SUBJECT/RECOMMENDATION:
Title
Approve a Client Services Agreement with Arthur J. Gallagher Risk Management Services, LLC to provide insurance brokerage services for the city’s Master Property Program and other insurance coverages as needed for an initial three-year term with one three-year renewal option pursuant to Clearwater Code of Ordinances Section 2.563(1)(c), piggyback, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Arthur J. Gallagher is a global insurance brokerage and risk management services firm and is the leading public sector broker in Florida serving over two hundred public sector clients including the 5 largest counties, 37 school districts, and 27 public state colleges. Additionally, Gallagher has provided brokerage services to the City since 2007 providing stability through staff changes, coverage needs, and hurricane seasons.
Authorization is requested to piggyback Pinellas County’s Agreement 23-0864 RFP, Insurance Broker Services 2024, valid through May 2, 2029, with one three-year renewal option, for brokerage services for the city’s Master Property Program (MPP) and other insurance coverages including the Equipment Breakdown, Excess Liability Package Policy, Excess Workers Compensation, Marina Operators Legal Liability / Hull, Crime / Public Officials Bonds, Pollution Liability / Storage Tanks, Terrorism, Cyber and Drones / Unmanned Aircraft. The annual flat fee is $195,000.00 and is subject to an annual inflation adjustment not to exceed 5%.
For other insurance policies not included in the flat fee, Gallagher’s commission rate will be capped at 7%. These policies include but are not limited to Builder’s Risk insurance (as needed), Fiduciary Liability Insurance, Marina Property Placement (docks and piers), and Bridge Placement. Policies for the MPP that are placed by domestic wholesale brokers will be capped at a maximum commission of 5%. Flood (NFIP) policies will be placed at the standard insurer commission rates. The commission amount will be disclosed in each proposal provided by Gallagher, as well as annually.
APPROPRIATION CODE AND AMOUNT:
The annual flat fee will be paid from the Central Insurance Fund cost code 5907590-530300, Other Contractual Services.
Where Gallagher is compensated by commissions received from insurance carriers, commissions are included in the premiums paid by the city for those insurance policies. Insurance premiums are paid from the Central Insurance Fund cost code 5907590-545100.
The Central Insurance Fund is an internal service fund of the City which accounts for all insurance related costs.
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
1.1 Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance.
