HomeMy WebLinkAbout4/30/2008 - STAFF REPORTS - 2.E. { FQpLM SA9
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City Council Staff Report
DATE: April 30, 2008 CONSENT CALENDAR
SUBJECT: Approving a Professional Services Agreement with Keenan & Associates
for insurance brokerage services.
FROM: David H. Ready, City Manager
BY: Assistant City Manager—Administrative Services
SUMMARY
The City is self-insured and annually purchases various lines of insurance coverage to
minimize the adverse effects of accidental losses and claims against the City. The City
utilizes a professional insurance brokerage firm to assist in the management of the
City's various insured and self-funded insurance programs, as well as to market and
procure various lines of insurance. The City's existing brokerage contract expires on
June 30, 2008, The City recently solicited proposals for brokerage services from
qualified firms. These proposals have been formally evaluated, and staff is
recommending that the City Council approve a contract with Keenan & Associates to
provide insurance brokerage services.
RECOMMENDATION:
1. Approve a Professional Services Agreement with Keenan & Associates for
insurance brokerage services, in a form acceptable to the City Attorney, for a
three (3) year term (30 day cancellation clause), and two (2) one (1) year options
in an amount not-to-exceed $60,000 per year.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
The City is self insured for major risk programs, such as general liability, auto liability
and workers' compensation. In order to protect the assets of the City from potential
loss, the City purchases various lines of insurance coverage, including general liability,
automotive, property and excess workers' compensation insurance.
To assist in the marketing and purchase of various lines of insurance, the City has
contracted with an insurance firm to serve as the City's broker of record. The existing
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City Council Staff Report
April 30, 2008 -- Page 2
Award of Contract Insurance Brokerage Services
agreement with Davis & Graeber, which was entered into in 2001, will expire at the end
of June 2008.
A Request for Proposals seeking professional insurance brokerage services was
advertised and sent to eleven (11) firms of record. A total of five (5) proposals were
received and evaluated by a staff committee comprised of the City Clerk, Human
Resources & Benefits Supervisor, and the Assistant City Manager. The proposals were
reviewed and scored based upon multiple criteria and are listed in order of evaluation
rank:
• Keenan & Associates
• AON Risk Insurance Services West, Inc.
• ABD Insurance Services -A Wells Fargo Company
• Davis & Graeber Insurance Services
• Marsh Risk & Insurance Services
Keenan & Associates of San Clemente, CA, was the highest ranked firm by the
committee, based on their qualifications and the value of the services offered for the
cost proposed.
Keenan & Associates has worked almost exclusively with public agencies for over 35
years and understands the complexities involved. The firm has represented over 700
public agencies, including local agencies such as Palm Springs USD, Desert Sands
USD, Coachella Valley USD and Desert CCD.
Staff is recommending that the City Council approve a professional services agreement
with Keenan & Associates to provide insurance brokerage services for a three (3) year
term with a 30 day cancellation clause, and two (2) one (1) year options. Keenan is
proposing a flat fee of $60,000 a year to provide brokerage services for the entire term
of the agreement.
FISCAL IMPACT.
The proposed contract cost of $60,000 per year from Keenan & Associates is equal to
our current insurance brokerage fee. Sufficient funds for this expenditure are within the
Risk Management Fund.
'S' rk�, 1 & -
ro Butzlaft, Craig Gla ders,
A j ant City M Aager, Admin. Services Procuremen and Contracting Manager
David H. Ready, Esq.
City Manager
APRIL 30, 2008 CONSENT CALENDAR
2.E. AWARD CONTRACT FOR INSURANCE BROKERAGE SERVICES TO
KEENAN ASSOCIATES AS THE CITY'S BROKER OF RECORD:
RECOMMENDATION: Approve an Agreement with Keenan Associates for
Insurance Brokerage Services for a three-year term, and two one-year
extensions, subject to review and approval of the City Attorney; and 2) Authorize
the City Manager to execute the agreement. A
MATERIALS TO FOLLOW
Item 2 . E .