HomeMy WebLinkAboutContracts & Agreements_152-2025AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of property and casualty broker services ("Agreement")
is made and entered in this 15th day of July 2025 ("Effective Date"), by and between the City of
Redlands, a municipal corporation ("City") and Alliant Insurance Services, Inc., a California
corporation ("Consultant"). City and Consultant are sometimes individually referred to herein as
a "Party" and, together, as the "Parties." In consideration of the mutual promises contained herein,
City and Consultant agree as follows:
ARTICLE 1— ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to provide property and casualty broker services for City
(the "Services").
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently maintained by other practicing
professional consultants in the industry providing like and similar types of Services.
ARTICLE 2 — SERVICES OF CONSULTANT
2.1 The Services that Consultant shall perform are more particularly described in Exhibit "A,"
titled -"Scope of Services," which is attached hereto and incorporated herein by reference.
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the
performance of this Agreement including, but not limited to, State prevailing wage laws.
ARTICLE 3 — RESPONSIBILITIES OF CITY
3.1 City -shall make available to Consultant information in its possession that may assist
Consultant in performing the Services.
3.2 City designates Robert Meteau, Director, Human Resources/Risk Management, as City's
representative with respect to performance of the Services, and such person shall have the
authority to transmit instructions, receive information, interpret and define City's policies
and decisions with respect to performance of the Services.
ARTICLE 4 — PERFORMANCE OF SERVICES
4.1 The term of this Agreement shall be for a period of one (1) year commencing on the
Effective Date of this Agreement.
4.2 If Consultant's Services include deliverable electronic visual presentation materials, such
materials shall be delivered in a form, and made available to the City, consistent with City
Council adopted policy for the same. It shall be the obligation of Consultant to obtain a
copy of such policy from City staff.
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ARTICLE 5 — PAYMENTS TO CONSULTANT
5.1 The compensation for Consultant's performance of the Services shall not exceed the
amount of Sixty -Six Thousand Ninety -Six Dollars ($66,096) for the Services provided
term of this Agreement. The City shall pay Consultant on a time and materials basis up to
the not to not -to -exceed amount in accordance with the rates specified in Exhibit "B," titled
"Fee Proposal," which is attached hereto and incorporated herein by reference.
5.2 Consultant shall submit monthly invoices to City describing the Services performed during
the preceding month. Consultant's invoices shall include a brief description of the Services
performed, the dates the Services were performed, the number of hours spent and by whom,
and a description of reimbursable expenses related to the Services. City shall pay
Consultant no later than thirty (30) days after receipt and approval by City of Consultant's
invoice.
5.3 Any notice or other communication required, or which may be given, pursuant to this
Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date
of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return
receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or
(iv) on the datesentby facsimile, if confirmed with a copy sent contemporaneously by first
class; certified, registered or express mail; in each case properly posted and fully prepaid
to the appropriate address set forth below, or such other address as a Party may provide
notice in accordance with this section:
City
__City Clerk
City of Redlands
35 Cajon Street;
-PO Box-3005 (mailing)
Redlands, CA 92373
(909)798-7531
jdonaldson@cityofredlands.org
Consultant
Conor Boughey
SeniorVice President
Alliant Insurance Services, Inc.
560 Mission Street, 6d' Floor
San Francisco, CA 94105
Phone:415-403-1411
Fax:415-403-1400
ARTICLE 6 — INSURANCE AND INDEMNIFICATION
6.1 The following insurance coverage required by this Agreement shall be maintained by
Consultant for the duration of its performance of the Services. Consultant shall not perform
any Services unless and until the required insurance listed below is obtained by Consultant.
Consultant shall provide City with certificates of insurance and endorsements evidencing
such insurance prior to commencement of the Services. Insurance policies shall include a
provision prohibiting cancellation or modification of the policy except upon thirty (30)
days prior written notice to City.
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A. Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
City that Consultant is self -insured or exempt from the workers' compensation laws of
the State of California. Consultant shall execute and provide City with Exhibit "C,"
titled "Workers' Compensation Insurance Certification," which is attached hereto and
incorporated herein by this reference, prior to performance of the Services.
B. Comprehensive General Liability insurance with carriers acceptable to City in the
minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million
Dollars ($2,000,000) aggregate, for public liability, property damage and personal
injury is required. City shall be named as an additional insured and such insurance shall
be primary and non-contributing to any insurance or self-insurance maintained by City.
C. Consultant shall secure and maintain professional liability insurance throughout the
term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim
made.
D. Business Auto Liability coverage, with minimum limits of One Million Dollars
($1,000,000) per occurrence, combined single limit bodily injury liability and property
damage liability. This coverage shall include all Consultant owned vehicles used in
connection with Consultant's provision of the Services, hired and non -owned vehicles,
and employee non -ownership vehicles. City shall be named as an additional insured
and such insurance shall be primary and non-contributing to any insurance or self-
insurance maintained by City.
