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HomeMy WebLinkAboutRes1967-609 r=~ RESOLUTION NO. 609 BE IT RESOLVED that the modified form of CONTRACTUAL AGREEMENT FOR INSURA.NCE FOR THE CITY OF SEWARD dated March :2- ( , 1967, effective October 1, 1966 for a term of three years between The city of Seward and Rupert C. Kulin d.b.a. Rupert C. Kulin General Insurance be and is hereby approvedi and BE IT FURTHER RESOLVED that Resolution No. 564 passed and approved by the City Council of The City of Seward on the 17th day of October, 1966, be and is hereby amended to repeal approval of the undated form of Agreement consisting of ten sections and three pages. This Resolution shall be effective on the date of passage and approval. Passed and approved by the City Council of The City of Seward, Alaska, this 6th day of March, 1967. Attest: 4 :-';';'1 -r-., -i: l- //;' I ,Lv /L,,--~~;:..,,:/C'--<::-i \ R. W. Kirkpatrick Mayor ~&/c-C r2(;~~-- Beatrice E. Watts city Clerk-Treasurer ~ .~.... . # ..., -, ,~ ,', ' " CONTRACTUAL AGREEMENT FOR INSURANCE FOR THE CITY OF SEWARD '. .. , WHEREAS, The City of Seward desires to have adequate insurance coverage for all of its liabilities and responsibilities~ and WHEREAS, divided responsibility may lead to additional cost and inadvertent blank spots in the coverage: and WHEREAS, The City of Seward desires to treat all insurance agents in the City in a fair manner~ .' NOW, THEREFORE, it is mutually agreed between the parties as follows: 1. The City of Seward will place all of its insurance coverage through Rupert C. Kulin d.b.a. Rupert C. Kulin General Insurance, hereinafter referred to as the "Prime Agent", provided however that the position of "Prime Agent" will rotate in accordance with the schedule set forth in paragraph 9 hereof. 2. The Prime Agent will place the City's insurance only in . companies rated both A+ and AAAA according to Bests Annual r'nsurance Reports, or in companies acceptable to the City. The City reserves the right to specify any company for a portion of the insurance until such time as existing agreements are terminated. The City also reserves the right of objection to certain insurance companies or general agents for reasons of its own. 3. The City will make payment of all premiums to the Prime Agent. The Prime Agent will compute the commission quarterly on premiums paid and return forty percent (40%) of the commission to the City for distribution to other agents according to the following schedule and formula: ~ ~.~. ....'~ ,:',..~ " ',..."'\ l. ~ v ..\7' "...,. Y "<."\,.'; (a) These "other agents" to qualify for their specified \ f\~ '\' percentage of the commissions must agree to cooperate 'j with the "prime agent" and to refrain from public criti- ' cism of the City's insurance program. Any just criticism of the City's insurance program may be presented in writing to the City Manager or in writing to the City Council. The "other agents" acceptance of such conditions shall be indicated by their signatures hereon. (b) The forty (40%) percent of the commission shall be distributed equally among the three "other agents" presently conducting such business in Seward upon signing acceptance of this Agreement: 13-1/3% to Pat R. Williams d.b.a. Pat R. Williams Insurance AgencYi 13-1/3% to Tom P. Smith d.b.a. Smith's Insurance: 13-1/3% to Harry West d.b.a. Harry West Insurance Agency. Attached to and a part of .~.{' {: ~,,-,i 4~; ,;L," r::r- [""_ (w~~"l"!, Resoly.i;ion No. 609 Record Copy if {Lv t'l ~ ,-/' ~ ,/ ~/_~Lz! c r: ~.re L /c2- 2"- eatr~ce E. Watts,Ci~Y~Clerk-Tr ........'......."".. ,<",~,~"~~",<<,'~",,"".i~,,,.....,., .~...'_,_ -~..- ~ ,",.~ .,...., '-, ,:,;"..........""".'