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Res 1753 - Huggins Insurance COUNCIL BILL NO. 2507 RESOLUTION NO. 1753 A RESOLUTION AUTHORIZING EXTENSION OF A CONTRACTUAL SERVICES AGREEMENT WITH HUGGINS INSURANCE SERVICES, INC. AS THE CITY'S INSURANCE AGENT OF RECORD. WHEREAS, the Contractual Services Agreement with Huggins Insurance Services, Inc. provides for an expiration date of June 30, 2004 with an option to extend the agreement for up to two years provided that the City has received satisfactory performance from its Agent; 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 two-year extension to the agreement would facilitate the procurement of insurance proposals prior to July 1, 2004 and provide ongoing insurance consulting services to the City during the tenure of the agreement. NOW THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. That the City agree to the Proposal for Extension submitted by Huggins Insurance Services, Inc. to extend the term of the existing Contractual Services Agreement previously entered into by the City until June 30, 2006. Section 2. That all terms and conditions of the Contractual Services Agreement shall continue in full force and effect and the City, as the "Client" agrees to pay an annual fee of $9,750.00 to Huggins Insurance Services, Inc. by August 15th of each year for brokerage services. Section 3. That the Proposal for Extension and the Contractual Services Agreement are affixed hereto as Attachment "A" and are by this reference, incorporated herein. Section 4. That the Mayor is authorized to execute the Proposal for Extension on behalf of the City. ~,~~ City Attorney Apf'-Jroved as to form: Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST M:.7r~c~~ City of Woodburn, Oregon Page 1 - COUNCIL BILL NO. 2507 RESOLUTION NO. 1753 -UT- ATTACHMENT "A" CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT, entered into this ~3 (!/ day of />1 ~ . 200 I, by and between the City of W oodbum, hereinafter referred to as "Client", anai-Iuggms 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: L 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, 200 1. (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 1 - Huggins Insurance Services, Inc. Contractual Services Agreement -T" ATTACHMENT "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, hic. Contractual Services Agreement . '''''-..^....''''" ... ATTACHMENT "A" City of Woodburn Proposal for Extension Agent of Record Contractual Services Agreement The Agent agrees to continue the performance of services for Client as outlined in the Contractual Services Agreement effective July 1, 2001. The Agent requests an extension of this agreement for a period of up to two years, beginning July 1, 2004. The Agent proposes an annual fee of $9,750, to be paid by Client, by August 15th of each year. No other changes to the Contractual Services Agreement are proposed at this time. Agreement by parties, to extension of Contractual Services Agreement: Agent: Huggins Insurance Services, Inc. Client: City of W oodbum Chuck Huggins Account Executive Li -g -0'1 Date Date ---r ,............ ATTACHMENT IIAII (D) This agreement will expire on June 30, 2004, however, at the option of the City based on satisfactory performance 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 compensate the Agent in the following manner: As consideration for services during the period of July I, 200 I through June 30, 2004, Client agrees to pay an annual fee of $8,500.00 by August 15th of each year 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, me.. 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 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 work 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 I, 2001 as the effective date of this agreement. AGENT: Huggins Insurance Services, Inc, ~ CLIENT: City of Woodburn ~~ Mayor --/ Chuck Huggins Account Executive b~/d APt Date S-c:l.3 -0/ Date Page 3 - Huggins Insurance Services, Inc. Contractual Services Agreement _.-'-~' .... ATTACHMENT "A" "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. 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. 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. --,-....-.-....-....--.-.. T