Atlantic City, NJ
Atlantic County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Atlantic City as indicated in article histories. Amendments noted where applicable.]
[Adopted 4-12-2000 by Ord. No. 14-2000]

§ 37-1 Establishment; purpose.

There is hereby established an Insurance Fund for the following purposes:
A. 
To insure against any loss or damage to any property, motor vehicles, equipment or apparatus owned by the city, or owned by or under the control of any of its departments, boards, agencies or commissions.
B. 
To insure against liability resulting from the use of or operation of motor vehicles, equipment or apparatus owned by or controlled by the city, or owned by or under the control of any of its departments, boards, agencies or commissions.
C. 
Insurance against liability for the negligence of the city and that of its officers, employees and servants, whether or not compensated or part-time, who are authorized to perform any act of services, but not including an independent contractor within the limitations of the New Jersey Tort Claims Act.[1]
[1]
Editor's Note: See N.J.S.A. 59:1-1 et seq.

§ 37-2 Maximum and minimum amount of fund.

The governing body shall, from time to time, by resolution, designate the maximum and minimum amount of the fund, and shall from time to time provide for the disposition of any excess over and above the maximum amount fixed, or of the interest or profits arising therefrom when the fund shall have reached the maximum limit.

§ 37-3 Board of Insurance Commissioners.

The Insurance Fund shall be governed by a three-member Board of Insurance Commissioners ("Commissioner"), same being city officials, whose term of office shall be in accordance with N.J.S.A. 40A:10-8.

§ 37-4 Appointments.

The Mayor shall make appointments in accordance with the provision of N.J.S.A. 40A:10-8. The Mayor shall appoint three city officials as Insurance Fund Commissioners in accordance with N.J.S.A. 40A:10-8 and this chapter.

§ 37-5 Powers of Commissioners.

A. 
The Commissioners shall have the power and authority to employ any necessary clerical assistants, whose compensation shall be fixed by the governing body and paid by the governing body in the same manner as is that of other employees of the city.
B. 
The Commissioners shall have the power to invest the funds and all additions and assertions thereto in such securities as they shall deem best suited for the purposes set forth in this chapter and law, subject to the limitations set forth in said law, and in the laws of the State of New Jersey regulating the investment of public funds.
C. 
They shall maintain sufficient money at all times or have the same invested in such securities as can be immediately sold for the payment of losses or liability resulting from the operations of the city, its agencies, servants or employees.
D. 
They shall effect all insurance in the Insurance Fund or with any insurance company or companies authorized to do business in this state.
E. 
All insurance upon property owned or controlled by the city or any of its departments, boards, agencies or commissions shall be placed and effected by the Commissioners.
[Adopted 8-6-2014 by Ord. No. 46-2014]

§ 37-6 Definitions.

As used in this article, the following terms shall have the meanings indicated:
INSURANCE
Includes the purchase of insurance coverages, alternatives to insurance such as self-insurance programs, as well as participation in a joint self-insurance fund, risk management program or related services provided by a contracting unit insurance group, or participation in an insurance fund established by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance fund established pursuant to N.J.S.A. 40A:10-36 et seq.
INSURANCE CONSULTING SERVICES
Includes all services associated with procuring, evaluating and administering insurance, including but not limited to brokerage, risk management or administrative services, and claims processing or administration services, including such services provided by a contracting unit insurance group, or an insurance fund established by a local unit pursuant to N.J.S.A. 40A:10-6, or a joint insurance fund established pursuant to N.J.S.A. 40A:10-36 et seq.

§ 37-7 Competitive contracting required.

Prior to entering into any contract to obtain insurance or insurance consulting services, the City of Atlantic City shall secure full and open competition among insurers, and insurance consulting service providers, for the City of Atlantic City's business. The City of Atlantic City is hereby authorized, and directed, to use the competitive contracting process set forth in N.J.S.A. 40A:11-4.3, 40A:11-4.4 and 40A:11-4.5 to secure such competition, except to the extent this article requires additional measures to better ensure maximum competition and fairness to all interested parties.

§ 37-8 Advertising.

This open competition shall provide that at least 30, but not more than 120, days prior to the contract commencement date, the City of Atlantic City shall advertise in the newspapers authorized to print legal notices for the City of Atlantic City, and in a newspaper circulated in at least five counties in the state, and on the City of Atlantic City's website, a request for proposals to provide insurance and insurance consulting services. The notice shall advise the reader that details of the City of Atlantic City's insurance requirement are available from the Purchasing Department.

