HomeMy WebLinkAbout6/24/2009 - STAFF REPORTS - 4.B. *pALM Sp4
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q`'Foa N City Council Staff Report
DATE: JUNE 24, 2009 NEW BUSINESS
SUBJECT. APPROVE ANNUAL INSURANCE POLICY RENEWALS FOR THE
CITY'S INSURANCE PORTFOLIO FOR FISCAL YEAR 2009-10 AND
APPROVING LOSS CONTROL AND REGULATORY COMPLIANCE
SERVICES.
FROM: David H. Ready, City Manager
BY: Douglas Holland, City Attorney
SUMMARY
The City is self-insured and annually purchases various lines of insurance coverage to
minimize the adverse effects of accidental losses and claims against the City. This
action would authorize the purchase of various lines of insurance for Fiscal Year 2009-
10 and also approve an Agreement with Keenan & Associates for Loss Control and
Regulatory Compliance services as required by OSHA, to be approved by the City
Attorney.
RECOMMENDATION:
Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AUTHORIZING KEENAN & ASSOCIATES AS
THE CITY'S BROKER OF RECORD, TO PURCHASE PROPERTY LIABILITY,
EXCESS EARTHQUAKE/FLOOD LIABILITY (DIFFERENCE IN CONDITION), EXCESS
LIABILITY, EXCESS WORKERS COMPENSATION, AIRPORT OWNERS AND
OPERATORS LIABILITY, VILLAGE FEST LIABILITY, MULTI MEDIA LIABILITY,
AIRCRAFT HULL LIABILITY, AND CRIMEIFIDELITY LIABILITY INSURANCE
POLICIES FROM VARIOUS CARRIERS FOR POLICY YEAR 2009-2010, EFFECTIVE
JULY 1, 2009, AND APPROVING LOSS CONTROL AND REGULATORY
COMPLIANCE SERVICES."
STAFF ANALYSIS:
The City is self insured for major risk programs such as property liability, excess
earthquake/flood liability, general liability, auto liability and workers' compensation. In
order to protect the assets of the City from potential loss, the City purchases various
lines of insurance coverage for these risks. To assist in the purchase of various lines of
insurance, the City entered into Agreement No. A5656 on April 30, 2008, with Keenan
and Associates for professional insurance brokerage services.
ITEM NO. �' i
City Council Staff Report
June 24, 2009 -- Page 2
Annual Insurance Renewals
Keenan and Associates has solicited pricing on the City's entire insurance portfolio.
The following is a summary of last year's premiums, and staffs recommendation (which
includes the options noted in the column at the right) for the July 1 renewals for Fiscal
Year 2009-10:
COVERAGE: Premium FY 08-09 Premium FY 09-10 Recommended Options
PROPERTY
Premium $320,500 $329,000
Deductibles $250,000 ror Earthquake $250,000 Far Earthquake
$100,000 Flood $100,000 Flood
$10,000 all other Losses S10,000 all other Losses
Limits $2500,000 $2,500,000
Terrorism coverage included Terrorism covera e included
DIG Airport Runways
(Earthquake/Flood)
Premium $535,024 $238,000 (City+Airport) 548,000
(excess of$2.5 M) $10.000.000 $80,000,000
(excess of$2.5 M)
Limits $22,500,000 $364,000 (WWTP)
$25,000,000
EXCESS LIABILITY
GL&AUTO
Premium $180,800 $160,800
Self-Insured Retention $400,000 Employment $500,000 Employment
Practices, Practices,
$400,000, all other: $400,000, all other
Limits $10,000,000 $10 000 000
EXCESS
WORKERS' COMP
Premium $81,423 $72,742
SIR-Police&Fire $1,000,000 $1,000,000
SIR-allotheremployees $1,000.000 $1,000,000
Limits $50,000,000 per occurrence $50:000,000 per occurrence
AIRPORT LIABILITY TRIA-Terrorism and War
Premium $37,000 $31A50 $3,931
Deductible $1,000 $1,000
Limits $50,000,000 $50.000,000
VILLAGE FEST
Premium S15,681 $12,210
Deductibles $1,000 $1,000
Limits $1,000,000/$2,000,000 $1,000,000/$2 000,000
AGG/$2,000,000 A00/$2,000,000
PROD/S100,000 FIRE PROD!$100,000 FIRE
MULTI MEDIA
Premium $9,282 $9,291
Deductibles $5,000 $5,000
Limits $1.000,000 $1,c00,c00
AIRCRAFT HULL TRIA-Terrorism and War
Premium $4,891 $4,158 $825
Deductible $75K hull,$100 In $75K hull, $100 In
Limits Motion/$500 Static Motion/$500 Static
$5 000 000 $5,000 000
CRIME/FIDELITY
Premium $4,415 $3,583
Deductibles $10,000/$1,000 $10,000/$1,000
Limits $1,000,000/sloo'coo/$300,0co $1,000,000/$100,000/$300,000
Total Premiums $1,169,016 $1,225,234 $1,277,990 w/options
Plus Fees and Taxes
City Council Staff Report
June 24, 2009 -- Page 3
Annual Insurance Renewals
PROPERTY PROGRAM:
Under the Property insurance program, the quote of $329,000 from Travelers is
recommended as one comprehensive policy and represents an increase of $9,000
(+2.8%) compared to last year. The City's total insured valued (TIV) increased to
$346,813,343 and Travelers offers significantly more attractive supplemental coverage
to the benefit of the City, including Terrorism coverage and Builder's Risk, than the
other quote received.
