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Home My WebLink About01-68 Resolution No. 01-68 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH ARTHUR J. GALLAGHER AND COMPANY FOR RISK CONTROL SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Arthur J. Gallagher and Company for risk control services, a copy of which is attached hereto and made a part hereof by reference . s/ John Walters John Walters, Mayor Pro Tem Presented: March 28 , 2001 Adopted: March 28 , 2001 Omnibus Vote : Yeas 5 Nays : 0 Attest : s/ Suellyn Losch Suellyn Losch, Deputy City Clerk • X0010142 =-g _ Page 1 AGREEMENT THIS AGREEMENT, made and entered into this 93 day of ✓" , 2001, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY")and Arthur J. Gallagher and Company(hereinafter referred to as "CONSULTANT"). WHEREAS, the CITY desires to engage the CONSULTANT to furnish certain professional services in connection with an assessment of the City's safety and health practices (hereinafter referred to as the PROJECT). AND WHEREAS, the CONSULTANT represents that it has the necessary expertise and experience to furnish such services upon the terms and conditions set forth herein below. NOW, THEREFORE, it is hereby agreed by and between the CITY and the CONSULTANT that the CITY does hereby retain the CONSULTANT for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged : I. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the Purchasing Director/Risk Manager of the CITY, herein after referred to as the"DIRECTOR". B. A detailed Scope of Services is attached hereto as Attachment A. II. WORK PRODUCTS All work products prepared by the CONSULTANT pursuant hereto including, but not limited too, reports, designs, calculations, work drawings, studies, photographs, models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the DIRECTOR provided, however, that the CONSULTANT may retain copies of such work products for its records. Such work products are not intended or represented to be suitable for reuse by the CITY on any extension to the PROJECT or on any other project, and such reuse shall be at the sole risk of the CITY without liability or legal exposure to the CONSULTANT. III. PAYMENTS TO THE CONSULTANT A. For services provided the CONSULTANT shall be reimbursed at the rate of$98.75 with the total fee not to exceed $19,750.00 regardless of the actual costs incurred by the CONSULTANT unless substantial modifications to the scope of the work are authorized in writing by the DIRECTOR. B. The CITY shall make periodic payments to the CONSULTANT based upon actual progress within 30 days after receipt and approval of invoice. IV. INVOICES A The CONSULTANT shall submit invoices in a format approved by the CITY. x.`0010142 �. ,.r., .. ..�,. r.. ..a. Page 2 B. The CONSULTANT shall maintain records showing actual time devoted and cost incurred. The CONSULTANT shall permit the authorized representative of the CITY to inspect and audit all data and records of the CONSULTANT for work done under this Agreement. The CONSULTANT shall make these records available at reasonable times during the Agreement period, and for a year after termination of this Agreement. V. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the CITY may terminate this Agreement at any time upon fifteen (15)days prior written notice to the CONSULTANT. In the event that this Agreement is so terminated, the CONSULTANT shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the task amounts set forth under Paragraph IV above. VI. TERM This Agreement shall become effective as of the date the CONSULTANT is given a notice to proceed and, unless terminated for cause or pursuant to Article V, shall be deemed concluded on the date the CITY determines that all of the CONSULTANT's work under this agreement is completed. A determination of completion shall not constitute a waiver of any rights or claims which the CITY may have or thereafter acquire with respect to any term or provision of the Agreement. VII. NOTICE OF CLAIM If the CONSULTANT wishes to make a claim for additional compensation as a result of action taken by the CITY, the CONSULTANT shall give written notice of his claim within 15 days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the CONSULTANT's fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the CONSULTANT. Regardless of the decision of the DIRECTOR relative to a claim submitted by the CONSULTANT, all work required under this Agreement as determined by the DIRECTOR shall proceed without interruption. VIII. BREACH OF CONTRACT If either party violates or breaches any term of this Agreement, such violation or breach shall be deemed to constitute a default, and the other party has the right to seek such administrative, contractual or legal remedies as may be suitable to the violation or breach; and, in addition, if either party, by reason of any default, fails within fifteen (15)days after notice thereof by the other party to comply with the conditions of the Agreement, the other party may terminate this Agreement. IX. