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HomeMy WebLinkAbout2000-23773 RESO RESOLUTION NO. 2000-23773 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RANKING OF THE PROPOSALS RECEIVED AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS AND CONTRACT WITH THE NUMBER-ONE RANKED FIRM, ARTHUR J. GALLAGHER AND CO., PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 1-99/00 FOR THE PURPOSE OF OBTAINING INSURANCE COVERAGE, AS NEEDED BY THE CITY FOR A ONE YEAR PERIOD, WITH OPTIONS TO RENEW FOR AN AMOUNT NOT TO EXCEED $25,000 AND TO AUTHORIZE THE ADMINISTRATION TO NEGOTIATE AND CONTRACT WITH THE NUMBER-TWO RANKED FIRM, ACORDIA, IN THE EVENT NEGOTIATIONS FAIL WITH THE NUMBER-ONE RANKED FIRM. WHEREAS, the City issued Request for Proposals (RFP) No. 1-99/00 for Insurance Broker Services for the purpose of obtaining insurance coverage, as needed by the City; and WHEREAS, specifications packages for RFP No. 1-99/00 were issued on September 15,1999, resulting in the receipt of two (2) responsive proposals; and WHEREAS, an Evaluation Committee recommended by the City Manager met on January 10, 2000, and recommended the firm of Arthur J. Gallagher and Co., as the number-one ranked firm, and the firm of Acordia, as the number-two ranked firm; and WHEREAS, the City Manager has reviewed the responses and recommendation of the Evaluation Committee, and concurs with the Evaluation Committee's recommendation. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the Administration to enter into negotiations and contract with the number-one ranked firm, Arthur 1. Gallagher and Co., pursuant to Request for Proposals (RFP) No. 1-99/00, for the purpose of obtaining insurance coverage, as needed by the City for a one year period, with options to renew for amount not to exceed $25,000 and to authorize the Administration to enter into negotiations and contract with the number-two ranked firm, Acordia, in the event negotiations fail with the number-one ranked firm. ADOPTED this 26thdayof January ,2000. #l Mayor ~sr' () 1l~({ t r f5L{ LluA City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTiON ~ I/;~d~ , Df"~'~-;' - CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.fl.us COMMISSION MEMORANDUM NO. 7lD -00 TO: Mayor Neisen O. Kasdin and Members of the City Commission LawrenceA. Levy\~ City Manager ~ DATE: January 26, 2000 FROM: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RANKING OF THE PROPOSALS RECEIVED AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS AND CONTRACT WITH THE NUMBER-ONE RANKED FIRM, ARTHUR J. GALLAGHER AND CO., PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 1-99/00 FOR INSURANCE BROKER SERVICES FOR THE PURPOSE OF OBTAINING INSURANCE COVERAGE, AS NEEDED BY THE CITY FOR A ONE YEAR PERIOD, WITH OPTIONS TO RENEW, FOR AN AMOUNT NOT TO EXCEED $25,000, AND TO AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS AND CONTRACT WITH THE NUMBER-TWO RANKED FIRM, ACORDIA, IN THE EVENT NEGOTIATIONS FAIL WITH THE NUMBER-ONE RANKED FIRM. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. FUNDING: Funds are available from the Account Number 540.1790.000.312. Expenditures will not exceed $25,000. ANALYSIS: The City of Miami Beach Risk Management Program consists of both self-insured and insured programs depending on the type of exposures. Automobile, General Liability, Police Liability, and Workers' Compensation exposures are self-insured. Damage to City Property and certain specialized exposures (crime, underground storage liability etc.) are insured. The City purchases insurance for the following: 1. Property Coverage / All Risk for Buildings and Contents 2. Property Coverage/ All Risk for Boiler and Machinery 3. Flood Coverage/Buildings and Contents 4. Property /Fine Arts-Bass Museum 5. Crime/Employee Dishonesty DATE c -, G J -2lo"0o AGENDA ITEM 6. Liability/Underground Storage Tanks 7. Liability/Special Events (Special program to assist the public in obtaining insurance for Special Events) The City's Broker determines the City's commercial insurance needs, prepares specifications, obtains quotations from acceptable markets for insurance coverage, makes recommendations to the Administration regarding the purchase of appropriate insurance, and services existing policies. On September 14, 1999, the Mayor and City Commission authorized the Administration to issue a Request for Proposals (RFP) for Insurance Broker Services for the purpose of obtaining insurance coverage, as needed by the City. A Request for Proposal was issued on September 15, 1999, with an opening date of October 15, 1999. Eleven (11) specifications were issued, resulting in the receipt of proposals from the following two (2) firms: Acordia Arthur J. Gallagher and Co. Acordia and Arthur 1. Gallagher and Co. proposed an annual service fee for all insurance except flood insurance (flood insurance is federally administered through the National Flood Insurance Program). Acordia and Arthur J. Gallagher and Co. proposed the standard rate/commission fee provided for