HomeMy WebLinkAbout1997-115 CCR•
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its adoption: Member RObief+- fePee introduced the following resolution and moved
RESOLUTION NO.9-1-115
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WHEREAS, the City Council adopted a Policy and Procedure on Requests for
Proposals for Financial Profession Services; and
WHEREAS, proposals for risk management consulting services are scheduled to
be solicited in 1997 in accordance with this policy; and
WHEREAS, requests for proposals for risk management consulting services were
solicited and two responses were received and evaluated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that:
1. The proposal of Berkley Risk Services, Inc. to provide risk management
consulting services is hereby approved.
2. The proposed fees of $500 per month for the period of August 1997
through July 1998 and $515 per month for the period of August 1998
through February 1999 are hereby approved.
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Date Mayor
ATTEST:
Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Kai Las man and upon vote being taken thereon, the following voted in favor
thereof:
.y m( kira5 res5 -Debra }}i IS -I rorn� Kat La sman) �D�er+ PleePe
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the following voted against the same: pone—
whereupon
lonewhereupon said resolution was declared duly passed and adopted.
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bBerkley Risk Services, Inc.
May 22, 1997
Mr. Charlie Hansen, Finance Director
CITY OF BROOKLYN CENTER
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2199
RE: Request For Proposal (RFP)
Dear Mr. Hansen:
Thank you for the opportunity for Berkley Risk Services, Inc. (BRS) to submit the following
proposal based upon your RFP.
I. GENERAL INTRODUCTION
General Obiective
• To develop and/or maintain a comprehensive Risk Management Program for The City of
Brooklyn Center (City) that efficiently uses the resources and reduces the probability of injury
to the public and employees or damage to property.
Berkley Risk Service's method is to work on a team approach, bringing together a team of
skilled professionals under the direction of John Simacek who will be the overall account
coordinator.
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Conflict of Interest Statement
BRS will not benefit from a commission or any sort of financial arrangement as a result of our
work or recommendations. BRS does not have any organizational conflict of interest.
Background Information and Experience of BRS
Berkley Risk Services, Inc. (BRS) is a property and casualty risk management firm which
specializes in the development and administration of innovative group and single -employer
alternative insurance programs designed to support long term customer needs and compliment
the traditional insurance industry.
As a member of the Berkley Risk Management Services Group and the W. R. Berkley
Corporation, BRS is able to offer additional benefits in servicing and providing risk based
support to its clients.
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1 `.Icntixr of Bc.*hlrt' Risk `cn iic> GIcOun
City of Brooklyn Center
Request for Risk Management Services
May 21. 1997
0 BRS provides some or all of the following program management functions for its clients:
• Non insurance contract review and interactive negotiations,
• Fee negotiations
• Claim administration
• Loss Control consulting
• Develop risk management information systems
SCOPE OF SERVICES
Primary Obiectives
1. Assist with identification and measurement of all exposures to the risk of loss, including
the review of any activities and/or programs under consideration.
2. Assist with the selection of risk management techniques and methods of treatment to
address identified exposures.
3. Review risk management procedures, including loss control and safety programs. This
will include review of personnel procedures which may place the City of Brooklyn
Center at risk.
4. Assist with the set-up and monitoring of loss control programs covering property,
is
liability, workers' compensation, and safety to the general public. This will include
meeting with the City's employee safety committee.
5. Assist with assessment of risk retention capabilities of the City to determine whether
this capacity and deductibles or self-insurance are properly balanced.
6. Assist with the preparation and processing of annual insurance renewals.
a Preparation of bid specifications.
b. Preparation of recommendations regarding purchase action.
7. Monitor the City's incurred claims including property damage, liability, and workers'
compensation.
8. Assist with allocation of risk management costs to budgetary units.
9. Assist with development of budget figures for insurance premiums and/or self insured
funds for each fiscal year.
10. Advise on insurance requirements for contracts and agreements entered into by the
City.
11. Provide up to date information concerning insurance issues such as trends and
proposed legislation.
• 12. Provide a source for answers to risk management problems as they occur
Brooklynlrfp.doc Page 2 of 5
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• Proposal Requirements:
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City ofBrooklyn Center
Request for Risk Management Services
May 2, 1997
A. Experience of the firm in risk management consulting in the state of Minnesota.
BRS acquired American Risk Services, Inc. (ARS) In 1995. ARS provided risk
management consulting to corporate and municipal clients since 1979. Each consultant has
over 17 years experience in risk management with average experience being 27 years.
B. Experience of the term with jurisdictions of comparable characteristics to the City of
Brooklyn Center.
