HomeMy WebLinkAbout1982-06-15; City Council; 7057; Cal-Surance agreement amendmentCITTOF CARLSBAD - AGENDJfelLL
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6/15/82
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TITLE:
RESOLUTION AMEND
SU RANGE ASSOC . ,
ING
INC
AGREEMENT WITH CAL-
. FOR INSURANCE
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RECOMMENDED ACTION:
Approve Resolution No. (j> *f Q ^ , amending Agreement with Cal-Surance
Assoc., Inc. to allow payment of insurance commissions up to a?maxi-
mum of $10, 000,
ITEM EXPLANATION:
, 1981 Council approved the appointment
as Broker of Record to handle the
At their meeting of April 21
of Cal-Surance Assoc., Inc. •
marketing of all casualty and property insurance,
City. Services provided have been at the highest
purchased by
leve 1, and,
the
partly through the Broker's effort, premiums paid during this fiscal
year reflect a saving in excess of $200,000, when compared with the
previous year.
Under the Agreement between the City and Cal-Surance, payment for
services was limited to a 7% commission on premiums. Council was
advised that this should approximate $10,000 annually, a fair and
highly competitive figure, especially when compared with annual
commissions in excess of $35,000 paid to the City's former insurance
bro'kers. As a result of unanticipated premium savings, however,
.commission payments to Cal-Surance during the first year of this
agreement totalled only $7,476. Staff is accordinly recommending
amendment of the Agreement for the coming fiscal year to allow
commissions up to the original estimate of $10,000.
FISCAL IMPACT: .
Commission payments are included in premiums paid. Although this
amendment will increase commission costs, the increase will be offset
against substantial premium savings anticipated during the coming
year.
EXHIBITS:
1. Resolution No. (,, 9 Q
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..RESOLUTION NO.6909
A RESOLUTION OF THE GITY COUNCIL OF THE CITY OF
CARLSBAD,' CALIFORNIA, AMENDING AGREEMENT WITH CAL
SURANCE ASSOCIATES, INC. FOR INSURANCE BROKERAGE
SERVICES.
WHEREAS, the City has contracted.with Cal-Surance Associ-
.ates Inc. for insurance brokerage services for the placement and
p u rchase,of insurance for theCity; and
WHEREAS, said agreement provided that compensation for saic
services should not exceed 7% of total insurance premiums; and
WHEREAS, after negotiations the parties to said contract
I - . - -
have agreed, that effective July 1, 1982 certain changes in compen-
sation are necessary; ' ' ' V ' . .
. .. NOW, THEREFORE BE IT RESOLVED by the City Council of the
City of Carlsbad, California as follows:
"" 1. That Section 3 COMPENSATION of said agreement shall be
deleted in its entirety.
2. That effective July 1, 1982'the following paragraph
• -• -shall be subs t i-t u ted therefore:
.. Sect ion 3
, ' ; • .COMPENSATION ' . '
Insurance brok.erage commissions or-fees included in
premiums payable to BROKER shall not exceed the current conraissior
rate payable by each insurer for like business, and subject to an
annual minimum of $7,500, shall in'no event, exceed Ten Thousand
Dollars ($10,000) in any twelve month period unless authorized in
advance by the CITY. BROKER shall, upon request, provide to the
CITY a fu11 report and accounting of all commissions received.
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PASSED, APPROVED AND ADOPTED at a regular meeting of Ehe
City Council on the 15th ; day of June 19B2
by the following vote, to wit:
.AYES: Council Members Casler, Lewis, Kulchin and Chick
:NOES : None •
ABSENT: None •
KAEY H. CASLERu , Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City.CUerk
(SEAL)
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