Laserfiche WebLink
Financial Management <br /> DATE: 6/17/2024 <br /> MEMO: <br /> TO: Honorable Mayor Moore Wolfe and <br /> City Council Members <br /> FROM: Tim Gleason,City Manager <br /> Ruby F James,City Treasurer&Chief Financial Officer <br /> SUBJECT: Resolution Authorizing Professional Service Agreement with Arthur J Gallagher Risk Management Services,LLC for <br /> Insurance Brokerage and Risk Management Services <br /> SUMMARY RECOMMENDATION: City Administration recommends Council approval of the attached Resolution to <br /> authorize the Mayor and City Manager to enter into a professional service agreement with Arthur J Gallagher Risk Management <br /> Services,LLC(AJ Gallagher)to perform insurance brokerage and risk management services for the City of Decatur,Illinois. <br /> BACKGROUND: <br /> AJ Gallagher has been the City's insurance and risk advisor for 20 years. Services include working with the City annually to <br /> identify the lowest cost providers for the insurance packages needed to protect the City's assets and interests. They also are <br /> available to assist with liability questions and recommendations to reduce risks when identified. <br /> Through AJ Gallagher's network, they have access to several lines of insurance to compare rates and coverages for optimal <br /> options. They saved the City over$200,000 in the last insurance renewal by locating alternative insurance providers. Also, their <br /> customer service and assistance has been invaluable in the past month during a time of transition. <br /> The agreement includes a$5,000 reduction in annual fees to $65,000 per year. The term of the agreement begins October 1,2024 <br /> and is a one year commitment that automatically renews each year for five years. The agreement can be terminated with 30 days <br /> written notice.The annual fee is locked in for five years at which time the agreement would be renegotiated. <br /> POTENTIAL OBJECTIONS: None Anticipated. <br /> INPUT FROM OTHER SOURCES: None <br /> STAFF REFERENCE: Ruby F.James,City Treasurer&Chief Financial Officer <br /> BUDGET/TIME IMPLICATIONS: <br /> The new agreement would be a reduction in annual fees of$5,000. <br /> ATTACHMENTS: <br /> Description Type <br /> Resolution Authorizing Professional Service Agreement <br /> with Arthur J Gallagher Risk Management Services,LLP Resolution Letter <br /> for Insurance Brokerage and Risk Management Services <br /> AJ Gallagher Services Agreement 2024 Backup Material <br />