......,......""""'"' - 2 ~~ Nothing in this sub-Daragraoh shall be construed to limit the compensation of an~ 3S0nt expressly named in this 5ub- raragraph when such ag~~I:t ,":1:111 S'.lcceed to the position of "prime agent", ~t bei n-J t'~,e i.ntent of this agreement that upon such rotation, the new or successor prime agent shall be entitled t:.; compute t-hc c:m:n~ission quarterly on premiums paid and return 40% of t~e 0~~~ission so computed to the City for distribution to the 0ther agents, and upon such rotation, the agent previols1y occupying the "prime agent" position shall revert to t,h,c' position of "other agent" and shall be entitled then only to the percentage of the total commission as is herein specified for an "other agent". (c) Should one of the three "other agents" for any reason be unwilling or unable to accept or fail to qualify for its portion of the commission, the commission will be split between the other two during the time, and only during the time that the one agent is unwilling, unable, or fails to qualify. (d) This percentage of the commission is to the agency and not to the individual. Should an agency be sold to another, this percentaqe will go to the new owner of that agency, even though the nam(' be changed. Should one of, these agencies cease to €xist, the split will be twenty (20%) percent each to the remaining agencies. Should two of these agencies cease t'o exi st, thirty (30'1:') percent will go to t.he remaining agent: anrl seventy (70%) percent to the Prime Agent handling the c0ntract. (e) ShC(11d the Pcin:ei:>,f}''''!:t' s agencY' be sold, the agent replacing the Pri.~e AQe~t ~ay he asked ~o carry on this Agreel'nent. Howe'lpr, t:Hc City reserves th€ ri ght to make another dptermlnatjon should it so desire. Shoul~ the Pri~e Agent's agencv cease t~ exist for any reason, this Contractual Agreewent sball be deemed to have been terminated, and the t;it.:' t,,'j Ii nake anoth>?r aqreement, or ot.her arrange:-nents for i! :~~ t.~ls'~rance. 4. The C:ity ',."ill inform U,e Come Agent in writinq of its desires on insurance caverarJc i:lF :.0 limi ts, types, and "deli tions tc policies in force. 5. The Prime Ac;ent will cJal.,;l.te the writt:en exoression2 of t.he Ci t,~. mac'le pursuant to C):-j ca,' "'''lph 4 hereof to (ch~termine t~hc cnmpJ. etene5S ani ar'lequacy of tj;i~ "'verage desired by the C:;' ty, and whether the Ci.t.y's eXDrcssi.)n~~ p1lrsuant to paraqrap~ 4, if followed, would be in the best interest of the Ci t_y. Upon 5UC:-: evalllat.ion, it shaJ__~ ""'e the C'lt:'..' ," ~_he Prime Aqe,,::, t:,- ;;\1rniS;l the City wi,th wri,tt.en re('omr;(~rldA.tl:)n5 based on ~3'IC}, '='v;.;I'Jatj,)n. After the ~eC'eipt. by the cit.':" I~r thE' Prime As~:;nt's re2C>inP:endationst if the same are not accepted or a.tu~ upon by the ~ity, tie Pri~0 Agent will not be liable to !-1-co" ", t,\, cor an'l risk, 1.)55 ~,.. C~3:r,;',v'c to t:he extent that his recont!r.'-~lL:.:,:~i'.L Jns, if rtCC';"'pt.erj b'i the Ci~~y '...."Guld have prevent:ec or re~~l.)('i::~fj c;;_,~ ~ Y1S1<., In~:;s ~)"t~ cla::1aqe. Jet' (!k! f-"-tl" b--t-- Il) <- c. J (cv-----t--- Reso~3\tion__NO. bO~ Recm:ci / copy"!) /:.'o~, /..2,--/...4< ,<- ~//../~ tSea1:rJ,ce 1';. Wat1:lr, C:l ,:y Clerk-'1':!:eas. Attaciled to ana a part of r-- - - . -3- 6. All of the parties recognize that the charter of the City limits the term of contracts which the City can make. On the one hand, this contract does not obligate any agent to under- take to act as Prime Agent in the rotation specified below. On the other hand, this contract is terminable by the City upon reason- able notice to all signatories executing or accepting in writing this agreement or their successors or assigns. It is the intent of this agreement, subject to provisions of the charter to promote the interests of the City by encouraging long range professional interest in the City'. insurance industry, and to provide for an equitable apportionment of oommissions subject t.o the provisions of the charter and to the on-going review of the City Council. 