HomeMy WebLinkAboutR-2024-149 Resolution authorizing Professional Services Contract for property and casualty insurance broker and risk management services with Marsh & McLennan Agency, LLC RESOLUTION NO. R-2024-149
A RESOLUTION authorizing a Professional Services Contract for property and casualty
insurance broker and risk management services with Marsh & McLennan
Agency, LLC.
WHEREAS, the City of Yakima requires professional services related to insurance
brokerage services for property and casualty insurance broker and risk management services for
the City of Yakima; and
WHEREAS, the City's current contract with PayneWest Insurance, a Marsh & McLennan
Agency, LLC company, for property and casualty insurance broker and risk management services
expires on August 31, 2024; and
WHEREAS, Marsh & McLennan Agency, LLC represents that it has the expertise
necessary and is willing to perform the professional services required by the City in accordance
with the terms and conditions of the Contract; and
WHEREAS, the City of Yakima and Marsh & McLennan Agency, LLC desire to enter into
a Professional Services Contract for property and casualty insurance broker and risk
management services for a four-year term, from September 1, 2024 through August 31, 2028;
and
WHEREAS, the City Council finds it to be in the best interest of the City to authorize the
City Manager to execute a Professional Services Contract for property and casualty insurance
broker and risk management services with Marsh & McLennan Agency, LLC; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute the attached professional services
contract for property and casualty insurance broker and risk management services with Marsh &
McLennan Agency, LLC.
ADOPTED BY THE CITY COUNCIL this 20th day of August, 2024.
.1, ea
ATTEST: ,4P1/4r<;-'„q Patricia By rs, Mayor
(SE )A
Rosalinda Ibarra, City Clerk =
PROFESSIONAL SERVICES CONTRACT
THIS PROFESSIONAL SERVICES CONTRACT is made and entered into by and
between the City of Yakima, a Washington municipal corporation (hereinafter the "City"), and
Marsh & McLennan Agency LLC, a Delaware limited liability company (hereinafter the
"Contractor").
WHEREAS, the City of Yakima requires professional services related to insurance
brokerage services for Property&Casualty Broker and Risk Management Services for the City of
Yakima;
WHEREAS,the Contractor represents that it has the expertise necessary and is willing to
perform the professional services required by the City in accordance with the terms and conditions
of this Contract;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and
agreements set forth herein,it is agreed by and between the City and Contractor as follows:
Section 1. Statement of Work
1.1 The minimum services that the Contractor will provide include:
(a) Market and advise the City on its insurance coverage;
(b) Prepare claims reports when requested by the City;
(c) Provide risk management services, including but not limited to review of vendor
certificates of insurance to meet contract requirements; advise on wording for
insurance requirements and the amounts of appropriate insurance coverage in City
contracts; and training for City personnel as required.
1.2 Contractor shall provide the services and staff described in this Professional Services
Contract and Exhibit A ("Services"), (collectively, "Contract")which is incorporated
herein by this reference. The services are included within the base fee.
1.3 The parties acknowledge that there are no other representations,agreements,or conditions
not specifically referred to or set forth in this Contract.
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1.4 All provisions of this Contract are intended to be complementary, and any Services
required by one and not mentioned in another shall be performed to the same extent as
though required by all. Details of the Services that are necessary to carry out the intent of
this Contract, but that are not expressly required, shall be performed or furnished by
Contractor as part of the Services, without any increase in the compensation otherwise
payable under this Contract.
Section 2. Period of Performance
2.1 The period of performance under this Contract will be four years, commencing on
September 1,2024, and continuing through August 31,2028.
Section 3. Compensation
3.1 As full compensation for satisfactory performance of the Services, City shall pay
Contractor $90,000 for the first year of the Contract, $92,500 for the second year of the
Contract, $95,000 for the third year of the Contract, and$97,500 for the fourth year of the
Contract.
3.2 Each annual fee shall be paid by the City to Contractor in three installments,in four-month
intervals. The three invoices that will be submitted each year by Contractor to the City of
Yakima will be submitted on or about January 1, May 1, and September 1 of each year.
