HomeMy WebLinkAboutAgenda Bill 3.D 04/07/20034
CITY OF PETALUMA, CALIFORNIA
-A I GENDA BILL A?�R - 7 Z003
;Agenda Title:
Meeting Date:,
..Resolution Authorizing the City Manager to Sign an Agreement
April 7, 2003
with Ronald Blanquie to Act as the City's Risk Manager
Meeting Time: Z 3:00 PM
❑ 1 7:00 PM
.Category (check one): Z Consent Calendar ❑ Public. Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department:
Director:
nt I w
act Perso
Phone Number:
Finance
1 —
William Thomas!
.
F I I : Thomas
- 778-4323
Cost of Proposal: M ot t o exceed $80,006 annual ly
Account Number:
,Amount Budgeted $80,000
Name of Fund:
Risk Management
Attachmefits
n _�6nda Packet fient:
Resolution
Professional Services Agreement
Summary Statement:
In late '200.1, after the, retirement of the ;full -time Risk Manager,, the City contracted with Insurance
Consulting Associates (ICA) to i provided in . -house risk m . ahagement services to the City. ICA had been and
9
has continued t6 provide third party administration "(TPA) services for the City onall l (tort) claims.
The agreement to provide risk 'management services was treated as an addendum to the existing City
contract.
Beginning on,.Feb,r u.-ary 1, 2.003, Ron Blanquie who has been serving as the City's Risk Manager as part of
ICA overall client base will now provide these services exclusively for the City. Ron will also continue to
provide TPA services: exclusively to the City until such time as the City brings these services in-house or
provides so I me other alternative under , the 'ICA umbrella. Ron Blanquie will not provide these services to
any other or public entity.
Recommended C ity Council Action /Suggested Motion:
Approve Ih'6. resolution aut I hoti-tifig the Cit " Manager to sign the agreement.
Reyiewed by Fin "an tie Dir ecfb jr'.:
Reviewed by City Attorney:
Approved' City Mana ger:
te:
Date:
Date-
1,A
176day's Date:
Revision # and Date Revised:
File Code:
#
arch 20, 2003
M.
CITY OF PETAL UMA, CALIFORNIA*
A PIR i>✓T, 20 03;
• AGENDA REPORT
FOR
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN,AN AGREEMENT WITIIRONALD BLANQUIE TO ACT
AS TH'E RISK 'MAN -AGER
-
l. EXECUTIVE SUMMARY
In late 2001., after the retirement of .the full -time Risk: Manager, the City contracted with Insurance Consulting
p � rd party admiri str t on ' .g �- Y � I .. .and °has continued to
; mana emen,VservicesAo the City ICA had been
ovlde thi
( )services for the City on :all liability (tort) claims'. The agreement to
provide risk rrianagement services was treated as an addendum. to the existing City contract.
Be innin 20, er w has ivelservirig as the City's Risk, Manager as part of ICA
g � g . on February 03 Ron BT ie . who has been:
overall p
client base will now rovide these ;s
1y for the City. Ron will 'also continue to provide
TPA 'services exclusively to the City such .tiro_ e as. the City brings these services yin -house or provides some
_ q - , City or
other
ublcaentrnative, under "the. ICA umbrella. Ron Blan uie wrll.`not `p rovide these services to any other
P y
2, BACKGROUND
The; 'City has traditionally employed a Risk Manager, who ,also acted as the Human Resources Director. In
addition to that position, the City employed ail outside firm'to prom& third party,'administration (TPA) of the
brl g
rt claims Ip,2000 m con'uriction with reor anization within the City, Risk Management was transferred
e Finance De artrnent. Along with, that transfer, the former tm Human - Resources Director was reassig as
_
the City's, Risk Manager. He served in°that°position until he retired`
in Novemb -er 2001.
I
,part time s Rislc 1 Mana errand Ron Bl'ail uie who was the CEO:Lof ICA determined that the City could.. be served by a
g was e
g o bons available to` the Cit rt ` CA offered his services for that purpose. City
management did amend ICA's existing contract to include: the additional risk management, services that Mr.
Blanquie would provide. On February f, 2003, Mr. Bl'anquie ceased �operations''of:I -A, turning the majority of
the business over to his ,brother, 'Dan, Since ICA no longer is it is felt that the City should enter into a
new a
This' ro osed r solut on Would allow the Crt e
Manager ement t and clai g ent services to the City.
p e p q P y o sign such: an, agreeme"rit Additionally, b taking this
act services of y y g
action; the;'City Council acknowledges that�Mr. B'lanqui"e will 'be performing the risk manager`for the
Cit y.
p _ n lids an exp ation date of December 31
ir,.