DIFFERENCE IN CONDITION (DIC) PROGRAM:
Insurance premiums have increased significantly over the last few years, making
property insurance almost unaffordable for some public agencies. In addition, the
insurance market that writes catastrophic coverage (flood, wind, and earthquake) has
reduced available insurance capacity, thereby further increasing costs.
The City is self-insured and purchases various lines of insurance each year for
additional protection. Flood and earthquake is almost always excluded from
commercial property policies and must be purchased separately. Last year, the City
Council approved the purchase of an "All Risk Property" insurance policy, which included
$2.5 million in primary earthquake/flood coverage.
As discussed above, the TIV is approximately $347 Million. While it is highly unlikely that
the City would have to replace every single facility in the event of an earthquake, there are
several facilities, such as the Airport and Wastewater Treatment Plant, that are considered
critical to the continued operations of the City. These two facilities alone have an
estimated replacement cost of over$120 million.
To ensure that there is sufficient coverage to repair and/or replace City facilities that could
be damaged in a flood or earthquake, the City has historically purchased Differences in
Coverage (DIC) insurance to augment its primary earthquake/flood insurance policy. Last
year, the City Council purchased a single DIC policy of $22.5 million from Lloyds of
London. Staff is proposing that that the City purchase two combinations/layers of policies:
one to cover the Wastewater Treatment Plan from the first dollar to $25 million and the
other to cover all remaining city facilities and buildings, including the airport, for $7.5
million in excess of the $2.5 million in coverage provided under the primary property
insurance. Staff is also recommending that the City purchase special coverage for the
airport runways which are not covered under the property or DIC insurances. The
separate stand-alone policy for the Wastewater Treatment Plant would cost a total of
$364,000 and would be paid by the wastewater enterprise account and the policy for the
City buildings and facilities, including the airport, would cost $238,000, and the cost would
be shared by the airport enterprise account and the City's general fund. The airport
runways policy will cost $48,000 and will be paid solely from the airport enterprise
account.
Last year, staff observed that significant increases in insurance costs caused many
public agencies to reduce their limits or drop DIG coverage altogether. While the City
could purchase less insurance, or only maintain the primary level of earthquake/flood
i�i
City Council Staff Report
June 24, 2009 -- Page 4
Annual Insurance Renewals
insurance coverage, staff does not recommend this course of action based on recent
actions taken by the Federal Emergency Management Agency (FEMA). Normally, the
federal government reimburses 75% of eligible costs incurred by local governments and
special districts in the event of a catastrophic disaster. The remaining 25% is generally
funded by state and local governments. Following the aftermath of Hurricane Katrina,
FEMA is now reviewing whether the local government or special district requesting
federal disaster assistance has adequate insurance in place, or the financial capacity to
purchase such insurance prior to providing such assistance. According to FEMA
guidelines (44 CFR Part 206), local government agencies that fail to maintain proper
property insurance can be denied Federal disaster assistance.
The current insurance market makes it financially cost prohibitive to purchase insurance
to cover the entire property schedule. However, based on the FEMA policy regarding
disaster assistance funding, staff believes that the City needs to maintain a reasonable
level of coverage to protect its interests and to demonstrate good faith compliance with
federal regulations concerning disaster assistance. Therefore, it is recommended that,
in addition to the primary coverage, the City Council authorize the purchase of a
separate DIC insurance program for the Wastewater Treatment Plant for $25 million in
earthquake/flood coverage and an additional $7.5 million in insurance for all remaining
City buildings and facilities that, when coupled with the $2.5 million of coverage
provided under the Property Insurance Program, would provide a combined total of $10
million in earthquake/flood coverage.
EXCESS LIABILITY PROGRAM:
The cost quoted for Excess Liability (which includes the City's comprehensive General
Liability and Auto Liability insurance) of $160,800 from Everest National is flat with last
year, and given the increase in litigation against public agencies due to the Joint &
Several Liability law created by Prop 51 (aka "the deep pockets rule"), staff
recommends this coverage at this favorable quote in today's insurance market,
representing a 0% increase.
EXCESS WORKERS' COMPENSATION PROGRAM:
Maintenance of Excess Workers' Compensation insurance is important to protect the
City from the negative financial consequences of potential catastrophes involving
multiple employee injuries or deaths from occurrences, such as major fires, police
activities, terrorist attacks and earthquakes during working hours- The renewal for the
same $50 million in coverage is $72,742 from Safety National, which is a savings of
$8,681 (-10.7%) compared to last year.
AIRPORT PROGRAM:
Finally, Airport Liability covers incidents such as injury to a person (ie: passenger slip
and fall in terminal) or damage to a plane (ie: airport equipment hits a plane) that occur
on the premises. Aircraft Hull Liability is specifically for the 1974 Cessna Aero
Squadron plane, covering the property itself and our liability in the event of an accident.
The combined cost of these two policies is $40,364, including new terrorism and war
- r
City Council Staff Report
June 24, 2009 -- Page 5
Annual Insurance Renewals
coverage, and still represents a savings of $1,527 (-3.6%) as a result of our broker,
Keenan, negotiating directly with ACE on behalf of the City this year, and eliminating the
associated cost of a middleman from prior policies.
