HomeMy WebLinkAboutRes1991-131
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Sponsored by: Schaefermeyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AWARDING A CONTRACT TO CORROON
AND BLACK TO PROVIDE INSURANCE AND RISK MANAGEMENT
SERVICES TO THE CITY
WHEREAS, Corroon & Black has been the city'S insurance broker
for at least eight years; and
WHEREAS, during this time, Corroon & Black has placed policies
for virtually all of the city's lines of coverage; and
WHEREAS, since July 1, 1988, when the city joined the Alaska
Municipal League's Joint Insurance Association (JIA), the city has
not had broker representation for the lines of coverage provided by
the JIA; and
WHEREAS, for the past two years, Corroon & Black has provided
risk management services to the city under a separate contract; and
WHEREAS, the city desires to renew this contract for an
additional two years; and
WHEREAS, funds are available for this contract within the
city's insurance budget;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to execute
a contract with Corroon & Black to provide insurance broker and
risk management services to the city of Seward for an annual fee of
$25,000. A copy of the agreement is attached and incorporated
herein by reference.
Section 2. This resolution shall take effect immediately upon
its adoption.
PASSED AND APPROVED by the City Council of the city of Seward,
Alaska, this 14th day of October, 1991.
THE CITY OF SEWARD, ALASKA
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Beverly Dunham, Vice Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 91-131
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Burgess, Crane, Dunham, Krasnansky, Swartz & White
None
Cripps
None
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
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(City Seal)
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Fred B. Arvidson
City Attorney
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AGREEMENT FOR INSURANCE BROKER AND RISK MANAGEMENT SERVICES
between
city of Seward, Alaska
P.O. Box 167
Seward, Alaska 99664
(Hereinafter referred to as "CITY")
and
Corroon & Black, Inc.
4220 B Street
Anchorage, Alaska 99503
(Hereinafter referred to as "BROKER")
Effective Date: July 1, 1991
Term: July 1, 1991 to June 30, 1993
WHEREAS, the CITY is a political subdivision of the state of Alaska
which has entered into a Cooperative Participation Agreement with the
Alaska Municipal League Joint Insurance Association for joint insurance
arrangements; and
WHEREAS, the Alaska Municipal League Joint Insurance Association
(hereafter, the "JIA") is a nonprofit corporation organized in the
state of Alaska for the purpose of enable Alaska local governmental
entities to join together for pooling risks, self-insurance management,
joint purchase of excess insurance and reinsurance, claims
administration, loss prevention and control, defense against claims and
other related risk management services on behalf of its members as
authorized by Alaska Statutes; and
WHEREAS, the BROKER, subject to the requirements imposed upon the
BROKER by law in the state of Alaska, is desirous of assisting the CITY
wi th certain risk management and insurance brokerage services as
provided in this Agreement; and
WHEREAS, the CITY is desirous of appointing the BROKER as its alternate
representative to assist with its responsibilities to the JIA and its
"Broker of Record" with regard to insurance placements which are not
available through the JIA.
NOW, THEREFORE, it is mutually agreed as follows:
1.00 Designation of Broker by city. The BROKER is hereby appointed
the "Broker of Record" by the CITY for the purposes of this Agreement.
SEWARD. DOC/PJCT3
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2.00 Term of Agreement. This Agreement shall become effective on
July 1, 1991 and shall continue for two (2) years unless amended,
canceled, nonrenewed, or otherwise terminated in accordance with this _
Agreement.
3.00 Scope of Broker's Services. The BROKER shall assist the CITY
with its responsibilities to the JIA as defined in the Bylaws of the
JIA and the cooperative Participation Agreement between the CITY and
the JIA, a copy of which is incorporated here in by referenced as if
fully set forth in this Agreement. The BROKER shall also serve as the
CITY's "Broker of Record" for placement of lines of insurance coverage
which are not provided by the JIA.
3.10 Responsibilities of the City to the JIA. The CITY's
responsibilities to the JIA, as defined in section 14 of the
Cooperative Participation Agreement, include the following obligations:
3.11 The governing body of each PARTICIPANT shall appoint a
representative as provided in Article 5, section 2 of the Association
Bylaws, and at lease one alternate representative to attend Members'
meetings.
