HomeMy WebLinkAboutRes1989-100
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-100
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING A CONTRACT WITH
CORROON & BLACK, INC., TO PROVIDE INSURANCE
BROKER AND RISK MANAGEMENT SERVICES FOR THE CITY
WHEREAS, Corroon & Black (C&B) has been the city's insurance
broker for the past six years; and
WHEREAS, during that time, C&B has placed policies for
virtually all of the city's lines of coverage; and
WHEREAS, on July 1, 1988, the city joined the AML Joint
Insurance Association (JIA); and
WHEREAS, the city no longer has broker representation for the
lines of coverage provided by the JIA; and
WHEREAS, C&B has submitted a proposal to the city to provide
consulting services to the city on all aspects of the JIA and other
insurance policies of the city, to review the city's insurance
needs, and to provide both risk management services and claims
analysis for the city; and
WHEREAS, approval of this contract would provide the city with
an additional level of insurance protection; and
WHEREAS, the City Code exempts insurance services from
competitive bidding;
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, Inc., to provide insurance broker
and risk management services for the city for an annual fee of
Twenty-Seven Thousand Five Hundred Dollars ($27,500.00). A copy
of the contract 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 28th day of August, 1989.
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-l00
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
Dunham, Gieseler, Hilton, Meehan, Noll, O'Brien & simutis
None
None
None
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the
city of Seward, Alaska
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(City Seal)
(JJy~ J~J~
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 "C/TY'~
and
Corroon and Black, Inc.
4220 -B- Street
Anchorage, Alaska 99503
(Hereinafter referred to as "BROKER'~
Effective Date: July 1, 1989
Term: July 1, 1989 to June 30, 1991
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
enabling 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 with certain risk manage-
ment and insurance brokerage services as provided in this Agreement; and
WHEREAS, the CITY is desirous of appointing the BROKER as its alternate representa-
tive 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.
City of Seward, Alaska
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July 10, 1989
Agreement for Insurance Broker and Risk ManaQement Services
2.00 Term of Agreement. This Agreement shall become effective on July 1, 1989
and shall continue for two (2) years unless amended, cancelled, 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
herein by reference 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 least one alternate
representative to attend Members' meetings.
The Finance Director shall be the CITY'S representative to the JIA: the
BROKER shall serve as the CITY'S Alternate Reoresentative.
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 resoonsible for the CITY'S Risk Manaaement
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 Enaineerina Manaaer 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 Sections 21 or 22 of the
Cooperative Participation Agreement.
City of Seward. Alaska
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July 1 O. 1989
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Agreement for Insurance Broker and Risk Manaaement Services
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 apolv to the followinq coverages from July 1. 1988 through June
31. 1991:
General Liability: Workers' Comoensation and Emolover's Liability: Auto
Liability: Police Professional Liability: Public Official Liability: and
Prooertv Insurance.
Coveraaes oresently orocured bv the City independent of the JIA are:
Marina Ooerator's Leaal Liability: Hull and Machinerv and Protection and
Indemnity: Excess Marina Ooerator's Leaal Liability: Syncrolift Dock/Rail
Transfer System: Eneray Systems Poticy and Emplovee Dishonesty Bond
(blanket and position schedule).
It is recognized and understood that some lines of insurance coverage may be less
expensive 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 Cooperative 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 provide the JIA with such other information or
assistance as may be necessary for the JIA to carry out the Joint Insurance
Arrangement under the Cooperative Participation Agreement.
3.19 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 Cooperative
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 Brokers' 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 Col/ect and submit the last five years of premium and loss experience on
aI/lines of insurance coverage placed independent of the JIA and continue to keep it
updated on a quarterly basis.
City of Seward, Alaska
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July 10, 1989
Agreement for Insurance Broker and Risk Management Services
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 conditions of coverages, endorsements and exclusions that specifically
apply to the CITY's exposures.
3.23 Provide an annually adjusted statement of values for all City 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.
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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 and assist in coordinating the adjustment of claims in
cooperation with adjuster and defense attorneys retained by the J/A and other
insurance companies. Keep the CITY informed as to the status of claims.
City of Seward, Alaska
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July 10, 1989
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Agreement for Insurance Broker and Risk Management Services
4.00 Compensation
4.10 Fee. The CITY shall pay the BROKER a lump sum fee o~ '" .5 ~tf) per year
as compensation for services provided pursuant to this Agreemetft. This fee include
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. The lump sum fee shall be payable to the BROKER in two payments
each year. Seventy-five (75%) percent shall be due on July 10th; the remainder shall
be paid within fifteen (15) days after receipt of the JIA's "Participation Coverage
Memorandum" and the other insurance policies bound by the BROKER. If a policy of
insurance for a specific line of coverage is not received by the CITY, through no fault
of the BROKER, partial payments shall be made to the BROKER in proportion the
premium value of the policies received.
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 by the BROKER 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 insurance 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 be responsible for developing, printing and distribution of
policy forms and for all premium billing and collection. In addition, the JIA shall be
responsible for sending all notices required by law.
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
City of Seward, Alaska
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July 1 0, 1989
Agreement for Insurance Broker and Risk ManaQement Services
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
placed with the JIA.
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 with 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 payment of any claim when and
as requested by the JIA, and under any procedures as may by agreed from time to
time.
8.00 Ownership of the Business. The CITY recognizes the independent ownership
by the BROKER of the insurance seNices 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'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 this Agreement.
BROKER warrants that he is duly licensed by the Division of Insurance for the State of
Alaska as a resident broker.
12.00 Cancellation of Agreement. This Agreement may be cancelled 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
City of Seward, Alaska
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July 10, 1989
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Agreement for Insurance Broker and Risk ManaQement Services
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.
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 City 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 handing
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.
City of Seward. Alaska
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July 1 0, 1989
Agreement for Insurance Broker and Risk Management Services
17.00 Broker'. 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 accrue in connection with the
performance of BROKER under this Agreement:
17.11 Insurance in at least the required statutory amounts covering claims under
Workers' 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 C/7Y 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 carrier or carriers satisfactory to C/7Y and shall not be subject
to cancellation except after thirty (30) days written notice to C/7Y. BROKER will promptly
notify the C/7Y 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 requirements shall, at all times during the term of this Agreement,
be kept on deposit at the general offices of CI7Y. If BROKER fails to comply with these
insurance requirements, the C/7Y 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 C/7Y may otherwise
carry.
18.00 Governing LawNenue. 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.
City of Seward, Alaska
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July 10, 1989
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Agreement for Insurance Broker and Risk Management Services
19.00 Amendment. This Agreement may be amended at any time by the mutual
written agreement of all the parties.
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 iJ'AaL ~ t:1 t:J 0 shall seNe 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.
APPROVED AND AUTHORIZED by the City Council of the City of Seward at its regular
meeting on
CITY OF SEWARD, ALASKA
BROKER
BY:
BY: A__E. 1J~
TITLE
ATTEST:
(DATE)
PERKINS COlE, Attorneys for the
City of Seward, Alaska
a1/L I~
Free B. Arvidson
City Attorney
Unda S. Murphy, CMC/AAE
City Clerk
(City Seal)
City of Seward, Alaska
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July 10, 1989