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HomeMy WebLinkAbout25-170 Resolution No. 25-170 RESOLUTION ACCEPTING THE PROPOSALS FOR THE CITY OF ELGIN'S INSURANCE PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that pursuant to Elgin Municipal Code Section 5.02.020B(9)the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interest of the city; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, be and is hereby authorized and directed to accept the proposals on behalf of the City of Elgin for the city's insurance program commencing October 1, 2025 as follows: a. To accept Travelers' renewal proposal for liability and crime insurance for an annual premium of$977,940. b. To accept Public Risk, Innovation, Solutions, and Management's (PRISM) proposal for excess liability insurance for an annual premium not to exceed $258,850. c. To accept HDI Global Specialty proposal for excess liability insurance for an annual premium of$156,382. d. To accept Safety National's renewal proposal for excess workers' compensation insurance for an annual premium of$307,619. e. To accept Alliant Insurance Services, Inc.'s proposal for insurance consultant services for a three-year term of$111,000. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, be and is hereby authorized and directed to execute an Agreement with Alliant Insurance Services, Inc. dated September 30, 2025, a copy of which is attached hereto and made a part hereof by reference. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, be and is hereby authorized and directed to execute an Agreement with Public Risk,Innovation, Solutions,and Management's(PRISM)dated October 1, 2025, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: September 24, 2025 Adopted: September 24, 2025 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk - 2 - AGREEMENT THIS AGREEMENT is made and entered into as of the 30th day of September, 2025,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as "CITY") and Alliant Insurance Services, Inc., a California corporation authorized to do business in the State of Illinois(hereinafter referred to as"BROKER"). WHEREAS, the CITY desires to engage the BROKER to furnish certain professional services in connection with providing to the CITY insurance broker and consulting services for the CITY in connection with the CITY'S risk management programs(hereinafter referred to as the "PROJECT"); and WHEREAS,the BROKER represents that it is in compliance with Illinois Statutes relating to professional registration of insurance brokers and 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 BROKER that the CITY does hereby retain the BROKER for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged to perform the services relating to the PROJECT as described herein, subject to the following terms and conditions and stipulations,to-wit: 1. SCOPE OF SERVICES A. All work hereunder shall be performed under the direction of the CITY'S Risk Manager, Kelly Wasilewski,herein after referred to as the"RISK MANAGER". B. BROKER shall provide the insurance broker and risk management consulting services to the CITY as outlined in Attachment A entitled"Scope of Services"dated September 15, 2025, a copy of which is attached hereto and made a part hereof by this reference. C. The BROKER shall insure the services performed under this Agreement are performed with due diligence, in a competent professional manner in accordance with the standard procedure and practices generally accepted in the insurance brokering profession. 2. SCHEDULE BROKER shall provide the services to the CITY pursuant to this Agreement as requested by the CITY and in accordance with a schedule as from time-to-time directed by the CITY. 3. WORK PRODUCT All work product prepared by the BROKER pursuant hereto including,but not limited to, reports, plans, designs, calculations, estimates, work drawings, studies, photographs, - l - models and recommendations shall be the property of the CITY and shall be delivered to the CITY upon request of the RISK MANAGER; provided, however, that the BROKER may retain copies of such work product for its records. BROKER'S execution of this Agreement shall constitute BROKER'S conveyance and assignment of all right,title and interest,including but not limited to any copyright interest,by the BROKER to the CITY of all such work product prepared by the BROKER pursuant to this Agreement. The CITY shall have the right either on its own or through such other brokers as determined by the CITY to utilize and/or amend such work product. Any such amendment to such work product shall be at the sole risk of the CITY. Such work product is 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 BROKER. 4. PAYMENTS TO THE BROKER A. The CITY shall reimburse the BROKER for services under this Agreement a lump sum based on the below payment schedule per year regardless of actual costs incurred by the BROKER unless substantial modifications to the PROJECT are authorized by the CITY and approved by way of written amendment to this Agreement. B. The CITY shall pay to the BROKER such annual fee per the fee schedule for each year this Agreement is in effect in two installments,with the first installment in the amount of 50% of the scheduled annual fee being paid on October 1 of each year this Agreement is in effect and the second installment the remaining 50% of the scheduled annual fee being paid May l each year this Agreement is in effect. C. The City shall pay to the BROKER such a fee as agreed and understood for each of the time periods: • During the first year of the term of this Agreement the Broker shall receive an annual fixed fee of Thirty-Five Thousand Five Hundred Dollars ($35,500.00). • During the second year of this Agreement the Broker shall receive an annual fixed fee of Thirty-Seven Thousand Dollars ($37,000.00). • During the third year of this Agreement-the Broker shall receive an annual fixed fee of Thirty-Eight Thousand Five Hundred Dollars($38,500.00). D. The BROKER shall not accept any contingent commission on the CITY'S account. 