HomeMy WebLinkAboutR-2014-109 Insurance Broker and Risk Management Services Contract with Wells Fargo Insurance Services USA, Inc.RESOLUTION NO. R-2014-109
A RESOLUTION authorizing the City Manager of the City of Yakima to execute a
professional services contract for property and casualty insurance broker
and risk management services with Wells Fargo Insurance Services USA,
Inc.
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 for property and casualty insurance broker and
risk management services expires on August 31, 2014, and
WHEREAS, recently in 2014, the City initiated a Request for Proposal
(RFP No 11428P) for the professional services, and Wells Fargo Insurance Services USA, Inc.
submitted the proposal that received the highest rating; and
WHEREAS, Wells Fargo Insurance Services USA, Inc. 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 Wells Fargo Insurance Services USA, Inc. desire to
enter into a Professional Services Contract for property and casualty insurance broker and risk
management services for a three-year term, from September 1, 2014 through August 31, 2017,
with an option to extend the Contract for an additional two years; 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 Wells Fargo Insurance Services USA, Inc.; now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Council authorizes the City Manager to execute the attached professional
services contract for property and casualty insurance broker and risk management services with
Wells Fargo Insurance Services USA, Inc.
ADOPTED BY THE CITY COUNCIL this 19th day of August, 2014.
ATTEST.
City Clerk
> 4..6:: •
2
Micah Cawlgji, Mayor
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
Wells Fargo Insurance Services USA, Inc., a corporation (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 the text of the Professional
Services Contract, including the services described in Exhibit "A," which is incorporated
herein by this reference. The services are included within the base fee. The Professional
Services Contract and Exhibit "A" are referred to herein as the "Contract." The Contract
specifies the working relationship between the City and the Contractor, and specific
obligations of both parties.
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
For City of Yakima Use Only'
Contract N.'
Project No -
•
Resolution N .
RFOPNo: P
I
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
Wells Fargo Insurance Services USA, Inc., a corporation (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 the text of the Professional
Services Contract, including the services described in Exhibit "A," which is incorporated
herein by this reference. The services are included within the base fee. The Professional
Services Contract and Exhibit "A" are referred to herein as the "Contract." The Contract
specifies the working relationship between the City and the Contractor, and specific
obligations of both parties.
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
1.3 Contract Documents: The rights granted under this Contract include the terms,
conditions, covenants and representations contained in the following documents, all of which are
incorporated herein by reference as though fully set forth:
1.3.1 The RFP, together with all exhibits, addenda and amendments thereto;
1.3.2 Contractor's Proposal and all accompanying exhibits submitted therewith by
Contractor's response to the RFP; and
1.3.3 This Contract, including Exhibit A to the Contract, and the documents
referenced in this Paragraph shall be construed consistently with each other in
order to best effectuate the intent of the Owner and Contractor as set forth in
this Contract.
In case of conflict or ambiguity, the documents shall have the following priority for the purpose
of interpreting the terms, covenants, conditions, or duties therein: This Contract, the Proposal
accepted by the Owner, and the RFP. The parties acknowledge that there are no other
representations, agreements, or conditions not specifically referred to or set forth in the foregoing
documents which are a part of this Contract.
1.4 Except as otherwise specifically provided in this Contract, Contractor shall furnish the
following, all as the same may be required to perform the services described in
paragraphs 1.1 and 1.2 in accordance with this Contract, including Exhibit A to the
Contract: personnel, labor and supervision; and technical, professional and other
services. All such services, property and other items furnished or required to be
furnished, together with all other obligations performed or required to be performed, by
Contractor under this Contract are sometime collectively referred to in this Contract as
the "Services."
