2018-06-12 Risk Management Services ProposalMay 25, 2018
Mr. Rodney A. Storm
City Administrator
City of Blair
218S. 16th Street
Blair, NE 68008
Re: PROPOSAL - RISK MANAGEMENT SERVICES
Property & Liability Insurance Program
November 1, 2018 to November 1, 2019
ILVAr&J O T,i
1828 WALNUT STREET, SUITE 701
KANSAS CITY, MO 64100
(013)851.4730
CHARLESWORTHCONSULTING.COM
The following is offered as our proposal for professional risk management services.
OBJECTIVE
To familiarize ourselves with the risks to which the City is exposed including existing
insurance coverages and policy conditions; seek competitive insurance proposals utilizing
an equitable and transparent process; and provide a professional analysis of the available
options.
The project will include the following designated areas of risk:
■ Property, Real & Business Personal
■ Boiler & Machinery
■ Inland Marine
■ Net Income/ Extra Expense
■ Premises & Operations Liability
■ Public Management Liability
■ Employment Practices Liability
■ Law Enforcement Liability
■ Umbrella / Excess Liability (if applicable)
■ Automobile
Crime / Employee Dishonesty
Cyber Liability
Workers' Compensation
cui I :ti
May 25, 2018
Mr. Rodney A. Storm
City Administrator
City of Blair
218S. 16th Street
Blair, NE 68008
Re: PROPOSAL - RISK MANAGEMENT SERVICES
Property & Liability Insurance Program
November 1, 2018 to November 1, 2019
ILVAr&J O T,i
1828 WALNUT STREET, SUITE 701
KANSAS CITY, MO 64100
(013)851.4730
CHARLESWORTHCONSULTING.COM
The following is offered as our proposal for professional risk management services.
OBJECTIVE
To familiarize ourselves with the risks to which the City is exposed including existing
insurance coverages and policy conditions; seek competitive insurance proposals utilizing
an equitable and transparent process; and provide a professional analysis of the available
options.
The project will include the following designated areas of risk:
■ Property, Real & Business Personal
■ Boiler & Machinery
■ Inland Marine
■ Net Income/ Extra Expense
■ Premises & Operations Liability
■ Public Management Liability
■ Employment Practices Liability
■ Law Enforcement Liability
■ Umbrella / Excess Liability (if applicable)
■ Automobile
Crime / Employee Dishonesty
Cyber Liability
Workers' Compensation
SCOPE OF SERVICES
Our involvement will include, but not necessarily be limited to, the following activities.
A) A general risk management review will be conducted with City personnel,
including current risk transfer programs, ongoing agency/insurer services,
budgeting, etc. This may involve meetings with various Departments as well as a
tour of City facilities.
B) The selection of insurance agents who will receive the insurance RFP will be per
City policies and procedures. Although we will provide sample language for any
required public notice, publication and related expenses will be the responsibility
of the City. We will discuss this issue in detail during our initial meeting, but find
a pre -qualification of agents with experience with Nebraska municipalities
important in assigning insurers in order to provide the best possible proposals
for the City's consideration.
C) A Request for Proposal (RFP) will be prepared within a time frame established in a
project time -line. A draft copy of the RFP will be directed to the City's attention
for review, soliciting any corrections, additions, or changes prior to sending to the
insurance community.
D) Insurance agents or associational programs approved by the City will be provided
copies of the RFP, including specific instructions as to the marketing discipline.
E) An insurer assignment process will assure market representation and prevent
insurer duplication. We will discuss this important step during our initial meeting
to assure that the process for assigning requested markets is transparent and
equitable.
F) Although the RFP will include detailed underwriting information, it should be
anticipated that the City will need to assist in gathering additional data and
completing insurance applications throughout the project.
G) ALL agency communications will be with Charlesworth Consulting, LLC.
Participants will be advised that any contact directly with the City or
Councilmember (other than routine business from the incumbent), will be
considered a violation of the RFP process and may result in disqualification.
H) Target dates for receipt of proposals in the office of Charlesworth will be
determined and will be so noted in the specifications. The dates will be strictly
enforced to assure ample time for a City decision.