2003.. Management will be proposing, through
thee F ro osed ctract o get process to bring. the duties of risk management (including claims management) back into
p
y g Management` is` currently analyzing •the potential °cost ;savings of such a move.
Y 2004 bud ,
approved, tion If
the Ct, or amza p y
pp ved, this transition would be; in lace b the end of the calendar; year:
3 ALTERNATIVES ,
b: Do'not approve resolut oi7.andianl d find oth to operate undenthe existing agreement
a.
0 , of approved the resolution er source to provide nslc ,management services
c. Bring the risk management services in -house immediately
4. FINANCIAL IMPACTS
The . cost of �oioilal`.risk.i. rate for Risk Management
monthly
services of $6 and has contingencies ies fo1 add' 0. This nanag s ement serices - not included in the contract.
5. CONCLUSION
The City has experienced overall success with •the utilization of the services of ICA (Ron Blanquie) to provide
'risk management °services to the City. We have been !able, to resuscitate an ineffective program into a proactive.
risk avoidance and transfer model,. This has resulted in the transfer of over $1,000;000 in potential claims
against the City to other parties in the last twelve months'. This is a significant, achievement as the transfer of
risk'to other.°parties provides the City with a decreased exposure, to liability.. Additionally, with the _a_ssis "tance of
ICA, the City has'iristituted.an aggressive subrogation program that has resulted in over 1:001 00'0 of recoveries
fi om third parties for damages over the last twelve months. This represents .a .1.00% increase from :our previous
efforts, which had not produced any signiffcarnt recoveries: Continuing with the revised Risk Management
program, which Mr. Blanquie is 'credited with structuring, should continue to provide .ongoing savings to the
City.
6'. OUTCOMES :OR.PERFORMANCE MEASU THAT WILL IDENTIFY SUCCESS OR COMPLET
Continuation of tl ei risk avoidance and programs within the risk management function.
7. ` REcommENDATI ..
Adopt the resolution authorizing. the .City Manager to sign aii agreement with Ron Blanquie to� act. as Risk
Manager for the City. .
g1fonms %2003 _agpda bill
•
Resolution No. N.C.S.
of the City of Petaluma, California
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AN AGREEMENT WITH RONALD
BLANQUIE TO ACT AS'THE.CITY'S RISKMANAGER
WHEREAS,, the City Petaluma operates a Risk Management program in conjunction
with ongoing City business,, and
WHEREAS, Ronald Blanquie has been acting as the City's Risk Manager since
November 2001 under, the auspices of Insurance Consulting..Associates .(ICA), and
WHEREAS, Ronald Blanquie as Chief Executive Officer of ICA has ceased certain
operations within that corporate structure, including risk management services and
WHEREAS, the City of Petaluma desires to retain the services of Ronald Blanquie as its'
Risk Manager;
NOW, THEREFORE BE IT RESOLVED that the, City Manager is authorized"to sign a
new professional services agreement with- Ronald Blanquie to act as the City Risk Manager.
•
PROFESSIONAL SERVICES AGREEMENT
RISK MANAGEMENT SERVICES •
(Title of Project)
(Project Account: Code No. ) .
THIS PROFESSIONAL SERVICES AGREEMENT ( "Agreement ") is entered into and effective
as of 20. ( "Effective Date "), by and between the City of Petaluma, a
municipal corporation and a charter city ( "City ") and RONALD BLANOUIE a SOLE
PROPRIETOR ( "Consultant ") (collectively, the "Parties ")..
WHEREAS, the Parties enter into this Agreement for the purpose of Consultant providing
professional services to City under the terms and conditions set forth herein.
THEREFORE, in consideration of the mutual covenants contained in. this Agreement, the Parties
agree as follows:
1. Services Consultant shall provide the services as described in and in accordance with
the schedule set'-forth, 'in Exhibit "A" attached hereto and incorporated herein
( "Services ").
2. Compensation; Business Tax Certifi6ate
A. For the full performance of the Services as described herein, City shall
compensate Consultant under the following terms: . $6;000 per month plus
expenses .
B. Consultant shall submit detailed monthly invoices reflecting all services
performed during the preceding month, and including a revised. schedule for
performance and additional documentation requested by City, as applicable.
