01-68 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 �.
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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
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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