Our risk management public liability and workers' compensation clients includes:
City of Hutchinson
City of Apple Valley
City of Fairmont
City of St. Anthony
City or Rosemount
City of New Hope
City of Brooklyn Center
City of St. Louis Park
City of Bloomington
We also are a consultant for Metropolitan Airports Commission and other municipalities and
municipal groups. Private sector organizations, such as American Crystal Sugar Company,
ProGold Limited Liability Company, Hubbard Milling Company, Ryan Construction Company of
MN, Inc., SciMed Life Systems, Inc., HealthEast, plus many more, of a similar nature to the
services proposed.
Please see schedule of similar jurisdictions, including the contact persons, that we presently
service for references.
C. Identify the person(s) who will be the primary contact with the City. List the qualifications
and experience of the person(s). Identify the person who will back-up the primary contact
should he/she become unavailable for any reason. Include resumes.
Personnel assigned will be:
Primary Consultant: John R. Simacek. (512) 376 4253
Back - up Consultant: Bill Kloepfer (612) 376 4233
Mr. Simacek has over 46 years in the insurance industry; including 34 years managing
underwriting and loss control units plus 12 years in risk management consulting.
Mr. Kloepfer has over 17 years in the insurance and risk management fields.
The Curriculum Vitae are enclosed.
D. References relating to similar services to cities over the last three years with comparable
characteristics to the City of Brooklyn Center.
See "B° above and enclosed listing.
Brooklyn*.doc
Page 3 of 5
I'r) City of Brooklyn Center
Request for RiskYanagement Services
May 22, 1997
• E. Identify the Fees for the service for at least the first year.
Our fees are as follows:
Annual Monthly
Continuous Counsel Services: $6,000 $ 500
We will guarantee that our second and third year fees will not increase by more that 5%
per year.
Ill. SPECIFIC INFORMATION
Risk Management and Insurance Program
Objective:
The goal of risk management is the preservation of the assets and earning power of the entity.
Assets and earning power can be impaired by a number of physical perils as well as by legal
liabilities. Our risk management review will assist in identifying and quantifying the risk of your
City. Upon completion of this review, coupled with Brooklyn Center's risk taking and risk
transfer philosophy, we will analyze your present risk managementlinsurance program to see
how the program will respond predictably to losses. We will also assist in the developing of
services rendered by the insurance brokers and carriers.
• Past Information:
Berkley Risk Services, Inc. and the previous company, American Risk Services, Inc., has
served the City of Brooklyn Center since 1988. During this time we have assisted the City with
the following projects. This is only a partial listing:
• Completed a Risk Management Audit identifying items that needed improvement,
• Continuous review of the Risk Management program seeking improvements,
• Negotiated a "Fee for Service" basis of compensation for the insurance agency with a
written agreement as to duties, in lieu of commission,
• Directed that the Insurance policies be written "Net of Commission" to properly identify
actual insurance costs,
• Authored the first City Safety manual and program, assisted the City in rewriting this
manual to their specific needs,
• Assisted the City in forming the first Safety Committee after displaying the need for such a
program,
• Assisted the City in establishing a complete building inspection program, including
furnishing the check lists, for loss prevention,
• Attended frequent Safety Committee meetings, being available to assist in questions of
safety/loss prevention, insurance and other similar considerations,
• Worked with the City's legal counsel on insurance and transfer of risk requirements,
• Reviewed City ordinances and suggested phraseology in regard to transfer of risk and
insurance requirements,
Brooklyn7fp.doc Page 4 of 5
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City ofBrooktyn Center
Request for RiskManagement Services
Allay 22, 1997
• Was available to all Department personnel for advise in regard to safety, insurance
requirements and transfer of risk concerns,
• Authored ordinances to assist in loss control, i.e. Skate board, rollerblading ordinance.
• Worked with the Design and Construction Management on the building of the Earle Brown
Farm Heritage Center,
• Worked with Legal Counsel in regard to contracts for the Earle Brown Farm Heritage
Center.
We have been available whenever necessary.
I want to thank the City for our past association and hope to continue to provide the City their
Risk Management needs.
Questions concerning this response to Brooklyn Center's RFP can be directed to:
John Simacek
Risk Management Consultant
Phone
(612) 376-4253
Fax:
(612) 376-4299
E-mail:
jsimacek@berkleyrisk.com
or Bill Kloepfer, ARM
Senior Consultant
Phone: (612) 376 4233
Fax: (612) 376 4299
E-mail: bkloepfer@berkleydsk.com
Again, we want to thank you for the opportunity to present this bid.
