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HomeMy WebLinkAbout02-349 Resolution No. 02-349 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Olufemi Folarin, Interim 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 Risk Management Services, Inc . for safety consultant services, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Shock Ed Schoc , Mayor Presented: November 6, 2002 Adopted: November 6, 2002 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk AGREEMENT THIS AGREEMENT, made and entered into this 17 qday of 43C4- ;2002, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and Arthur J. Gallagher Risk Management Services, Inc., a Delaware corporation (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 neces$ary 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 CfTY 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: 1. 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. 2. WORK PRODUCTS All work products prepared by the CONSULTANT pLrsuant 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 shi II be at the sole risk of the CITY without liability or legal exposure to the CONSULTAFT. 3. PAYMENTS TO THE CONSULTANT A. For services provided the CONSULTANT shall be reimbursed at the rate of $98.75/hour with the total fee not to exceed $20,000.00 regardless of the actual costs incurred by the CONSULTANT unless ubstantiai modifications to the scope of the work are authorized in writing by tie DIRECTOR. B. The CITY shall make periodic payments to the CONSULTANT based upon actual progress within 30 days after receipt and approval of invoice. 4. INVOICES A The CONSULTANT shall submit invoices in a format approved by the CITY. 1 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. 5. 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 tasl' amounts set forth under Paragraph 4 above. 6. TERM This Agreement shall become effective as of the ate the CONSULTANT is given a notice to proceed and, unless terminated for causeor pursuant to Article 5, shall be deemed concluded on the date the CITY determiries 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. 7. NOTICE OF CLAIM If the CONSULTANT wishes to make a claim for adJitional compensation as a result of action taken by the CITY,the CONSULTANT shall ive written notice of his claim within 15 days after occurrence of such action. No claim f r additional compensation shall be valid unless so made. Any changes in the CONSOLTANT'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 CITY relative to a claim submitted by the CONSULTANT, all work required under this Agreement as determined by the DIRECTOR shall proceed without interruption. 8. 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 ;omply with the conditions of the Agreement, the other party may terminate this Agr ement. 9. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT agrees to and shall indemnify, defend and hold harmless the CITY, its officer , employees, agents, boards and commissions from and against anyand all claims, slits judgments, costs, attorneys 9 � � J 9Y fees,damages or other relief, including but not limited to workers compensation claims, in any way resulting from or arising out of neglig nt actions or omissions of the CONSULTANT in connection herewith,including negl gence 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, employees, agents, boards or commissions, covered by the foregoing duty to inderhinify, defend and hold harmless such action shall be defended by legal counsel of the CITY's choosing. 10. NO PERSONAL LIABILITY No official,director, officer, agent or employee of the ITY shall be charged personally or held contractually liable under any term or provisio of this Agreement or because of their execution, approval or attempted execution of t is Agreement. 11. INSURANCE A. Comprehensive Liability. The CONSULT°NT shall provide, pay for and maintain in effect, during the term of this Agre=ment, 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 •amage. The CONSULTANT shall deliver to the DIRE TOR a Certification of Insurance naming the CITY as additional insured. Th= policy shall not be modified or terminated without thirty (30) days prior written notice to the DIRECTOR. The Certificate of Insurance which shall includ: Contractual obligation assumed by the CONSULTANT under Article 9 entitled"I demnification"shall be provided. This insurance shall apply as primary insur:nce with respect to any other insurance or self-insurance programs affordes 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. Co prehensive Automobile Liability Insurance covering all owned, non-owned and ired motor vehicles with limits of not less than $500,000 per occurrence for da age to property. C. Combined Single Limit Policy. The require ents for insurance coverage for the general liability and auto exposures may b: met with a combined single limit of$1,000,000 per occurrence subject to a $1,600,000 aggregate. 12. NONDISCRIMINATION 1 In all hiring or employment made possible or resultin from this Agreement,there shall be no discrimination against any employee or applica t for employment because of sex, age, race, color, creed, national origin, marital status, or the presence of any sensory, mental or physical handicap, unless based upon a bo a fide occupational qualification, and this requirement shall apply to, but not be limit d to, the following: employment advertising, layoff or termination, rates of pay or o her forms of compensation and selection for training, including apprenticeship. 3 No person shall be denied or subjected to discrimi ation 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 e cept 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 6 violation of a material provision of this Agreement and shall be grounds for cancellation, termination or suspension, in whole or in part, of the Agreement by the CITY. 13. ASSIGNMENT AND SUCCESSORS This Agreement and each and every portion thereof shall be binding upon the f successors and the assigns of the parties h reto; provided, however, that no assignment shall be made without the prior written consent of the CITY. 14. DELEGATIONS AND SUBCONTRACTORS 1 Any assignment, delegation or subcontracting hall be subject to all the terms, conditions and other provisions of this Agreement Ind 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. 