HomeMy WebLinkAbout7-Consideration of Awarding a Contract for Insurance Brokerage ServicesAgenda Item #7
To:
From:
Date:
Subject:
Board of Directors
Kim Harris
February 11, 2015
Consideration of Awarding a Contract for Insurance Brokerage
Services
CONSENT
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the Board can approve professional contracts over $15,000.
2. HISTORY
The District’s General Liability, Property and Workers’ Compensation Insurance
brokerage services have been served with the same broker, Marsh, for the past fifteen
years. In June 2013, Marsh broker, Keith Grand, retired and since then the service
provided by Marsh has declined.
3. NEW INFORMATION
It is fiscally prudent to periodically evaluate proposals from other brokers to ensure
that the District receives quality service at an efficient cost.
A Request for Proposal (RFP) for insurance brokerage services was advertised in the
Sierra Sun on December 19, 2014.
Two insurance brokerage firms, InterWest and Marsh, submitted responsive
proposals.
A committee was formed to evaluate the proposals based upon the following criteria.
Qualifications of the firm 40%
Qualifications of the key individuals 20%
Experience in the electric and water utility industry 20%
Services provided 10%
Fee 10%
Kim Harris Michael D. Holley
Human Resource Manager General Manager
The two brokerage firms were determined to be qualified to serve the District. After
reviewing the two proposals, an internal committee recommended that the District’s
“Broker of Record” for the 2015/2016 general insurance and workers’ compensation
policies be changed to InterWest.
The scoring was as follows (100 maximum points).
InterWest Insurance Services, Inc. 95
Marsh Risk and Insurance Services, Inc. 88
4. FISCAL IMPACT
InterWest’s proposed fee for the next policy period is $44,000.
Year Broker Brokerage Fee
2015/16 InterWest $44,000 (proposed)
2014/15 Marsh $60,000
2013/14 Marsh $60,000
2012/13 Marsh $55,000
2011/12 Marsh $65,000
2010/11 Marsh $50,000 (exclude work comp)
5. RECOMMENDATION
Authorize the Board President to execute a one-year contract for insurance brokerage
services, renewable for two additional one-year periods, in a form acceptable to the
District's Counsel.