The Finance Director shall
to the JIA: the BROKER
Alternate Representative.
be the CITY's representative
shall serve as the CITY's
3.12 Each PARTICIPANT shall appoint an employee of the
PARTICIPANT to be responsible for the risk management function within-
that entity, and to serve as a liaison between the PARTICIPANT and the
JIA as to risk management.
The Finance Director shall be responsible for the CITY's
Risk Manaqement Functions.
3.13 Each PARTICIPANT shall maintain an active safety officer
and safety committee, and shall comply with all recommendations of the
JIA concerning the development and implementation of a loss control
policy to prevent unsafe practices.
The Enqineerinq Manaqer shall be the CITY's Safetv
Officer.
3.14 Each PARTICIPANT shall maintain its own set of records, as
a log loss, in all categories of loss to ensure accuracy of the JIA's
loss reporting system.
3.15 Each PARTICIPANT shall pay its premium and any readjusted
amount promptly to the JIA when due. After withdrawal or termination,
each PARTICIPANT shall pay promptly to the JIA its share of any
additional premium and accrued interest at a rate determined by the
JIA's Board of Trustees under Section 21 or 22 of the Cooperative
Participation Agreement.
SEWARD. DOC/PJCT3
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3.16 Each PARTICIPANT shall not enter into an agreement to
purchase insurance for the risks as to which insurance is provided by
the JIA for coverage during the period that said PARTICIPANT is a
member of the JIA program,
This reauirement shall apply to the followina coveraaes from July 1.
1991 throuah June 30. 1993:
General Liability: Workers' Compensation and Employer's
Liability: Auto Liability: Police Professional Liability:
Public Official Liability: Property and Employee
Dishonesty Insurance.
Coveraaes presently procured bY the CITY independent of the JIA are:
Marina Operator's Leaal Liability: Hull and Machinery and
Protection and Indemnity: Excess Marina Operator's Leaal
Liability: Syncrolift Dock/Rail Transfer System and
Eneray Systems Policy (Boiler & Machinery).
It is recognized and understood that some lines of insurance coverage
may be less expensiye on a periodic basis, but the purpose of this
requirement is to access markets for the JIA's reinsurance coverages
and to enable potential savings due to the joint buying power of the
members.
3.17 PARTICIPANTS shall treat amounts payable to the Association
pursuant to the Cooperatiye Participation Agreement as operating
expenses payable from general operating revenues, but not from taxes, in
those jurisdictions where obligations paid from tax sources may require
voter ratification.
3.18 Each PARTICIPANT shall in any and in all ways cooperate
with and assist the JIA, and any insurer of the JIA, in all matters
relating to the Cooperatiye Participation Agreement and covered losses,
and will comply with all bylaws, rules, regulations and policies
adopted by the JIA's Board of Trustees.
3.20 Broker's Responsibilities. The BROKER shall assist the CITY
with its risk management functions and its responsibilities to the JIA
and other insurers by providing the following specific services:
3.21 Collect and submit the last fiye years of premium and loss
experience on all lines of insurance coverage placed independent of the
JIA and continue to keep it updated on a quarterly basis.
SEWARD. DOC/PJCT3
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3.22 Review the extent of the CITY's exposure to liability and
property damage losses. Review the adequacy of self insurance reserves
and each existing policy of insurance at least 90 days prior to renewal
or expiration. Keep the CITY informed as to key terms and conditionE
of coverages, endorsements and exclusions that specifically apply to
the CITY's exposures.
3.23 Provide an annually adjusted statement of values for all
ci ty property to be insured in January of each year. Collect and
submit other statistical data which may be required from time to time
by the JIA, any insurer of the JIA, other insurers, bond underwriters,
and the Alaska Division of Insurance.
3.24 Request early confirmation of insurance policy renewals and
any changes in premiums, limits, exclusions and deductibles.
