REPORT TO THE CITY COUNCIL
February 9, 2017
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: MIKE PAYNE, Risk Manager
Personnel Services Department
SUBJECT
Title
Approve a Consultant Services Agreement with Aon Risk Services West, Inc. to provide insurance brokerage services to the City in the amount of $150,000 per year, for three years with an option to extend on a year-for-year basis up to two years at $165,000 per year
Body
RECOMMENDATION
Approve a Consultant Services Agreement with Aon Risk Insurance Services West, Inc., to provide insurance brokerage services to the City and authorize the Personnel Services Director to execute a three year agreement in the amount of $150,000 per year with the option to extend the agreement for two additional one-year periods in the amount of $165,000 per year.
EXECUTIVE SUMMARY
In addition to self-insurance, the City purchases insurance to insulate the City from severe and catastrophic liability or risk. The City contracts with an insurance broker to assist the City in: (i) evaluating external and internal risks; (ii) determining adequate levels of insurance protection and self-insured retentions; (iii) marketing the City's risk to responsible insurance markets; and (iv) the selection of insurance companies qualified to underwrite the City's various insurance programs with the broadest coverage and the most competitive premiums.
The Personnel Services Department solicited proposals from qualified firms to provide insurance brokerage services to the City. Two proposals were received and evaluated. Aon Risk Insurance Services West, Inc., was selected as the firm that provides the best value to the City, based upon the services offered and total program expenses.
BACKGROUND
Generally, the City's risk management philosophy is to assume levels of risk for all types of exposures whenever prudent and economical, and to purchase insurance to insulate the City from excessive liability and f...
Click here for full text