Title
AN ORDINANCE REQUIRING THE PROCUREMENT OF INSURANCE BROKERAGE SERVICES BE DONE AS A COMPETITIVE CONTRACTING PROCESS
Deferred 8-b 060712
Deferred 9-a 062012
Deferred 9-a 070312
Tabled (Council of the Whole) 9-a 080112
Body
WHEREAS, the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq. provides that the purchase of insurance including health, property and casualty, and workers compensation insurance, and insurance consulting services, are not subject to the bidding requirements of that law, N.J.S.A. 40A:11-5(m); and
WHEREAS, the governing body of The City of Newark finds that open competition for its insurance and insurance consulting business will assure that the lowest available pricing for its insurance needs can be obtained; and
WHEREAS, the Local Public Contracts Law authorizes local contracting units to require the use of competitive contracting practices to procure specified goods and services otherwise exempt from bidding by virtue of N.J.S.A. 40A:11-5; and
WHEREAS, the governing body of The City of Newark finds that requiring its insurance consultants be compensated solely by The City of Newark and not by commissions or fees, direct or indirect, paid by insurance carriers or other organizations providing insurance alternatives, and prohibiting any third party from paying any commission or fee to such consultants for securing business with The City of Newark, will ensure the fidelity and loyalty of such consultants to The City of Newark, and eliminate or reduce conflicting loyalties such consultants might otherwise have to any third parties;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF NEWARK, THAT:
The Municipal Code be amended to provide:
1. For purposes of this Ordinance, the term “insurance” shall include 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 contra...
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