C. Consultant shall be compensated for. services in addition to those described in
Exhibit A, only if Consultant and City execute a written amendment to this
Agreement describing the additional services to be performed and the
compensation to be paid for such services. In no case shall the total,
under. this Agreement exceed $80,000 without prior written authorization of the
City Manager. Further, no compensation for a section or work program
component attached with a,specific budget. shall be exceeded without prior
authorization of the City Manager.
D. Notwithstanding any provision herein, Consultant shall, not be paid any
compensation until such time as Consultant has on file with the City Finance
Department current information requested. - on the ``Vendor Information form
available from City, and has obtained a currently Petaluma business tax
certificate.
PROFESSIONAL, SERVICES AG_ REEMENT— CITY
February 2003
E. City's .obligation to' pay. compensation to Consultant as .provided herein is
contingent upon Consultant's performance of the Services pursuant to the terms
and "conditions of this Agreement and any amendments thereto.
3. Term The term of this .Agreement commences on the Effective Date; and terminates on
December 31, 2003 unless sooner terminated. in accordance with Section 4. Upon
termination, any and all of City's documents�or materials provided to Consultant and any
and all of the documents or materials prepared for City or relating to the performance of
the Services, shall be2 delivered to the City as soon as possible; but not later than fourteen
(14) days after termination of the Agreement.
4. Termination Citymay terminate this Agreement without cause upon ten (10) days'
written notice. City may immediately terminate, or' suspend this Agreement for cause.
Cause for immediate. termination or suspension shall include, but not be limited to, any
breach of this Agreement by Consultant or Coisultant's bankruptcy or insolvency. Upon
receipt of notice of t
�
p termination or suspension for, cause Consultant shall immediately
p gi � .
stop 1I work in a ro ess ,under this Agreement. In the° event of early termination of this
Agreement by City, Consultant shall be entitled. to payment for all Services performed to
the date of termination to the. extent such Services were performed to the satisfaction of
City, in accordance with the terms and conditions, of this Agreement. If City terminates
this Agreement for * cause, Consultant shall be liable to City for any excess cost City
incurs for completion of the Services.
• 5, Consultant's: Representation Independent Contractor Consultant represents that
Consultant possesses distinct professional skills in performing the Services. City has
relied upon said representation as a material inducement to enter into this Agreement.
Consultant shall, therefore, provide properly skilled professional and technical personnel
to perform all Services under this Agreement. It is expressly understood ;that Consultant
and its agents and employees, shall act in an independent capacity and as an independent
contractor and not as officers, employees or agents of City. This Agreement shall not be
construed as an agreement for employment..
6. Facilities and Equipment Consultant shall, at its sole cost and expense, furnish all
facilities `and equipment that may be required, for furnishing .Services pursuant to this
Agreement: City shall furnish to Consultant no facilities or equipment, unless the City
otherwise agrees in writing to provide the same.
7. Licenses, Permits, Etc. Consultant shall, at Consultant's sole cost and expense, keep in
effect at "all times during the term of this Agreement any licenses; permits or other such
approvals which. are legallyrequired for performing. the Services.
8, Time C,
onsultant shall devote such. -time to the performance of the Services as may be
reasonably necessary for satisfactory performance of Consultant's obligations pursuant to
this Agreement:,
9. Inspection Consultant'shall provide the City ever reasonable • p y y o pportunity to ascertain
that the Services are being performed, in accordance with the requirements and intentions
PROFESSIONAL SERVICES AGREEMENT —:CITY
February 2003
of this Agreement. All work done and materials furnished, if any,, shall be subject to
inspection and. approval by the City: ''The inspection of such work "shall not relieve
Consultant Of'anyof 4ts obligations pursuant to this Agreement.
10. Progress Reports Upon the City's request, Consultant shall provide, in a form
acceptable to Cy, written
recommendations,, reports of all oral and written pbservations', opinions,
es, progress and conclusions related to Consultant's
performance of the anal sye Services.
11. Co'n'fidentiality In the course of Consultant's employment, Corisultant.may have access
to trade secrets and confidential information, disclosure of which is protected or limited
by law. Consultant shall not directly or indirectly disclose or use an y such confidential
-information except as. required for the performance of the Services.
12. Conflict of Interest Consultant represents that it presently has no interest, and
-covenants that it shall not acquire any interest,. direct or indirect, financial or otherwise,
which would conflict in any manner, or degree with the, performance of the Services
hereunder. Consultant further. covenants that, in the performance of this Agreement; it
Consultant. represents that no one who has or having such a conflict of .interest.'
y y person
p _ will have any -financial- interest under the
Agreement or . any extension, Consultant will immedatel ct of interest
,arises during this
Agreement is an officer' or employee of Cit . If such confl;
immediately advise City and City may, at
its sole . discretion, immediately terminate ths.Agreement. •
13. Consultant No Agent ,Except as, City may specify in writing; Consultant ,shah have no
Authority, express or implied, °to act on behalf of City in any capacity whatsoever as An
agent. Consultant shall have no authority express or implied, pursuant. to this Agreement
to bind Cityto any obligation'whatsoever.