Upon receipt of proposals, a comprehensive spreadsheet will be prepared and
presented to City management comparing coverage, conditions and cost features
of each plan proposed. It is common for our firm to request clarification on
numerous items. The first draft spreadsheet is typically available for review by
City management approximately one week after proposals are received in our
office.
J) Subsequent to the spreadsheet review with management, any additional
questions and clarifications will be resolved. The final spreadsheet along with a
brief report outlining the project and results, will be available for distribution to
the governing body as appropriate.
K) A representative of Charlesworth will be available to attend the City Council
meeting on October 9, 2018 to discuss any aspect of the marketing process and
proposals received. Since it is possible our attendance will not be necessary, this
will be an additional fee as noted herein.
L) Once the City makes a decision, our office will order policies and notify all
participants of the City's decision. Binders will be reviewed for accuracy.
M) At the request of the City, a review will be made of all insurance policies
subsequent to issuance to confirm compliance with the proposal.
WHAT WE WILL DO
Our involvement will include, but not necessarily be limited to, the following activities.
The purpose will be to gather the necessary information to perform the services
proposed herein.
Analysis and evaluation of:
• Risk and exposure to loss created by activities of the City, both operational and
contractual.
• Insurance coverages and policy wording as they relate to actual risks and
exposure to loss.
• Classifications and rates contained in current insurance policies, including
program cost.
• The City's policy, formal or informal, regarding control of risk and accidental loss.
• Claims and loss history, including any in -force risk management information
systems.
0 Ancillary services provided by insurance companies or independent firms.
PREPARATION ACTIVITY
Initially, interviews would be conducted with personnel involved in the
administration of the City's Risk and Insurance program.
A site review of representative owned and/or leased operational locations would
be made to familiarize us with the City's exposures to loss.
Digital copies of the following would be requested:
■ In -force insurance policies
■ Loss Runs and claims experience - current years.
■ Insurance Audits for last year, if any.
■ Any current engineering reports received from insurer(s).
■ Budget Summary
■ Personnel Manual (specific parts only to be identified)
■ Auto Fleet Schedule & Property Schedule (including any appraisals)
■ Last year's insurance applications and renewal proposal
ON SITE INVOLVEMENT
The program will require TWO (2) meetings at the City. The first will include interviews,
site review, risk evaluation analysis and fact-finding. The second meeting, to be held
during regular business hours, will be for presenting the spreadsheet results to City
management, subsequent to the marketing discipline.
COST
The TOTAL fee for the services outlined herein would be $10,250.00. There would be
NO supplemental charges for postage, travel, clerical, printing or other miscellaneous
expenses. The fees would be payable as follows.
Phase I — Delivery of RFP to participants: $4,250
Phase II — Subject to City Council Decision in October: $6,000
Although no deposit or formal contract is required, our firm would be agreeable to a
contract for services outlined herein if requested by the City. Additional meetings, if any,
at the request of the City will be billed at the rate of $1,150 per consultant day, which
would include all travel, and out of pocket expenses.
PROPOSED PROJECT TIME -LINE
The following project time -line is offered as an overview of the proposed process.
Obviously, it can be modified, if necessary, to fit the City's schedule.
Project Start Date meeting in Blair
7/Charlesworth
Monday, June 25, 2018
Public notice published, requesting agents to contact
Friday, June 29, 2018
Charlesworth expressing their interest in participation. (Notice
due at 9:00am, Tuesday, June 26th)
Draft of RFP submitted to the City for review
Tuesday, July 3, 2018
Deadline for agents/brokers to contact Charlesworth with letter
Monday, July 9, 2018
of intent. Charlesworth to issue agent market assignment
questionnaire including requested insurance markets.
Agent responses due. Charlesworth reviews responses to
Thursday, July 12, 2018
agent market requests with City. Finalize insurance RFP.
Charlesworth electronically directs insurance RFP to agents
Friday, July 13, 2018
with insurance market assignments based on requests made by
each brokerage firm.
