1 FIRST MODIFICATION OF AGREEMENT NO. 10433 (CCS)
This First Modification of Agreement Number 10433 (CCS) (“First Modification”), entered into as of ________________, by and between the City of Santa Monica, a municipal corporation (“City”), and Alliant Insurance Services, Inc. (Alliant) is made with reference to the following:
RECITALS
A. On or about^^May 5, 2017, the City and Alliant entered into Agreement Number 10433 (CCS) for Property Insurance Broker Services (“Original Agreement”).
B. The City and Alliant desire to modify the Original Agreement to extend the Term of agreement term; include additional services to be performed by Alliant; to increase the agreement price to pay for those additional services).
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Original Agreement as follows:
1. Section 1 of the Original Agreement entitled “Term” shall be deleted in its entirety and replaced with the following paragraph:
Term. This Agreement begins on the Execution Date and terminates on June 30, 2025, unless terminated earlier as set forth in Section 14 or extended by the parties in writing.
2. Section 2 of the Original Agreement entitled “Services” shall be modified by adding the following paragraph:
Additional Services. Alliant will perform all of the additional services (“Additional Services”) described in Exhibit A-1, Scope of Services. Alliant will complete the Additional Services in accordance with Exhibit B-1, Budget.
3. Section 4 of the Original Agreement entitled “Compensation” shall be modified by adding the following paragraph:
Additional Compensation for Additional Services. The City will compensate Alliant for the Additional Services in an amount not to exceed $267,000, as set forth in Exhibit B-1. The total compensation for all Services and Additional Services pursuant to the Original Agreement and this First Modification shall not exceed $692,000.
4. Exhibit A-1 and Exhibit B-1 are attached hereto and incorporated herein by this reference.
5. Execution in Counterparts. This First Modification may be executed in counterparts with the same effect as if both parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single DocuSign Envelope ID: CA413958-6E31-4C5C-B92A-9F7FCB3B478A 6/28/2022
2 modification. Any signature to this First Modification transmitted electronically through DocuSign or PDF shall be deemed an original signature and be binding upon the parties hereto (it being agreed that such electronic signature shall have the same force and effect as an original signature).
6. Except as expressly modified by this First Modification, all other terms and conditions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
ALLIANT Corporation
#VENDOR
By: _______________________________
DocuSign Envelope ID: CA413958-6E31-4C5C-B92A-9F7FCB3B478A 6/25/2022
City Attorney
DOUGLAS SLOAN
Conor Boughey
CONOR BOUGHEY
Senior Vice President
6/28/2022
6/28/2022
City Manager
David White
City Clerk
6/30/2022
Denise Anderson-Warren
3 Exhibit A-1
Scope of Services
1. Structuring, Marketing and Negotiating Property Insurance Coverage Alliant will provide the following services on an annual basis:
A. Evaluate the City’s existing property insurance program, and if necessary, recommend changes to terms, conditions, or coverage limits to insure the program is affordable and adequately protects the City.
B. Incorporate any agreed upon changes to terms, conditions or coverage limits into bid specifications for the City’s property insurance program; advertise the City’s property insurance requirements to the markets capable of meeting the City’s property insurance needs.
C. Provide to Risk Management in writing the Alliant’s best estimate of the property insurance premium for the upcoming policy period by January 1st of each year.
D. Negotiate with underwriters and obtain property insurance coverage that best meets the City’s requirements at the least cost. Alliant will only secure property insurance coverage with financially responsible insurers.
E. Advise the Risk Manager in writing of property insurance premium pricing for the upcoming policy period at least thirty days prior to the expiration of the existing property insurance policy. Risk Manager can waive such notice if the Alliant can demonstrate there are extenuating circumstances which preclude or make undesirable such thirty day notice.
F. Bind property insurance coverage before existing policy expires.
G. Verify that new policies, binders, certificates, endorsements and other documents are accurate and reflect the terms and conditions agreed to during negotiations.
H. Provide in writing a summary of the key components of the City’s property insurance program and any changes to coverage, and a schedule of insurers for the new policy period by July 15th of each year.
2. Insurance Consulting Services
Alliant will provide the following services:
A. Respond to property insurance related questions and requests for advice in a timely manner.
DocuSign Envelope ID: CA413958-6E31-4C5C-B92A-9F7FCB3B478A 4 B. Make a good faith effort to keep Risk Management informed of all market developments that might affect the City’s access to or cost of property insurance.
C. Provide advice to Risk Management on ways to strengthen City loss prevention and safety programs.
D. Assist Risk Management staff with the property claim submission and claim handling process.
E. Maintain a user friendly electronic data base of the City’s building inventory with pertinent building construction and valuation information.
F. Inspect the City’s properties every three years and update building values as appropriate.
3. Administrative Services
Alliant will provide the following services:
A. Issue property certificates and associated endorsements in a timely manner.
B. Attend occasional meetings with City representatives as requested.
C. Inform the City immediately of any proposed changes to personnel assigned to the City’s account. Such changes must be approved by the City.
D. Maintain accurate claims data on an accident date basis and provide loss runs to the City as requested.
E. Cooperate in any transition to another Alliant at the expiration of the five year contract.
DocuSign Envelope ID: CA413958-6E31-4C5C-B92A-9F7FCB3B478A 5 Exhibit B-1
Budget
Alliant shall be compensated a total of $692,000 over the eight-year contract period as set forth below:
July 1, 2017: $81,000
July 1, 2018: $83,000
July 1, 2019: $85,000
July 1, 2020: $87,000
July 1, 2021: $89,000
July 1, 2022: $89,000
July 1, 2023: $89,000
July 1, 2024: $89,000
Should there be a future need to place coverage outside of the current property placement, those placements would be subject to commission.
Transparency and Disclosure. During the time of this AGREEMENT, ALLIANT will, upon request, disclose COMMISSIONS, where possible, received by ALLIANT in connection with any insurance placements on behalf of CLIENT under ALLIANT'S "Transparency and Disclosure" policy, a copy of which is made available upon request. Pursuant to its policy, ALLIANT will conduct business in conformance with all applicable insurance regulations and in advancement of the best interests of its clients. In addition, ALLIANT'S conflict of interest policy precludes it from accepting any form of broker
incentives that would result in business being placed with carriers in conflict with the interests of ALLIANT' S clients.
Alliant Specialty Insurance Services (ASIS). In addition to the COMPENSATION that ALLIANT receives, its related entity, Alliant Specialty Insurance Services (ASIS) and its underwriting operations, Alliant Underwriting Services (AUS), may receive compensation from ALLIANT and/or carriers for providing underwriting services.
The financial impact of the compensation received by ASIS is a cost included in the premium. Compensation received by ASIS will be disclosed in writing to CLIENT and is agreed to by CLIENT as part of the premium. CLIENT further acknowledges that ALLIANT and ASIS maintain an arm's length relationship. CLIENT understands that while ALLIANT represents
CLIENT as an individual entity, ASIS independently administers its program as a whole and not on behalf of any particular member.
Alliant Business Services (ABS). Additionally, ALLIANT'S internal operating group, Alliant Business Services (ABS), may receive compensation from ALLIANT and/or carriers for providing designated, value-added services. Services contracted for by the CLIENT directly will be invoiced accordingly. Otherwise, services will be provided at the expense of ALLIANT and/or the carrier.
DocuSign Envelope ID: CA413958-6E31-4C5C-B92A-9F7FCB3B478A