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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