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Date
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February 9,
2009
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Agenda
Item No. 32 Roll
Call No. 09- Communication No.
09-051 Submitted by: Allen McKinley, Finance Director |
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AGENDA HEADING:
Insurance
Agent/Broker Services Contract 2009
SYNOPSIS:
Recommend
approval of the Insurance Agent/ Broker Services Contract for 2009. Every five years since March 1, 1999, the
City’s Finance Department has prepared and distributed a Request for Proposals
(RFP) in order to competitively solicit proposals for the providing of insurance
agent/broker services to the City. The
City’s current contract expires on February 28, 2009. On November 5, 2008, the Finance Department
prepared and distributed an RFP soliciting proposals for a new contract to be
effective March 1, 2009. RFPs were sent
to five companies and proposals were received from Holmes Murphy and Jester
Insurance Services, Inc. The Evaluation
and Selection Committee recommended Jester Insurance Services, Inc. as having
best met the evaluation criteria. The
average annual not-to-exceed total cost of Jester
Insurance Services, Inc.’s proposal was $50,000 and that of Holmes Murphy was
$54,500.
FISCAL IMPACT:
Amount:
$50,000 each year over six years ($ 40,000 per year the City and $10,000 per
year for the Des Moines Municipal Housing Agency.
Funding
Source: First year funding: 2009-2010 Operating Budget:
- City: Tort Liability, GE005, FIN940500, page
149.
- DMMHA: Central Office, SP350, HSG029000, page 176.
ADDITIONAL INFORMATION:
As stated above, the City has had a contract for
Insurance Agent/Broker Services since 1999, with the current contract expiring
on February 28, 2009. Since July 1,
2004, this Contract has included providing these service to both the Des Moines
Municipal Housing Agency (DMMHA) (as a City department, but funded through HUD)
and the Des Moines Metropolitan Wastewater Reclamation Authority (WRA) (as
required by WRA/City Operating Agreement).
The DMMHA fee is fixed by contract and the WRA’s fee is a portion of the
City’s fixed fee reimbursed to the City.
The DMMHA’s fixed fee is based on the agent/broker having to market
primary insurance coverages in addition to the
overall insurance coverages required by the
City. The WRA’s insurance does not
require additional marketing because the WRA’s insurance is provided by the
City by operating agreement.
In order to ensure continued services, the Finance
Department issued RFPs on November 5, 2008.
RFPs were mailed to Arthur J, Gallagher Risk Management Services, Inc. (
The RFP Evaluation and Selection Committee evaluated
the proposals received against the following criteria specified in the RFP: (1)
how well the proposal meets the requirements of the RFP as a whole; (2) the
proposer’s qualifications and Scope of Services capabilities; and (3) the
proposed cost. An additional one percent
of total possible points was awarded to the proposals
meeting the local preference requirement.
After scoring each proposal individually, the Evaluation and Selection
Committee met and discussed the proposals and based on that discussion arrived
at a consensus score for each of the criteria for each proposal.
PREVIOUS COUNCIL ACTION(S):
Date: December 22, 2003
Roll Call Number: 03-2906
Action: Insurance Agent/Broker Services Contract with Jester Insurance Services, Inc. effective March 1, 2004. (Council Communication No. 03-606
) Moved by Brooks to adopt. Motion Carried 7-0.BOARD/COMMISSION
ACTION(S): NONE