R97-121 AUTHORIZING AGREEMENT - Laserfiche WebLink

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DEPARTMENT OF FINANCIAL MANAGEMENT RISK MANAGEMENT DIVISION MEMORANDUM NO. 97-060 August 8, 1997 MEMO TO: The Honorable Terry M. Howley, Mayor City Council Members FROM: James L. Williams, Jr., City Manager Beth B. Couter, Director of Financial Management Gerard J. Bauer, Risk Manager SUBJECT: NON-HEALTH SELF-INSURANCE PROGRAM Transmitted herewith are two resolutions. One authorizes renewal of the brokerage contract with Arthur J. Gallagher and Company, and the other approves the administrative services agreement with Gallagher Bassett Services for the city's non-health self-insurance program for contract year 1997-1998. Following the City policy of marketing the self-insurance program every third year, the Risk Management Division solicited interested parties this Spring, and issued a request for proposals (RFP) to the most qualified of respondents for brokerage, claims administration, loss control, and loss reporting services, as well as excess insurance coverage for the self-insurance program. A total of 12 firms were solicited for participation, and of those, six responded. Of these six, four were selected to submit proposals. Two of them, Behnke and Company, and J. L. Hubbard Company, are local firms; the other two, Arthur J. Gallagher and Company, and Marsh and McLennan- Johnson and Higgins, are national organizations. On the basis of the overall quality of the Arthur J. Gallagher and Company proposal and the service they've previously provided, as well as on the basis of the fact that their total costs for the coming year are projected to be the lowest of any of the responding parties, staff is recommending the retention of Arthur J. Gallagher and Company, and Gallagher Bassett Services as the city's program administrators for the contract year beginning October 1, 1997. No other proposal matched that of the Gallagher submission for scope of services, experience with municipal accounts, and competitiveness of fees and premiums (see Table 1 below for a comparison of projected costs for the 1997-1998 contract year).