Respectfully m' ed:
John R. Simacek
Risk Management Consultant
Brooklyn fl.aoc
Page 5 of 5
5/20/97 CITY OF BROOKLYN CENTER
Listing of Municipality Clients
City of New Hope
4401 Xylon Av. North, New Hope, MN 55428-4898
Larry Watts Director of Finance
531-5131
531 5136 Fax
Type of Contract: Continuous Counsel Service
City of Fairmont
100 Downtown Plaza
P. O. Box 751, Fairmont, MN 56031
Jim Zarling Director of Finance
(507) 238 9461
(507) 238 9469 Fax
Type of Contract: Continuous Counsel Service
City of Rosemount
2875 145th Street West, Rosemount, MN 55068-0510
Tom Burt Administrator
3222006
Jeffrey A. May Director of Finance
3222031
4235203 Fax
• Type of Contract: Continuous Counsel Service
City of St. Anthony
3301 Silver Lake Road, St. Anthony, MN 55418-1699
Roger A. Larson, Director of Finance
7898881
781 9323 Fax
Type of Contract: Continuous Counsel Service
City of Hutchinson
111 Hasan Street S. E., Hutchinson, MN 55350
Ken Merrill Director of Finance
(612) 587 5151
(612) 234 4240 Fax
Type of Contract: Continuous Counsel Service
RFD-OTHE.XLS 1997 Prepared by. Berkley Risk Services, Inc.
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JOHN R SIMACEK
Risk Management Consultant
Berkley Risk Services, Inc.
Currently serving as an independent contractor Risk Management Consultant, John
Simacek brings a broad insurance and loss control background to Berkley Risk
Services, Inc. (BRS). Since serving in the Marine Corps during the Korean
Campaign, John has held numerous professional insurance positions including
Underwriter with Iowa National Insurance Company and United States Fidelity &
Guaranty Insurance Company; Underwriting Manager, Loss Control Manager,
Premium Audit Manager, and Regional Underwriting Manager with Transamerica
Insurance Group; Vice President and Chief Operating Officer with Lakeland Fire
and Casualty Company; Vice President with FBS Insurance; Risk Manager Pro
Tem with First Bank System, Inc.; and Vice President with American Risk
Services, Inc.
• John has been a public speaker on various risk management issues, having spoken
before such organizations as the Ice Skating Institute - of America's National
Convention, in Las Vegas, Nevada; Minnesota Government Finance Officers
Association; St. Paul Chapter of the National Association of Accountants; as well
as for other Continuous Education courses.
He has served as an officer or director of various local and national boards,
commissions and associations. He currently serves on the Board of Directors for
the Metropolitan Public Airport Foundation, having also been its President and
Chairperson. He is also the current Chairperson of MSP Airport Travelers
Assistance. He is a past Chairperson of the City of Richfield Planning
Commission; past President of the Underwriting Managers Association; past
member of the Governing Committee, Minnesota Automobile Insurance Plan; and
a past officer and director of the Kiwanis organization, the U. S. Amateur Hockey
Association, and the U. S. Amateur Hockey Association Referees' Association.
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BILL KLOEPFER
SENIOR CONSULTANT
Berkley Risk Services, Inc.
Bill Kloepfer joined Berkley Risk Services, Inc. February 1997 and serves as
Senior Consultant. During the preceding 17 years, he had a successful career at
Liberty Mutual as an Account Executive. His responsibilities were to solicit new
customers, offer Risk Management advice to existing customers, and coordinate
loss control, claims, and administrative support on his accounts. Several of his
clients were listed among the Top 100 Public and Private Companies in Minnesota.
For 22 years Bill also served in the United States Army Reserve at Ft Snelling.
Bill currently serves on one non-profit board in various capacities, including:
Director, and Vice President.
• Bill is a graduate of North Dakota State University with a Bachelors Degree in
Mathematics and Economics. He holds the Associate Risk Management (ARM)
designation.
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MARK T. FLATEN
Vice President
Berkley Risk Services, Inc.
Mark Flaten joined Berkley Risk Services, Inc. July 1995 and serves as Vice
President. During the preceding 15 years, he had a successful Risk Management
and Employee Benefit consulting firm that developed sophisticated programs for
clients in the public/governmental (cities, schools, airports), non-profit and for-
profit sectors. In addition, he has held various positions in the insurance/risk
management field for Continental Insurance Companies, Kemper Group and
Heritage Insurance Company. He also served in the United States Air Force in
Southeast Asia during the Vietnam conflict.
Mark currently serves on several corporate boards in various capacities, including:
Director, Treasurer, and Finance Committee Chair of Volunteers of America, Inc.;
• Director and Finance Committee Chair of the Volunteers of America Health
Services; Chair of Volunteers of America Care Facilities; Director of Volunteers of
America of Minnesota; Director of States Self -Insurers Risk Retention Group,
Inc.; and Director of the Nonprofits' Insurance Association, An Interinsurance
Exchange.
Mark has given numerous speeches on various risk management and employee
benefits topics to many organizations, such as the Swedish Trade Council in
Stockholm, Sweden, the National Accountants Association, and the CPA Society
of Minnesota for Continuing Education credits.
Mark is a graduate of Mankato State University with a Bachelors Degree in
Chemistry and a minor in Political Science.
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************DRAFT************
National Union Fire Insurance Company
of Pittsburgh, PA.