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, agents, boards and commissions from and against any and all claims, suits,judgments, costs, attorneys fees, damages or other relief, including but not limited to workers compensation claims, in any way resulting from or arising out of negligent actions or omissions of the CONSULTANT in connection herewith, including negligence or omissions of employees or agents of the CONSULTANT arising out of the performance of this Agreement. In the event of any action against the CITY, its officers, Page 3 employees, agents, boards or commissions, covered by the foregoing duty to indemnify, defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. X. NO PERSONAL LIABILITY No official, director, officer, agent or employee of the CITY shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. XI. INSURANCE A. Comprehensive Liability. The CONSULTANT shall provide, pay for and maintain in effect, during the term of this Agreement, a policy of comprehensive general liability insurance with limits of at least$1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The CONSULTANT shall deliver to the DIRECTOR a Certification of Insurance naming the CITY as additional insured. The policy shall not be modified or terminated without thirty(30)days prior written notice to the DIRECTOR. The Certificate of Insurance which shall include Contractual obligation assumed by the CONSULTANT under Article X entitled "Indemnification"shall be provided. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the CITY. There shall be no endorsement or modification of this insurance to make it excess over other available insurance, alternatively, if the insurance states that it is excess or prorate, it shall be endorsed to be primary with respect to the CITY. B. Comprehensive Automobile Liability. Comprehensive Automobile Liability Insurance covering all owned, non-owned and hired motor vehicles with limits of not less than $500,000 per occurrence for damage to property. C. Combined Single Limit Policy. The requirements for insurance coverage for the general liability and auto exposures may be met with a combined single limit of $1,000,000 per occurrence subject to a $1,000,000 aggregate. XII. NONDISCRIMINATION In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status or the presence of any sensory, mental or physical handicap. Any violation of this provision shall be considered a violation of a material provision of this Agreement and shall be 0010142 . .. �. . ,f ... ._..,,. Page 4 grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. XIII. ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the successors and the assigns of the parties hereto; provided, however, that no assignment shall be made without the prior written consent of the CITY. XIV. DELEGATIONS AND SUBCONTRACTORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the CONSULTANT shall remain liable to the CITY with respect to each and every item, condition and other provision hereof to the same extent that the CONSULTANT would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed subcontractor shall require the CITY's advanced written approval. XV. NO CO-PARTNERSHIP OR AGENCY This agreement shall not be construed so as to create a partnership,joint venture, employment or other agency relationship between the parties hereto. XVI. SEVERABILITY The parties intend and agreed that, if any paragraph, sub-paragraph, phrase, clause or other provision of this Agreement, or any portion thereof, shall be held to be void or otherwise unenforceable, all other portions of this Agreement shall remain in full force and effect. XVII. HEADINGS The headings of the several paragraphs of this Agreement are inserted only as a matter of convenience and for reference and in no way are they intended to define, limit or describe the scope of intent of any provision of this Agreement, nor shall they be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof. XVIII. MODIFICATION OR AMENDMENT This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. Each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. XIV. APPLICABLE LAW This Agreement shall be deemed to have been made in, and shall be construed in accordance with the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois. XV. NEWS RELEASES -0010142. Page 5 The CONSULTANT may not issue any news releases without prior approval from the DIRECTOR, nor will the CONSULTANT make public proposals developed under this Agreement without prior written approval from the DIRECTOR prior to said documentation becoming matters of public record. XVI. COOPERATION WITH OTHER CONSULTANTS The CONSULTANT shall cooperate with any other consultants in the CITY's employ or any work associated with the PROJECT. XVII. INTERFERENCE WITH PUBLIC CONTRACTING The CONSULTANT certifies hereby that it is not barred from bidding on this contract as a result of a violation of 720 1LCS 5/33E et seq. Or any similar state or federal statute regarding bid rigging. XVIII. SEXUAL HARASSMENT As a condition of this contract, the CONSULTANT shall have written sexual harassment policies that include, at a minimum, the following information: A. the illegality of sexual harassment; B. the definition of sexual harassment under state law; C. a description of sexual harassment, utilizing examples; D. the vendor's internal complaint process including penalties; E. the legal recourse, investigative and complaint process available through the Illinois Department of Human Rights, and the Illinois Human Rights Commission; F. directions on how to contact the department and commission; G. protection against retaliation as provided by Section 6-101 of the Human Rights Act. A copy of the policies must be provided to the Department of Human Rights upon request 775 ILCS 5/2-105. XIX. NOTICES All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by First Class Mail, postage prepaid, addressed as follows: A. As to CITY: Gail Cohen Purchasing Director 150 Dexter Court Elgin IL 60120 B. As to CONSULTANT: 1-=0010142. .n. . ..Page 61 IN WITNESS WHEREOF, the undersigned have placed their hands and seals upon and executed this Agreement in triplicate as though each copy hereof was an original and that there are no other oral agreements that have not been reduced to writing in this statement. For the CITY: ATTEST: THE CITY OF ELGIN BY LD l C By , . ,41 if City Clerk