HomeMy WebLinkAbout2010-01-12 - AGENDA REPORTS - AWARD CONTR ARTHUR J GALLAGHER (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by
January 12, 2010
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Christina Clark
AWARD CONTRACT TO ARTHUR J. GALLAGHER FOR
INSURANCE BROKER SERVICES
Administrative Services
RECOMMENDED ACTION
City Council authorize the City Manager to enter into a professional services agreement with
Arthur J. Gallagher, for insurance brokerage services for the City of Santa Clarita, not to exceed
a total of $200,000 over a three-year period, contingent upon the appropriation of funds by the
City Council, and authorize the City Manager or designee to execute all documents subject to
City Attorney approval.
BACKGROUND
Prudent government practice dictates that a periodic review of ongoing services and programs is
a sensible course of action from a fiscal and fairness perspective. Therefore, City staff solicited
Requests for Proposals (RFP's) from regional and local insurance brokers. The purpose for
renewing this contractual agreement is to secure a brokerage firm with the experience necessary
to successfully provide large multi -faceted municipal organizations with insurance brokerage and
risk management services, at the best price available.
Proposals were received from VINSA Insurance Associates (current broker), Wells Fargo
Insurance Services, and Arthur J, Gallagher. The proposals were reviewed by an internal review
panel, which included members from Risk Management, the City Attorney's Office, Purchasing,
and the Administrative Services Management Analyst. The proposals were evaluated based on
company resources, the organization and personnel, scope of work, and client references.
Following review of the proposals, the panel interviewed all three re§pondents.
Following the interviews, the panel selected Arthur J. Gallagher as the recommended finalist.
Risk Management verified Arthur J. Gallagher's references, the City and County of San
Francisco, City of Vernon, and the California Joint Powers Authority (CJPIA). Each reference
conveyed they have an excellent partnership with Arthur J. Gallagher and highly recommended
the firm.
On November 20, 2009, a final interview of Arthur J. Gallagher was conducted with Darren
Hernandez, Deputy City Manager; City Attorney, Brian Pierik; and Christina Clark, Risk
Administrator. Arthur J. Gallagher was impressive, and the experience they can provide to the
City appears to be very beneficial. It is anticipated they will be able to provide the City with
broad and comprehensive evaluations of current coverages, along with recommendations for
improvement.
It is our belief that Arthur J. Gallagher will put in place insurance coverages that will prove to be
to the utmost benefit to the City, and therefore is recommended to be the provider of insurance
brokerage services for the City.
ALTERNATIVE ACTIONS
Other action as identified by the City Council.
FISCAL IMPACT
There is no additional anticipated fiscal impact for fiscal year 2010-2011 budget by the selection
of Arthur J. Gallagher as the insurance broker for the City of Santa Clarita.
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