MISCELLANEOUS
For the Village Fest, Multi Media and Crime/Fidelity policies, Keenan's marketing efforts
resulted in a combined premium of$25,084, which represents a savings of$4,294
(-14.6%).
LOSS CONTROL AND REGULATORY COMPLIANCE PROGRAM:
Due to the elimination of the full time Risk Management Division several years ago, and
the current reduction in staff hours as a result of the difficult budget issues facing the
City, an efficient and cost effective means of maintaining a Loss Control program with a
focus on regulatory compliance is through an amendment to our current contract with
our insurance broker to provide these services. The primary goals are to customize a
program to assist the City with Cal/OSHA compliance by conducting a Compliance
Needs Assessment and implement, where necessary, compliance programs, plans,
policies and procedures; raise awareness of regulatory responsibilities, keep the City
abreast of regulatory changes and their potential impacts to City operations, including a
Hazardous Material Inventory; and reduce the frequency of work-related injuries through
employee training programs scheduled throughout each year,
The City's contracts provide for the ability to add services via an Amendment with the
mutual consent of the parties. As part of the City's due diligence, staff researched
potential providers of these services, including any local providers, as well as contacting
the League of California Cities. While there are no known professional local firms that
offer such services, staff did review and compare prior proposals that had been
obtained and, based on Keenan's extremely competitive pricing, their professional
expertise, broad understanding of public agency loss control issues, and the synergy
and efficiency provided to City staff during these difficult times by having one point of
contact, staff is recommending that the City enter into a Professional Services
Agreement with Keenan and Associates for a three year period in an amount not to
exceed $74,050, in a form approved by the City Attorney. A copy of Keenan's Loss
Control Service Proposal is attached for the Council's information. The approval of
these services will assist the City in meeting its regulatory obligation with OSHA and
other entities.
FISCAL IMPACT:
Insurance Coverage
Total cost of recommended insurance to all funds for the fiscal year is $1,277,990, plus
fees and taxes. Funds are available in the Fiscal Years 2008-09 and 2009-10 Risk
Management Fund accounts.
Costs are allocated to specific funds. While the Fiscal Year 2008-09 total cost is
$1,169,016, and the Fiscal Year 2000-10 total cost is $1,277,990, including options
05
City Council Staff Report
June 24, 2009 -- Page 6
Annual Insurance Renewals
recommended by staff. Costs will be allocated between the general fund, airport
enterprise account, and the wastewater enterprise account, as appropriate. The
restructuring of the DIC coverage as described in this proposal will result in an overall
decrease in base insurance cost to the General Fund.
Loss Control and Regulatory Compliance Program
Three year agreement not-to-exceed $74,050. Funds are budgeted and available in
account 48620 (Safety Regulatory Training) to fund the entire 3 year Loss Control
services and no additional funds will need to be budgeted for years 2 or 3 of the
program.
Dougla� Holland, City Attorney David H. Ready, City
Attachments:
Proposed Resolution
Loss Control Service Proposal
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA AUTHORIZING KEENAN AND ASSOCIATES,
AS THE CITY'S BROKER OF RECORD, TO PURCHASE PROPERTY
LIABILITY, EXCESS EARTHQUAKE/FLOOD LIABILITY (DIFFERENCE
IN CONDITION), EXCESS LIABILITY, EXCESS WORKERS
COMPENSATION, AIRPORT OWNERS AND OPERATORS LIABILITY,
VILLAGE FEST LIABILITY, MULTI MEDIA LIABILITY, AIRCRAFT HULL
LIABILITY, AND CRIME/FIDELITY LIABILITY INSURANCE POLICIES
FROM VARIOUS CARRIERS FOR POLICY YEAR 2009-2010,
EFFECTIVE JULY 1, 2009 AND APPROVING LOSS CONTROL AND
REGULATORY COMPLIANCE SERVICES.
WHEREAS The City is self insured for major risk programs, such as
property, general liability, auto liability and workers' compensation; and
WHEREAS, annually purchases various lines of insurance coverage to
minimize the adverse effects of accidental losses and claims against the City; and
WHEREAS The City is located in the vicinity of several known active and
potentially active earthquake faults, including the San Andreas, the San Jacinto
and the Elsinore faults; and
WHEREAS, the topography of the City makes it prone to flooding, especially
during times of heavy rainfall; and
WHEREAS, the City purchases a primary earthquake and flood insurance
policy; and
WHEREAS, the City supplements its primary insurance policy with excess
coverage to properly protect its public facilities from catastrophic loss from
earthquake or flood; and
WHEREAS, the City Council appoints a broker of record to purchase
insurance policies for the City and the City's insurance broker has solicited
proposals from various insurance companies for insurance coverage.
NOW THEREFORE THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1: the City Council of the City of Palm Springs, California
authorizes Keenan & Associates, as the City's Broker of Record, to purchase the
following insurance policies for Fiscal Year 2009-10:
Resolution No.