§ 37-9 Requests for proposals.

The request for proposals shall be designed and drafted by the Business Administrator or his designee and shall set forth such detailed information as may be required for all proposers to understand and possess equal information concerning the City of Atlantic City's insurance or insurance consulting services needs, including the current terms of, and fees or premiums paid for, such coverages or services, current coverages, loss experience and anticipated or desirable needs with respect to the relevant coverages or services sought.

§ 37-10 Response submittal date.

Responses to the request for proposal shall be submitted to the City of Atlantic City at least 30 days prior to the anticipated commencement of the contract.

§ 37-11 Prohibited acts.

At no time during the proposal solicitation process shall any official or employee of the City of Atlantic City, or any officer, employee or representative of any provider of insurance consulting services to the City of Atlantic City, convey information, including price, to any potential proposer which could confer an unfair advantage upon that proposer over any other potential proposer.

§ 37-12 Compensation.

[Amended 10-21-2015 by Ord. No. 75-2015]
A. 
Unless written permission is provided by the City, a provider of insurance consulting services to the City of Atlantic City shall be compensated for its services to or on behalf of the City of Atlantic City solely by the City of Atlantic City. Compensation shall be set on a fixed fee or hourly basis, or on such other common and readily comparable basis applicable to all proposers and set forth in the request for proposal documents, provided that compensation shall not be determined as a percentage of premium costs.
B. 
Unless written permission is provided by the City, no provider of insurance or of insurance consulting services to the City of Atlantic City shall pay to any insurance consulting service provider to the City of Atlantic City, or to any other third party, any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining the City of Atlantic City's insurance or insurance consulting business.
C. 
Unless written permission is provided by the City, no provider of insurance consulting services to the City of Atlantic City shall accept any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, from any provider of insurance, other insurance service provider, or any other third party, in consideration of obtaining or servicing the City of Atlantic City's insurance or insurance consulting business.
D. 
Any person or entity proposing to provide insurance or insurance consulting services to the City of Atlantic City shall certify in its proposal that it shall neither pay nor accept any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining or servicing the City of Atlantic City's insurance or insurance consulting business from any party other than the City of Atlantic City.
E. 
Any person or entity selected to provide insurance or insurance consulting services to the City of Atlantic City shall certify at least annually, and prior to any renewal of its contract that it has not paid nor accepted any form of compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, in consideration of obtaining or servicing the City of Atlantic City's insurance or insurance consulting business from any party other than the City of Atlantic City.
F. 
Any provider of insurance consulting service that assists the City of Atlantic City in soliciting, evaluating, or selecting any provider of insurance or other insurance consulting services to the City of Atlantic City shall disclose to the City of Atlantic City the aggregate compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, it has received in each of the prior three years from each provider of insurance or insurance consulting services solicited or evaluated by the City of Atlantic City. Such disclosure shall be made as soon as practicable, but in no event later than the date of the evaluation report recommending an award by the governing body.
G. 
The request for proposals for any insurance or insurance consulting services for the City of Atlantic City shall clearly establish the compensation restrictions and the certification and disclosure requirements established by this article as mandatory, nonwaivable terms, the violation of which may be grounds for terminating any contract resulting therefrom, and requiring the insurer or insurance service provider to disgorge to the public entity any compensation, including but not limited to commissions, fees, incentives, bonuses, rebates or any other thing of value, paid or received in violation of this article, and a commensurate reduction in premiums to be paid by the public entity for the affected coverage(s) in the future.
H. 
In limited circumstances, where the commission or fee paid by a third party cannot be avoided and where the fidelity and loyalty of the provider of insurance consulting services that is assisting the City is not compromised, the provider of insurance consulting services may, after having asked for and received written permission from the City, accept commission or fee, and the compensation paid by the City shall be reduced by the amount of commission or fee originating from the third party.

§ 37-13 Quotations; evaluation report.

[Amended 10-21-2015 by Ord. No. 75-2015]
Whenever soliciting quotations for insurance coverage, the Business Administrator or his designee shall obtain at least three quotations. With respect to health insurance, the Business Administrator shall submit the request for proposal to at least one joint insurance fund and to the State Health Benefits Plan, at the same time it is published, and shall determine if the SHBP and/or joint insurance fund can provide the same or similar coverages. The evaluation report shall include an analysis and discussion of the availability, terms and price of comparable coverage from such joint insurance fund and the SHBP as part of its award recommendation.