F' .itger (SEAL) For the CONSULTANT: Dated thiso23, 'ay of '774/844 , A.D., 2001. ATTEST: B2 ) Ci. V4 ' ,z By Secretary Pfe;; ,t- -te a L1 i^ (- (/Q1-14C/ (SEAL) " OFFICIAL SEAL " LINDA A. HANSON NOTARY PUBLIC, STATE OF ILLINOIS MY COMMISSION EXPIRES 6/28/2001 H0010142. Page 7 ATTACHMENT A The Consultant's proposal is based upon providing the City with a total of 200 hours of service over a twelve month period. The service hours will be split as follows; 72 hours in the audit phase 98 hours in the report phase (findings, recommendations, departmental meetings, etc. 30 hours in assisting the steering committee (quarterly meetings) The hourly fee for the above services is $98.75. Arthur J. Gallagher will assist the City of Elgin in developing policies and procedures that will correct deficiencies noted and enhance the overall safety and health program. The following preliminary service plan is presented with the understanding that it is a living document, with the ability to change as time goes on. Items can be added and/or deleted as the City sees fit. 1. Audit Phase b.) Evaluate and review current safety and health policies, procedures and manuals. c.) Evaluate management structure and responsibilities, city wide, as they relate to safety and health. d.) Evaluate department management commitment, support, and effectiveness regarding safety and health issues. e.) Review loss runs for the last three years to identify accidental trends and loss leaders. The audit of policies and procedures will include, but not be limited to, the following areas: Management commitment and support Self-audit procedures Safety policies Safety goals Safety budgeting Disaster planning Safety accountability/responsibilities (from top to bottom) Employee involvement in the overall safety process Safety training for supervisors, management and employees Accident tracking Record keeping Accident investigation Inspections Safety meetings Safety incentive programs Safety promotion and publicity New or transferred employee safety orientation Employee safety complaint procedures Safety committee activities and mandates Fleet safety exposures and controls Driver selection methods (MVR's, physicals, drug testing, etc.) Driver training activities (i.e., initial, ongoing & remedial defensive driving instruction, etc.). Driver supervision controls (i.e., driver physicals, MVR's, drug testing, etc.) Vehicle accident investigation, analysis and recordkeeping. 0010142 . Page e 8 Police department high speed pursuit policy Vehicle inspection and maintenance program Driver's manual or fleet safety policy Safety disciplinary policies and procedures General safety rules Risk management of vendors or outside contractors Industrial hygiene Early return to work programs "OSHA exposure: Hazard communication Lockout/tagout Confined space entry procedures/permits Excavations Personal Protective Equipment Equipment and machine guarding Bloodborne pathogens Material handling Ergonomics Electrical safety Scaffolding General liability exposures/controls Slip, trip &falls issues Life safety measures Sexual harassment Traffic control program Subcontractor procedures Site security issues Visitor controls Incident investigation Child care program Parks & recreation (swimming pools, playgrounds areas, etc.) 6. Report Phase a.) Provide written reports of findings b.) Provide recommendations for improvement c.) Identify areas that are acceptable d.) Meet with department heads to go over findings and recommendations e.) Provide all support material necessary to assist the city in meeting their goals. Once the initial audit/reporting phase has been completed, a steering committee be established that regularly addresses loss control/risk management issues. This committee should be composed of members from within the City, the broker and the commercial carrier. Initially, these meetings should occur on a quarterly basis. This will help ensure an ongoing dialogue with everyone involved, as well as serve as a vehicle to address direction of the steering committee. The above safety services will be performed by the following consultant: Stephen J.Zeigle,ARM Stephen has over two decades of Loss Control experience and has a B.S. degree 0010142. Page 9 ' in Occupational Safety. During his career he has provided risk evaluations and loss control services for numerous municipalities. Some of the cities where Stephen has provided services include Philadelphia, PA; Lakewood, CO; East St. Louis, IL; Belleville, IL; Granite City, IL; Calumet City, IL; Lake Station, IN, etc. The City of Philadelphia, PA survey involved a week long fleet audit on behalf of the National Safety Council. Past safety assessments have include reviews of the auto, worker's compensation, property and general liability areas. Steve has also developed training and safety programs for the above clients. Flr7x tini, ir r?