flood insurance. The premium cost for flood insurance to the City is the same regardless of the broker utilized. Risk Management has confirmed with the State of Florida Department ofInsurance that the standard rate/commission fee is the industry-accepted method of payment for brokerage services provided for flood insurance. On January 10,2000, an An Evaluation Committee composed of the following persons met to review and discuss the proposals: Mary Greenwood, Executive Assistant to the City Manager/Labor Relations Drew T erpak, Fleet Management Director T.C. Adderly, Human Resources Director Margaret Arculeo, Pension Administrator The proposals were evaluated based on the selection criteria established within the RFP. Both firms were deemed responsive to the Scope of Services. Acordia proposed an annual contract fee of $29,500 with option to renew for two (2) additional years. Arthur 1. Gallagher proposed an annual fee of $25,000. with option to renew for three (3) additional years. The Evaluation Committed ranked Arthur 1. Gallagher and Co., as the Number-One firm. Acordia was ranked as the Number- Two firm. In accordance with the terms of the RFP, the City Manager has reviewed the Evaluation Committee's recommendation and concurs with its ranking of proposals. The City Administration recommends that the City Commission authorize the Administration to negotiate and award this contract to Arthur 1. Gallagher and Co. for a one-year period, with options to renew, for an amount not to exceed $25,000 and to authorize the Administration to negotiate and award this contract to Acordia, the number-two ranked firm in the event negotiations fail with the number-one ranked firm. t' ""eo--., \, Le.) LAL:MG:cl ~ Attachments f:\RISK\SALL\Cliff\Prop-Ins\ins-fin-9.rfp CI'.~, ., ~ FEE SERVICE AGREEMENT , -<l tG, ;i: I. t, f/ft1 'J {( THIS AGREEMENT is made and entered into this.~ day ofDcccmb'cr ~by and between CITY OF MIAMI BEACH, a municipal corporation (City), and ARTHUR J. GALLAGHER & CO. (Florida), a Florida corporation (Gallagher). I. RECITALS A City desires to insure its Property, Flood (NFIP) , Fine Arts, Crime, Underground Storage Tank Liability, Boiler & Machinery, Special Events, and other Property/Casualty risks as needed. B. Gallagher is engaged in the business of advising its clients on their insurance needs and procuring insurance on behalf of its clients as an insurance broker. C. Gallagher desires to provide certain administrative services and required insurance brokerage services to City and City desires to have Gallagher provide such services in accordance with the terms hereof. II. TERM AND TERMINATION A Term This Agreement shall be effective for an initial term of one (1) year commencing December 21, 1999 and shall remain in full force and effect until December 21, 2000. Thereafter this agreement may be renewed for three (3) successive one-year tenus at the option of the City. B. Termination Either party may tenninate this Agreement, with or without cause, upon the conclusion of the initial term or the conclusion of any successive renewal term by providing ninety (90) days prior written notice. In the event either party materially breaches this Agreement at any time, this Agreement shall terminate upon the failure of the breaching party to remedy the breach within thirty (30) days of receipt of written notice of the breach. Fe~ Sc:rvir:e Agreement.doc ..~, ., ~ ill. AGREEMENT A. Obligations of Gallagher 1. Gallagher shall provide services in accordance with Exhibit A, attached hereto and made a part hereof. 2. Gallagher shall use its best efforts to secure insurance required for the proper administration of City's business. In the event an insurance company cancels or refuses to place the necessary insurance, Gallagher shall use its best efforts to obtain the coverage from another insurance company. B. Obligations of City 1. In addition to the fees provided herein, it is understood and agreed that other parties, such as excess and surplus line brokers, wholesalers, reinsurance intermediaries, underwriting managers and similar parties, some of which may be owned in whole or in part by Gallagher's corporate parent, may earn and retain usual and customary commissions and fees in the course of providing insurance products to City pursuant to this Agreement. Any such fees or commissions will be the responsibility of City and not Gallagher. 2. City is responsible for payment of premiums for all insurance placed by Gallagher on its behalf, as long as placement was made with City's prior written approval. 