DEPARTMENT: Pre-K 4 SA
DEPARTMENT HEAD: Kathy Bruck, CEO
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Insurance Broker of Record for Pre-K 4 SA
SUMMARY:
This requests Board approval of a contract for Insurance Broker of Record Services for the San Antonio Early Childhood Education Municipal Development Corporation with McGriff, Seibels and Williams of Texas, Inc for an annual cost of $27,500.00 and a total cost of $165,000.00. The initial term of this contract is two years beginning October 1, 2015 through September 30, 2017 with four, one-year options to renew.
BACKGROUND INFORMATION:
Pre-K 4 SA solicits professional services from an Insurance Broker of Record vendor to advise the Corporation concerning its comprehensive risk management strategy, continuing evaluation of the Corporation’s efforts to minimize necessary risks, and to maximize transfer of risks where possible. As the Broker of Record for Pre-K 4 SA, McGriff, Seibels and Williams of Texas, Inc. assumes professional responsibility for marketing of Pre-K 4 SA insurance requirements to qualified insurance carriers, placement of insurance coverage for the Corporation on terms and at costs favorable to the Corporation, and representation of the City’s interests when conflicts with insurance carriers develop.
In April 2013, the City of San Antonio on behalf of Pre-K 4 SA entered into the current contract for brokerage services with McGriff to last until March 31, 2014. During the November 4, 2014 Board meeting, Pre-K 4 SA assumed control of the contract and extended services through March 31, 2015. Additionally, the Board approved renewal through September 30, 2015 during the April 7, 2015 meeting.
Pre-K 4 SA staff developed the Request for Proposal with counsel from the Risk Management and Purchasing Divisions of the Department of Finance for Insurance Broker of Record which was issued April 23, 2015. A proposal from one firm was submitted within the published timeline and was evaluated with consideration of the criteria contained in the RFP.
ISSUE:
This recommendation is for a two-year contract for professional insurance consulting and brokerage services necessary for the Corporation to maintain its comprehensive risk management component that is essential for Education Centers. McGriff, Seibels and Williams of Texas, Inc. was selected through a competitive Request for Proposals, following City standards for similar RFPs. McGriff, Seibels and Williams of Texas, Inc. was the sole response submitted by the deadline on May 22, 2015. McGriff is the Corporation’s current Broker of Insurance and has met all expectations of providing representation that has met the Corporation’s best interest. This professional service agreement would service Pre-K 4 SA at an annual cost of $27,500.00.
ALTERNATIVES:
Pre-K 4 SA could attempt to market and place insurance coverage directly, and to assess and consider alternatives to its present program for risk transfer and management. This would require additional specialized and experienced personnel and associated staffing costs.
FISCAL IMPACT:
Funds are budgeted and available in the FY 2016 Pre-K 4 SA Operating Fund as approved by the Pre-K 4 SA Board of Directors. Future contract year funds are contingent upon approval of the annual operating budget by the Corporation’s Board of Directors.
RECOMMENDATION:
Pre-K 4 SA staff recommends execution of a contract for Insurance Broker of Record with McGriff, Seibels and Williams of Texas, Inc. for an annual cost of $27,500.00 and a total cost of $165,000.00. The initial term of the contract is for two years beginning October 1, 2015 through September 30, 2017 with four, one-year options to renew.
This contract is procured by means of Request for Proposals and the Discretionary Contracts Disclosure Form is attached.