- toss CONTROL SERVICE PROPOSAL Prepared for: CITY OF ELGIN • August 8, 2000 Ms. Gail Cohen Purchasing Director City of Elgin 150 Dexter Court Elgin, Illinois 60120 RE: Loss CONTROL SERVICES PROPOSAL Dear Ms. Cohen: Mr. Jim Mochel of our office has asked me to provide you with a quote for risk management services for the City of Elgin, based upon information you provided via e-mail. Arthur J. Gallagher & Co. appreciates the opportunity to present the following proposal for your approval. It is designed to assist you and the City of Elgin and provide an assessment of your current safety and health practices, and addresses both policies and procedures. Based upon our findings, Arthur J. Gallagher will assist the City of Elgin in developing policies and procedures that will correct deficiencies noted and enhance the overall safety and health program. The following preliminary service plan is presented with the understanding that it is a living document, with the ability to change as time goes on. Items can be added and/or deleted as you see fit. The plan is designed to span time, and at this point is to occur over a twelve month period. As with everything in this proposal, that too can change. • 1. AUDIT PHASE b.) Evaluate and review current safety and health policies, procedures and manuals. c.) Evaluate management structure and responsibilities, city wide, as they relate to safety and health. d.) Evaluate department management commitment, support, and effectiveness regarding safety and health issues. - e.) Review loss runs for the last three years to identify accidental trends and loss leaders. The audit phase will give us a valuable insight as to the current state of affairs with both level of commitment and effectiveness of the current overall safety and health profile of the City'of Elgin. The audit of policies and procedures will include, but not be limited to, the following areas: 2 Management commitment and support 0 Self-audit procedures 2 Safety policies O Safety goals r2 Safety budgeting • d Disaster planning i2 Safety accountability/responsibilities (from top to bottom) r2 Employee involvement in the overall safety process t2 Safety training for supervisors, management and employees c2 Accident tracking r2 Redordkeeping d Accident investigation d Inspections r2 Safety meetings o Safety incentive programs o Safety promotion and publicity o New or transferred employee safety orientation d Employee safety complaint procedures t Safety committee activities and mandates r2 Fleet safety exposures and controls > Driver selection methods (MVR's, physicals, drug testing, etc.) > Driver training activities (i.e., initial, ongoing & remedial defensive driving instruction, etc.). > Driver supervision controls (i.e., driver physicals, MVR's, drug testing, etc.) > Vehicle accident investigation, analysis and recordkeeping. Police department high speed pursuit policy Vehicle inspection and maintenance program • Driver's manual or fleet safety policy c2 Safety disciplinary policies and procedures c2 General safety rules r2 Risk management of vendors or outside contractors r2 Industrial hygiene Early return to work programs c2 "OSHA exposure: > Hazard communication > Lockout/tagout > Confined space entry procedures/permits > Excavations > Personal Protective Equipment > Equipment and machine guarding > Bloodborne pathogens _ > Material handling > Ergonomics > Electrical safety > Scaffolding c2 General liability exposures/controls > Slip, trip & falls issues > Life safety measures > Sexual harassment > Traffic control program > Subcontractor procedures > Site security issues > Visitor controls > Incident investigation > Child care program > Parks & recreation (swimming pools, playgrounds areas, etc.) 6. REPORT PHASE a.) Provide written reports of findings b.) Provide recommendations for improvement c.) Identify areas that are acceptable d.) Meet with department heads to go over findings and recommendations e.) Provide all support material necessary to assist the city in meeting their goals. Once the initial audit/reporting phase has been completed, it is recommended that a steering committee be established that regularly addresses loss control/risk management issues. This committee should be composed of members from within the City, the broker and the commercial carrier. Initially, these meetings should occur on a quarterly basis. This will help ensure an ongoing dialogue with everyone involved, as well as serve as a vehicle to address direction of the steering committee. The above safety services will be performed by the following consultant: Stephen J. Zeigle, ARM Stephen has over two decades of Loss Control experience and has a B.S. degree in Occupational Safety. During his career he has provided risk evaluations and loss control services for numerous municipalities. Some of the cities where Stephen has provided services include Philadelphia, PA; Lakewood, CO; East St. Louis, IL; Belleville, IL; Granite City, IL; Calumet City, IL; Lake Station, IN, etc. The City of Philadelphia, PA survey involved a week long fleet audit on behalf of the National Safety Council. Past safety assessments have include reviews of the auto, worker's • compensation, property and general liability areas. Steve has also developed training and safety programs for the above clients. The estimated cost of this project is $19,750.00 and is based on anticipated work hours invested in the project. The cost and hours will be monitored throughout the project, and will be justified at the end of the project by means of a stewardship report. Again, this is an estimate. NOTE: Billable hours include all consultant time for office, field and travel. Travel expenses are included in the above rate. The enclosed proposal contains information which is proprietary and of a confidential nature. Duplication, reproduction, and/or dissemination of the enclosed material, whether in whole or in part, without the express written consent of Arthur J. Gallagher & Co. is strictly prohibited. By signing and acceptance of these materials, prospective client acknowledges its consent to the foregoing. (Please return signed original.) Again, thank you for the opportunity to present this proposal. We look forward to hearing from you in the near future, and working With you. Sincerely, Richard J. Kittredge Assistant Vice President Safety & Loss Control Service First—Arthur J.Gallagher & Company cc: Joe Zinnecker Jr., - Executive Vice President, Director, Service First/AJG Jim Mochel —AJG ACCEPTED: Gail Cohen Purchasing Director