7. The Prime Agent shall conform the City's insurance program .}1}-' to the Insuranoe Survey and Recommendations of 1961 by Mr. Joseph ~~ Sheahan, Insurance Consultant for the City at that date, or to ~0 any subsequent survey and recommendations by an insurance consul- tant or specialist when accepted and approved by the City Council, except as otherwise provided for herein. 8. The Prime Agent will be responsible to keep the City informed of expiration dates in sufficient time to receive instruc- tions on renewals. The Prime Agent will also be responsible to keep the City informed on any new types or special provisions whereby the City may obtain equal coverage at less cost, or better and more complete coverage. 9. subject to the provisions of paragraph 6, to implement the third premise of this agreement the following sequence of rotation of "prime agent" position is hereby established: Pat R. williams Insurance Agency Rupert C. Kulin General Insurance Tom ,P. Smith d.b.a. Smith.s Insurance Harry West d.b.a. Harry West Insurance Agency lO/1/61-M 9/30/66 ' . 10/1/66-M 9/30/69~~~ lO/1/69-M 9/30/72 lO/1/72-M 9/30/75 and thereafter repeating the cycle in three (3) year terms. In the event an agent is not eligible to accept the contract when it is his turn, for reasons other than inability to place the insurance or inability to qualify as otherwise required herein, he and the next agent in order would exchange places in the sequence of ro- tation. 10. So that the City may be assured the Prime Agent it names has the necessary capacity and qualifications, the City shall give sixty (60) days written notice to the agent next in sequence of rotation of the amounts of coverage required. Said next agent shall guarantee in writing that he has this capacity in companies described under paragraph 2 of this Agreement, and said agent shall file with the City Clerk a performance bond in the amount of Five Thousand and no/100 ($5,000.00) Dollars guaranteeing same not less than fifteen (15) days prior to the commencement of his term. V' v' Attached t.o and a part of Rcs~tion NO.60? Record 7COPY,j/tf /:"0-" ..j C-d-&t' '>-, ,;::;4!"~ ~, 9iea1:-x'J.ce ~.1:0. Watts, ci €t'Cfm-Treas. r -4- 11. Prime Agent will furnish the city with a certificate of insurance (with stipulation thereon that the city will be given fifteen (15) days prior written notice of intent to cancel) evi- dencing errors and omissions insurance coverage in an amount not less than one Hundred Thousand and no/lOO ($100,000.00) Dollars written by a company licensed by the state of Alaska to write such insurance. '" THIS AGREEMENT signed this J1, I day of March, 1967. Byz INSURANCE R. ! -<=J/~ 'BY: ~~ Rester L. Dotts City Manager By: ;UC)Z~ c: czai74 Beatrice E. Watts ' City Clerk-Treasurer This contract was awarded to Rupert C. Ku1in d.b.a. Rupert C. Kulin General Agency at the regular meeting of the Seward city Council on October 17, 1966 and the modified form of contract was approved at the r~ular meeting of the Seward City Council on ~L ,. /tJ~7 .' ~~':t,,(,'c T ~zdv Beatrice E. Watts City Clerk-Treasurer I hereby indicate my acceptance of the foregoing terms of this Agreement: /l ~. / I /J /:J Ii' r-/~ Pat R. Wi!liams d.b.a. Pat R. Williams Insurance A -'>"'. ( Tom /7~~" Harry West Insurance I\ttached t:') ~nu a part. of ~,'t ")' ../) ",es~,? . ;;t',ln ,:J()., n\ '), RccoX'r:i C,p"!' A-r." " )Co., , --.r-- -~ L /d -() · -<,,:c..h C:C z-/ ~-= ';;:dltxice '. <"att:S-,C'ity (::("I~-T1:'G"',Uil.