E. Consultant is expressly prohibited from assigning or subcontracting any of the Services
without the prior written consent of City. In the event of mutual agreement by the
Parties to assign or subcontract a portion of the Services, Consultant shall add such
assignee or subcontractor as an additional insured to the insurance policies required
hereby and provide_ City with the insurance endorsements prior to any Services being
performed by the assignee or subcontractor.
6.2 Consultant shall defend, indemnify and hold harmless City and its elected officials,
employees and agents from and against any and all claims, losses or liability, including
attorneys' fees, arising from injury or death to persons or damage to property occasioned
by any negligent actor omission by, or the willful misconduct of, Consultant, or its officers,
employees and agents in performing the Services.
ARTICLE 7 — CONFLICTS OF INTEREST
7.1 Consultant covenants and represents that it does not have any investment or interest in any
real property that may be the subject of this Agreement or any other source of income,
interest in real property or investment that would be affected in any manner or degree by
the performance of Consultant's Services. Consultant further covenants and represents that
in the performance of its duties hereunder, no person having any such interest shall perform
any Services under this Agreement.
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7.2
Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law;
(ii) issue, deny, suspend or revoke any City permit, license, application,
certification, approval, order or similar authorization or entitlement;
(iii) authorize City to enter into, modify or renew a contract;
(iv) grant City approval to a contract that requires City approval and to which
City is a party, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item;
(vi) adopt, or grant City approval of, policies, standards or guidelines for City
or for any subdivision thereof.
Does not serve in a staff capacity with City and in that capacity, participate in
making a governmental decision or otherwise perform the same or substantially the
same duties for City that would otherwise be performed by an individual holding a
position specified in City's Conflict of Interest Code under Government Code
section 87302.
7.3 In the event City determines that Consultant must disclose its financial interests, Consultant
shall complete and file a Fair Political Practices Commission Form 700, Statement of
Economic Interests, with the :City Clerk's office pursuant to the written instructions
provided by the City Clerk.
ARTICLE 8 — GENERAL CONSIDERATIONS
8.1_ - In the event any: action is commenced to enforce or interpret any of the terms or conditions
- —of this Agreement the prevailing Party shall, in addition to any costs and other relief, be
entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-
house counsel by a Party.
8.2 Consultant shall not assign any of the Services, except with the prior written approval of
City and in strict compliance with the terms and conditions of this Agreement. Any
assignment or attempted assignment without such prior written consent may, in the sole
discretion of City, results in City's immediate termination of this Agreement.
8.3 Consultant is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor. Neither City nor any its agents shall
have control over the conduct of Consultant or Consultant's employees, except as herein
set forth. Consultant shall supply all necessary tools and instrumentalities required to
perform the Services. Assigned personnel employed by Consultant are for its account only,
and in no event shall Consultant or personnel retained by it be deemed to have been
employed by City or engaged by City for the account of, or on behalf of City. Consultant
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shall have no authority, express or implied, to act on behalf of City in any capacity
whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind
City to any obligation.
8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less
than five (5) days prior written notice to Consultant of City's intent to terminate. If this
Agreement is terminated by City, an adjustment to Consultant's compensation shall be
made, but (1) no amount shall be allowed for anticipated profit or unperformed Services,
and (2) any payment due Consultant at the time of termination may be adjusted to the extent
of any additional costs to City occasioned by any default by Consultant. Upon receipt of a
termination notice, Consultant shall immediately discontinue its provision of the Services
and, within five (5) days of the date of the termination notice, deliver or otherwise make
available to City, copies (in both hard copy and electronic form, where applicable) of
project related data, design calculations, drawings, specifications, reports, estimates,
summaries and such other information and materials as may have been accumulated by
Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis
for Services completed up to the date of termination.
8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer period required by law, from the date of final payment to Consultant
pursuant to this Agreement. Such books shall be available at reasonable times for
examination by City at the office of Consultant.
8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained herein,
-- --- - -- _ - and any prior -negotiations, -written proposals or verbal agreements relating to such matters
are superseded by this Agreement. Except as otherwise provided for herein, any
amendment to this Agreement shall be in writing, approved by City and signed by City and
Consultant.
8.7 This Agreement shall be governed by and construed in accordance with the laws of the
State of California, without regard to its conflicts of laws provisions. The Parties agree that
all actions or proceedings arising in connection with this Agreement shall be tried and
litigated only in the state courts located in San Bernardino County, California, and the
federal courts located in Riverside County, California.