Page 2
COVERAGE: Premium FY 09-10
PROPERTY
Premium $329,000
Deductibles $250,000 for Earthquake
$100,000 Flood
$10,000 all other Losses
Limits $346,813,343
'TRIA(terrorism)coverage
includ-Qd
DIG
(Earthquake/Flood)
Premium $238,000(City+Airport)
Limits $10,000,000
(excess of$2.5 M)
Premium $364,000 (WWTP)
Limits $25,000,000
$80 M Runways
Premium $45,000
EXCESS LIABILITY
GL&AUTO
Premium $160,800
Self-Insured Retention $500,000 Employment
Practices, $400,000,all other
Limits S_1g000,000
EXCESS _�
WORKERS' COMP
Premium $72,742
SIR-Police&Fire $1,000,000
SIR-allother employees $1,000,000
Limits $50,000,000 peroccurrence
AIRPORT LIABILITY
Premium $35,381
Deductible $1,000
Limits $50,000,000
TRIA &War
VILLAGE FEST
Premium $12,210
Deductibles $1.000
Limits $1,000,000/$2,000.000
AGG/$2,000,000
PROD/$100 000 FIRE
MULTI MEDIA
Premium $9,291
Deductibles $5,000
Limits $11000 000
AIRCRAFT HULL
Premium $4,983
Deductible S75K hull,$100 In
Limits Motion/$500 Static
TRIA&War $5.000.000
CRIME/FIDELITY
Premium $3,583
Deductibles $10,000/$1,000
Limits $1,000,000/S10Q000/S,300,000
Total Premiums $1,277,990
Plus Fees and Taxes
Resolution No.
Page 3
SECTION 2. A Professional Services Agreement, subject to review and
approval by the City Attorney, with Keenan and Associates to provide Loss Control
and Regulatory Compliance Services, in an amount not to exceed $74,050 is
hereby approved.
SECTION 3. The City Manager is hereby authorized to accordingly adjust
the budget and allocate the insurance expense to the appropriate enterprise and
other funds.
SECTION 4. The City Manager is hereby authorized to execute any
documents to effectuate such actions.
ADOPTED THIS 24T'-' DAY OF JUNE, 2009.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy as was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on June 24, 2009 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
. v1
CONSULTING SERVICES AGREEMENT
Loss Control and Regulatory Compliance Services, Keenan & Associates
THIS AGREEMENT FOR CONSULTING SERVICES (the "Agreement") is made and
entered into this _ day of 2009, by and between the City of Palm Springs, a
California charter city and municipal corporation ("City"), and Keenan & Associates, a
California corporation, ("Consultant').
RECITALS
A. City requires the services of a professional consultant to provide Loss Control and
Regulatory Compliance Services , ("Project').
B. Consultant has submitted to City a proposal to provide Loss Control and
Regulatory Compliance Services, to City pursuant to the terns of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified to provide the necessary services to City for the Project and desires to provide such
services.
D. City desires to retain the services of Consultant for the Project.
NOW, THEREFORE, in consideration of the promises and mutual agreements contained
herein, City agrees to retain and does hereby retain Consultant and Consultant agrees to provide
services to the City as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide Loss Control and Regulatory Compliance services to City
as described in the Scope of Services/Work attached to this Agreement as Exhibit "A" and
incorporated herein by reference (the "services" or `'work"), which includes the agreed upon
schedule of performance and the schedule of fees. Consultant warrants that all services and work
shall be performed in a competent, professional, and satisfactory manner in accordance with all
standards prevalent in the industry. In the event of any inconsistency between the terms
contained in the Scope of Services/Work and the terms set forth in the main body of this
Agreement, the terms set forth in the main body of this Agreement shall govern.
1.2 Compliance with Law. All services rendered under this Agreement shall be
provided by Consultant in accordance with all applicable federal, state, and local laws, statutes
and ordinances and all lawful orders, rules, and regulations promulgated thereunder.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such
licenses, permits, and approvals as may be required by law for the performance of the services
required by this Agreement.
Revised:3/23107
$07G31.1
1.4 Familiarity with Work_ By executing this Agreement, Consultant warrants that
it has carefully considered how the work should be performed and fully understands the
facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION.
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to the agreed upon schedule of performance set forth in Exhibit "A."
Consultant shall not be accountable for delays in the progress of its work caused by any
condition beyond its control and without the fault or negligence of Consultant Delays shall not
entitle Consultant to any additional compensation regardless of the party responsible for the
delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. For the services rendered pursuant to this
Agreement, Consultant shall be compensated and reimbursed, in accordance with the schedule of
fees set forth in Exhibit"A," which total amount shall not exceed S74,050.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall no later than the first working day of such month, submit to City in the
form approved by City's finance director, an invoice for services rendered prior to the date of the
invoice. Payments shall be based on the hourly rates as set forth in Exhibit "A" for authorized
services performed. City shall pay Consultant for all expenses stated thereon, which arc
approved by City consistent with this Agreement, within thirty (30) days of receipt of
Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services/Work is
requested by City, the parties hereto shall execute a written amendment to this Agreement,
setting forth with particularity all terms of such amendment, including, but not limited to, any
additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents or other work
product or work when documents or other work product or work is required by the enactment or
revision of law subsequent to the preparation of any documents, other work product, or work;
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. This Agreement is subject to and contingent upon funds being
appropriated therefore by the City Council of City for each fiscal year covered by the
Agreement. If such appropriations are not made, this Agreement shall automatically terminate
without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
2 Revised:3/23/07
507G39.''
