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CC-CONSENT ITEM: (1) Waiver of Competitive Bidding Procedures Pursuant to Culver City Municipal Code Section 3.07.075.F.3; and (2) Amendment to Existing Professional Services Agreement with AON Risk Insurance Services West, Inc. to Continue Providing Actuarial Services for the City’s Insurance Programs through June 30, 2024 in the Amount of $10,500
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Meeting Date: June 26, 2023
Contact Person/Dept.: Amalia Sanchez / Human Resources
Phone Number: 310-253-5640
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/22/2023)
Department Approval: Dana Anderson, Human Resources Director (06/20/2023)
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RECOMMENDATION
Staff recommends the City Council (1) waive competitive bidding procedures pursuant to Culver City Municipal Code Section (CCMC) 3.07.075.F.3; and (2) approve an amendment to the existing professional services agreement with AON Risk Insurance Services West, Inc. to continue providing actuarial services for the City’s insurance programs through June 30, 2024 in the amount of $10,500.
BACKGROUND/DISCUSSION
Since 2016, the City of Culver City (City) has contracted with AON Risk Insurance Services West, Inc. (AON) to provide actuarial services for the City’s liability and workers' compensation programs which provide estimates of claim costs, conclusions and recommendations.
AON's actuarial services will provide important data for financial audit statements and strategic long-term planning. The objective is to take a close look at outstanding losses, reserves, claim development, project losses, and loss distribution. AON will compile and analyze the City's data and apply insurance industry statistics judiciously in order to provide the City guidance on how to best manage loss exposures.
The prices for actuarial services for Fiscal Year 2022/2023 and Fiscal Year 2023/2024 are listed below:
FY 22/23 FY 23/24
Worker’s Compensation $5,000 $5,250
Liability $5,000 $5,250
Culver City Municipal Code (CCMC) § 3.07.065.C.2 exempts certain general services, including insurance, from the formal competitive bid process. In compliance with CCMC Section 3.07.045, which requires competitive bidding procedures in the event the same vendor has been utilized for a period of five consecutive years, a new request for proposals is being planned for issuance. CCMC Section 3.07.075.F.3, provides the Council may waive, by a majority vote, bidding requirements if it is deemed to be in the City’s best interest and authorize a negotiated contract. Based on the foregoing, staff recommends the City Council waive the bidding requirements and authorize an extension to the existing agreement with AON through June 30, 2024, to ensure continuation of services during this interim period.
FISCAL ANALYSIS
Sufficient funding for actuarial services is included in the Adopted Budget for Fiscal Year 2023-2024 in Account No. 30922200.610100 (Risk Management - Audit Services).
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Waive competitive bidding procedures pursuant to Culver City Municipal Code Section (CCMC) 3.07.075.F.3;
2. Approve an amendment to the existing professional services agreement with AON Risk Insurance Services West, Inc. to continue providing actuarial services for the City’s insurance programs through June 30, 2024 in the amount of $10,500;
3. Authorize the City Attorney to review/prepare the necessary agreements; and
4. Authorize the City Manager to execute such documents on behalf of the City.