R2021-112 Resolution Authorizing City Manager to Execute an Agreement with Arthur J. Gallagher, Risk Management Services, Inc. for Risk Management Advisory Services

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• Request change endorsements, when requested by Client or when otherwise necessary, ensuring accuracy and delivery in a timely manner, • Administration of insurance program, including policy review and issuance, invoicing, coordination and/or issuance of required documentation, i.e., automobile identification cards, certificates of insurance, and other program administration, as required by Client, • Review accounting and billing data; audit information from insurance carriers to ensure accuracy. The agreement includes a term of service of three(3)years with annual fees as follows: • Annual fee of$67,000 for the term October 1, 2021 —October 1, 2022, • Annual fee of$67,000 for the term October 1, 2022—October 1, 2023, • Annual fee of$67,000 for the term October 1, 2023—October 1, 2024 The agreement pricing structure remains flat with the current agreement annual fee structure of $67,000 set to expire this year. ADDITIONAL BACKGROUND: Of note, in 2020, City Risk Management was challenged by the City Manager to review the existing risk management self-insurance programs and ascertain if other options available would provide cost savings to the city. Arthur J. Gallagher was instrumental in leading this review in concert with the city's risk management office.The results were favorable for the city's financial coffers as follows: • City secured workers compensation insurance under a pool insurance program with the Illinois Public Risk Fund, • Transitioning the city from the self-insured workers compensation insurance program, • Resulting in annual workers compensation insurance premium savings of $450,000 in 2021, • Resulting in a worker's compensation self-insured retention (SIR) or deductible level reduction from $500,000 to$300,000. These accomplishments are significant to the city financial coffers in the effective management of risk management insurance costs to the city taxpayers. STAFF REFERENCES: Gregg D.Zientara, City Treasurer&Director of Finance BUDGETITIME IMPLICATIONS: This agreement will take effect October 1, 2021. The city is properly secured under the current agreement with risk management advisory services to October 1, 2021. The 2021 city budget includes funding for this agreement. Page 2 of 2