The first invoice for the first year of the Contract will be submitted on or about September
1, 2024.
3.3 City of Yakima shall pay each of Contractor's invoices within thirty days after the City's
receipt and verification thereof; provided, however, that all such payments are expressly
conditioned upon Contractor providing services hereunder that is satisfactory to the City.
3.4 Any additional service(s)provided by the Contractor which are to be paid by the City must
have prior written approval of the City.
3.5 Contractor's standard compensation disclosure is attached hereto as Appendix A and may
be updated from time to time.
Section 4. Performance by Contractor
4.1 Delegation of Professional Services. The services provided for herein shall be performed
by Contractor,and no person other than regular associates or employees of Contractor shall
be engaged on such work or services. Contractor shall not(by contract, operation of law
or otherwise) delegate or subcontract performance of any Services to any other person or
entity without the prior written consent of the City. Any such delegation or subcontracting
without the City's prior written consent shall be voidable at the City's option.
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No subcontracting of any of the Services,with or without the City's prior written consent,
shall relieve Contractor of its responsibility to perform the Services in accordance with this
Contract. Contractor shall be fully responsible for the performance, acts and omissions of
Contractor's employees, Contractor's subcontractors,and any other person who performs ,
or furnishes any Services(collectively,the"Support").
4.2 Contractor shall at all times be an independent contractor and not an agent or representative
of the City with regard to performance of the Services. Contractor shall not represent that
it is, nor hold itself out as, an agent or representative of the City. In no event shall
Contractor be authorized to enter into any agreement or undertaking for or on behalf of the
City.
4.3 Contractor shall perform the Services in a timely manner and in accordance with the
standards of the profession. At the time of performance, Contractor shall be properly
licensed, equipped, organized, and fmanced to perform the Services in accordance with
this Contract. Subject to compliance with the requirements of this Contract, Contractor
shall perform the Services in accordance with its own methods.
4.4 Contractor shall take all reasonable precautions to protect against any bodily injury or
property damage that may occur in connection with the Services.
Section 5. Compliance with Laws
5.1 Contractor shall comply with all applicable laws, regulations, licenses, and other
requirements,now in effect, of any governmental authority (including, but not limited to,
such requirements as may be imposed upon the City and applicable to the Services).
Contractor shall furnish such documents as may be required to effect or evidence such
compliance.
Section 6. Taxes and Assessments
6.1 Contractor shall be solely responsible for and shall pay all taxes, deductions, and
assessments, including but not limited to federal income tax, FICA, social security tax,
assessments for unemployment and industrial injury insurance, and other deductions from
income which may be required by law or assessed against either party as a result of this
Contract. In the event the City is assessed a tax or assessment as a result of this Contract,
Contractor shall pay the same before it becomes due.
Section 7. Nondiscrimination Provision
7.1 During the performance of this Contract, Contractor shall not discriminate in violation of
any applicable federal,state and/or local law or regulation on the basis of race, age, color,
sex,religion,national origin,creed,marital status,disability,honorably discharged veteran
or military status,pregnancy,sexual orientation,political affiliation,or the presence of any
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sensory,mental or physical handicap, and any other classification protected under federal,
state, or local law. This provision shall include but not be limited to the following:
employment, upgrading, demotion, transfer, recruitment, advertising, layoff or
termination, rates of pay or other forms of compensation, selection for training, and the
provision of Services under this Contract.
Section 8. Inspection: Examination of Records
8.1 The records relating to the Services shall,at all times,be subject to inspection by and with
the approval of the City,but the making of(or failure or delay in making)such inspection
or approval shall not relieve Contractor of responsibility for performance of the Services
in accordance with this Contract, notwithstanding the City's knowledge of defective or
non-complying performance,its substantiality or the ease of its discovery. Contractor shall
provide the City sufficient, safe, and proper facilities and equipment for such inspection
and free access to such facilities.