Underwriting period
July 13 - September 21
Proposals due at Charlesworth Consulting, LLC
Friday, September 21, 2018
Summary; spreadsheet prepared detailing coverage, condition
Friday, September 28, 2018
and cost of each program offered.
Council Packet Information finalized and distributed
Thursday, October 4, 2018
City Council Meeting (If necessary)
Tuesday, October 9, 2018
OBJECTIVITY
To insure objectivity, as well as professional competency, we act solely in an advisory
capacity - NO INSURANCE IS SOLD. We will not participate in commissions from any
insurance company, agent or broker participating in this RFP process; nor do we accept
income from anyone other than our client.
If, during this project, there is any change in circumstances which is perceived to have
created a conflict of interest effecting objectivity, the City has the right to terminate the
agreement with Charlesworth and shall retain the rights to all materials provided. Both
the City and Charlesworth will negotiate in good faith to determine any of the service fee
earned.
OFFER
This proposal is a firm offer for thirty (30) days from the date of this proposal.
Mr. Storm, we look forward to the privilege of working with you and the City of Blair.
Thank you for the opportunity to offer this proposal.
Respectfully,
CHARLESWORTH CONSULTING, LLC
/s/ James Charlesworth
James Charlesworth
J C/cs
ENGAGEMENT LETTER FOR RISK MANAGEMENT CONSULTING
SERVICES
INSURANCE BROKER SELECTION
The following is our firm's agreement to provide the City of Blair, Nebraska professional
consulting services.
AGREEMENT
This Engagement Letter submitted this day of June, 2018, by Charlesworth
Consulting, LLC (hereinafter referred to as Charlesworth), confirms that the City of Blair,
Nebraska (hereinafter referred to as City) has solicited specific insurance consulting
services and that Charlesworth is willing and qualified to provide those specific
consulting services under the terms and conditions defined herein.
The agreement is intended as a complete and exclusive statement of terms, promises,
representations, discussions, negotiations, communications and agreements, which have
been made in connection with the subject service project.
P]4.ATJCA*12t01341:211001»>
Charlesworth will refamiliarize themselves with the City's risk profile, including a review of
existing insurance coverage's and policy conditions as well as current broker services; and
assist in a formalized RFP process for the selection of a competent insurance broker who
demonstrates the ability to provide the necessary insurance services.
The project will include the following designated areas of Property & Liability risk:
A) Property, Real & Business Personal / Equipment Breakdown
B) Inland Marine
C) Net Income / Extra Expense
D) Commercial General Liability
E) School Board Errors and Omissions
F) Employment Practices Liability
G) Law Enforcement Liability (if any)
H) Automobile
I) Excess Liability (if any)
J) Crime / Bonds
K) Ancillary Coverages (e.g., cyber liability)
L) Workers' Compensation
1 JPage
SCOPE OF SERVICES
Our involvement will include, but not necessarily be limited to, the following activities.
A) A general risk management review will be conducted with City personnel, including
current risk transfer programs, ongoing agency/insurer services, budgeting, etc. This
may involve meetings with various Departments as well as a tour of City facilities.
B) The selection of insurance agents who will receive the insurance RFP will be per City
policies and procedures. Although we will provide sample language for any required
public notice, publication and related expenses will be the responsibility of the City. We
will discuss this issue in detail during our initial meeting, but find a pre -qualification of
agents with experience with Nebraska municipalities important in assigning insurers in
order to provide the best possible proposals for the City's consideration.
C) A Request for Proposal (RFP) will be prepared within a time frame established in a
project time -line. A draft copy of the RFP will be directed to the City's attention for
review, soliciting any corrections, additions, or changes prior to sending to the
insurance community.
D) Insurance agents or associational programs approved by the City will be provided
copies of the RFP, including specific instructions as to the marketing discipline.
E) An insurer assignment process will assure market representation and prevent insurer
duplication. We will discuss this important step during our initial meeting to assure that
the process for assigning requested markets is transparent and equitable.
F) Although the RFP will include detailed underwriting information, it should be
anticipated that the City will need to assist in gathering additional data and completing
insurance applications throughout the project.