1.5 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 not 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 three (3) years, commencing on
September 1, 2014, and continuing through August 31, 2017. An additional extension of
two (2) years may be offered, at the option of the City, making the total contract term
five (5) years, to August 31, 2019. In the event the City elects to extend the Contract for
an additional two-year (2 -year) term, the City shall provide written notice to the
Contractor at least ninety (90) days prior to the end of the initial three-year (3 -year)
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc
Contract period, or on or before June 2, 2017. The City's option to extend the Contract
for an additional two-year (2 -year) term is subject to a mutually satisfactory agreement
between the parties on the value of the services during the additional two-year (2 -year)
period, and is further subject to approval by the City Council at a City Council business
meeting if the compensation is more than $80,000 in either year of the two-year (2 -year)
extension. If the annual compensation is $80,000 or less for the additional two-year (2 -
year) term, then the City Manager has the authority to sign the two-year (2 -year)
extension without the specific approval of the City Council at a business meeting.
Section 3. Compensation
3.1 As full compensation for satisfactory performance of the Services, City shall pay
Contractor Seventy Eight Thousand Dollars ($78,000) for the first year of the Contract,
Seventy Eight Thousand Dollars ($78,000) for the second year of the Contract, and
Seventy Eight Thousand Dollars ($78,000) for the third year of the Contract. At the end
of this term, the parties may extend this Contract under terms and conditions then agreed.
The three-year term of the Contract is subject to an option to extend for two (2) additional
years if the City and Contractor can reach a mutually satisfactory agreement on the value
of the services for the additional two-year (2 -year) period and as provided in Section 2.1
above.
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
January 1, 2015.
3.3 City of Yakima shall pay each of Contractor's invoices within thirty (30) 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.
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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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
No delegation of subcontracting of performance 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 financed 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
(including death) 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, ordinances, rules, regulations, orders,
licenses, permits, 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. All laws, ordinances, rules and orders required to
be incorporated in agreements of this character are incorporated in this Contract by this
reference.
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
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
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 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
(3) 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 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
(c) information is received by Contractor from a third party who does not have an
obligation to keep the same confidential.
Section 10. Indemnification and Hold Harmless
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc
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 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.
Section 11. Insurance Provided by Contractor
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 Five Million Dollars ($5,000,000.00)
per occurrence combined single limit bodily injury and property damage, and Five
Million Dollars ($5,000,000.00) general aggregate. 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 policy shall be in effect for the duration of this Contract. The
policy shall name the City of Yakima, its elected officials, officers, agents, and
employees as additional insureds, and shall contain a clause that the insurer will not
cancel or change the insurance without first giving the City thirty (30) calendar days prior
written notice. The insurance shall be with an insurance company or companies rated
A -VII or higher in Best's Guide and admitted in the State of Washington.
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 Five Million
Dollars ($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
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
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 shall name the City of Yakima, its
elected officials, officers, agents, and employees as additional insureds, and shall contain
a clause that the insurer will not cancel or change the insurance without first giving the
City thirty (30) calendar days prior written notice. The insurance shall be with an
insurance company or companies rated A -VII or higher in Best's Guide and admitted 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 Fifteen
Million Dollars ($15,000,000.00) per occurrence and an annual aggregate limit of at least
Fifteen Million Dollars ($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. The insurance shall be with an insurance company
rated A -VII or higher in Best's Guide. 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 (3) years following the
termination of this Contract.
Section 12. Changes
12.1 The City may, at any time by written notice thereof to Contractor, make 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 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
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
to assert a claim for equitable adjustment under paragraph 12.2, Contractor must, within
sixty (60) 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 (60) 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.
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
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
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: Cindy Epperson, Finance & AND
Budget Director TO:
City of Yakima Finance Department
City Hall — First Floor
129 North Second Street
Yakima, WA 98901
TO CONTRACTOR:
Helen A. Harvey
Senior Assistant City Attorney
City of Yakima Legal Department
200 South Third Street
Yakima, WA 98901
Joel Pearson, Managing Director
Jeff Widdows, Commercial Account Executive
Wells Fargo Insurance Services USA, Inc.