8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement
is declared invalid, void or unenforceable by a court of competent jurisdiction, the same
shall be deemed severable from the remainder of this Agreement and shall not affect,
impair or invalidate the remaining sentences, clauses, paragraphs or sections contained
herein, unless to do so would deprive a Party of a material benefit of its bargain under this
Agreement.
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IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have
signed in confirmation of this Agreement.
CITY OF REDLANDS
By:✓4' L,
�4
Mario Saucedo, Mayor
ATTEST:
e Donaldson, City Clerk
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ALLIANT INSURANCE SERVICES, INC.
By: "4' 45
Conor Boughey, eni Vice President
EXHIBIT "A"
SCOPE OF SERVICES
CONSULTANT shall perform the following services:
1. Develop and recommend insurance options and other risk financing or loss funding
programs, techniques, and methods.
2. Assist CITY in developing underwriting and marketing information.
3. Review marketing plan with CITY and provide CITY with results of all marketing
efforts.
4. Structure a coverage program as desired by CITY with financially acceptable insurance
companies, when reasonably available.
5. When possible, negotiate insurance contract wording to meet the specific needs of CITY.
6. Review insurance agreements, binders, certificates, and other documents for accuracy
and obtain revisions in such documents when needed.
7. Monitor the insurance placements to assure its continuing balance of coverage scope, cost,
service, and stability.
8. Provide binders, certificates and policy documents.
9. Act as an advocate in claim matters for all lines of coverage and provide assistance in
emergency situations.
10. Work with CITY Risk Management division in making a formal review of each CITY
insurance program on an annual basis, including recommendations on alternative methods
of handling the exposure and any analysis of exclusions and other problem areas.
11. Provide lnsurance-Regirirements.in Contracts (IRIC) training to staff involved in securing
contracts.
12. Provide CITY with Probable Maximum Loss studies to evaluate appropriate levels of
earthquake insurance.
13. Provide guidance for Loss Control Services as recommend appropriate firms.
14. Provide the _CITY -with options to participate in Joint Powers Authorities (JPA) to secure
coverage.
- - 15. Provide -CITY with option to join Alliant Programs and all the ancillary services included
in those placements
16. Assist in enhancement of Loss Prevention & Risk Management Programs
17. Conduct Renewal Strategy Meeting's (at least 60 days prior to major renewal dates) with
CITY to review:
a. Risk & Coverage Analysis and the adequacy of current insurance portfolio
b. Update the City on current insurance market
c. Discuss recent renewal results for similar clients
d. Provide an analysis of viable underwriter alternatives, their capacity, and deductible
preferences
e. Provide renewal pricing ranges
f. Suggest renewal timeline and options
18. Provide a review of loss exposure, and identify and advise on potential risk of loss as
needed.
19. Provide additional broker services as agreed upon by the Parties.
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EXHIBIT "B"
FEE PROPOSAL
Consultant's Service Fee is developed to achieve a mutually beneficial long-term relationship that
both properly compensates our staff for their high skill levels, and succeeds in balancing costs
relative to pricing pressures faced by municipalities in today's financial environment.
Based on your current program's structure, we are proposing an annual fee as outlined below:
An annual Retail Brokerage fee of $66,096, which can be paid in whole as a fee, or paid by
offsetting retail commissions and fees collected. For renewal terms, we would increase our fee 2%
each year.
Consultant will not charge any additional expenses for traditional brokerage services. If a project
requires additional fees for services, those will be presented for review and approval by the City,
(e.g. specialized Loss Control and testing).
Retail Brokerage compensation is complex to measure and compare. Many brokers have various
units _within their operations that provide client services. Insurance carriers sometimes pay_
`overrides' to place a volume of business with them and client interests are not placed first; these
are considered Contingent Income.
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EXHIBIT "C"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the
following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly
authorized to write compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self -insure, either as an individual employer, or as one employer in a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self -insure and to pay any compensation that
may become due to his or her employees.
CHECK ONE
X I am aware of the" provisions of Section 3700 of the Labor Code which requires
every employer to be insured against liability for Workers' Compensation or to undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such
provisions before commencing the performance of the work and activities required or
permitted under this Agreement. (Labor Code § 1861).
I affirm that at all times; in performing the work and activities required or permitted under
this Agreement, I shall not employ any- person in any manner such that I become subject to the
workers' compensation laws of California. However, at any time, if I employ any person such that
I become subject to the workers' compensation laws of California, immediately I shall provide the
City with a certificate of consent to self -insure, or a certification of workers' compensation
insurance.
I certify under penalty of perjury under the laws of the State of California that the information and
representations made in this certificate are true and correct.
ALLIANT INSURANCE SERVICES, INC.
By: /Zd2 E& i Date: July 9, 2025
Conor Boughey, Senior tce President
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