8.2 Contractor shall promptly furnish the City with such information which is related to the
Services of this Contract as may be requested by the City. Until the expiration of three
years after final payment of the compensation payable under this Contract,Contractor shall
provide the City access to(and the City shall have the right to examine,audit and copy)all
of Contractor's books, documents,papers and records which are related to the Services of
this Contract.
Section 9. Property and Confidential Information
9.1 - Contractor shall not,without the prior written consent of the City,disclose to third parties,
other than insurance companies,intermediaries and related parties for placement purposes,
any information received in connection with the Services unless:
(a) information is known to Contractor prior to receiving the same directly or indirectly
in connection with the Services;
(b) information is in the public domain at the time of disclosure by Contractor; or
(d) information is received by Contractor from a third party who does not have an
obligation to keep the same confidential;
(e) as required by law.
Section 10. Indemnification,Hold Harmless, and Limitation of Liability
10.1 Contractor agrees to protect, defend, indemnify, and hold harmless the City, its elected
officials, officers, employees and agents from any and all claims, demands, losses, liens,
liabilities,penalties,fines,lawsuits,and other proceedings and all judgments,awards,costs
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and expenses(including reasonable attorneys'fees and disbursements)resulting from death
or bodily injury to any person or damage or destruction to a third party or third parties to
the extent caused by any negligent act and/or omission of the Contractor, its officers,
employees,agents, and/or subcontractors,arising out of the performance of this Contract.
10.2 Nothing contained in this Section or this Contract shall be construed to create a liability or
a right of indemnification in any third party.
10.3 In no event shall Contractor be liable for any indirect,special,incidental, consequential or
punitive damages or for any lost profits arising out of or relating to any services provided
by Contractor or its affiliates. The aggregate liability of Contractor, its affiliates and its
and their employees arising out of or relating to the provision of services by Contractor or
its affiliates to City shall not exceed $10,000,000. This provision applies to the fullest
extent permitted by applicable law and to all causes of action,including,without limitation,
breach of contract, breach of warranty, negligence, strict liability, misrepresentation and
other torts.
Section 11. Insurance Provided by Contractor
11.1 At all times during performance of the Services,the Contractor shall secure and maintain
in effect insurance to protect the City and the Contractor from and against all claims,
damages, losses, and expenses arising out of or resulting from the performance of this
Contract. Contractor shall provide and maintain in force insurance in limits no less than
that stated below,as applicable. The City reserves the right to require higher limits should
it deem it necessary in the best interest of the public.
11.2 Commercial Liability Insurance. Before this Contract is fully executed by the parties,
Contractor shall provide the City with a certificate of insurance as proof of commercial
liability insurance with a minimum liability limit of $5,000,000.00 per occurrence
combined single limit bodily injury and property damage, and $5,000,000.00 general
aggregate. Contractor may carry a combination of based and umbrella coverage in
procurement of required limit. If Contractor carries higher coverage limits,such limits
shall be shown on the Certificate of Insurance and Endorsements and the City of Yakima,
its elected officials, officers, agents, and employees shall be named as additional insureds
for such higher limits. The certificate shall clearly state who the provider is,the coverage
amount,the policy number,and when the policy and provisions provided are in effect. Said j
policy shall be in effect for the duration of this Contract. The policy and Endorsements
shall name the City of Yakima, its elected officials, officers, agents, and employees as
additional insureds. Upon receiving notice, Contractor shall provide prompt notice to the
City of any cancellation or change to the coverage which would not adhere to City's
requirements hereunder. The insurance shall be with an insurance company or companies
rated A-VII or higher in Best's Guide and authorized in the State of Washington.
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Professional Services Contract
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11.3 Commercial Automobile Liability Insurance. Before this Contract is fully executed by the
parties, Contractor shall provide the City with a certificate of insurance as proof of
commercial automobile liability insurance with a minimum liability limit of$5,000,000.00
per occurrence combined single limit bodily injury and property damage. If Contractor
carries higher coverage limits, such limits shall be shown on the Certificate of Insurance
and Endorsements and the City of Yakima, its elected officials, officers, agents, and
employees shall be named as additional insureds for such higher limits. Automobile
liability will apply to "Any Auto" and be shown on the certificate. The certificate shall
clearly state who the provider is, the coverage amount, the policy number, and when the
policy and provisions provided are in effect. Said policy shall be in effect for the duration
of this Contract. The policy and Endorsements shall name the City of Yakima,its elected
officials, officers, agents, and employees as additional insureds. Upon receiving notice,
Contractor shall provide prompt notice to the City of any cancellation or change to the
coverage which would not adhere to City's requirements hereunder.The insurance shall be
with an insurance company or companies rated A-VII or higher in Best's Guide and
authorized in the State of Washington.