3.25 Where coverages are not provided by the JIA, serve as the
CITY's broker of record to market, apply for, and place other coverages
as directed by the CITY. Approach insurance companies and apply for
coverages to be provided on behalf of the CITY on forms to be provided
by the insurance companies.
3.26 Present written findings and recommendations based upon
actions taken to procure insurance, including information about:
insurance markets contacted; premiums quoted; insurance company
ratings, differences in key terms and conditions of coverages,
endorsements and exclusions that specifically apply to the CITY's
exposures.
3.27 Make recommendations as to required insurance coverages
applicable to contracts, leases and other third party agreements of the
CITY. Assist the CITY's risk manager in the review of contracts,
leases and certificates of insurance to assure that required coverages
are secured prior to award and/or execution of contract documents.
3.28 Serve on the CITY's safety committee and as the CITY's
alternate representative to the JIA. The safety committee will meet on
a quarterly basis. Meetings of the JIA will be held at least once a
year in connection with the Alaska Municipal League Conference. Assist
the CITY's risk manager to comply with recommendations of the JIA
concerning the development and implementation of a loss control policy
to prevent unsafe practices and liability exposures.
3.29 Act as liaison assist in coordinating the adjustment of
claims in cooperation with adjuster and defense attorneys retained by
the JIA and other insurance companies. Keep the CITY informed as to
the status of claims.
SEWARD. DOC/PJCT3
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4.00
compensation
4.10 Fee. The CITY shall pay the BROKER a lump sum fee of $25,000
per year as compensation for services provided pursuant to this
Agreement. This fee includes expenses for reports, reproductions,
telephone, local travel expenses and all other expenses incidental to
this Agreement as described in Section 3.00. The CITY shall reimburse
BROKER for the actual expense of transportation, meals and lodging for
travel to destinations outside of Southcentral Alaska in the
performance of this Contract, provided BROKER has obtained the prior
written approval of CITY for said travel.
4.20 Payment. Payment shall be due on July 31st of each year. The
lump sum fee shall be payable to the BROKER in one payment each year.
4.30 Commissions. The premiums on all lines of insurance coverage
shall be billed to the CITY "net" of any commission. Should the BROKER
receive a commission from any insurance company, it shall be promptly
refunded to the CITY.
5.00 JIA Business Procedures. On coverages placed with the JIA, the
following provisions will apply:
5.10 An "Exposure/Rating Questionnaire" shall be completed and
submitted to the JIA by the end of January of each year.
5.20 The JIA shall be responsible for all marketing and
placement of General Liability Insurance; Workers' Compensation and
Employer's Liability Insurance; Auto Liability Insurance; Public
Officials' Liability Insurance; Police Professional Liability
Insurance; and Property Insurance.
5.30 The JIA shall be responsible for actuarial services,
development of rating systems and premiums, premium audits, purchase of
excess lnsurance and reinsurance, Claims administration, defense
against claims and monthly loss reports for its coverages through its
designated third party contractors. The JIA shall also assist the CITY
with its loss prevention and control program.
5.40 The JIA shall
distribution of policy
collection. In addition,
notices required by law.
be responsible for developing, printing
forms and for all premium billing
the JIA shall be responsible for sending
and
and
all
5.50 When transmitting policies, endorsements, premium notices,
cancellation notices and other communications to the CITY, the JIA will
be asked to clearly and prominently identify the BROKER by name as the
CITY's "Broker of Record" and send copies to the BROKER. The BROKER
shall have access at all reasonable times to the CITY's books and
records for the purpose of determining any fact relating to coverage
place with the JIA.
SEWARD. DOC/PJCT3
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6.00 Cancellation of Insurances. Nothing in this Agreement shall be
construed as limiting or restricting the right of the CITY to cancel
any binder, policy or contract of insurance issued under this Agreement
in accordance wit the cancellation provisions of such binder, policy or
contract. The BROKER shall not be entitled to credit for any flat
cancellation.