CHICAGO REGIONAL OFFICE
500 West Madison Street A Member Company
Chicago, Illinois 60606 American intematlona! amup
(312) 930-5300
BINDER OF INSURANCE CONFIRMATION LETTER
April 30, 1997
JODI KATZENSERGER
BERKLEY RISK SERVICES INC.
920 SECOND AVENUE SOUTH
MINNEAPOLIS, MN 55402
RE. BERKLEY RISK SERVICES, INC
Miscellaneous Professional Liability
POLICY EFFECTIVE 04130/97 TO 04/30/98
Tab4: 00000041496,
I am pleased to enclose the binder of coverage for the above captioned account which
was drafted in accordance with our agreement. Please review said binder for accuracy
and contact National Union prior to the effective date of policy coverage of any
inaccuracy(ies) found within the issued binder. If National Union does not hear from you
prior to the effective date of policy coverage it will be understood that the binder has
been accepted as an accurate description of the agreed upon terms of coverage.
Very truly yours,
ao_
05• ae. si TLS 10:.5 F.-�S 312 027 0640
• DRAFT*...,***fes**
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BINDER OF INSURANCE
National Union Fire Insurance Camgany_of Pittsburgh, PA_
Name of Insurance Company binding coverage (Insurer)
April 30, 1997
IODI KATZENBERGER
BERKLEY RISK SERVICES INC.
920 SECOND AVENUE SOUTH
MINNEAPOLIS, MN 55402
RE: BERKLEY RISK SERVICES, INC.
Miscellaneous Professional Liability
POLICY EFFECTIVE 04/30/97 TO 04/30/98
Tabu' 00000041496
Dear Jodi
We arc pleased to confirm the binding of coverage in accordance with our agreement as set forth below and subject
to the conditions set forth below:
POLICY INFORMATION (POLICY)
INSURED: BERKLEY RISK SERVICES, INC.
INSURED ADDRESS: 920 SECOND AVENUE, SUITE 700
MINNEAPOLIS, IIN 55402
TYPE OF POLICY: Miscellaneous Professional Liability
BASIC FORM: 26901 (09/87)
INSURANCE COMPANY: National Union Fire Insurance Company of Pittsburgh, PA.
POLICY NUMBER: 485-35-07
EFFECTIVE DATE: 04/30/97 EXPIRATION DATE: 04/30/98
LIMIT OF LIABILITY: 52,000,000 per Wrongful act subject to, 52,000,000 aggregate
RETENTION/DEDUCTIBLE: 5100,000
OTHER TERMS: Per Insurer quote/indication letter dated 01/00/00 attached except as
indicated below.
FRF—%fIUM: 577,000
CONIMSSION: 0%
IMPORTANT
CONDMONS OF BINDER: See below
oS ob 97 Ti:E to _s F.AS .112 a_'T a 6 4 o mon;
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016151 r.41LOOG(OR R1
CONDITIONS OF RMER
When signed by the Insurer, the coverage deseibed above is in effect from 12:01 AML of the Effective Date listed above to 12:01 AM
of the Expiration Date listed above pursuant to the terms, conditions and exclusions of the policy form listed above, any policy
endorsements described in the quote/indication letter referenced above, and any modifications of such terms as described in this
binder's section entitled, Modification of Quote Letter Or Other Instructions referenced above. Unless otherwise indicated, this
Binder may be canceled by the Insured, or by the Broker an the bebalf of the Insured, by written notice to the Insurer or by the
surrender of this Binder stating when thereafter such cancellation shall be effective. Unless otherwise indicated, this Binder may be
canceled by tete Insurer prior to the Effective Date by sending written notice to the Insured at the address shown above stating when,
not less than thirty days thereafter, such cancellation shall be effective. Unless otherwise indicated, this Binder may be canceled by
the Insurer on or after the Effective Daze in the same manner and upon the same terms and conditions applicable to cancellation of the
policy form listed above. If caacelladon of this Binder, by or on the behalf of either the Insured or the Insurer, is effective after the
Effective Date, then the Insurer shall be entitled to the earned premium. on a pro -rata basis, for the covered period. Issuance by the
Insurer and acceptance by or on the behalf of the Insured of the policy shall reader this Binder void except as indicated below.
A condition precedent m covcmge afforded by this binder is that no material change in the risk occurs and no submission is trade to
the Insurer of a claim or circumstances that might grive rise to a claim between the date of this binder indicated above and the
Effective Date.
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accounting procedures require that payment be remitted within 30 days of the effective date of coverage of 15 days from the
billing date, whichever is later. We appreciate your compliance with this procedure.
We appreciate your business and hope that we can be of further service to you in the future.
Bound bv:
1-4 — —.91, — Date:
KURT GR.%4Nzh 1 10
National Union Fire Insurance Company
of Pittsburgh, PA.
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