3. If any amount is not paid in full when due, including premium payments to insurance companies, that non-payment shall constitute a material breach ofthis Agreement, and Gallagher may terminate this agreement for cause, at its options, in accordance with Section II.B. C. Mutual Obligations 1. Ownership of Records and Documents a. Gallagher agrees that all books, records, list of names, journals, ledgers and other recorded information developed specifically in connection with the administration of City's account shall always be and remain the property of City. Gallagher agrees to keep all such material confidential and not to reproduce, disclose or disseminate the material or the information contained therein to third parties without the prior written consent of City, to the extent possible under the Public Records Laws of the State of Florida. Upon termination of Fee SelVice Agreement.doc 2 .al. rA' this Agreement for any reason, Gallagher shall immediately return all such material, and any copies thereof, to City. b. City agrees that Gallagher is the sole owner of the following material and the City has no right to its use following termination of this Agreement: 1. Proprietary computer programs II. Proprietary procedures and methods of administration III. Underwriting and client files developed by Gallagher City agrees all such material is confidential (to the extent possible under the Public Records Laws of the State of Florida) and not to reproduce, disclose or disseminate the material or the information contained therein to third parties without the prior written consent of Gallagher. Upon termination of this Agreement for any reason, City shall immediately return all such material, and any copies thereof, to Gallagher. 2. Employees of Gallagher City agrees that during the term of this Agreement and for a period of one year following the date of the termination of this Agreement, it will not utilize the services of any individual who was an employee of Gallagher during the term of this Agreement, or any renewal, as an employee to perform services for City similar to those services provided by Gallagher under this Agreement 3. Force Majeure Gallagher shall not be liable for any delay or nonperformance of any covenants contained herein nor shall any such delay or nonperformance constitute default hereunder, or give rise at any liability for damages if such delay or nonperformance is caused by "force majeure". As used herein, the term "force majeure" means fire, explosions, action of the elements, strikes or other labor relations problems, restrictions to restraints imposed by law, rule regulation or order of public authority, whether federal, state or local, and whether civil or military, acts of military authority, intenuption of transportation facilities, acts of insurance companies, underwriters or other assumers of risks of City, and any other cause which is beyond the reasonable control of Gallagher and which by the exercise of reasonable diligence Gallagher is unable to prevent. The existence of such causes of such delay or nonperformance on the part of Gallagher thereby to such extent as may be necessary to enable it to complete performance in the exercise of reasonable diligence after the cause of delay or nonperformance has been removed. Fee Service Agreement.doc 3 .~~ J, 4. Waiver of Nonperformance No waiver of any default in performance on the part of Gallagher or like waiver by City, of any breach or a series of breaches of any of the terms, covenants or conditions of this Agreement shall constitute a waiver of any subsequent breach or a waiver of said terms, covenants or conditions. Resort to any remedies referred to herein shall not be construed as a waiver or any other rights and remedies to which either party is entitled under this Agreement or otherwise. 5. Partial Invalidity Should any part of this Agreement, for any reason, be declared invalid by court of competent jurisdiction, the remaining portion shall remain in full force and effect as if this Agreement had been executed without the invalid portion. 6. Governing Law The validity, interpretation and perfonnance of this Agreement shall be controlled and construed according to the internal laws of the State of Florida. 7. Indemnification and Insurance a. Gallagher agrees to indemnity, protect, save and hold harmless City from any and all loss, cost, damage or exposure arising from the negligent acts or omissions of Gallagher. b. Gallagher agrees to maintain professional liability insurance (errors and omissions) in the amount of$l million per occurrence throughout the tenn of this agreement. Gallagher agrees to provide an original certificate of insurance as evidence of this coverage, 8, Successors This Agreement shall be binding upon and shall insure to the benefit of all assigns, transferees and successors in the interest of the parties hereto. 9. Entire Agreement; Modification or Amendment This Agreement and the Exhibit hereto represent the entire and exclusive statement of the agreement of the parties and may be modified or amended only by a written statement signed by both parties. Such modification or amendment shall be attached to, and shall thereupon become a part of this Agreement. 10. Headings herein are for convenience of reference only and shall not be considered in any interpretation of this Agreement. Fee Service Agreement.doc 4 ~..