11.4 Professional Liability Insurance. Before this Contract is fully executed by the parties,
Contractor shall provide the City with a certificate of insurance as evidence of Professional
Errors and Omissions Liability Insurance with coverage of at least $15,000,000.00 per
occurrence and an annual aggregate limit of at least$15,000,000.00. The certificate shall
clearly state who the provider is,the amount of coverage,the policy number,and when the
policy and provisions provided are in effect. If the policy is on a claims made basis, the
retroactive date of the insurance policy shall be on or before the inception date of the
Contract, or shall provide full prior acts. The insurance coverage shall remain in effect
during the term of this Contract and for a minimum of three years following the termination
of this Contract.
Section 12. Changes
12.1 The City may, at any time by written notice thereof to Contractor, request changes in the
Services within the general scope of this Contract(including,but not limited to, additions
to or deletions from any Services, suspension of performance and changes and location of
performance).
12.2 If any change under paragraph 12.1 causes a significant increase or decrease in the cost of
the time required for performance of the Services, an equitable adjustment in the
compensation and schedules under this Contract shall be negotiated to reflect such increase
or decrease, and this Contract shall be modified in writing accordingly. Such equitable
adjustment shall constitute full compensation to Contractor for such change. If any change
under paragraph 12.1 results in a decrease in the Services to be performed,Contractor shall
not be entitled to anticipated profit on Services not performed and the loss of anticipated
profit shall not reduce the decrease in compensation under this Contract resulting from
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such exchange. Further, Contractor shall not be entitled to any reallocation of cost,profit
or overhead.
12.3 Notwithstanding any dispute or delay in arriving at a mutually acceptable equitable
adjustment under paragraph 12.2,Contractor shall immediately proceed with performance
of the Services as changed pursuant to paragraph 12.1. If Contractor intends to assert a
claim for equitable adjustment under paragraph 12.2, Contractor must, within sixty days
after Contractor's receipt of any notice under paragraph 12.1 that does not set forth an
acceptable adjustment, submit to the City a written statement of the basis and nature of the
adjustment claimed. Contractor shall not be entitled to any adjustment unless such written
statement is submitted by Contractor to the City within the applicable period.
Section 13. Termination
13.1 The City may, by giving the Contractor sixty calendar days written notice of termination,
terminate this Contract as to all or any portion of the Services not then performed,whether
or not Contractor is in breach or default, and with or without cause. Upon receipt of any
such notice of termination, Contractor shall, except as otherwise directed by the City,
immediately stop performance of the Services to the extent specified in such notice.
Contractor shall have the same termination rights as the City in Section 13.
13.2 In the event of termination pursuant to paragraph 13.1, an equitable adjustment shall be
made in the compensation payable to Contractor under this Contract, provided that such
compensation as so adjusted shall in no event exceed a percentage of the total
compensation otherwise payable under this Contract equal to the percentage of the Services
satisfactorily completed at the time of termination. Further,Contractor shall not be entitled
to any reallocation of cost,profit or overhead. Contractor shall not in any event be entitled
to anticipated profit on Services not performed on account of such termination. Contractor
shall use its best efforts to minimize the compensation payable under this Contract in the
event of such termination.
13.3 If the City purports to terminate or cancel all or any part of this Contract for Contractor's
breach or default when Contractor is not in breach or default which would permit such
termination or cancellation,such termination or cancellation shall be deemed to have been
a termination by the City pursuant to paragraph 13.1 and the rights of the parties shall be
determined accordingly.
