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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
David Pitcher, Claims and Insurance Manager |
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TITLE:
title
Contract: Insurance Broker Services and Premium Disbursements (Alliant Insurance Services, Inc.)
end
AGENDA ITEM TYPE:
Procurement Contract/Change Order
RECOMMENDATION:
Approve and authorize the Executive Director to execute the contract and associated disbursements with Alliant Insurance Services, Inc. This approval includes $349,750.00 for five years of insurance broker services and $18,487,495 for disbursement of premium payments which will pass-through Alliant to commercial insurance companies ($18,487,495 is the estimated premium amount over the five-years).
BACKGROUND:
In accordance with Board Policy 2.1 under Risk Management, the Authority is required to “maintain Public Officials Errors and Omissions insurance”, and the Executive Director “will, as necessary, procure other insurance to compensate for losses that would adversely affect the Authority.” To obtain the necessary commercial insurance coverage, UTA must use the services of a licensed Insurance Brokerage to access insurance markets and secure excess and aggregate insurance options for all needed areas of insurance for UTA. The Insurance Brokerage also provides invaluable expertise in the application of risk finance and risk transfer techniques to consult on exposures UTA currently has or which it may have in the future. This approval request is to contract Insurance Brokerage Service for the next five years. The cost of these services will be approximately $69,950 a year with a 3-year term and two 1-year options totaling to $349,750 for the 5 year service. Payments to the commercial insurance companies providing coverage to UTA are a pass-through payment through the Broker with estimated payments to be $18,487,495. Premium amounts are estimated based on past usage and evaluation of future needs and potential price increases. The Claims and Insurance Manager reports to the Board annually on each insurance renewal and will provide benchmarking at that time to the estimated insurance premium costs.
DISCUSSION:
UTA issued a request for proposals and evaluated the proposals received per procurement policies. Alliant was determined to provide the best value for these services.
CONTRACT SUMMARY:
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Contractor Name: |
Alliant Insurance Services, Inc |
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Contract Number: |
23-03774 |
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Base Contract Effective Dates: |
January 1, 2024 - December 31, 2026 plus two one year options |
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Extended Contract Dates: |
N/A |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$349,750 brokerage services, $18,487,495 pass-through premium payments for 5 years) |
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Procurement Method: |
RFP |
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Budget Authority: |
Operating Budget |
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ALTERNATIVES:
Without insurance brokerage services UTA would need to do an actuarial study of all its exposures and set reserves to self-insure all potential losses. Establishing and maintaining those reserves could be much more expensive and would restrict funds which might otherwise be used elsewhere. Also, UTA would be unable to meet the requirement of the Board policy requiring coverage for Public Officials Errors and Omissions.
FISCAL IMPACT:
The funds for this service are included in the Operating Budget
ATTACHMENTS:
Contract