7.00 Claims. The BROKER shall immediately notify the JIA and the
CITY of all claims, suits and notices of loss and agrees to cooperate
fully with the JIA and the CITY to facilitate the investigation,
adjustment, settlement and payments of any claim when and as requested
by the JIA, and under any procedures as may be agreed from time to
time.
8.00 Ownership of the Business. The CITY recognizes the independent
ownership by the BROKER of the insurance services subject to this
Agreement; however, in the event it becomes necessary to cancel this
Agreement by reason of violation by the BROKER of any of the provisions
of this Agreement, before or after termination, the use and control of
expirations shall be vested in the CITY insofar as they may be
necessary to satisfy the interest of the CITY.
9.00 External Communications. The BROKER shall not issue or cause to
have issued any letter, circular, pamphlet or other publication or
statement relating to coverage placed with the JIA or other insurance
companies, without the express written consent of the CITY. In the
event the CITY shall be subject to loss or expense arising out of any
unauthorized advertisement, publication or statement of the BROKER-
relating to the CITY's insurance coverages, the BROKER shall be liablE
for all resulting damages and costs.
10.00 Inspection and Audit. The CITY or its duly authorized
representatives may inspect or audit any insurance bound hereunto, or
the subject matter thereof. The BROKER shall cooperate with the CITY
and the JIA and, at the CITY I S request, assist the JIA in the
inspection or audit of any records related to the subject matter of
this Agreement.
11.00 Compliance with statute. The BROKER warrants compliance with
all applicable laws governing the conduct of his business which is the
subject of the Agreement. BROKER warrants that he is duly licensed by
the Division of Insurance for the state of Alaska as a resident broker
and resident surplus lines broker.
12.00 Cancellation of Agreement. This Agreement may be canceled at
any time by any party giving written notice to the other at least 90
days prior to July 1 of each year. After the date of cancellation of
this Agreement, the JIA and the CITY's other insurers may complete the
premium collection and account to the CITY for all premiums and other
transactions unaccounted for on the date of cancellation or arising
thereafter in respect of outstanding insurances. In the case the CITY
shall find it necessary to perform any duty otherwise required of the
BROKER under this Agreement, the BROKER shall be liable to the CITY for
all costs incident thereto.
SEWARD. DOC/PJCT3
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13.00 Authority of Broker. The BROKER is an independent contractor
and not an employee of the CITY. The BROKER shall have exclusive
control of his time and the conduct of his agency. The BROKER is
acting as an agent for the CITY, rather than an agent of the JIA or
other insurance companies. BROKER has no authority, unless
specifically agreed to, to bind coverage on behalf of the CITY without
written authorization from the City Manager acting on behalf of the
ci ty Council.
14.00 Records and supplies. BROKER agrees that all materials and
supplies furnished by CITY will remain the property of the CITY and
shall be returned promptly upon demand.
15.00 Indemnification by city
15.10 The CITY agrees to indemnify and hold harmless the BROKER from
and against any claims or civil liabilities caused by or resulting from
any of the following, except to the extent the BROKER, by his own acts
or omissions, has caused, contributed to or compounded the error or
failure resulting in the claim or liability:
15.11 Error of the JIA or other insurance companies in
processing or handling of billings placed by the BROKER.
15.12 Failure of the JIA or other insurance companies to comply
with the requirements of the Fair Credit Reporting Act, Federal Truth
in Lending Act, Fair Credit Billing Act, privacy and unfair claim
settlement laws.
15.13 Failure of the JIA or other insurance companies to comply
with the requirements of any other law where the BROKER is using forms
supplied by others or following instructions or procedures established
by others.
15.20 The CITY shall reimburse the BROKER for any legal or other
expenses reasonably incurred by the BROKER in connection with
investigating or defending any such claim or liability described in
section 15.10 of this Agreement; provided the BROKER promptly notifies
the CITY when it receives notice of the commencement of any action
relating to such claim or alleged liability, and the CITY shall be
entitled to participate in such action, or to assume the defense of
such action with counsel satisfactory to the BROKER. If the CITY
assumes the defense of any such action, it shall not be liable to the
BROKER for any legal or other expenses subsequently incurred by the
BROKER in connection with such action.