Section 14. Miscellaneous
14.1 Assignment. This Contract,or any interest herein,or claim hereunder,shall not be assigned
or transferred in whole or in part by Contractor to any other person or entity without the
prior written consent of the City. In the event that such prior written consent to an
assignment is granted,then the assignee shall assume all duties,obligations,and liabilities
of Contractor stated herein.
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Professional Services Contract
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14.2 No Conflict of Interest. Contractor represents that it or its employees do not have any
interest and shall not hereafter acquire any interest,direct or indirect,which would conflict
in any manner or degree with the performance of this Contract. Contractor further
covenants that it will not hire anyone or any entity having such a conflict of interest during •
the performance of this Contract.
14.3 No Insurance. It is understood that the City does not maintain liability insurance for
Contractor and/or its employees.
14,4 Severability. If any portion of this Contract is changed per mutual agreement or any portion
is held invalid,the remainder of the Contract shall remain in full force and effect.
14.5 Integration. This written document constitutes the entire agreement between the City and
Contractor. There are no other oral or written Contracts between the parties as to the
subjects covered herein. No changes or additions to this Contract shall be valid or binding
upon either party unless such change or addition be in writing and executed by both parties.
14.6 Notices. Unless stated otherwise herein, all notices and demands shall be in writing and
sent or hand delivered to the parties to their addresses as follows:
TO CITY: Finance&Budget Director AND TO: Ryan Bleek
Senior Assistant City Attorney
City of Yakima Finance Department City of Yakima Legal Department
City Hall—First Floor 200 South Third Street
129 North Second Street Yakima,WA 98901
Yakima, WA 98901
TO CONTRACTOR: Jeff Widdows,Commercial Account Executive
Marsh McLennan Agency,LLC
1202 N. 16th Ave., Ste 200
Yakima, WA 98902
or to such other addresses as the parties may hereafter designate in writing. Notices and/or
demands shall be sent by registered or certified mail,postage prepaid, or hand delivered.
Such notices shall be deemed effective when hand delivered at the addresses specified
above,or three days after the date of mailing to the addresses specified above.
14.7 Governing Law. This Contract shall be governed by and construed in accordance with the
laws of the State of Washington.
14.8 Venue. The venue for any action to enforce or interpret this Contract shall lie in the
Superior Court of Washington for Yakima County,Washington.
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Professional Services Contract
Between City of Yakima and
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CITY OF Y A MARSH& MCLENNAN AGENCY, LLC
B/ X By a L.:^ ""
V I G1-E7 Y i G&, 1 Scott Simmons
Ci'hn YYle J ��rIts: Managing Director
Date: NIA-65 , a'� 0 !� —1 "2 V
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City Contract No. 2024- 14 Lt.
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I hereby certify that I know or have satisfactory evidence that Scott Simmons is the person
who appeared before me, and said person acknowledged that he signed this instrument, and on
oath stated that he was authorized to execute the instrument and acknowledged it as a Managing
Director of Marsh & McLennan Agency, LLC, to be the free and voluntary act of such party for
the uses and purposes mentioned in the instrument.
DATED this 3v'"day of JuLY , 2024.
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Professional Services Contract
Between City of Yakima and
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•
EXHIBIT A
TO PROFESSIONAL SERVICES CONTRACT
All services will be provided by the Contractor,Marsh&McLennan Agency,LLC. In addition to
the services in Section 1 of the Contract, services included within the base fee shall include the
following:
A. BrokeraiEe Services.
1. Exposure Identification and Evaluation
2. Insurance Program Audit(The Review of Existing Insurance Policies to Determine
Adequacy of Coverage,Adequacy of Limits,Appropriate Deductible/Retention
Levels, Significant Restrictions in Coverage,the Existence of Warranties,
Concurrency of Coverage,Duplications or Gaps in Coverage, Suitability of Forms,
Financial Stability of Insurers and Insurer Service Capability)
3. Insurance Program Design(The Drafting of Insurance Policy Specifications to
Address Exposures to Loss Confronting Client)
4. Property, Casualty and Marine Marketing of Coverages and Related Services:
a. The Preparation of Appropriately Detailed Coverage Specifications
b. The Submission of Specifications to Selected Markets/Vendors
c. The Negotiation of Coverage and Pricing at Decision Making Level
d. The Evaluation of Alternatives in Accordance with Client Determined Priorities
e. The Preparation of Presentation and Recommendations to Client
5. The Verification of all Requested New and Renewal Policy Terms, Conditions, Rates
and Premiums
6. The Verification of Insurance Company Audit Calculations if Applicable
7. The Allocation of Premiums and Premium Adjustments
8. The Review of Client's Contracts(Indemnification Agreements and Insurance
Requirements)as requested by the City of Yakima
9. Certificate of Insurance Review for Compliance as requested by the City of Yakima
10. The Monitoring of Insurance Company Services
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Professional Services Contract
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11. The Monitoring of Insurer Security
12. Insurance Company Liaison Activities(Troubleshooting)
13. Day-To-Day Insurance/Risk Management Advice and Counsel
14. The Preparation of Insurance Certificates
15. The Preparation of Insurance Data for Client's Audits
16. The Maintenance of Client Service Records
17. Annual Service Planning
18. In Depth Annual Account Reviews
19. Annual Stewardship Reports
20. Provide a Certificate of Insurance Tracking Program
B. Risk Management Services.
1. Analysis of Pools and Self-Insurance Plan
2. Periodic Evaluation of Loss Data with Appropriate Action Recommendations
3. Monitoring of Insurance Company or Independent Risk Control Services
4. Review and Negotiation of Insurer Fire Protection Engineering Recommendations
5. Assistance in Selecting Insurance Company/Independent Risk Control Service
Providers
6. Day-to-Day Advice and Counsel on Risk Control Related Matters
7. Boiler and Machinery Surveys—Monitoring Carrier Services
8. Training to City Personnel on Insurance Coverage Issues and Obtaining Proper
Certificates of Liability Insurance
C. Claims Management Services.
1. The Monitoring of Insurance Company or Independent Claims Services
2. The Resolution of Coverage Questions/Disputes in a Timely and Amicable Fashion
3. Assistance in Locating Qualified Defense Counsel when Special Expertise/Technical
Experience is Required such as on Insurance Coverage Issues
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Professional Services Contract
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4. Day-to-Day Advice and Counsel on Claims Related Matters
5. Evaluating Insurance Company or Vendor Service Performance
6. Assistance in Preparation of Claims Reports for City Council if requested
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Appendix A
Compensation Disclosure
Marsh & McLennan Agency LLC ("MMA") prides itself on being an industry leader in the area of
transparency and compensation disclosure. We believe you should understand how we are paid for the
services we are providing to you. We are committed to compensation transparency and to disclosing to
you information that will assist you in evaluating potential conflicts of interest.
As a professional insurance producer, MMA and its subsidiaries facilitate the placement of insurance
coverage on behalf of our clients. As an independent insurance agent, MMA may have authority to
obligate an insurance company on behalf of our clients and as a result,we may be required to act within
the scope of the authority granted to us under our contract with the insurer. In accordance with industry
custom, we are compensated either through commissions that are calculated as a percentage of the
insurance premiums charged by insurers, or fees agreed to with our clients
MMA engages with clients on behalf of itself and in some cases as agent on behalf of its non-US
affiliates with respect to the services we may provide. For a list of our non-US affiliates, please visit:
https://mma.marshmma.com/non-us-affiliates . In those instances, MMA will bill and collect on behalf
of the non-US Affiliates amounts payable to them for placements made by them on your behalf and remit
to them any such amounts collected on their behalf.
MMA receives compensation through one or a combination of the following methods:
• Retail Commissions—A retail commission is paid to MMA by the insurer(or wholesale
broker) as a percentage of the premium charged to the insured for the policy. The amount of
commission may vary depending on several factors, including the type of insurance product
sold and the insurer selected by the client If MMA places business through an affiliated
wholesale broker or managing general agent, MMA will advise the client of this at or prior to
placement.