14: Standard of Performance Consultant shall 'perform all the Services in a manner
consistent with the standards of Consultant's profession. All instruments of service of
whatsoever nature, which Consultant delivers to City pursuant to this Agreement, shall be
prepared in a substantial, first class and workmanlike manner arid- conform to the
standards of Consultant's. profession. All such instruments of service shall become the
sole and exclusive propertyof City upon delivery of the same.
15 Assignment /Transfer No assignment or transfer,in whole or in part of this Agreement
shall .be. witliout.`the prior written consent of City.
16. Subcontractors Consultant.shall directly perform all - Services, and shall not subcontract
any portion of performance of the Services without the prior written consent of City.
Any such subcontractors shall be required to comply„ to the full extent applicable, with
the terms and. conditions of this Agreement, including but not limited .to, procuring and.
maintaining insurance coverage as required herein and which shall name City as an
additional insured. •
PROFESSIONAL SERVICES AGREEMENT —CITY
February 2003
a
17. Compliance With All Laws Consultant shall fully comply with all applicable local,
state and federal rules, laws, regulations and ordinances pertaining performance of the
Services required. hereunder. To the extent that any other government agency or entity
provides compensation for any Services, Consultant shall comply . with all rules and
regulations applicable to such fiscal assistance.
18. Discrimination During the performance of this Agreement, Consultant shall not
discriminate against any employee or applicant.for employment because of race, religion,
creed, color, national origin, ancestry, gender, sexual orientation, age or physical or
mental disability in violation of any applicable law.
19. Notice Except as otherwise specified in this Agreement, all notices to be sent pursuant
to this Agreement shall be made in writing, and sent to the Parties at their respective
addresses specified below or to such other, address as, a Party may designate by written
notice delivered to the other Party in accordance with this Section. All such notices shall
be sent by:
(i) personal delivery, in which case notice is effective upon delivery;
(ii) certified or registered mail, return receipt requested, in which case notice shall be
deemed delivered on.receipt if delivery is confirmed by a return receipt;
(iii) nationally recognized overnight courier, with charges, prepaid or charged to the
sender's account, in which case notice is effective on delivery if delivery is
• confirmed by the delivery service; or
(iv) facsimile transmission, in which case notice shall be deemed delivered upon
transmittal, provided that (a) a duplicate copy of the notice, is promptly delivered
by first -class or certified mail_ or by overnight delivery, or (b) a transmission
report is generated reflecting the accurate transmission thereof. Any notice given
by facsimile shall be considered to have been received on the next business day if
it is received after 5:00 p.m. recipient's time or on a nonbusiness day.
City: City Clerk
City of Petaluma
Post Office Box. 61
Petaluma, California 94953
Telephone: (707) 778 =4360
Facsimile: (707) 778 -4554
And:
WIL LIAM_1 THOMAS
CITY OF PETALUMA
POST OFFICE BOX 61
PE TALUMA, CA 94953
Telephone: (707) 778 -4323
Facsimile:
4
PROFESS IONAL.SERVICES AGREEMENT —CITY
Febaiary 2003
Consultant RONALD BLANOUIE
1304 SOUTH POINT BLVD. #250 •
PETALUMA, CA 94954
Telephone: (707 ) 778 -1118
Facsimile:
20. Ownership of Documents All original papers, documents or computer material on disk
or microfilm, and copies thereof, produced as a result of this Agreement, shall be the
property of City and may not be used by Consultant without the written consent of City.
Copies of such 'documents or papers shall not be disclosed to others without the written
consent ofthe City Manager or his or her designated representative.
21. Indemnification Consultant .shall indemnify, defend with counsel acceptable to City,
and hold `harmless City and its officers, officials, employees, agents and volunteers from
and against any and all liability, loss, damage, claims, expenses, and costs (including,
without limitation, attorney's fees and costs and fees of litigation) (collectively,
"Liability ") of every nature ; arising out of or in connection with Consultant's performance
of the Services or its failure to comply with any of its obligations contained in this
Agreement, except such ,Liability caused by the sole negligence or willful misconduct of
City. Notwithstanding . the foregoing, to the extent that this Agreement`is a "construction
contract" within the definition of Civil Code Section 2783, as may be. amended from time
to time, such indemnity shall not include Liability for the active negligence of City.