4.2 Schedule of Performance. All services rendered pursuant to this Agreement
shall be performed pursuant to the agreed upon schedule of performance set forth in Exhibit"A."
The extension of any time period must be approved in writing by the Contract Officer.
4.3 Force Maieure. The time for performance of services to be rendered pursuant to
this Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of Consultant, including, but not limited to, acts of
God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic,
quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather if
Consultant shall within ten (10) days of the commencement of such condition notify the Contract
Officer who shall thereupon ascertain the facts and the extent of any necessary delay, and extend
the time for performing the services for the period of the enforced delay when and if in the
Contract Officer's judgment such delay is justified, and the Contract Officer's determination
shall be final and conclusive upon the parties to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 9.5 of this
Agreement, this Agreement shall continue in full force and effect for a period of three years (FY
09-10, FY 10-11, FY 11-12), commencing on July 1, 2009, and ending on June 30, 2012, unless
extended by mutual written agreement of the parties-
S. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is hereby
designated as being the principal and representative of Consultant authorized to act in its behalf
with respect to the services and work specified herein and make all decisions in connection
therewith: John Stephens, Senior 'Vice President. It is expressly understood that the experience,
knowledge, education, capability, and reputation of the foregoing principal is a substantial
inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be
responsible during the term of this Agreement for directing all activities of Consultant and
devoting sufficient time to personally supervise the services hereunder. The foregoing principal
may not be changed by Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager, or his/her
designee. It shall be the Consultant's responsibility to keep the Contract Officer, or his/her
designee, fully informed of the progress of the performance of the services and Consultant shall
refer any decisions that must be made by City to the Contract Officer. Unless otherwise
specified herein, any approval of City required hereunder shall mean the approval of the Contract
Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and employees,
were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall
not contract with any other individual or entity to perform in whole or in part the services
required hereunder without the express written approval of City. In addition, neither this
Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of
law, without the prior written approval of City.
3 Revised,30/07
507639.2 n
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees, perform
the services required herein, except as otherwise set forth herein. Consultant shall perform all
services required herein as an independent contractor of City and shall not be an employee of
City and shall remain at all times as to City a wholly independent contractor with only such
obligations as are consistent with that role; however, City shall have the right to review
Consultant's work product, result, and advice_ Consultant shall not at any time or in any manner
represent that it or any of its agents or employees are agents or employees of City.
5.5 Personnel_ Consultant agrees to assign the following individuals to perform the
services set forth herein. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by
Consultant by providing written notice to Consultant.
Name: Title_
John Stephens Senior Vice President
Marco Guardi Assistant Vice President, Loss Control
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance
as set forth in Exhibit"B,"which is attached hereto and is incorporated herein by reference.
7. INDEMNIFICATION.
To the fullest extent permitted by law, Consultant shall defend (at Consultant's sole cost
and expense), indemnify, protect, and hold harrnless City, its elected officials, officers,
employees, agents, and volunteers (collectively the "Indemnified Parties"), from and against any
and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards,
settlements, damages, demands, orders, penalties, and expenses including legal costs and
attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to
or death of persons (Consultant's employees included), for damage to property, including
property owned by City, from any violation of any federal, state, or local law or ordinance, and
from errors and omissions committed by Consultant, its officers, employees, representatives, and,
agents, which Claims arise out of or are related to Consultant's performance under this
Agreement, but excluding such Claims arising from the negligence or willful misconduct of the
City, its elected officials, officers, employees, agents, and volunteers. Under no circumstances
shall the insurance requirements and limits set forth in this Agreement be construed to limit
Consultant's indemnification obligation or other liability hereunder.
507639 2 4 Revised:3123/07
8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer
such reports concerning the performance of the services required by this Agreement as the
Contract Officer shall require_
8.2 Records. Consultant shall keep such books and records as shall be necessary to
properly perform the services required by this Agreement and enable the Contract Officer to
evaluate the performance of such services. The Contract Officer shall have full and free access
to such books and records at all reasonable times, including the right to inspect, copy, audit, and
make records and transcripts £tom such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this Agreement
shall be the property of City and shall be delivered to City upon request of the Contract Officer
or upon the termination of this Agreement, and Consultant shall have no claim for farther
employment or additional compensation as a result of the exercise by City of its full rights or
ownership of the documents and materials hereunder. Consultant may retain copies of such
documents for its own use. Consultant shall have an unrestricted right to use the concepts
embodied therein.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract
Officer,
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement and shall make such materials available at its offices at all reasonable
times during the term of this Agreement and for three (3) years from the date of final payment
for inspection by City and copies thereof shall be promptly famished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of
California, or any other appropriate court in such county, and Consultant covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
9.2 'Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to
507639 2 S Revised:5/23/07
�2
or approval of any subsequent act of Consultant. Any waiver by either party of any default must
be in writing and shall not be a waiver of any other default concerning the saute or any other
provision of this Agreement.
9.3 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the tights and remedies of the
parties are cumulative and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the sate default or any other default by the other party.
