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Res 1627 - Huggins Ins Agmt COUNCIL BILL NO. 2306 RESOLUTION NO. 1627 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, 2001, and WHEREAS, proposals were requested from interested firms who are capable of providing this service, and WHEREAS, following an evaluation of the proposals and interviews with agents who submitted proposals, it has been determined that Huggins Insurance Agency would provide the City with an acceptable level of service, 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. A copy of said agreement is affixed hereto as Attachment "A" and, by this reference, incorporated herein. Section 2. That the Mayor is authorized to execute and the City Administrator, or his designee, to administer said agreement on behaif of the City. / / Approved as to form~. ~ /'YKj S 1- l (). , City Attorney 'Date APPROVED* D.....~ RI HARD JENNIN S, MA R Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder May 14, 2001 May 15, 2001 May 15, 2001 May 15, 2001 AITEST_fY\~ MarY Te ant, Recorder City of Woodburn, Oregon Page 1 - COUNCIL BILL NO. 2306 RESOLUTION NO. 1627 \\ " A iTAc.flmEAJ, A CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT, entered into this day of .2001, 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 April 6, 2001. (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 30-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 1 - Huggins Insurance Services, Inc. Contractual Services Agreement " ., AT r-1/C/M?B1J7 A (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. (G) 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. Page 2 - Huggins Insurance Services, Inc. Contractual Services Agreement I'" '1 A ,rAt:J+4)EI\J7A (D) This agreement will ex.pire on June 30, 2004, however, at the option of the City based on satisfactory pedonnance of the Agent. an extension of the contract, along with a negotiated fee adjustment, will be available on a yearly basis for up to two (2) years from the date of initial expiration of this agreement. IV. The Client agrees to com.pensate the Agent in the fOllowing manner: As consideration for services during the period of July I, 2001 through June 30, 2004, Client agrees to pay an annual fee of $8,500.00 by August 151h of each year for brokerage services provided by this agreement. Agent agrees, subject to all relevant market conditions, to use its best effons to obtain insurance coverage fOf Client on the basis of a net premium without cotnmissions payable to Huggins Insurance Services, Inc.. In the event Huggins Insurance Services, Inc. is required., by agreements with insurers or otherwjset 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 the event the City elects to receive additional services in the area of risk management, loss control, and industrial hygiene which are outside of the scope of wod outlined in the Request for Proposal. an additional service fee will be charged on an hourly rate basis beginning at $80.00 per hour or a negotiated flat fixed fee. IN WITNESS WHEREOF, the parties hereto have made and executed this agreement the day and year first above written, with July 1,2001 as the effective date of this agreement. CLIENT: City of Woodburn Chuck Huggins Accouut Executive Richard Jennings Mayor ~"-It1~()/ Date Date Page 3 - Huggins Insurance Services, Inc. Contractual Services Agreement A- TTAc--#NJ EdT A II "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 arise. 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. A ward 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. Projections are during the month of January of each year. 8. Comply with all applicable Equal Employment Opportunity laws and regulations and not discriminate with regard to race, color, creed, sex or national origin.