Title
AN ORDINANCE REQUIRING THE PROCUREMENT OF INSURANCE BROKERAGE SERVICES THROUGH COMPETITIVE CONTRACTING PROCESSES
Sponsors: Payne
Deferred 6F-i 090612
Body
WHEREAS, the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq. provides that the purchase of insurance coverage, including health, property and casualty, and workers compensation insurance, and insurance consulting services, are not subject to the public advertising and bidding requirements of that law, N.J.S.A. 40A:11-5(1)(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, N.J.S.A. 40A:11-4.1(i), authorizes local contracting units to utilize the competitive contracting process to procure specified goods and services, which are otherwise exempt from the public bidding process 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 MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY THAT:
Section 1. The Revised Ordinance of the City of Newark are hereby amended and supplemented to provide as follows:
1. Definitions.
a. For purposes of this Ordinance, the term “insurance” shall include the purchase of insurance coverage, alternatives to insurance such as self-insurance programs, a...
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