9.4 Legal Action. In addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief, a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
9.5 Termination Prior to Expiration of Term. City reserves the right to terminate
this Agreement at any time, with or without cause, upon thirty (30) days written notice to
Consultant, except that where tem-tination is due to the fault of Consultant and constitutes an
immediate danger to health, safety, and general welfare, the period of notice shall be such shorter
time as may be determined by the City. Upon receipt of the notice of termination, Consultant
shall immediately cease all services hereunder except such as may be specifically approved by
the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior
to receipt of the notice of termination and for any services authorized by the Contract Officer
thereafter. Consultant may terminate this Agreement, with or without cause, upon thirty (30)
days written notice to City.
10. CITY OFFICERS AND EMPLOYEES-, NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City
shall be personally liable to the Consultant, or any successor-in-interest, in the event of any
default or breach by City or for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terns of this Agreement.
10.2 Covenant Aeainst Discrimination. Consultant covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex, marital
status, disability, sexual orientation, national origin, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice_ Any notice, demand, request, consent, approval, or communication either
party desires or is required to give to the other party or any other person shall be in writing and
either served personally or sent by pre-paid, first-class mail to the address set forth below_ Either
party may change its address by notifying the other party of the change of address in writing.
Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed
as provided in this Section.
6 Revised:V23107
5076392
25
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: Keenan &Associates
Attention: John Stephens, Senior Vice
President
901 Calle Amanecer, Suite 200
San Clemente, CA 92673
11.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and cannot be amended or modified except by written agreement.
11.3 Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
11.4 Severability. In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by
valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability
shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this
Agreement, which shall be interpreted to carry out the intent of the parties hereunder.
11.5 Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that they are duly authorized to execute this Agreement on behalf of said parties and that
by so executing this Agreement the parties hereto are formally bound to the provisions of this
Agreement.
[SIGNATURE PAGE SEPARATELY ATTACHED]
7 Revised:3/23/07
507639.9
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H- Ready
City Manager
APPROVED AS TO FORM: ATTEST
By: By-
Douglas C. Holland, .lames Thompson,
City Attorney City Clerk
"CONSULTANT"
Keenan &: Associates
Date: By :
(name)
(president)
Date:
(name)
(secretary)
g Revised:31.3107
5076392
l
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of Calltarnla
County of
On before me,
oar tides Wcr nmew Tim of nc 01imr
personally appeared F„
PFmtci msbhmei
who proved to me on the basis of satisfactory evidence to
be the person(s) whose names) Ware subsutibed to the
within instrument and acknowledged to me that
helshatthey executed the same in his/her/their authorized
capacity(es),and that by histherltheir signaltire(s) on the
instrument the person(s), or the entity upon behalf of
which the person(s)acted,execuled the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph Is
true and correct
WITNESS my hand and official seal.
PLye.xa�ry Sea imv Signature slg.mrewr+ounr�,uc .^._—
OPTIONAL
7houph to infwmarion barow is not tagrdrad ay taw,It may prove✓iUlNe To persons relying on the dopury,ent
and caul/prevent fmaduient remora,and reattactrment of du's form to snpvwr dowm, nt.
Description of Attached Document
Title or Typo of Document:
Document Date: ____ Number of Pages:
Signer(s)Other Than Named Abx ;
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
71 Individual 111ntfrvidual
0 Corporate officer—Ttio(s). ❑Corporate Officer—Title(s):
r1 Partner--Ll Limited LJGeneral ❑Partner—❑UrnRed L Qeneral
❑ Attorney in Fact ❑Attorney in Fact
* Trustee rep of mvmn Here q Trustee Top of iwmw Horn
* Guardian or Conservator ❑Guardian or Conservator
* Other: ❑Other:
Signer Is Representing; Signer Is Representing
02WTtinlpgl NWzry KSi[ialbn•H95ef)a Sent he,n9au?A[2.fJnea�h CA aral326rc+•w.aw.rnttoraNWrywp Mm i"%Vr nc�nbr,Lel Td.r*x I�M16]t'.OB;T
9 Revised:3123/07
507639.1
' � rJ
EXHIBIT "A"
CONSULTANT'S
SCOPE OF SERVICES/WORK
Including,
Schedule of Fees
And
Schedule of Performance
10 Revised•3123107
507639.2
L'„
CITY OF PALM SPRINGS
wv4i "�
q,i� nl.v.m'nMnyy � 11
f�r,xv!�^r i,rfJ��FOni'j r ,
Loss Control. Service Proposal
Amendment to Broker Contract
February 20, 2009
Presented By,:
John Stephens, Senior Vice President
Property & Casualty Practice Leader
itephens(kkeenan.coin
Marco Guardi, ARM, MPA
Assistant Vice President—Loss Control
ma_vardi a,keenan.com
Keenan & Associates
901 Calle Amanecer, Suite 200
San Clemente, CA. 92673
949-940-1760 (Phone)
949-369-0324 (Pax)
L:en:c 4U51211
CITY OF PALM SPRINGS
Rent A Safety Professional (RASP) Program
The City of Palm Springs has asked Keenan&Associates to provide a loss control proposal to assist
the City meet its regulatory obligations. We axe pleased to provide the following proposal which
outlines Loss Control services that will be provided. The services listed are customized to help the
City understand and develop a strategy to meet the various regulatory requirements in the most
efficient, cost effective ;manner. The program services were developed based on the information
provided by the City and discussions with Captain Ventura from the City's Fire Department.