22. Insurance Consultant shall comply with the "Insurance Requirements for Consultants"
in Exhibit B = Not applicable attached hereto and incorporated herein by reference.
[Indicate attached exhibit, e.g., B -1 " or B -2. "]
23. Amendment This Agreement may be amended only by a written instrument executed
by both Parties.
24. Litigation If litigation ensues which pertains to the subject matter of Consultant's .
services hereunder, Consultant, upon request from City, agrees to testify therein at a
reasonable and customary fee.
25. Construction This Agreement is the product of negotiation and compromise on the part
of both Parties and that the Parties agree that, notwithstanding Civil Code section 1654,
any uncertainty in the Agreement shall not be construed against the drafter of the
Agreement.
26. Governink Law; Venue This Agreement shall be enforced and interpreted, under the
laws. of the State of California and the City of Petaluma. Any action arising from or
brought in connection with 'this Agreement shall be venued in a court of competent
jurisdiction in the County of Sonoma, State of California.
•
PROFESSIONAL SERVICES AGREEM ENT —CITY
February 2003
27. Non - Waiver The City's failure to enforce any provision of this Agreement or the
waiver thereof in. a particular instance shall not .be: construed as a general waiver of any
part of such provision. The provision shall remain in full` force and effect.
28. Severability If any term or portion of this Agreement is held to be :invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of
this Agreement shall continue in full force -and effect
29. No Third Party. Beneficiaries The Parties do not intend to create, and nothing in this
Agreement shall be consirued'to create any benefit or right °in any third party.
30. Mediation The Parties agree to make a good faith attempt to resolve any dispute arising
out of this Agreement through Mediation prior. to commencing litigation. The Parties
shall mutually agree upon'the mediator and shall, divide: the costs of mediation equally.
31. Consultant's Books and;Records
A. Consultant shall 'maintain any and all ledgers; books of accounts, invoices,
vouchers, canceled checks; and other records or documents evidencing or relating
to charges for services, or expenditures and disbursements charged to the City for
a minimum 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.
B• ents and 'records which demonstrate
•
onsu tant shall, maintain all documents.
performance under this Agreement for a minimum period',_of three (3) years or for
a n y longer period r-equired`by law,, f r o m the date of'terminat on or completion of
this Agreement.
C. Any records or documents required to be maintained pursuant to this Agreement
shall be made available for inspection or audit, at any time during regular business
hours upon written 'request by the C_ ity Manager; City Attorney, City Finance
Director, or a designated representative of these officers. Copies of such
documents shall be ,provided to the City for inspection at 'Petaluma City Hall
when it is practical to do so. Otherwise unless an alternative is mutually agreed
upon, the. records shall be available at Consultant's ,address indicated for receipt
of'notices in this Agreement.
-D. Where City has reason to believe that such records or documents may be lost or
discarded due to dissolution, disbandment or termination of Consultant'is
business, City may, by written request by any of the above -named officers,
require that custody of the records be given to the City Viand that. the records and
documents be maintained in `Petaluma. City Hall. Access to. such records and
documents shall be .granted to any party authorized by Consultant; Consultant's
representatives, or Consultant "s successor 'm interest.
32. Headi
nos .. The ''head ings "used in this. Agreement are for convenience only and are not
intended, to affect the interpretation or construction of any provisions herein.
6
PROFESSIONAL SERVICES AGREEMENT — CITY
February 2003
it
33. Survival All obligations arising .prior to the termination of this Agreement, and all
provisions of this Agreement allocating liability between City and Consultant shall
.survive the termination of this Agreement.
34 E'n"tire Agreement This: Agreement, including the exhibits attached hereto and
incorporated .herein, constitutes the entire agreement between the Parties with respect to
the Services, and supersedes all prior agreements or understandings, oral, or written,
between the Parties in this regard.
IN WITNESS WHEREOF, the parties hereto have •executed this document the day month and
year first above written.
CITY OF TETALUMA
City.Manager.
ATTEST
City Clerk
APPROVED AS' TO FORM:
CONSULTANT
By
Name
Title
Address
City State Zip
City Attorney
:APPROVED:
Department irector
APPROVED:
Risk' ages
APPROVED::
Finance Director
rj
Taxpayer I.D. Number
Petaluma Business Tax Certificate Number
PROFESSIONAL SERVICES'. AGREEMENT —CITY
February 2003