REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Negotiate and Execute an Agreement with Alliant Insurance Services Inc. to Provide Insurance Broker and Related Services for a Total Not to Exceed Compensation of $766,100
Report
BACKGROUND
Alliant Insurance Services (Alliant) has provided insurance broker and related services to the City for more than 20 years without a service agreement. During this time, Alliant has been compensated through a retail commission arrangement where Alliant retains a percentage of the gross premiums billed to the City, the percentage varying based on Alliant's arrangement with individual insurers.
Upon review of the current condition, the City's current Risk Manager identified two priorities: a) entering into a two year service agreement with Alliant to memorialize business and legal terms and conditions including a scope of work and compensation schedule, and b) initiating a Request for Proposals (RFP) process to competitively solicit the market and transition to a new firm if a different vendor is selected through the competitive process.
DISCUSSION
Staff requests City Council approval of a two-year agreement with Alliant effective July 1, 2026. Under the agreement, Alliant will continue to provide insurance broker, account management, administration, insurance placement and renewal, claims, and property appraisal services.
For the first year of the term, staff has negotiated a fixed fee of $370,000 for insurance broker services on insurance programs except for those obtained through the Public Risk Innovation, Solutions, and Management (PRISM) risk pool. PRISM utilizes Alliant for insurance broker services and allocates all costs of its programs, including administrative costs, to participating members. City Code Section 2.105.270(b) indicates that the City, through the City Manager and/or the Purchasing Division Manager, may contract with a vendor based on an agreement negotiated by a joint pow...
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