Keenan will assign a dedicated Loss Control consultant to the City and this Consultant will be
responsible for ensuring the services listed in this program are provided as well as any other matters
related to this program. Although the Consultant may provide many of the services to the City,
other consultants with specialized areas of expertise may be called upon to provide some of the
services. The goal of this service program is to assist the City with establishing an efficient and
effective safety program.
The program primary goals are:
• Assist the City with Cal/OSHA and Fed/OSHA compliance
• Raise awareness of regulatory responsibilities
• Keep City abreast of regulatory changes and their potential impacts to City operations
• Reduce the Frequency of Work Relazed Injuries
The success of die program, in large part, will depend on the commitment of the City. By accepting
this program, the City agrees:
• It is demonsttating its comrminnent to providing a safe and healthful workplace for
employees
• To designate an individual to coordinate and facilitate the program services with the
Consultant
To facilitate a focused safety program and safety culture, the assigned Consultant will assist
organizing and partidpatmg in City Safety Comru-uttee meetings. The City will be responsible for
establishing the make-up of the committee and the frequency of meetings and the Consultant, in
cooperation with the City, will identify topics for meeting agendas and prepare support
documentation, for the meetings.
I:G[M1LI h A:socuc j!
Ucensc Ilaes¢n 1'
y
PROGRAM SERVICES
L Compliance Needs Assessment
Evaluate the City's operations to determine the application of and compliance status with
Cal/OSHA regulations. This will be achieved by
a. Comprehensive review of current written compliance programs and plans; health
and safety policies and procedures
b. .Field verification of current program, plan, policy and procedure implementation
throughout City operations;
c. Assessment report identifying program, plan, policy and procedure deficiencies
2._Compliance Program Plan. Police and Procedure Development
If it is determined exdsting City programs, plans, policies and procedures are not incompliance,
Keenan will modify or amend them accordingly with input from the City. If it is determined that
required written compliance programs, plans, policies and procedures are not in place, they will be
provided and customized specific to the City's operations. plans to be reviewed, evaluated and
amended include but are not limited to:
Injury& Illnesq Prevention Lockout/Tagout Plan Repetitive Motion Injury
Plan Prevention Plan
Hazard Communication Plan Confined Space Entry Plan Hearing Conservation Plan
Bloodborne Pathogens Respiratory Protection Plan Hear Illness Prevention Plan
Exposure Control Plan
Additionally, Keenan will provide consulting services necessary to assist the City successfully
implement such programs, plans, policies and procedures to achieve compliance with Cal/OSHA
regulations as well as reduce the number of injuries.
3. Hazardous Material Inventory
Chief Ventura from the City's rite Department suggested we include Hazardous Marerials Inventory
as the City apparently has not done this for several years. An inventory of hazardous material used
by and stored at city facilities, will be conducted annually. This inventory will, assist with the City's
compliance towards Cal/OSHA's Hazard Communication regulation. Upon completion of the
inventory, the City will receive a report outlining the material name and quantities used and stored at
each city facility. This inventory will serve as the foundation for compiling and distributing Material
Safety Data Sheets (MSDS) throughout the City facilities using Keenan's Online MSDS system, a
feature of the Hazardous Material Inventory service.
4. Employee Training
In conjunction with the Program Services #1 and #2 outlined above, Keenan will provide six (6)
one-hour training sessions annually. All train;gs will be provided on dates and times convenient for
the City. All txainings will be conducted by Keenan. Loss Control Consultants who are members of
the American Society of Safety Engineers. Suggested training topics include but are not limited to:
Accident Investigation Forklift,Aerial, & Boonilift Hearin-Conservation
Asbestos Aivarctiess Grounds Heat Illness Prevention
Ccrtification (Certified Instructor
Custodial I-Jazard Communicition Ladder safety
Electrical Safety Hazardous Waste Management Library Ergonomics
Fire Safety If calth and Wellness Lockout-Tagour
Machine Guarding Personal Protective Equipment Respiratory Protection
Self Inspection Control Prevention ProgrArn)
bus drivers,maintenance NSC instructors)
workers,office staff
(preventing back injuries,
strains, sprains)
Hazard Recognition Preventing Slips/1'rips/Falls Stress Management
Utility Cart Sexual Hafa,"ment Work
?lace Violence
Addendum to Broker of Record Agreement
In conjunction with the City's Broker of Record agreement with Keenan &Associates, the services
described above will be provided through an addendum to the agreement as follows:
Policy Year 2009/2010 $32,250
Policy Year 2010/2011 $24, 250
Policy Year 2011/2012 $17, 550
o Fees include Professional Time, Preparation and Scheduling,Travel Time, Follow Up
Analytical Reports and Clerical Supporr/Word Processing.
The structure above reflects the greater effort expended in Policy Year 2009/2010 to review,
develop and establish programs, plans, policies and procedures. In anticipation of establishing
programs, plans, procedures and policies, activities in Policy Year 2010/2011 will focus on
implementing and ensuring the effectiveness of these items. Activities in Policy Year 2011/2012 will
mainly focus on maintaining the City's safety program and measuring the program's success.
