HomeMy WebLinkAbout12/5/2012 - STAFF REPORTS - 2.O. PALM SA
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F0 City Council Staff Report
DATE: December 5, 2012 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AGREEMENT NO. A5656
EXTENDING THE PROFESSIONAL INSURANCE BROKERAGE
SERVICES AGREEMENT WITH KEENAN & ASSOCIATES FOR AN
ADDITIONAL THREE (3) YEAR TERM
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. The City
has an agreement with Keenan & Associates, a professional insurance brokerage firm,
to assist in the management of the City's various insured and self-funded insurance
programs, as well as to market and procure various lines of insurance. The City's
current contract with Keenan & Associates for brokerage services will expire in the
Spring of 2013, prior to the completion of the annual insurance renewal process that
begins in January for the FY 13-14 coverage. Based upon the exemplary performance
of Keenan & Associates over the previous five (5) years, staff is recommending that the
City extend its agreement with Kennan & Associates for an additional three (3) years
with no increase in the annual brokerage fee.
RECOMMENDATION:
1. Approve Amendment No. 1 to Agreement No. A5656 with Keenan & Associates for
professional insurance brokerage services, extending the agreement for three (3)
fiscal years (Fiscal Years 2013-14, 2014-15, and 2015-16) in an amount not-to-
exceed $60,000 per year.
2. Authorize the City Manager to execute the necessary documents.
STAFF ANALYSIS:
The City is self insured for major risk programs, such as general liability, auto liability
and workers' compensation. The City purchases various lines of insurance, including
general liability, automotive, property, and excess workers' compensation insurance to
help protect the City from potential losses.
ITEM NO. �Q _
City Council Staff Report
December 5, 2012 -- Page 2
Insurance Brokerage Services
To assist in the marketing and purchase of various lines of insurance, the City has
contracted with Keenan & Associates since 2008 (FY 08-09) as approved by City
Council to serve as the City's broker of record at a flat fee of $60,000 per year. Keenan
is proposing to extend the term of the contract for an additional three years at the
current contract fee of $60,000 per year as well as continue to place all policies "net of
commissions," which saves the City an estimated $50,000 per year.
Keenan & Associates has worked almost exclusively with public agencies for over 40
years and understands the complexities involved in placing public insurance. The firm
has represented over 700 public agencies, including local agencies such as Palm
Springs USD, Desert Sands USD, Coachella Valley USD, and Desert CCD.
Over the course of the City's current five (5) year agreement with Keenan, staff
estimates Keenan has saved the City approximately $1.5 million in premiums,
affordably restructured and expanded the City's DIC (earthquake) coverage in a
hardened market, dramatically reduced the City's Workers Compensation premiums
from a high of $271K in FY 06-07 to $86K today, and consolidated all policies onto one
common expiration date improving efficiency and annual budgeting.
Keenan & Associates has proven to be a professional and reliable partner assisting the
City with claims processing (such as the two wind storms and recent City Hall fire) and
is a valuable extension of the city's Risk Management team. As such, Staff is
recommending that the City Council approve the amendment to extend these services
for an additional three years at the same flat fee of $60,000 per year. All other terms
and conditions of the original agreement remain unchanged.
FISCAL IMPACT:
The proposed cost of $60,000 per year from Keenan & Associates for the next 3 fiscal
years is the same as the rate that the City has been paying and funds will be
appropriately budgeted each fiscal year within the Risk Management Fund to cover
these insur ce brokerage services.
Douglas Holland, City Attorney David H. Ready, Cito ager
02
AMENDMENT NO. 1
TO
PROFESSIONAL SERVICES AGREEMENT
Insurance Brokerage Services
(Agreement No. 6666)
THIS FIRST AMENDMENT to the Professional Services Agreement No. 5656 for Insurance
Brokerage Services is made and entered into to be effective on the 1st day of January, 2013 by and
between the City of Palm Springs, a California charter city and municipal corporation (hereinafter
referred to as the City), and Keenan &Associates, a California corporation (hereinafter referred to
as "") collectively, the "Parties".
RECITALS
A. City and Consultant previously entered into a professional services agreement for
insurance brokerage services on June 3, 2008 (the"Agreement').
B. City and Consultant desire to amend the Agreementto extend the term of Agreement
No. 5656 to June 30, 2016 on the same terms and conditions, including without limitation
compensation.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the Parties agree as follows:
AGREEMENT
1. Amendment to Section 3.4 of the Agreement is amended in its entirety to read:
3.4 Term. Unless earlier terminated as provided elsewhere in this Agreement, this
Agreement shall commence on the effective date of this Agreement and continue in full force and
effect until June 30, 2016.
2. Full Force and Effect. This modifying Amendment is supplemental to the Agreement and is
by reference made part of said Agreement. All of the terms, conditions, and provisions, thereof,
unless specifically modified herein, shall continue in full force and effect. In the event of any conflict
or inconsistency between the provisions of this Amendment and any provisions of the Agreement,
the provisions of this Amendment shall in all respects govern and control.
3. Corporate Authority. The persons executing this Amendment on behalf of the Parties hereto
warrant that(1)such party is duly organized and existing, (ii)they are duly authorized to execute and
deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is
formally bound to the provisions of this Amendment, and (iv)the entering into this Amendment does
not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON NEXT PAGE)
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the dates
stated below.
ATTEST: "CITY"
CITY OF PALM SPRINGS, CA.
By By
James Thompson, City Clerk David H. Ready, City Manager
Date: Date:
APPROVED AS TO FORM:
By
City Attorney
Date:
"CONSULTANT"
Keenan & Associates
Date: By:
Date:
2 04
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California '—
County of
On before me,
ayq Here Hach Nerve Ti0'0pre O%ficer
personally appeared re .rri orssee s
who proved to me on the basis of satisfactory evidence to
be the person(s)whose name(s)Ware subscribed to the
within instrument and acknowledged to me that
helshelthey executed the same in hislheritheir authorized
capacity(les),and that by hisTwItheir sigrralufe(s)on the
inlitrument the person(s), or the entity upon behalf of
which the person(s)acted,executed the fnstrumant.
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.
Signature
61aeo Notlry Seal AEdW 9yeature at NaYry iUcec
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Description of Attached Document
Titlo orrypo of Document:.------__._._.
Document Date: Number of Pages:
Signer(s)Other Than Named Above,
Capacity(les)Claimed by Signer(s)
Signers Name: Signers
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C Partner—❑Umited ❑General ❑Partner—C United C General
C Attorney in Fad ❑Attorney in Fact
0 Trustee Top m thumb item :D Trustee Top of thumb here
LJ Guardian or Conservator C Guardian or Conservator
O Other.__— C Other.
Signer Is Representing: Signer Is Representing:
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