[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]
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.
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.
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.
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.
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]
As used in this article, the following terms shall have the
meanings indicated:
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.
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.
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.
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.
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.
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.
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.
[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.
[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.