~ ~, 11. Practice of Law It is understood and agreed that Gallagher will not perform, and City will not request performance of, any services which may constitute the unauthorized practice oflaw. 12. Counterparts This Agreement may be executed by the parties in several counterparts, each of which shall be deemed to be an original copy. 13, Remedies Not Exclusive No remedy conferred hereunder is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. 14. Subcontracting Gallagher may not subcontract any of the services required to be performed by it hereunder. 15. Request for Proposals No. 1-99/00 (Insurance Broker Services) issued by City in contemplation of the Agreement, together with all amendments thereto, if any, and Gallagher's proposal in response thereto, is agreed as being incorporated by reference in this Agreement and made a part thereof; provided, however, that in the event of an express conflict between the Proposal documents and this Agreement, this Agreement shall prevail. 16. Limitation of Liability City desires to enter into this Agreement only if in so doing City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by City of this Agreement, so that its liability for any such breach of contract be limited to a maximum of$25,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Gallagher hereby agrees that City shall not be liable to Gallagher for damages in an amount in excess of $25,000, for any action or claim for breach of contract arising out of the performance or non-performance of any obligation imposed upon City by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida statutes, Section 768.28. Fee Service Agreement.doc 5 .;;;;......~ ~, IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed on the date first written above Attest: lie I.lL td (J 1 CU((/{ \ , ! .':(--. , I' i ", /);1 ,.', /',>,/' Attest:_/'//I/\/' ,i/ ,// l' ,,'\ ,,(I.' " i , , \ I \. ,/ Fee SeNice Agreement.doc CITY OF MIAM~ ~ACH' FL By: rv JI Mayor ARTHUR J. GALLAGHER & CO. (Florida) BY//~ 6 APPROVED AS TO FORM & U\NGUAGE & fOR EXECUTiON dg;!' titiJ Ii-' f / . ,I , ,/,' ,"-:>, ' / ,< ,'" 'S:,. ..~ '-aJ l~/ Att(.wn~y Dc/<;e .~~ ,z, EXHIBIT A SERVICES I. SCOPE OF SERVICES Advisor- Insurance Broker agrees to assist the City with the following Risk Management Services, as well as others that may become necessary during the contract period: 1. Provide assistance to the City's Risk Manager in determining the City's commercial insurance needs, 2. Prepare reports informing the City's Risk Manager regarding insurance market conditions that may affect the City's policies and risk exposure prior to policy renewal. 3. Prepare bid specifications and underwriting data (subject to the approval of the City's Risk Manager) to submit to acceptable insurance markets for the purpose of obtaining quotations for insurance coverage. 4. Upon direction from the City, approach all acceptable insurance companies on behalf of the City, and obtain written, competitive quotes for insurance coverage. A complete list of the companies contacted, along with their response, shall be submitted. 5. Present to the City all insurance coverage proposals obtained. This report must contain a comprehensive analysis by the broker of the proposals obtained with recommendations for the selection of one proposal for the particular risk to be covered. 6. Negotiate, on behalf of, and with direction from, the City with all insurance carriers to obtain the best prices, terms and conditions available. 7. Review all insurance policies and invoices received for policies purchased by the City to assure their accuracy and appropriateness. 8. Review and evaluate existing City policies to provide recommendations for possible improvement of price, terms, and conditions. 9. Service existing policies as necessary. This includes, but is not limited to, issuing certificates of insurance to provide evidence of coverage, promptly making policy changes, and obtaining endorsements. 10. Report any claims to the insurance carrier and monitor the handling and disposition of the claim to assure the City's policy rights are protected. Fee Service Agreement.doc 7 ..~ ,,8' 11. Provide an annual report summarizing all insurance coverage in place, anticipated market conditions, recommendations and strategies. II. RISK MANAGEMENT FEES FOR CONTRACT TERM $25,000 Per Year In the event the City should require Gallagher to place on its behalf any policy above $30,000 in annual premium, (not currently purchased by the City or specifically named in LA. of this agreement), or complete a special project of significant nature above and beyond the scope of services stated in this agreement, the City and Gallagher will mutually negotiate and agree upon a reasonable fee in addition to what is shown above. In the event a reasonable fee cannot be negotiated, the City is not restricted by the existence of this agreement in obtaining the necessary services in any manner it desires. It is understood and agreed that Arthur J. Gallagher & Co. will receive standard commissions on all NFIP Flood policies. Fee Service Agreement.doc 8