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Res 1587 - Agrmt Huggins Ins COUNCIL BILL NO. 2046 RESOLUTION NO. 1587 A RESOLUTION ENTERING INTO A CONTRACTUAL SERVICES AGREEMENT AND DESIGNATING HUGGINS INSURANCE SERVICES, INC. AS THE CITY'S INSURANCE AGENT OF RECORD. WHEREAS, the current agreement with Huggins Insurance Services, Inc. will expire on June 30, 2000, and WHEREAS, the risk management service provided by Huggins Insurance Services, Inc. has been more than satisfactory over the term of the current agreement, and WHEREAS, the City has determined that a one-year extension to the agreement authorized by Resolution No. 1413 would facilitate the procurement of insurance proposals prior to July I, 2000, now therefore, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. That the City of Woodburn enter into an agreement with Huggins Insurance Services, Inc. retaining that firm as the City's Insurance Agent of Record. Section 2. That the terms and conditions of said agreement are hereby adopted. The entire agreement being appended to this resolution and, by reference, incorporated therein. Section 3. That the Mayor is authorized to execute and the City Administrator, or his designee, to administer said agreement on behalf of the City. ~l\Nr ^~ 5-/1-Zo~J Approved as to form: . I'" (~ City Attorney Date APPROVED RIC Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATIEST~ ---r- ~ rK Mary Te ant, Recorder City of Woodburn, Oregon May 22. 2000 May 23, 2000 May 23, 2000 May 23, 2000 Page I - COUNCIL BILL NO. 2046 RESOLUTION NO. 1587 Y. CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT, entered into this 23rd day of May .2000, by and between the City of Woodburn, hereinafter referred to as "Client", and Huggins Insurance Services, Inc., hereinafter referred to as "Agent". WITNESSETH WHEREAS, the Client intends to engage and does hereby engage Agent to serve as Client's Insurance Agent of Record. NOW THEREFORE, for the consideration hereinafter set forth, it is agreed by and between the parties as follows: I. The Agent shall provide professional services to the Client as follows: (A) Supervise the placement and service of all Client's bonds and insurance, with the exception of Employee benefits, including but not limited to, services as outlined in Agent's Proposal to Client, dated May 23, 1997. (B) Work to be performed by Agent of Record includes services generally performed by Agent of Record in their usual line of business. (C) The parties of this agreement intend that the relation between them is that of employer - independent contractor. No agent, employee, or servant of Agent of Record shall be or shall be deemed to be the employee, agent or servant of the Client. (D) Agent of Record shall defend, indemnify and hold harmless Client and its agents or assigns from and against all liability or loss and against all claims or actions based upon or arising out of damage or injury to persons or property caused by or sustained in connection with their performance of this contract by Agent of Record. (E) Agent of Record shall maintain in effect a comprehensive general liability (including professional liability) policy with an Errors and Omissions policy with a minimum limit of $1,000,000 per occurrence. Said policy shall include a 3D-day notice of cancellation clause to the Client. A certificate of insurance evidencing all insurance required by this agreement shall be delivered to the Client prior to commencement of any services. Page I - Huggins Insurance Services, Inc. Contractual Services Agreement T' (F) Agent of Record shall provide evidence of workers' compensation insurance, or by signing this agreement, represents that Agent is a sole proprietor and therefore exempt from the laws requiring workers' compensation coverage. Agent of Record shall also defend, indemnify and hold harmless Client against all liability and loss in connection with and shall assume full responsibility for, payment of federal, state, and local taxes or contributions imposed, or required under unemployment insurance, social security, and income tax laws, with respect to Agent of Record's employees engaged in the performance of this agreement. (0) In the event any payment made pursuant to this agreement is to be charged against federal funds, Agent of Record certifies that the agency is not currently employed by the federal government and the amount charged does not exceed the normal charge for the type of services provided. II. The Client agrees: (A) To assist Agent by placing at his or her disposal available written data pertinent to the proposed project or service. (B) To guarantee access to the Client's property and records as required by the Agent to perform his or her services under this agreement. (C) To give prompt notice to Agent whenever the Client observes or otherwise becomes aware of any deficiency in the proposed project or services. III. The Agent and Client agree: (A) In the event a suit or action is instituted by either party to procure any remedy for breach hereof, it is understood and agreed by the parties hereto that the prevailing party shall be awarded such sum as the court may adjudge as reasonable attorney's fees in such suit or action, including fees on appeal. (B) The additional provisions as set forth in "Exhibit A" as attached hereto are made a part of this agreement. (C) Either party may cancel this agreement by giving ninety (90) days written notice. (D) This agreement will expire on June 30, 2001. Page 2 - Huggins Insurance Services, Inc. Contractual Services Agreement Y' .;"'_"..~~'-"~-,""",',~.'_._'.,.~~~..~'-', .... -----1 IV. The Client agrees to compensate the Agent in the following manner: As consideration for services, Client agrees to pay an annual fee of $7,500.00 by August 15,2000 for brokerage services provided by this agreement. Agent agrees, subject to all relevant market conditions, to use its best efforts to obtain insurance coverage for Client on the basis of a net premium without commissions payable to Huggins Insurance Services, Inc.. In the event Huggins Insurance Services, Inc. is required, by agreements with insurers or otherwise, to receive commissions on any such coverage obtained, Huggins Insurance Services, Inc. agrees, if and to the extent permitted by the law applicable to such insurance transactions, to credit all such commissions received against, and as a credit to the fees described above. IN WITNESS WHEREOF, the parties hereto have made and executed this agreement the day and year first above written, with July I, 2000 as the effective date of this agreement. Chuck Huggins Account Executive CLIENT: City of Woodburn ~ Mayor AGENT: Huggins Insurance Services, Inc. Date S/~3 J (}O DJte ' Page 3 - Huggins Insurance Services, Inc. Contractual Services Agreement Y' EXHIBIT "A" CITY OF WOODBURN INSURANCE AGENT OF RECORD Agent of Record will: 1. Obtain and currently maintain an insurance program that will assure both maximum risk coverage and cost effectiveness to the City, and recommend insurance coverages for unique risks that may anse. 2. Maintain insurable values on buildings and insured equipment at replacement values to include new construction and make statement available to the administration by August 31 of each year. 3. Prepare specifications for entire insurance program and present to Administration for approval. When specifications are approved, the Agent of Record will secure competitive proposals from insurance carriers for all coverages for which the Agent of Record is given responsibility. Award contracts in compliance with City of Woodburn purchasing rules. 4. Be available to the Administration for advice and consultation on insurance matters, and to assist the administration in its risk management and safety programs. 5. Maintain an adequate claims record to show number and type of claims, dollar amount of paid claims, and total dollar amount of reserves on open claims by policy type. These records should be available to the City upon request and the annual totals should be included in the annual report to the City. Review all loss control recommendations made by governmental agencies or insurance carriers, work with City to facilitate compliance, and, when appropriate, suggest alternative means of compliance. 6. Notify the City of all expirations of insurance contracts at least 60 days prior to the expiration date, and assist the City in the processing of claims. 7. For annual budgeting purpose, supply the City with estimated premiums that will be required for the next fiscal year. This would require a study to project new total property values including any completed construction or contemplated acquisitions. This is due during the month of December 2000. 8. Prepare an annual report for delivery to Administration. This report includes any pertinent information relative to new or changed coverages, companies, amounts or premium, term of policies and deductibles. New rulings by the Insurance Service Office or the Insurance Commissioners may also be included. 9. Comply with all applicable Equal Employment Opportunity laws and regulations. T'