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1984-014 - Risk management consultant services from International City Management AssociationRESOLUTION NO. 84 -014 WHEREAS, the City Council of the City of Paris is investigating the insurance needs of the City of Paris and has determined that they can best be accomplished by an insurance and risk management consultant; and, WHEREAS, the City Council has received a proposal for insurance and risk management consultant services from International City Management Association, 1120 G. Street, Northwest, Washington, DC 20005 which it deems to be in the best interest of the City of Paris to accept; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, that the proposal of International City Management Association in the amount of $6,265.00 to provide insurance and risk management consulting services through The Wyatt Company, be, and the same is hereby accepted. BE IT FURTHER RESOLVED that Joe Graham, Mayor, be, and he is hereby authorized and directed to execute on behalf of the City of Paris, the contract with International City Management Association in the form as shown on Exhibit A attached hereto. Passed and adopted this 21st day of February, 1984. �� "6-*G t aShklaad W�m�o,- -I'Tiayor ATTEST: H. C. Greene, City Clerk APPROVED AS FORM: . K. Haynes, City Attorney EXHIBIT A International ICMA Insurance and Risk city Management Consulting Services Management 1120 G Street, N.W. Association Washington, D.C. 20005 INSURANCE AND RISK MANAGEMENT CONSULTING SERVICES AGREEMENT I. INCONSIDERATION, of the fee referenced elsewhere in this Agreement, City of Paris located P.O. Box 1037, Paris, Texas 75460 is 25,495 (Mailing Address) (Name of Entity) whose population , desires to obtain ICMA Risk Management Consulting Services. (check the appropriate box or boxes) ❑ Risk Management Audit M Risk Management Audit and Marketing + a i rport 11. SUCH SERVICES, are to be conducted solely by representatives of The Wyatt Company and shall include those services specifically indicated above and more fully described on the reverse side of this Agreement. The Wyatt Company acknowledges that its sole source of remuneration shall be the fee charged to the Entity for the professional risk management consulting services rendered and that it shall not in any way be compensated from any other source, in the performance of the work for the Entity. III. THE ENTITY, in consideration of the services rendered, obligates itself to pay a consulting fee of: for Risk Management Audit $ 6,265.00 for Risk Management Audit and Marketing The Entity acknowledges that the above fee is predicated on the population of the Entity based on its latest census of population. Further, it acknowledges the Company's right to review the Entity's census data and, should it desire, amend the above fee in accordance with the latest available fee schedule of the ICMA Risk Management Con- sulting Services Program. The Entity agrees that such fee statement is to be rendered upon completion of each assignment. The Entity agrees to pay such fee statement promptly but in no event later than 30 days from the date the statement is rendered. Further, the Entity acknowledges and agrees to pay interest at the rate of 18% per annum for all amounts more than 30 days past due. IV. The Entity acknowledges that the fulfillment of these services requires that certain information and data be delivered to THE WYATT COMPANY and that delivery of such data and information shall be the sole responsibility of the Entity. Failure to deliver complete and accurate data shall relieve The Wyatt Company of any responsibility or liabil- ity for the performance of this contract, or damages, injuries or cost the Entity may incur as a result of supplying inaccu- rate or incomplete information. Day of IN WITNESSETH, of the above Agreements, I have set my hand this 19 BY: (Name of Entity) (Name of Signer) Authorized Signature 4 WHITE COPY: ICMA YELLOW COPY: WYATT PINK COPY: MEMBER In consideration of the Agreements specified on the reverse side of this document, The Wyatt Company's Risk Management Consulting Services shall include, but at the sole discretion of The Wyatt Company, may not be limited to: (NOTE: Services to be rendered include only those that are specifically indicated in Paragraph I on the reverse side of this Agreement.) INSURANCE AND RISK MANAGEMENT AUDIT The Wyatt Company, in conducting the assignment, will perform the following: 1. Identification of the exposures to fortuitous types of loss, excluding normal business risks. This process will encompass Identification of loss exposures based on an on -site inspections and interviews by Wyatt consultants and review of available financial reports and other specified material and information. The Wyatt Company recognizes the individuality of each of its clients and, therefore, attempts to isolate and define exposure areas that may be unique to a given entity. 