1430 N. 16th Ave., Bldg. H
PO Box 2547
Yakima, WA 98907
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 (3) 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
Wells Fargo Insurance Services USA, Inc
CITY OF YAKIMA
ATTEST:
..dA IV
By
CITY CONTRACT N
RESOLUTION NO: K".34/14 _ t 041
WELLS FARGO INS ' • NCE SERVICES
USA, IN
By
Joel ' son, Managing Director
Date: -)-2$-Zd��-j
STATE OF WASHINGTON
COUNTY OF YAKIMA
)
) ss.
I hereby certify that I know or have satisfactory evidence that Joel Pearson 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 the
Managing Director of Wells Fargo Insurance Services USA, Inc. to be the free and voluntary act
of such party for the uses and purposes mentioned in the instrument.
DATED this o? day of
, 2014.
a:i jARV/gl4 Print Name: L;,1i Mme I' Kares
I%
f
4.0
�oir
WYAe :®ate.
Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
NOTARY PUBLIC in and for the State of
Washington, residing at Com►
My appointment expires: off- /5-aig/7
10
EXHIBIT A
TO PROFESSIONAL SERVICES CONTACT
All services will be provided by the Contractor, Wells Fargo Insurance Services USA, Inc. In
addition to the services in Section 1 of the Contract, services included within the base fee shall
include the following:
A. Brokerage 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)
9. Certificate of Insurance Review for Compliance
10. The Monitoring of Insurance Company Services
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
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
Day -to -Day Advice and Counsel on Risk Control Related Matters
Boiler and Machinery Surveys—Monitoring Carrier Services
6.
7.
8.
Training to City Personnel on Insurance
Certificates of Liability Insurance
9. Provide "Summit Training" Web -Based
accessible from City offices
C. Claims Management Services.
1. The Monitoring of Insurance Company or Independent Claims Services
Coverage Issues and Obtaining Proper
Safety and Compliance Training Tool
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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
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
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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Professional Services Contract
Between City of Yakima and
Wells Fargo Insurance Services USA, Inc.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.G.
For Meeting of: August 19, 2014
ITEM TITLE: Resolution authorizing Professional Services Contract for
property and casualty insurance broker and risk management
services with Wells Fargo Insurance Services USA, Inc.
SUBMITTED BY: Helen Harvey, Senior Assistant City Attorney
Cindy Epperson, Budget & Finance Director
SUMMARY EXPLANATION:
This resolution authorizes approval and execution of a contract for property and casualty
insurance broker and risk management services with Wells Fargo Insurance Services USA, Inc.
("Wells Fargo"). 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. Joel Pearson of Wells Fargo works on
the Wells Fargo service team, and has provided insurance and risk management services to the
City since the 1980s. The current one-year contract with Wells Fargo will expire August 31,
2014.
The proposed insurance broker contract is for a three-year period commencing September 1,
2014 through August 31, 2017, with an option to extend the Contract for an additional two
years. The compensation under the Contract for each year of the three-year period is $78,000,
to be paid annually in three installments. This amount is an increase of $3,000 from $75,000 in
the current one-year contract. There has been a significant increase over the years in the
volume of work and services provided by Wells Fargo. Wells Fargo now handles insurance
coverage for the Yakima Air Terminal, and also has added additional services such as an online
certificate of liability insurance tracking program being utilized extensively by the Purchasing
Division and a free web -based safety and compliance training tool for City employees with
OSHA oriented courses ("Summit Online Training"). Staff is recommending that the City
continue to contract with Wells Fargo for the City's critical insurance coverage, broker and risk
management services.
Resolution: X
Other (Specify):
Contract: X
Start Date: 9/1/2014
Ordinance:
Contract Term: 3 years
End Date: 8/31/2017
Item Budgeted: Yes Amount: $78,000
yearly
Funding Source/Fiscal Impact: Risk Management Fund 515
Strategic Priority: Public Trust and Accountability
Insurance Required? Yes
Mail to: Joel Pearson, Managing Director, Wells Fargo Insurance
Services USA, Inc., P.O. Box 2547, Yakima, WA 98907
Phone: (509) 853-4211
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Adopt Resolution.