16.00 Indemnification by Broker. BROKER agrees to indemnify and hold
harmless the CITY from any and all loss, cost, damage or exposure
arising from the negligent acts or omissions of the BROKER.
SEWARD. DOC/PJCT3
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17.00 Broker's Insurance
17.10 Coverages. BROKER shall, at all times, at its own expense, keep-
in force the following described insurance for protection against thE
claims of employees or other persons, insuring the BROKER against
liability that may occur in connection with the performance of BROKER
under this Agreement:
17.11 Insurance in at least the required statutory amounts covering
claims under Workers I compensation, disability benefits and other
similar employee benefit acts; and
17.12 General Liability Insurance covering bodily injury, death, and
property damage with a combined single limit of not less than
$1,000,000 each occurrence and $2,000,000 in the aggregate; and
17.13 Professional Liability Insurance in an amount of not less than
$1,000,000 each claim and $2,000,000 in the aggregate.
17.14 The CITY shall be named as an "Additional Insured" with respect
to the General Liability Insurance.
17.20 Insurance certificates. Insurance coverages specified in this
section shall be placed with an insurance carr1er or carriers
satisfactory to CITY and shall not be subject to cancellation except
after thirty (30) days written notice to CITY. BROKER will promptly
notify the CITY of any material change in the insurance policies and/or
depletion of aggregate coverages. A certificate of Insurance
reflecting full compliance with the insurance coverage requirementE
shall, at all times during the term of this Agreement, be kept on
deposit at the general offices of CITY. If BROKER fails to comply with
these insurance requirements the CITY may terminate this Agreement on
thirty (30) days written notice.
17.30 Maintenance of coverage. The BROKER covenants to maintain all
insurance policies required in this Agreement for the period of time in
which a person may commence a civil action as prescribed by the statute
of limitations. The coverage required by this Agreement shall cover
all covered claims arising in connection with the performance of the
BROKER under this Agreement, whether or not such claim is asserted
during the term of this Agreement and even though judicial proceedings
may not be commenced until after the expiration of this Agreement.
17.40 Coordination of coverages. All general liability, property
damage, and other casualty insurance policies shall be written as
primary policies; they shall not be contributing with, or in excess of,
any insurance coverage that the CITY may otherwise carry.
18.00 Governing Law/Venue. This Agreement shall be construed in
accordance with and be governed by the laws of the State of Alaska.
The venue of any legal action between the parties arising as a result
of this Agreement shall be laid in the Third Judicial District of the
State of Alaska at Seward.
SEWARD. DOC/PJCT3
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19.00 Amendment. This Agreement may be amended at any time by the
mutual written agreement of all the parties.
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20.00 Prohibition Against Assignment. This Agreement may not be
assigned without mutual agreement of both parties.
21.00 Notices. Notices shall be sufficient if mailed to the address
listed on this Agreement. A party may change such address from time to
time by providing written notice of such change to the other party.
22.00 Personnel. It is mutually agreed that Ward Livingston shall
serve as principal account representative to coordinate the risk
management and insurance brokerage services rendered pursuant to this
Agreement. BROKER agrees to furnish such other personnel necessary for
expeditious and satisfactory performance of this Agreement, each to be
competent, experienced and well qualified for the work assigned. No
person objected to by the CITY shall be employed for work hereunto.
23.00 Agreement complete. This Agreement, along with the documents
incorporated by reference herein, constitutes the full and complete
Agreement of the parties. There are no oral understandings or
agreements not set forth in writing herein.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
authorized officials thereof on the date indicated adjacent to their
names.
of the City of Seward at
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APPROVED AND AUTHORIZED ~y the city council
its regular meeting on {/~ /~ I;V I
(ilE~~. 91-1)'1
CITY OF SEWARD, ALASKA
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(DATE)
ATTEST:
SEWARD. DOC/PJCT3
BROKER
BY.
APPROVED AS TO FORM:
PERKINS COIE, Attorneys for the
City of Seward, Alaska
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Fred B. Arvidson
City Attorney
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