HomeMy WebLinkAbout9 Insurance Brokerage Services Agenda Item
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Pubi c Ut'lity Dlstrl.Ct
ON ENT
To: Board of Directors
From: Robert Mescher
Date: March 07, 2012
Subject: Consideration of Awarding a Contract for Insu
rance Brokerage
Services
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the Board can approve professional contracts over $15,000.
2. HISTORY
For the past ten years, the Marsh Team has been providing insurance broker. p g age
services for the District for all lines of coverage, except workers' compensation, and
was able to deliver a cumulative 22/o reduction in total premium over that period,
despite:
• Increases in vehicle fleet and property values;
• Increasing the liability limits from $12 million to $20 million;
• Increasing the crime limit from $500,000 to $2 million; and
• Adding an additional $5 million layer of earthquake coverage.
Prior to 2010, the District obtained workers' compensation insurance ce directly from the
insurance carriers. In 2010, the District requested Marsh to be its broker to obtain
workers' compensation, and in the two years since, the annual premium has o p been
reduced by 14/Q.
3. NEW INFORMATION
It is fiscally prudent to periodically evaluate proposals from other brokers
s to ensure
that the District receives quality service at an efficient cost.
An RFP for insurance brokerage services was advertised ertised in the Sierra Sun on
February 3, 2012.
Three insurance brokerage firms, HUB, InterWest and Marsh submit
proposals.
ted responsive
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%
All three brokerage firms were determined to be qualified to serve the District. After
reviewing the three proposals, an internal committee recommended that Marsh
continue to be the District's "Broker of Record" for the 2012/2013 general insurance
. .
and workers compensation policies.
The scoring was as follows (1100 maximum points).
• HUB International Insurances Services, Inc. 59
• Interwest Insurance Services, Inc. 77
• Marsh Risk and insurance Services, Inc. 94
4. FISCAL IMPACT
Marsh's proposed fee for the next policy period is $55,000, which is $10,000 less than
the current policy period.
5. RECOMMENDATION
Authorize the Board President to execute a one-year contract for insurance brokerage
g
p
services, renewable for two additional one-year periods, in a form acceptable to the
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Districts Counsel.
Robert Mescher Michael D. Holley
Administrative Services Manager General Mana er
g