R2011-109 AUTHORIZING AGREEMENT - Laserfiche WebLink

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DEPARTMENT OF FINANCIAL MANAGEMENT RISK MANAGEMENT DIVISION MEMORANDUM NO. 2011-012 DATE: June 29, 2011 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan McCrady, City Manager Ron Neufeld, Director of Financial Management Scott Clark, Risk Manager SUBJECT: PROPERTY & CASUALTY BROKER SELECTION SUMMARY RECOMMENDATION: Staff recommends that City Council approve Mesirow Financial as the broker for City's self-insured property, liability and worker's compensation program for a period of -three (3) years covering the insurance renewal period 10/01/2011 through 09/30/2014, and for two (2) additional one (1) year terms at the City's option. BACKGROUND: In May 2011, the City prepared and sent out a Request for Proposals (RFP) for Insurance Brokerage Services. The RFP outlined the services required of the brokers which include: • Develop an understanding of the City's area of exposure, identify programs, products and insurance that meets the City's insurance requirements • Solicit, review and analyze quotations from companies capable of meeting the requirements and make recommendations for the City's consideration • When directed by City place insurance coverage with the selected companies • Solicit quotations for third party claims administration from firms with municipal government experience • Make recommendations and negotiate if necessary the details of the claims administrator contract • Solicit quotations for safety and loss control from companies that have experience with municipal governments • Include in the solicitation the requirement to review the City's safety programs, make recommendations for changes, revisions and improvement • Have the safety and loss control companies include a proposal to design and implement a safety program for a specific department • Make recommendations and negotiate if necessary the details of the safety and loss control contract Proposals were due on June 9, 2011 and the City received three (3) responses to the RFP. One response from J. L. Hubbard respectfully declined to respond with a proposal citing their lack of insurance experience with public entities. The two full responses were received from A J Gallagher located in Itasca, IL and Decatur, IL and Mesirow Financial located in Chicago, IL. It is noted that the local office of A J Gallagher is the current broker for the City and was formerly known as Behnke and Company. In the past the City solicited quotations from insurance brokers through a selection process and only allowed the selected brokers to secure quotations from a limited number of insurance