15. NO CO-PARTNERSHIP OR AGENCY This agreement shall not be construed so as to preate a partnership, joint venture, employment or other agency relationship between the parties hereto. 16. SEVERABILITY The parties intend and agreed that, if any paragraph,sub-paragraph, phrase,clause or other provision of this Agreement, or any portion Ithereof, shall be held to be void or otherwise unenforceable, all other portions of this ttlkgreement shall remain in full force and effect. 17. 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. 1 18. 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 upori the other party unless expressed in writing herein or in a duly executed amendment hereof, or change order as herein provided. 2 19. APPLICABLE LAW This Agreement shall be deemed to have been male in, and shall be construed in accordance with the laws of the State of Illinois.Venu 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. 20. NEWS RELEASES 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. 21. COOPERATION WITH OTHER CONSULTANTS The CONSULTANT shall cooperate with any other consultants in the CITY's employ or any work associated with the PROJECT. 22. 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 ILCS 5/33E et seq. Or any similar state or federal statute regarding bid rigging. 23. 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 find 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. 24. NOTICES All notices, reports and documents required under this Agreement shall be in writing 3 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: Mr. William Granato President, Commercial Division Arthur J. Gallagher Risk Management Services, Inc. Two Pierce Place Itasca IL 60143-3141 IN WITNESS WHEREOF, the undersigned have placed their h nds and seals upon and executed this Agreement in triplicate as though each copy hereof was an riginal and that there are no other oral agreements that have not been reduced to writing in this tatement. For the CITY: ATTEST: THE CITY OF ELGIN Alig , BY }14AILMiii-C.4~-, By IIWIY Iii\aip.m.**,.. City Clerk City Ma (SEAL) For the CONSULTANT: Dated this / 7 day of 0 c--7 e--._ , A.D., 2002. ATTEST: By (-1- •I) ' ------z_ . President By Secretary (SEAL) 4 ATTACHMENT A Arthur J. Gallagher Risk Management Service's Inc. Scope of Services The service proposal is based on providing the City of Elgin with a total of 200 hours of service over a twelve-month period. The service hours will be split as follows: • 24 hours in Safety Steering Committee and/or department safety meetings (12 meetings at approximately 2 hours per meeting) • 96 hours of safety audits for selected departments. (12 audits at 8 hours each) • 80 hours of safety training and/or safety program devel¢pment. This split is arbitrary and more or less time may be-allocated among the specific elements as determined by need and the City of Elgin's requests. The hourly fee for the above services is $98.75 per hour. The estimated cost of this project is $19,750.00 dollars and is based upon the anticipated work hours invested in this project. Note: The billable hours include all consultants' time for office and fieldwork. Arthur J. Gallagher will continue to assist the City of Elgin in 4eveloping safety policies and procedures that will address employee safety and health related deficiencies noted in AJG's previous audit as well as any newly identified safety and health related deficiencies that may come to light during the service period. The three elements that make up the backbone of the service pian: 1.) Safety Steering Committee and/or department safety meetings 2.) Safety audits of selected departments 3.) Safety training. The following is the anticipated scope of work for each element Safety Meetings Arthur J. Gallagher will attend regularly scheduled Safety Steering Committee meetings and selected City of Elgin department safety meetings. AJG's shall assist the Safety Steering Committee with ongoing Safety and Health Program Development and provide whatever guidance and resources they can to accomplish their stated goats. It is anticipated that the Safety 5 Steering Committee will meet every other month. AJG will also attend selected City of Elgin department safety meetings to assist them in specific safety related program development issues. The departments will be selected by the City of Elgin's Risk Management Department. AJG shall attend at least one department safety meeting every other month. Written reports for all meetings will be provided to the City of Elgin's Risk Manager and all other authorized personnel within seven working days. Safety Audits Arthur J. Gallagher will perform safety audits of selected departments. The audits will be geared to identifying employee related safety and health hazards in the work environment, examining compliance with established safety and health procedures and identifying areas within the safety and health program in need of improvement. The audits will be both announced and unannounced. No audits will be made without the prior knowledge and approval of the City of Elgin's Risk Management Department. The purpose of the audits will be to assist managers in developing the skills and tools necessary for effective identification of hazards within their department and in developing a system of accountability to implement corrective measures in a timely fashion. At the conclusion of each audit, the department manager or designated individual will be provided with a written hand out outlining the major findings of-the audit. This will be followed by a formal written report of findings and recommendations within seven working