Title
Insurance Brokerage and Related Consulting Services Contract - RFP 18-01 RMD - Amendment (Ordinance S-50490)
Description
Request to authorize the City Manager, or his designee, to execute amendment to Contract 149271 with Marsh USA, Inc., to extend the contract term by one year, with two one-year options to extend. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $700,000.
Report
Summary
This contract was awarded due to a previous Request for Proposal process, RFP 18-01 RMD. Marsh USA, Inc., was selected to provide traditional insurance broker and consulting services. Marsh USA, Inc., has been able to access global markets to secure appropriate levels of coverage and negotiate favorable pricing for the City. The extension will allow sufficient time to explore alternatives to traditional insurance programs, potentially establish a captive, revise the broker scope accordingly, and conduct a competitive process. The services are essential to ensure continuity with minimal impact to the insurance programs that protect the City from financial harm.
Contract Term
Upon approval, the contract will be extended through Jan. 29, 2025, with two one-year options to extend.
Financial Impact
Upon approval of $700,000 in additional funds, the revised aggregate value of the contract will not exceed $1,576,000. Funds are available in the Risk Management Self-Insurance Trust.
Concurrence/Previous Council Action
The City Council previously approved this request:
- Insurance Brokerage and Related Consulting Services Contract (Ordinance S-45208) on Dec. 5, 2018.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton and the Finance Department.