City Manager
ATTACHMENTS:
Description
❑ Resolution authorizing 3 -year contract with Wells
Fargo Insurance Services
❑ Professional Services Contract
Upload Date
8/5/2014
8/5/2014
Type
Resolution
Backup Material
First Amendment of Professional Services Agreement and approving the
transfer of Contract No. 2014-163 from Wells Fargo Insurance Services
USA, Inc. to PayneWest Insurance, Inc.
This First Amendment of the existing Professional Services Agreement
(City Contract No. 2014-163 (hereafter "Agreement")) with Wells Fargo
Insurance Services USA, Inc., approves the continuation of the Agreement with
and transfer to the Agreement to PayneWest Insurance, Inc., and is made and
entered into by and between the City of Yakima (hereafter the "City"), and
PayneWest Insurance, Inc.
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, PayneWest Insurance, Inc. purchased the assets of the
Yakima and Wenatchee Wells Fargo Insurance offices on April 1, 2016 and the
entire staff was hired by PayneWest effective such date. PayneWest 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 between the City of Yakima and Wells Fargo Insurance Services,
Inc. (City Contract No. 2014-163 City Resolution No. R-2014-109);
WHEREAS, the Professional Services Agreement between the City of
Yakima and Wells Fargo Insurance Services USA, Inc. was for property and
casualty insurance broker and risk management services for a three-year term,
from September 1, 2014 through August 31, 2017, with an option to extend
the Contract for an additional two years; and
WHEREAS, the City has been utilizing the Wells Fargo Cybersure third
party certificate tracking system and PayneWest will provide a similar service
acceptable to the City; and
WHEREAS, the key personnel formerly with Wells Fargo currently
servicing the City account will remain the same.
Now, therefore, the City and PayneWest Insurance, Inc. agree to the
following, under the conditions set forth:
1. Except as per the amendments below, as of 4-1-2016,
PayneWest Insurance accepts the terms of the Broker Services
Contract previously with Wells Fargo Insurance.
2. Section 11.3 shall be amended to read as follows:
First Amendment of Professional Services Agreement 1
between City of Yakima and
Wells Fargo Insurance Services USA, Inc. Approving Transfer
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 Five Million Dollars
($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 hired and non -owned autos 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 shall name the City of
Yakima, its elected officials, officers, agents, and employees as additional
insureds, and shall contain a clause that the insurer will not cancel the
insurance without first giving the City thirty (30) calendar days prior
written notice. The insurance shall be with an insurance company or
companies rated A -VII or higher in Best's Guide and admitted in the
State of Washington.
3. PayneWest will provide the City of Yakima with a certificate of
insurance meeting the requirements in the agreement.
Except as expressly modified herein, all other terms and conditions of the
Broker Service Agreement between the City of Yakima and Wells Fargo
Insurance Services, Inc. (City Contract No. 2014-163) shall remain in full force
and effect, and PayneWest Insurance, Inc. shall be bound by the same.
CITY OF YAKIMA PayneWest Insurance, Inc.
By:
Je jR. Cutter
In rim City Manager
Date: 51c9 `t
By:
CITY CONTRACT NO:(29/7 �/63 dimerido7eof
RESOLUTION NO: k' --219 f i - /€9?
First Amendment of Professional Services Agreement 2
between City of Yakima and
Wells Fargo Insurance Services USA, Inc. Approving Transfer
Kyle ' . L cheit
Its: CEO
Date: 5.--a/- %.6
ATTEST:
City Contract No.: 2014-163
State of Montana
ss.
County of Missoula
I hereby certify that I know or have satisfactory evidence that Kyle
Lingscheit 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 the CEO of
PayneWest Insurance, Inc., to be the free and voluntary act of such party for
the uses and purposes mentioned in this instrument.