• Client Fees—Some clients may negotiate a fee for MMA's services in lieu of, or in addition
to, retail commissions paid by insurance companies Fee agreements are in writing, typically
pursuant to a Client Service Agreement, which sets forth the services to be provided by
MMA, the compensation to be paid to MMA, and the terms of MMA's engagement. The fee
may be collected in whole, or in part, through the crediting of retail commissions collected by
MMA for the client's placements.
• Contingent Commissions—Many insurers agree to pay contingent commissions to
insurance producers who meet set goals for all or some of the policies the insurance
producers place with the insurer during the current year. The set goals may include volume,
profitability, retention and/or growth thresholds. Because the amount of contingent
commission earned may vary depending on factors relating to an entire book of business
over the course of a year, the amount of contingent commission attributable to any given
policy typically will not be known at the time of placement
• Supplemental Commissions—Certain insurers and wholesalers agree to pay supplemental
commissions, which are based on an insurance producer's performance during the prior year.
Supplemental commissions are paid as a percentage of premium that is set at the beginning
of the calendar year This percentage remains fixed for all eligible policies written by the
insurer during the ensuing year. Unlike contingent commissions, the amount of supplemental
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Professional Services Contract
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commission is known at the time of insurance placement. Like contingent commissions, they
may be based on volume, profitability, retention and/or growth.
• Wholesale Broking Commissions—Sometimes MMA acts as a wholesale insurance
broker. In these placements, MMA is engaged by a retail agent that has the direct
relationship with the insured As the wholesaler, MMA may have specialized expertise,
access to surplus lines markets, or access to specialized insurance facilities that the retail
agent does not have In these transactions, the insurer typically pays a commission that is
divided between the retail and wholesale broker pursuant to arrangements made between
them.
• Medallion Program and Sponsorships— Pursuant to MMA's Medallion Program,
participating carriers sponsor educational programs, MMA events and other initiatives.
Depending on their sponsorship levels, participating carriers are invited to attend meetings
and events with MMA executives, have the opportunity to provide education and training to
MMA colleagues and receive data reports from MMA Insurers may also sponsor other
national and regional programs and events.
• Other Compensation &Sponsorships— From time to time, MMA may be compensated by
insurers for providing administrative services on behalf of those insurers Such amounts are
typically calculated as a percentage of premium or are based on the number of insureds.
Additionally, insurers may sponsor MMA training programs and events. MMA may also have
arrangements with vendors who compensate MMA for referring clients for vendor services.
We will be pleased to provide you additional information about our compensation and information about
alternative quotes upon your request. For more detailed information about the forms of compensation we
receive please refer to our Marsh & McLennan Agency Compensation Guide at
https://www.marshmma.com/us/compensation-quide.html.
Rev.March 15 2024
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.F.
For Meeting of: August 20, 2024
ITEM TITLE: Resolution authorizing Professional Services Contract for property
and casualty insurance broker and risk management services with
Marsh & McLennan Agency, LLC
SUBMITTED BY: Ryan Bleek, Senior Assistant City Attorney
SUMMARY EXPLANATION:
This resolution authorizes approval and execution of a professional services contract for property and
casualty insurance broker and risk management services with Marsh & McLennan Agency, LLC, formerly
known as PayneWest Insurance. The City's insurance broker advises the City on insurance coverage
and markets its insurance coverage for various types of insurance, including property, excess liability
and excess workers compensation insurance. The current contract with PayneWest Insurance will expire
August 31, 2024.
The proposed insurance broker contract is for a four-year period commencing September 1, 2024
through August 31, 2028. The compensation under the Contract is $90,000 for the first year of the
Contract, $92,500 for the second year of the Contract, $95,000 for the third year of the Contract, and
$97,500 for the fourth year of the Contract.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY 24-25: N/A
RECOMMENDATION: Adopt Resolution.
ATTACHMENTS:
Res-Professional Srvs Contract_Marsh & McLennan Agency.docx
Professional Srvs Contract_Marsh & McLennan Agency.pdf
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