5. INVOICES A. The BROKER shall submit invoices in a format approved by the CITY. -2- B. The BROKER shall maintain records showing actual time devoted and cost incurred. The BROKER shall permit the authorized representative of the CITY to inspect and audit all data and records of the BROKER for work done under this Agreement. The BROKER shall make these records available at reasonable times during the Agreement period and for one (1) year after termination of this Agreement. 6. TERMINATION OF AGREEMENT Notwithstanding any other provision hereof, the CITY may terminate this Agreement at any time upon sixty (60)days prior written notice to the BROKER. In the event that this Agreement is so terminated, the BROKER shall be paid for services actually performed and reimbursable expenses actually incurred prior to termination, except that reimbursement shall not exceed the amounts set forth under Paragraph 4 above. 7. TERM The term of this Agreement shall commence on October 1, 2025, and shall end on September 30,2028, unless terminated prior thereto as provided in this Agreement. 8. NOTICE OF CLAIM If the BROKER wishes to make a claim for additional compensation as a result of action taken by the CITY, the BROKER shall give written notice of his claim within fifteen (15) days after occurrence of such action. No claim for additional compensation shall be valid unless so made. Any changes in the BROKER'S fee shall be valid only to the extent that such changes are included in writing signed by the CITY and the BROKER. Regardless of the decision of the RISK MANAGER relative to a claim submitted by the BROKER, all work required under this Agreement as determined by thc RISK MANAGER shall proceed without interruption. 9. 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. Notwithstanding the foregoing, or anything else to the contrary in this Agreement, with the sole exception of an action to recover the monies the CITY has agreed to pay to the BROKER pursuant to Paragraph 4 hereof,no action shall be commenced by the BROKER against the CITY for monetary damages. BROKER hereby further waives any and all claims to interest on money claimed to be due pursuant to this Agreement, and waives any and all such rights to interest which it claims it may otherwise be entitled pursuant to law, including,but not limited to, the local Government Prompt Payment Act, as amended, (50 ILCS 501/1, et seq.) or the Illinois Interest Act, as -3 - amended (815 1LCS 205/1, et seq.). Additionally, BROKER shall not be entitled to, and hereby waives, any and all rights that it may have to file suit or bring any cause of action or claim for damages against the City of Elgin and/or its officials, officers, employees, agents, attorneys, boards and commissions, and other affiliated entities or persons of any nature whatsoever in whatever form after two (2)years from the termination or expiration of this Agreement. 10. INDEMNIFICATION To the fullest extent permitted by law,BROKER 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,attorney's fees, damages or other relief, including, but not limited to, workers' compensation claims relating to BROKER's employees, in any way resulting from or arising out of negligent actions or omissions of the BROKER in connection herewith,including negligence or omissions of employees or agents of the BROKER 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 indemnify,defend and hold harmless such action shall be defended by legal counsel of the CITY'S choosing. The provisions of this paragraph shall survive any expiration, completion and/or termination of this Agreement. 11. NO PERSONAL LIABILITY No official, officer, employee, attorney or agent 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. 12. INSURANCE A. Commercial General Liability. The BROKER shall provide, pay for and maintain in effect, during the term of this Agreement, a policy of commercial general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. The BROKER shall deliver to the RISK MANAGER a Certificate of Insurance naming the CITY as additional insured. The BROKER shall endeavor to notify the RISK MANAGER with thirty (30) days written notice of any modification or termination of the insurance policy. BROKER's commercial general liability insurance shall cover the contractual obligations assumed by BROKER under Paragraph 10 entitled "Indemnification," subject to standard policy conditions, exclusions and limitations. There shall be no endorsement or modification of this insurance to make it excess over other available insurance. -4- B. Commercial Automobile Liability. Commercial Automobile Liability Insurance covering all owned, non-owned and hired motor vehicles with limits of not less than$500,000 per occurrence for bodily injury and/or property damage. 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. D. Professional Liability. The BROKER shall carry Brokers Professional Liability Insurance covering claims resulting from error, omissions or negligent acts with a combined single limit of not less than $1,000,000 per claim. A Certificate of Insurance shall be submitted to the RISK MANAGER as evidence of insurance protection. The BROKER shall endeavor to notify the RISK MANAGER with thirty(30) days written notice of any modification or termination of the insurance policy. 