SUBSCRIBED AND SWORN TO before me this Zi day of Ma, , 2016.
TAYLOR MONTGOMERY
NOTARY PUBUC for the
State of Montana
Residing at Missoula, MT
My Commission Expires
October 24, 2018.
P tea name:
NOTA 'UBLIC in and for the State of
Montana, resi
My commission expires
First Amendment of Professional Services Agreement 3
between City of Yakima and
Wells Fargo Insurance Services USA, Inc. Approving Transfer
Second Amendment and Extension of
Professional Services Contract
This Extension of the existing Professional Services Contract, City
Contract No. 2014-163 (hereafter "Contract"), with PayneWest Insurance, Inc.
(hereafter "Contractor"), as transferred by Wells Fargo Insurance Services USA,
Inc. pursuant to the First Amendment of Professional Services Agreement dated
May 24, 2016, is made and entered into by and between the City of Yakima
(hereafter the "City") and Contractor.
Whereas, the City entered into said Contract with the Contractor for the
purpose of obtaining professional services related to insurance brokerage
services for Property & Casualty Broker and Risk Management Services for the
City of Yakima; and
Whereas, the original term of said Contract pursuant to Section 2.1 of
the Contract was for a three (3) year period beginning September 1, 2014, and
ending August 31, 2017; and
Whereas, Section 2.1 of said Contract allows the City the right to extend
the Contract for two (2) additional years, upon ninety (90) days written notice
to Contractor, which has occurred, and provides that the City Manager has the
authority to extend the Contract pursuant to Section 2.1 of the Contract if the
compensation is $80,000 or less; and
Whereas, the Contractor has agreed to be compensated during the two-
year extension at $78,000 for each year, which is the same compensation the
Contractor has received for the first three years of the Contract; and
Whereas, the City wishes to exercise its option to extend the Contract for
an additional two years; and
Now, therefore, the City and Contractor agree to the following two-year
(2 -year) extension of the existing Contract, under the conditions set forth:
1. The term of the Contract (City Contract No. 2014-163) is
hereby extended for two (2) years from September 1, 2017
through August 31, 2019, at which time said Contract shall
terminate, unless sooner terminated by either party in
accordance with Section 13 of the Contract.
Second Amendment and Extension of
Professional Services Contract between City of Yakima
and PayneWest Insurance, Inc. - Page 1
2. The compensation for the services shall remain the same as
set forth in Section 3.1 of the Contract. The City shall pay
Contractor $78,000 for each year of the two-year extension of
the Contract.
Except as expressly modified herein, all other terms and conditions of the
Professional Services Contract between the City of Yakima and PayneWest
Insurance, Inc. (City Contract No. 2014-163), as amended by the First
Amendment of Professional Services Agreement dated May 24, 2016, shall
remain in full force and effect.
CITY OF YAKIMA
By:
Cliff Moor
City Manager
Date: g pat li
ATTEST:
PayneWest INSURANCE, INC.
By: /� --7/
Kyle R. L gscheit
Its: CEO
r �
to
City Contract No. 2014-16 • •_.
Resolution No. R -2014-109k ,, F
Second Amendment and Extension of
Professional Services Contract between City of Yakima
and PayneWest Insurance, Inc. - Page 2
Date: 1�`�7
STATE OF WASHINGTON
ss.
COUNTY OF YAKIMA
I hereby certify that I know or have satisfactory evidence that
Kyle Lingscheit 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 the CEO of
PayneWest Insurance, Inc. to be the free and voluntary act of such party for the
uses and purposes mentioned in the instrument.
DATED this /1441: day of , 2017.
Second Amendment and Extension of
Professional Services Contract between City of Yakima
and PayneWest Insurance, Inc. - Page 3
Print Nam
NOTARY PUBLIC i
Washington, residin
My appointment expir
h... A �i
'11101ae,"'