November 22 1 of each year, Broker will provide in writing, Broker's best estimates for the renewal 23 premium costs of all City's insurance. 24 E. It is understood that from time to time, Broker shall be requested by 25 City to obtain insurance quotations on certain items not contained in Section 2, A, 26 • above. 27 28 2 1 F. At the request of City's Director of Human Resources, Broker shall 2 include said Director of Human Resources in negotiations with underwriters involving 3 placement of all of the City's insurance programs. It is intended that Broker will utilize 4 5 insurers that will have a Best rating of A, a well as any acceptable financial category li such as 7 or higher. Any exceptions require the approval of the Director of Human 7 Resources. For all insurance quotations, Broker will apprise the Director of Human 8 Resources of the compan~s Best rating 9 G. It is agreed and understood that the Broker account team for the 10 City of San Bernardino will consist of Ken Staley, First Vice President. 11 H. It is the team responsibility, under the direction and control of the 12 13 officer in charge, to perform the following functions: • 14 1) Continually analyze the City of San Bernardino exposures 15 and recommend coverages consistent with these exposures to provide the highest level 16 of coverage at the least possible cost to the City. 17 2) Oversee and coordinate all relevant services performed by 18 Robert F. Driver Company, underwriters or service agencies arranged by the team on 19 behalf of the City. 20 21 3) Be available for advice and information as requested by the ~ City. 23 4) Verify the accuracy of all rates and premiums charged. 24 Submit bills regularly. Deposit and audit all premiums. If premiums are to be allocated 25 by department or program, these allocations will, at the request of the City, be 26 • performed by the account service team. 27 28 3 1 5) CoNect the data necessary and prepare professional quality • 2 insurance proposal submission packages for the proper marketing of the various 3 coverages. 4 6) Perform the administrative and clerical services relative to 5 6 account management, such as certificate issuance, coverage descriptions and policy 7 changes. By October 10 of each year, Broker will provide City with a complete 8 insurance summary, including coverages for the City of San Bernardino Municipai 9 Water Department and the Economic Development Agency. Broker will provide City 10 with an updated insurance summary within thirty (30) days of any change in the latest 11 insurance summary. 12 13 Respond to any extraordinary needs of the City, as • 14 necessary. 15 I. It is agreed and understood that the Broker account team shall 16 meet with City's Director of Human Resources no less often than quarterly, 17 commencing in the third quarter of 2001. Any change in the account team format will 18 require approval by the City's Director of Human Resources. 19 3. Work to be Pertormed by City. 20 21 City shall cooperate with Broker by timely providing all information 22 necessary for Broker to obtain insurance quotations. 23 4. Stoker's Fees and Payment, 24 City shall compensate Broker annually for insurance brokerage services 25 pursuant to this Agreement as follows: 26 • 27 28 4 1 A. For the performance of all services contemplated under this 2 Agreement, including but not limited to, the marketing and placement of all insurance or 3 bond coverage contemplated under this Agreement. 4 B. The City is presently a member of BICEP, an insurance JPA, which 5 6 provides general, law enforcement, automobile, public officials and personal injury 7 liability coverage at $25 million in excess of $1 million. Should the City request Broker 8 to market coverage for these exposures excess of the BICEP program, Broker shall be 9 paid from commissions from insurance carriers. 10 C. On matters in which it is illegal or is not in the best interest of the 11 City for a line of coverage to be issued net of crommission, Broker will negotiate the 12 13 lowest commission possible and shall make full disclosure of any and all commissions 14 to City. No coverage shall be issued inclusive of commission without prior approval of • 15 the Director of Human Resources. 16 5. Termination. 17 This agreement shall terminate on April 30, 2004, unless the parties agree 'i 18 in writing to extend this agreement. 19 6. Amendment. 20 21 The terms of this Agreement can only be amended by written agreement 22 between the parties hereto. 23 6. Assignment. 24 Neither City nor Broker shall assign or transfer its interest in this 25 Agreement without the written consent of the other. 26 • 27 28 5 1 7. Compliance with Laws. 2 In the performance of this Agreement, Broker shall abide by and conform 3 to any and all applicable laws of the United States, State of California and ordinances, 4 5 regulations and policies of the City of San Bernardino. 6 9. Professional Liability Insurance. 7 Broker shall maintain throughout the term of this Agreement professional 8 liability of errors and omissions insurance with coverage limits in amounts not less than 9 $5 million; Broker shall furnish to City a cert~cate issued by Broker's professional 10 liability insurance carrier, showing that the above-mentioned insurance has been issued 11 and is in full force and effect; and, providing thirty (30) day's written notice to the 12 13 Director of Human Resources of City prior to any cancellation, termination, non-renewal • 14 or reduction of said insurance. 