13. RECORDS AND INFORMATION The BROKER understands the confidentiality of the information it receives and acknowledges that such information will be used only for the purpose of meeting objectives of this Agreement. Further, any output from this Agreement is to be kept confidential and is for the sole use of the CITY. Such information and/or output shall not be revealed to other parties without the written permission of the CITY. All records received by the BROKER from the CITY shall remain the sole property of the CITY and all such records, or exact copies thereof, shall be turned over intact to the CITY, within thirty(30) days of request. The BROKER will make reasonable efforts to retain files and records for at least five years after expiration of coverage for each insurance/bond affected for CITY'S account. BROKER shall endeavor to provide the CITY with ninety (90) days' advance notice of any file destruction. BROKER shall retain files longer, or retain same, as directed by CITY. Confidentiality- Confidential information shall include without limitation: A. All information that concerns the business affairs of the CITY, including, without limitation, financial information, and all other data, records, and proprietary information involving the CITY'S business operations, including their residents and suppliers; B. Any information developed or created by the BROKER in connection with the services being rendered under this Agreement by the BROKER including but not limited to design,reports,estimates and concepts; and C. Any other information reasonably identified by the CITY as confidential;provided, however,that confidential information shall not include the following: -5- (i) Information known by, or generally available to the insurance industry or the public at large through no breach by BROKER of this confidentiality agreement; (ii) Any information given to the BROKER by a third party without continuing restrictions on its use; (iii) Information disclosed by BROKER with CITY'S written approval; and (iv) Information required to be disclosed by law. 14. NONDISCRIMINATION/AFFIRMATIVE ACTION The BROKER will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, ancestry, order of protection status, familial status, marital status, physical or mental disability, military status, sexual orientation,or unfavorable discharge from military service which would not interfere with the efficient performance of the job in question. BROKER shall take affirmative action to comply with the provisions of Elgin Municipal Code Section 5.02.040 and will require any subcontractor to submit to the City a written commitment to comply with those provisions. BROKER shall distribute copies of this commitment to all persons who participate in recruitment, screening, referral and selection of job applicants and prospective subcontractors. BROKER agrees that the provisions of Section 5.02.040 of the Elgin Municipal Code,as amended, are hereby incorporated by reference,as if set out verbatim. 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 race, color, religion, sex,national origin, age, ancestry, order of protection status, familial status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service. Any violation of this paragraph shall be considered a 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. 15. 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 approval of the CITY, and the CITY may refuse to approve any such proposed assignment in its sole and exclusive discretion. -6- 16. DELEGATIONS AND SUBCONTRACTORS Any assignment, delegation or subcontracting shall be subject to all the terms, conditions and other provisions of this Agreement and the BROKER shall remain liable to the CITY with respect to each and every item,condition and other provision hereof to the same extent that the BROKER would have been obligated if it had done the work itself and no assignment, delegation or subcontract had been made. Any proposed assignment, delegation or subcontractor shall require the CITY'S advanced written approval and the CITY may refuse to approve any such proposed assignment, delegation or subcontracting in its sole and exclusive discretion. 17. 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. The parties intend and agree that the BROKER shall act as an independent contractor. 18. 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. 19. 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. 20. 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. 21. 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. -7- 22. NEWS RELEASES The BROKER may not issue any news releases without prior approval from the RISK MANAGER, nor will the BROKER make public proposals developed under this Agreement without prior written approval from the RISK MANAGER prior to said documentation becoming matters of public record. 23. COOPERATION WITH OTHER BROKERS The BROKER shall cooperate with any other brokers in the CITY'S employ or any work associated with the PROJECT. 24. INTERFERENCE WITH PUBLIC CONTRACTING The BROKER 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. 25. SEXUAL HARASSMENT As a condition of this contract,the BROKER 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 shall be provided by BROKER to the Department of Human Rights upon request(775 ILCS 5/2-105). 26. SUBSTANCE ABUSE PROGRAM. As a condition of this agreement, BROKER shall have in place a written substance abuse prevention program which meets or exceeds the program requirements in the Substance -8- Abuse Prevention Public Works Project Act at 820 ILCS 265/1 et seg. A copy of such policy shall be provided to the CITY'S RISK MANAGER prior to the entry into and execution of this agreement. 