days. The final report will be sent to the City of Elgin's Risk Management Department, Department Manager and other authorized individuals. AJG shall perform monthly audits of selected departments. It is understood that not all departments will need a full day to do an audit. More than one department may be audited during a day. Safety Program Development/Safety Training Arthur J. Gallagher will assist the City of Elgin in the development of general health and safety policies and procedures and in department specific and/or operational specific safety and health policies and procedures, with emphasis on employee health and safety issues. It is anticipated that the Safety Steering Committee will be instrumental in this;process. The underlying goal of this committee should be to assist the various departments to develop, improve, communicate, implement, support and monitor the safety and health policies and procedures adopted by the City of Elgin. Arthur J. Gallagher will provide resources and guidance to assist the City of Elgin in attaining its safety goals. Safety training will be provided on an as needed basis. It is anticipated that we will provide employee safety training and/or assist in the development of safety training programs on a 6 • variety of subjects to various departments during the course of the contract. This training may run the gamut from supervisor accountability, accident investigation, fall-protection, and fleet safety issues to "Train the Trainer" sessions on a myriad of subjects. AJG has allotted eighty hours to perform these tasks. The hours may be allocated as the City wishes and as the need arises. 7 \yc 0rECC, SAP. Agenda Item No. City of Elgin ralFoE L '; October 4, 2002 G 6 , TO 0 ( IdI TO: Mayor and Members of the City Council FINANCIALLY STABLE CITYGONERNMENT EFFICIENT SERVICES, AND QUALITY INFRASTRUCTURE FROM: Olufemi Folarin, Interim City Manager SUBJECT: Consideration of an RFP for Safety Consultant Services PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to award a contract for safety and loss control professional services to Arthur J. Gallagher Risk Management Services, Inc. rm. BACKGROUND A 2002 Decision Package for the Risk Management Division of the Purchasing Department was approved for safety consultant services . The consultant' s duties shall include : • Development, coordination and implementation of safety and health compliance policies and procedures including industrial hygiene and job safety analysis for use by all City departments . • Attendance at regular safety meetings, city wide and within departments . • Consultation as appropriate with management and employees on loss control matters to prevent injuries, occupational diseases, vehicular collision and damage to City equipment and material . • Recommendation and development of new safety programs for various departments based on specific departmental needs . • Evaluation of effectiveness of safety programs and recommended modifications to programs to increase effectiveness . • Evaluation of job sites for compliance with City and State safety regulations . . Safety Consultant October 4, 2002 Page 2 The Purchasing Department was allocated $20, 000 for these services . This figure was included as a "not to exceed" in the Request for Proposals for safety consultant services . The Request for Proposals was advertised in the August 22, 2002, "Courier News" and requested by four firms . Three proposals were received; from Arthur J. Gallagher, Devine & Tweedale and Adams Safety Management Services . The proposals were reviewed by the Risk Management Division and were evaluated as follows : Arthur J. Gallagher - The City entered into a contract with Arthur J. Gallagher (AJG) in 2001 which is coming to an end. During the contract term, AJG completed safety audits of all departments and provided draft safety procedures that will form the basis of a Loss Control Manual for use across the City. AJG is currently attending our Safety Committee meetings and subcommittee meetings . This familiarity with the City' s operations gives the consultant an advantage over other Fro. consultants which was reflected in AJG' s proposal . Their proposal recognizes the progress the City has made in its safety program in the last year and addresses future goals; i .e. , ongoing safety committee meetings, safety policy development and policy implementation. Devine & Tweedale - This firm has a lot of municipal experience in risk management . Their proposal was not very detailed and seemed to propose repeating the research that was already performed by AJG. The fee proposal stated a charge of $2 , 000 per "safety policy" which, combined with the hourly rates of the consultants, could quickly exceed our $20, 000 cap. Adams Safety Management Services - This consultant proposed the use of four staff members which Risk Management feared would provide a fragmented approach. The majority of the hours seemed to be assigned to the less experienced staff . Adams proposes tasks, such as meeting with department heads, which have already been performed by AJG. Based on the above, it is recommended that the City continues its relationship with Arthur J. Gallagher. l Safety Consultant October 4, 2002 Page 3 GROUPS/INTERESTED PERSONS CONTACTED None. 9/4.. INANCIAL IMPACT There are sufficient funds budgeted ($:20, 000) and available ($42 , 676) in account number 630-0000-796 . 30-99, Risk Management Miscellaneous Professional Services to cover this "not to exceed" $20, 000 contract with Arthur J. Gallagher Risk Management Services, Inc . Vil"h GAL IMPACT None . ALTERNATIVES w 1 . Award the contract as recommended. f" 2 . Award the contract to one of the other two firms . RECOMMENDATION It is recommended that the City Council approve award a contract for safety and loss control professional services to Arthur J. Gallagher Risk Management Services, Inc . in an amount not to exceed $20, 000 . Respectfully submitted, 1Z)L . Olufemi F. Kirin • Inter 'm Ma - ger GAC