15 10. Hold Harmless. 16 The Broker hereby agrees to indemnify, defend, and hold harmless the 17 City and its departments, agents, officers and employees from any and all claims or 18 sums which the City or any of its departments, agents, officers, or employees may be i 19 20 obligated to pay by reason of any liability of any kind imposed upon them, including 21 damages to property or injury or death of persons, arising out of the performance of the 22 services rendered by the Broker or caused by any error, omission, or act of the Broker 23 or of any person employed by the Broker or of any others for whose acts the Broker is 24 legally liable. Said sums shall include, in the event of legal action, court costs, 25 expenses of litigation, and reasonable attorney's fees. The costs, salary and expenses 2ti 27 28 6 1 of the City Attorney and members of his office in enforcing this contract on behalf of the 2 City shall be considered as "attorney's fees" for the purposes of this paragraph. 3 11. Complete Aoreement. 4 5 This agreement shall be the entire Agreement between the parties and 6 shall supersede any prior written or oral communication between parties. 7 8 9 10 11 12 13 . 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 ATTEST: CITY OF SAN BERNARDINO 2 Municipal Corporation of the State of California 3 4 5 Rachel Ctark, City Clerk Judith Valles, Mayor 6 7 8 BROKER 9 (name) (title) 10 11 By: 12 (Company) 13 (location) 14 Approved as to form . And legal content: 15 JAMES F. PENMAN 16 City Attorney 17 18 By. ~.~..~,, 19 20 21 HRlAgenda Items.RESOAON.SERVICES.CONTRACT 03H3ro1 22 23 24 25 26 27 28 8 i CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management (RIM) Program DATE: March 23, 2001 TO: Tom Mazek, Risk Management Coordinator FROM: Michelle Taylor, Senior Secretary RE: Transmitting Documents for Signature -Resolution 2001-54 At the Mayor and Common Council meeting of Mazch 19, 2001, the City of San Bernardino adopted Resolution 2001-54 -Resolution of the City of San Bernardino authorizing the execution of an agreement with Robert F. Driver Company to provide property insurance brokerage services for a period of three years. Enclosed is one (1) original agreement. Please obtain signatures where indicated on the agreement and return to the City Clerk's Office as soon as possible, to my attention. Please be advised that the resolution and agreement will be null and void if not executed within 60 days, or by May 18, 2001. If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you. Michelle Taylor Senior Secretary I hereby acknowledge • ceipt of the above mentioned documents. Signed: 3~,~,~ /~ J Please sign and return Date: ~/~ c L l CITY OF SAN BERNARDINO Interoffice Memorandum CITY CLERK'S OFFICE Records and Information Management (RIM) Program DATE: March 23, 2001 TO: Tom Mazek, Risk Management Coordinator YOUR COPY FROM: Michelle Taylor, Senior Secretary RE: Transmitting Documents for Signature -Resolution 2001-54 At the Mayor and Common Council meeting of Mazch 19, 2001, the City of San Bernardino adopted Resolution 2001-54 -Resolution of the City of San Bernardino authorizing the execution of an agreement with Robert F. Driver Company to provide property insurance brokerage services for a period of three years. i Enclosed is one (1) original agreement. Please obtain signatures where indicated on the agreement and return to the City Clerk's Office as soon as possible, to my attention. Please be advised that the resolution and agreement will be null and void if not executed within 60 days, or by May 18, 2001. If you have any questions, please do not hesitate to contact me at ext. 3206. Thank you. Michelle Taylor Senior Secretary I hereby acknowledge receipt of the above mentioned documents. Signed: ~l-/xe/ Date: ~"TiG''~~ ' FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT RESOLUTION AGENDA ITEM TRACHING FORM Meeting Date (Date Adopted): 3- lol -OI Item # 1 b Resolution # `ZOO 1 ' Sy Vote: Ayes 1-35-'1 Nays $ Abstain ~- Absent~_ Change to motion to amend original documents: Reso. # On Attachments: Contract term: NulWoid After: 5-125' O 1 Note on Resolution of Attachment stored separately: ~ Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY Date: See Attached: - Dale Sen[ to Mayor: 3 -2.1' c7 \ Reso. Log Updated: Date of Mayor's Signature: 3- 2"?,-b I Seal Impressed: Date of Clerk/CDC Signature: 3' Z3"OI Date Memo/Letter Sent for Signature: 3 -2 3- 61 See Attached: ~ Date Returned: 3- a. Sr~01 60 Day Reminder Letter Sent on 30th day: See Attached: 90 Day Reminder Letter Sent on 45th day: See Attached: _ Request for Council Action & Staff Report Attached: Yes ~/ No _ By Updated Prior Resolutions (Other Than Below): Yes _ No ? By Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Yes _ No ? By Updated CDC Personnel Folders (5557): Yes _ No ? By Updated Traffic Folders (3985, 8234, 655, 92-389): Yes No ~ By Copies Distributed to: City Attorney ~ Code Compliance Dev. Services EDA Finance MIS Parks & Rec. Police Public Services Water Others: R Notes: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.l Ready to File: (11T Date: 3-2~'OI