G) ALL agency communications will be with Charlesworth Consulting, LLC. Participants will
be advised that any contact directly with the City or Councilmember (other than routine
business from the incumbent), will be considered a violation of the RFP process and
may result in disqualification.
H) Target dates for receipt of proposals in the office of Charlesworth will be determined
and will be so noted in the specifications. The dates will be strictly enforced to assure
ample time for a City decision.
I) Upon receipt of proposals, a comprehensive spreadsheet will be prepared and
presented to City management comparing coverage, conditions and cost features of
Page 2 of 4
each plan proposed. It is common for our firm to request clarification on numerous
items. The first draft spreadsheet is typically available for review by City management
approximately one week after proposals are received in our office.
J) Subsequent to the spreadsheet review with management, any additional questions and
clarifications will be resolved. The final spreadsheet along with a brief report outlining
the project and results, will be available for distribution to the governing body as
appropriate.
K) A representative of Charlesworth will be available to attend the City Council meeting on
October 9, 2018 to discuss any aspect of the marketing process and proposals received.
Since it is possible our attendance will not be necessary, this will be an additional fee as
noted herein.
L) Once the City makes a decision, our office will order policies and notify all participants
of the City's decision. Binders will be reviewed for accuracy.
M) At the request of the City, a review will be made of all insurance policies subsequent to
issuance to confirm compliance with the proposal.
OBJECTIVITY
To insure objectivity, as well as professional competency, we act solely in an advisory capacity -
NO INSURANCE IS SOLD. We will not participate in commissions from any insurance company,
agent or broker participating in this RFP process; nor do we accept income from anyone other
than our client.
COST
The TOTAL fee for the services outlined herein would be $10,250.00. There would be NO
supplemental charges for postage, travel, clerical, printing or other miscellaneous expenses. The fees
would be payable as follows.
Phase I — Delivery of RFP to participants: $4,250
Phase II — Subject to City Commission Decision in September: $6,000
Although no deposit or formal contract is required, our firm would be agreeable to a contract
for services outlined herein if requested by the City. Additional meetings, if any, at the request
of the City will be billed at the rate of $1,150 per consultant day, which would include all travel,
and out of pocket expenses.
PROPOSED PROJECT TIME -LINE
The following project time -line is offered as an overview of the proposed process. Obviously, it
can be modified, if necessary, to fit the City's schedule.
Page 3 of 4
In witness whereof, City and Charlesworth have executed this agreement by their duly
authorized representatives effective the date and year first written.
Cit 4,Blair, Nebras&
-40�4-
James Charlesworth, ARM
CHARLESWORTH CONSULTING, LLC
Page 4 of 4
Project Start Date / Charlesworth meeting in Blair
Monday, June 25, 2018
Public notice published, requesting agents to contact
Saturday, June 30, 2018
Charlesworth expressing their interest in participation.
Draft of RFP submitted to the City for review
Tuesday, July 3, 2018
Deadline for agents/brokers to contact Charlesworth with letter
Monday, July 9, 2018
of intent. Charlesworth to issue agent market assignment
questionnaire including requested insurance markets.
Agent responses due. Charlesworth reviews responses to
Thursday, July 12, 2018
agent market requests with City. Finalize insurance RFP;
Charlesworth electronically directs insurance RFP to agents
Friday, July 13, 2018
with insurance market assignments based on requests made by
each brokerage firm.
Underwritingperiod
July 13 - September 21
Proposals due at Charlesworth Consulting, LLC
Friday, September 21, 2018
Summary spreadsheet prepared detailing coverage, condition
Friday, September 28, 2018
and cost of each program offered.
Council Packet Information finalized and distributed
Thursday, October 4, 2018
City Council Meeting (If necessary)
Tuesday, October 9, 2018
In witness whereof, City and Charlesworth have executed this agreement by their duly
authorized representatives effective the date and year first written.
Cit 4,Blair, Nebras&
-40�4-
James Charlesworth, ARM
CHARLESWORTH CONSULTING, LLC
Page 4 of 4