27. WRITTEN COMMUNICATIONS All recommendations and other communications by the BROKER to the RISK MANAGER and to other participants which may affect cost or time of completion, shall be made or confirmed in writing. The RISK MANAGER may also require other recommendations and communications by the BROKER be made or confirmed in writing. 28. 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 the CITY: Kelly Wasilewski,Risk Manager City of Elgin 150 Dexter Court Elgin,Illinois 60120-5555 Telephone: (847)931-5917 Fax: (847) 931-5665 E-Mail: Kelly.Wasilewski@elginil.gov With a copy to: Christopher J. Beck, Corporation Counsel City of Elgin 150 Dexter Court Elgin, Illinois 60120-5555 Telephone: (847) 931-5657 Fax: (847) 931-5665 E-Mail: Christopher.Beck@elginil.gov B. As to the BROKER: Michael J. Mackey EVP—Managing Director Alliant Insurance Services, Inc. 353 North Clark Street Chicago, Illinois 60654 Telephone: (312) 595-7900 Fax: (312) 595-8169 E-mail: Michael.Mackey@alliant.com -9- 29. COMPLIANCE WITH LAWS Notwithstanding any other provision of this AGREEMENT it is expressly agreed and understood that in connection with the performance of this AGREEMENT that the BROKER shall comply with all applicable federal, state, city and other requirements of law,including,but not limited to,any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, BROKER hereby certifies, represents and warrants to the CITY that all BROKER's employees and/or agents who will be providing products and/or services with respect to this AGREEMENT shall be legal residents of the United States. BROKER shall also at its expense secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this AGREEMENT. The CITY shall have the right to audit any records in the possession or control of the BROKER to determine BROKER'S compliance with the provisions of this paragraph. In the event the CITY proceeds with such an audit the BROKER shall make available to the CITY the BROKER'S relevant records at no cost to the CITY. BROKER shall pay any and all costs associated with any such audit. 30. COUNTERPARTS AND EXECUTION This Agreement may be executed in counterparts, each of which shall be an original and all of which shall constitute one and the same agreement. This Agreement may be executed electronically, and any signed copy of this Agreement transmitted by facsimile machine, email,or other electronic means shall be treated in all manners and respects as an original document. The signature of any party on a copy of this Agreement transmitted by facsimile machine,email,or other electronic means shall be considered for these purposes an original signature and shall have the same legal effect as an original signature. SIGNATURE PAGE FOLLOWS - 10- IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement effective as of the date and year first written above. CITY OF EL GIN• By: _ c G.Kozel,City Manager Attest 406L) City Clerk ALLIANT INSURANCE SERVICES,INC. By: jLC9.Michae .Mack EVP State of Illinois County of Cook Signed and sworn to me fore this 19th day of September 2025 by Michael J.Mackey as EVP of Alliant Insurance Services,Inc. 110Yry Public,S ,daal Cpmll NDfl N0.757906 I Josefi Rojo, tary Public 0 canaon Now -11- ATTACHMENT A SCOPE OF SERVICES DATED SEPTEMBER 15,2025 BROKER'S RESPONSIBILITIES 1. Serve as designated insurance broker of record for the following insurance coverages related to the City's commercial insurance programs: including General Liability, Liquor Liability, Automobile Liability, Law Enforcement Liability, Public Officials Liability, Employee Benefits Liability, Employment Practices Liability, Pollution Liability, Fiduciary Liability, Automobile Physical Damage, Workers Compensation and Employer's Liability,Excess Liability,Property, Crime, Cyber Liability and Bonds. 2. Develop an insurance marketing strategy, prepare insurance coverage specifications and submissions,and assist with preparing underwriting applications. 3. Analyze insurance proposals, meet with insurance company underwriters and present summary results of such analysis to the appropriate parties. 4. Negotiate insurance renewals and procure insurance policies as directed by the City. 5. Provide loss reports upon request. 6. Prepare and attend annual reviews of claims experience for all lines of coverage. Provide claims management services upon request. 7. Evaluate insurance programs in light of industry trends,claims history, loss development, legal or regulatory requirements, and market conditions. 8. In accordance with parameters and criteria established by the City, provide recommendations regarding the insurance programs, risk financing, insurance carriers, limits, deductible levels, administrators and service providers. 9. Provide actuarial/loss forecasting analysis and loss development factors annually. 10. Review loss exposures. 11. Assist with budget projections on future insurance costs. 12. Review insurance quotes, binders, policies and endorsements for accuracy, make recommendations regarding changes, modifications and/or coverage enhancements, and negotiate changes with carriers. 13. Offer advice on claims and assist with billing issues when needed. 14. Prepare insurance certificates. 15. Assist with establishing insurable values when needed. 16. Assist with the transition process associated with changing insurance carriers and/or claims administrators. Act as a technical resource by providing regular updates on current market conditions, issues and trends that may affect the City. 17. Attend meetings of the Elgin City Council and other administrative meetings as requested. 18. Provide concise,timely and effective special executive summary reports, as needed. 19. Provide benchmarking reports as needed. 20. Provide up to 100 hours of loss control services per year.