Explanation
Background: In April, 2009 the Department of Finance and Management, Real Estate Management Office solicited Request for Proposals (RFP) No. SA003242 to identify qualified insurance brokers, insurance agencies, or insurance agents to provide insurance brokerage and risk engineering services for the City's three (3) insurance programs - property (casualty), boiler and machinery, and aviation. Based upon the evaluation of the bid responses, the City entered into an agreement with Arthur J. Gallagher Risk Management Services, Inc. for insurance brokerage and risk engineering services pursuant to Ordinance No. 0943-2009. The contract contained an initial one-year term and four one-year automatic renewals subject to appropriation of funding by City Council and certification of funds availability by the City Auditor. The contract is currently in its third renewal term as authorized by Ordinance No.1348-2012.
Since 2009, City operations have been expanded to include new services to the public that were not provided when the contract for insurance brokerage and risk engineering services was initiated. In order to best protect the interests of the City and to provide for prudent management of risk, it has been determined that a fourth program of insurance for commercial general liability should be added to the City's insurance coverage. The existing contract with Arthur Gallagher does not include requirements for the provision of this type of coverage. Therefore, in order for the City to obtain brokerage services for commercial general liability coverage, the current contract with Arthur J. Gallagher Risk Management Services, Inc. must be amended to include the City's requirements for the provision of services associated with this fourth program of insurance.
The Contract Compliance Number for Arthur J. Gallagher Risk Management Services, Inc. is 36-2102482 and the expiration date is 01/12/2014.
Fiscal Impact: The final cost of the commercial ge...
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