2. Examination of the possibility of eliminating loss exposures, or significant reduction of such exposures, and the practicality of such elimination or reduction. This element will not encompass detailed inspections or cost /benefit analysis, but will approach problems on the basis of a general overview. The overview will seek to identify areas with the potential for practical application of programs designed to eliminate or mitigate frequency or severity of loss. 3. Review of the risk management philosophy and development of recommendations relative to that philosophy. This element will involve a review of existing policy manuals, statements, and procedures. The ultimate aim will be to define the present risk man- agement philosophy and what changes, if any, should be effected to this philosophy. 4. Determination of the most appropriate and least costly method of handling each exposure —i.e., commercial insurance, self- insurance, hold harmless agreements, a captive insurance company, etc. This will involve the examination of the entity's current risk financing practices and comparison of these practices with other alternatives which appear to be advantageous and cost effective and which also appear to be consistent with the entity's insurance management philosophy. This examination will take into account such things as the size of the entity, its premium base by line of insurance, its self - retention capability, its pre- vious loss history, etc. Actuarial techniques of projecting future loss expectancy may be utilized in our analysis of the alternatives, for any deter- mination of the most effective means of dealing with exposure to future losses must involve a realistic evaluation of the probable magnitude of such losses. 5. Analysis of the existing contracts of insurance and evaluation of: a. The adequacy and comprehensiveness of protection afforded by them. b. The competitiveness and adequacy of premiums and rates. c. The services provided by present carriers. d. The financial stability of the insurance carriers involved, to the extent currently published information permits such an evaluation. This phase of our study will consist of making a complete and detailed audit of your current commercial insurance program and its coverages, including discussion of the design and scope of insurance coverages which are currently ip force, or which may be recommended by The Wyatt Company in order to address any gaps in your program. 6. Determination of the advisability of any modification of the present insurance program, including such matters as: a. Changes to or from self- insurance b. Purchase of additional insurance c. Changes in deductible levels d. Changes in rating plans e. Elimination of unnecessary coverages f. Consolidation of coverages g. Amendment of policy terms and conditions h. Reconsideration of systems of valuation i. Changes in practices regarding insurance requirements from lessees, suppliers, or contractors This step involves final review of all information assembled and ahalyzed in the preceding five phases of analysis. It has as its primary object iv:._ the coordination of a cost effective risk management program, utilizing self- retention capability, contractual transfer of risk, broad commercial insurance protection, and effective application of risk management and insurance services. 7. Provide a detailed, written report containing our conclusions and recommendations and appropriate discussions of topics. MARKET ASSISTANCE NOTE: The Wyatt Company reserves the right to require The Insurance and Risk Management Audit as described as a prerequisite. A. The drafting of specifications, detailing the scope of and the breadth of insurance coverage required by an entity. B. Selecting appropriate brokers and agents. C. Assistance in accumulating necessary Underwriting data and presenting the specifications and data to brokers. D. The allocation of insurance markets to avoid the duplication of market contact and the resulting conflicts and problems this creates. E. Answering inquiries and requests arising from the specifications and underwriting data. F. An evaluation and recommendation on proposals obtained. G. An evaluation of the issued policies to insure that they comply with the specifications. DUALITY OF INTEREST STATEMENTS The Wyatt Company There are occasions in which work has been performed, or is now being performed, by The Wyatt Company for clients whose services or products may be evaluated or recommended in the course of an assignment. We are confident that our adherence to strict standards of professional conduct will prevent those evaluations or recommendations from being affected by any past or present relationships with others. However, we also recognize that clients are entitled to know of any situations like this before awarding an assignment to The Wyatt Company. If you have any question as to our relationship with any organization, we will be happy to discuss that relationship with you, and to step aside if you feel it would in any way impair our objectivity as your consultant. International City Management Association ICMA currently sponsors: Group Life Insurance, Disability Insurance, Accidental Death and Dismemberment Insurance, Public Officials Liability Insurance, Law Enforcement Liability Insurance, and School Board Liability Insurance by endorsement of programs it believes meets the needs of its members. However, the Association provides as endorsement only for the purpose of assuring the quality of the product and has no requirement for its purchase.