UMn:c Il�eS¢]I °"�
L. �
EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
Revised:3/23107
507639,2
r
_ L
Insurance
Consultant shall procure and maintain, at its sole cost and expense, and submit
concurrently with its execution of this Agreement, in a form and content satisfactory to the City,
public liability and property damage insurance against all claims for injuries against persons or
damages to property resulting from Consultant's per£ornance under this Agreement. Consultant
shall also carry workers' compensation insurance in accordance with California workers'
compensation laws. Such insurance shall be kept in full force and effect during the term of this
Agreement, including any extension thereof, and shall not be cancelable without thirty (30) days
advance written notice to City of any proposed cancellation. Certificates of insurance evidencing
the foregoing and designating the City, its elected officials, officers, employees, agents, and
volunteers as additional named insureds by original endorsement shall be delivered to and
approved by City prior to commencement of services. The procuring of such insurance and the
delivery of policies, certificates, and endorsements evidencing the same shall not be construed as
a limitation of Consultant's obligation to indemnify City, its elected officials, officers, agents,
employees, and volunteers.
A. Minimum Scope of Insurance. The minimum amount of insurance required
hereunder shall be as follows:
I. Comprehensive general liability and personal injury with limits of at least
one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two
million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00)per occurrence;
3. Professional liability (errors and omissions) insurance with limits of at
least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000)
annual aggregate; and,
4. Workers' Compensation insurance in the statutory amount as required by
the State of California and Employer's Liability Insurance with limits of at least one million
dollars $1 million per occurrence. If Consultant has no employees, Consultant shall complete the
City's Request for Waiver of Workers' Compensation Insurance Requirement form.
For any claims related to this Agreement, Consultant's insurance coverage shall be
primary insurance as respects City and its respective elected officials, officers, employees,
agents, and volunteers. Any insurance or self-insurance maintained by City and its respective
elected officials, officers, employees, agents, and volunteers shall be in excess of Consultant's
insurance and shall not contribute with it. For Workers' Compensation and Employer's Liability
Insurance only, the insurer shall waive all rights of subrogation and contribution it may have
against City, its elected officials, officers, employees, agents, and volunteers.
B. Errors and Omissions Coverage. If Consultant provides claims made
professional liability insurance, Consultant shall also agree in writing either (1) to purchase tail
insurance in the amount required by this Agreement to cover claims made within three years of
12 ReNsed:312310T
507639 2
the completion of Consultant's services under this Agreement, or (2) to maintain professional
liability insurance coverage with the same carrier, or equivalent coverage with another company,
in the amount required by this Agreement for at least three years after completion of
Consultant's services under this Agreement- Consultant shall also be required to provide
evidence to City of the purchase of the required tail insurance or continuation of the professional
liability policy.
C. Sufficienev of Insurers- Insurance required herein shall be provided by
authorized insurers in good standing with the State of California. Coverage shall be provided by
insurers admitted in the State of California with an A.M. Best's Key Rating of B++, Class VII, or
better, unless otherwise acceptable to the City-
A- Verification of Coverage. Consultant shall furnish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all'of the
coverages required by this Agreement. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be
received and approved by the City before work commences. City reserves the right to require
Consultant's insurers to provide complete, certified copies of all required insurance policies at
any time. Additional insured endorsements are not required for Errors and Omissions and
Workers' Compensation policies-
Verification of Insurance coverage may be provided by: (1) an approved General and/or
Auto Liability Endorsement Form for the City of Palm Springs or(2) an acceptable Certificate of
Liability Insurance Coverage with an approved Additional Insured Endorsement with the
following endorsements stated on the certificate:
I. "The City of.Palm Springs, its officials, employees, and agents are named as an
additional insured--- " ("as respects City of Palm Springs Contract No- " or "for any and all
work-performed with the City"may be included in this statement).
2- "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have-.." ("as respects City of Palm Springs Contract No._" or 'for any
and all work performed with the City" may be included in this statement).
3. "Should any of the above described policies be canceled before the expiration
date thereof, the issuing company will mail 30 days written notice to the Certificate Holder
named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose
no obligation or liability of any kind upon the company, its agents or representative" is not
acceptable and must be crossed out.
-4. Both the Workers' Compensation and Employers' Liability politics shall contain
the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees,
agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the
certificate holder on the policies.
13 Revised.3123/07
50709'
Z'�
All certificates of insurance and endorsements are to be received and approved by the City
before work commences. All certificates of insurance must be authorized by a person with
authority to bind coverage, whether that is the authorized agentfbroker or insurance underwriter.
Failure to obtain the required documents prior to the commencement of work shall not waive the
Consultant's obligation to provide them.
E. Deductibles and Self-Insured Retentions. Any deductibles or sell'insured
retentions must be declared to and approved by the City prior to commencing any work or
services under this Agreement. At the option of the City, either the insurer shall reduce or
eliminate such deductibles or self-insured retentions as respects the City, its elected officials,
officers, employees, agents, and volunteers; or, Consultant shall procure a bond guaranteeing
payment of losses and related investigations, claim administration, and defense expenses.
Certificates of Insurance must include evidence of the amount of any deductible or self-insured
retention under the policy_ Consultant guarantees payment of all deductibles and self-insured
retentions.
F. Severability of Interests (Separation of Insureds,). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect to
the limits of the insurer's liability.
14 Revised-3l23107
507G39.'
1.