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CC - CONSENT ITEM: Approval of a Three-Year Professional Services Agreement with Alliant Insurance Services, Inc. for Insurance Brokerage Services of $150,000 Annually, Effective January 1, 2025, with an Option to Extend the Agreement for Two Additional One-Year Periods.
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Meeting Date: November 11, 2024
Contact Person/Dept.: Dana Anderson/Human Resources Department
Phone Number: (310) 253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/07/2024)
Department Approval: Dana Anderson, Human Resources Director (10/24/2024) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve a three-year professional services agreement with Insurance Brokerage, Alliant Insurance Services, Inc., to manage the City’s Insurance and Risk Management program, in the annual amount of $150,000, effective January 1, 2025, with the option to extend the agreement for two additional one-year periods.
BACKGROUND
The City of Culver City has maintained a service contract with Aon Risk Services since 2015 for the management of the City’s insurance program. Over the past nine (9) years, Aon has been a dedicated partner to Culver City in their ability to obtain sufficient insurance to cover the multiple risks of an active municipality.
In compliance with the City’s best practices for fiscal management, Risk Management published an RFP for Insurance Brokerage Services in March 2024 and received three responses. These original submittals were reviewed by Human Resources Department staff, and the proposals were evaluated in accordance with the following criteria:
• Qualifications, Experience, and Demonstrated Competence
• Assessment of current insurance program
• Expertise and availability of key personnel
• Conformance with the terms of this RFP
• Reasonableness of broker fees/cost
After evaluation of the proposals, two (2) organizations were selected to participate in an interview and presentation to the City’s RFP panel, consisting of the Risk Manager, Director of Human Resources, Chief Financial Officer, Director of Public Works, and the City Attorney. Additionally, references for each Proposer, which included public sector clients, were interviewed and confirmed. Following a thorough review of each organization, Alliant Insurance Services, Inc. was selected as the firm which best aligns with the needs of the City’s Insurance and Risk Management program to provide a strong foundation for continued insurance and risk management.
DISCUSSION
Alliant Insurance Services, Inc. brings over 50 years of combined experience and expertise. The team offers the capabilities needed to provide a sound business approach to audit, assess, and improve the transfer of risk opportunities for the City, as well as successfully perform the duties of Insurance Broker and Risk Management partner for the City of Culver City.
References from Alliant’s current roster of clients expressed commendable reviews and exemplary service that highlighted positive experiences with regard to customer service, responsiveness, accessibility, innovation, as well as seamless implementation transitions into their program.
FISCAL ANALYSIS
The proposed program fee is a firm fixed fee of $150,000 annually, inclusive of all insurance services: insurance marketing, loss control and claim services, consulting, risk management, and other broker services.
Funding for the City’s Fiscal Year 2024-2025 insurance premiums, as well as the administrative fees, have been included in the Adopted Budget for Fiscal Year 2024-2025 in various accounts in Human Resources Premiums/Claims (30922220) that can be found on page 203 of the budget book. These accounts are funded from the City’s Self Insurance Fund (Fund 309). There is sufficient funding in the accounts to cover the $150,000 for the first year of the agreement. Funding for future years of the agreement will be included in future fiscal year budgets.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a three-year professional services agreement with Alliant Insurance Services, Inc., to manage the City’s Insurance and Risk Management program, in the annual amount of $150,000, effective January 1, 2025, with the option to extend the agreement for two additional one-year periods;
2. Authorize the City Attorney to review/prepare the necessary agreements; and
3. Authorize the City Manager to execute such documents on behalf of the City.