REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
July 14, 2020
FROM
LEANNA WILLIAMS, Director, Department of Risk Management
SUBJECT
Title
Amendment to Contracts with Insurance Brokers for County Insurance Programs
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to the following insurance broker firm contracts to extend the term by one year, for the new term of December 11, 2017 through December 10, 2021, for the continued provision of insurance brokerage services to the County insurance programs, with all other terms and conditions remaining the same.
1. Alliant Insurance Services, Inc. (Agreement No. 17-900 A1)
2. Arthur J. Gallagher & Co. Insurance Brokers of California (Agreement No. 17-901 A1)
3. James + Gable Insurance Brokers, Inc. (Agreement No 17-902 A1)
4. Willis Towers Watson Insurance Services West, Inc. formerly known as Willis Insurance Services of California, Inc. (Agreement No. 17-903 A1)
(Presenter: LeAnna Williams, Director, 386-8621)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost) as these services will be paid from various Department of Risk Management (DRM) self-insurance funds, which are funded by user departments via annual Board-approved rates. Sufficient appropriation is included in the DRM’s 2021-21 budget.
BACKGROUND INFORMATION
The DRM administers the County’s self-insurance programs for public liability and workers’ compensation claims, as well as other various insurance programs. The DRM procures excess insurance policies to provide additional protection for the County by transferring risk at the upper limits of the programs. The insurance brokers are responsible for marketing and placing new and existing insurance programs for the County, conducting analysis of current insurance programs to identify coverage overlaps and/or deficiencies, and evaluating insurance cost to self-insurance retention ratio to recommend increasing or decreasing self-insurance retentions and/or coverage limits. Additionally, the brokers may provide access to tools and resources that are used exclusively by the insurance industry.
Approval of recommended Amendment No. 1 to the above-listed contracts will exercise the first option to extend the contract term, for a period of one year, allowing the contracted firms to provide uninterrupted insurance brokerage services to the County, under the same contract terms and conditions.
PROCUREMENT
On December 5, 2017 (Item No. 55), as a result of a competitive procurement process, ePro Bid No. RMG118-RMADM-2598, the Board of Supervisors approved contracts with four insurance brokerage firms, with an estimated aggregate cost of $3.0 million for a three year period of December 17, 2017 through December 16, 2020, with two one-year options to extend the contract terms.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Teresa McGowan, Principal Assistant County Counsel, 387-5283) on June 16, 2020; Purchasing Department (Bruce Cole, Supervising Buyer, 387-2148) on June 18, 2020; Finance (Joon Cho, Administrative Analyst, 387-5402) on June 22, 2020; and County Finance and Administration (Kelly Welty, Deputy Executive Officer, 387-4376) on June 22, 2020.