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File #: 24-6549    Name: AUTHORIZATION TO CONTINUE UTILIZING A CONTRACT FOR INSURANCE BROKERAGE SERVICES
Type: Purchasing/Contract
Body: Village Council
Agenda Date: 6/11/2024 Final action:
Title: ITEM: AUTHORIZATION TO CONTINUE UTILIZING A CONTRACT FOR INSURANCE BROKERAGE SERVICES REQUEST: Authorization to continue utilizing The Gehring Group, Inc., a division of RSC Insurance Brokerage, Inc. and to enter into a new agreement with RSC Insurance Brokerage, Inc. to provide insurance brokerage services, at an annual cost of approximately $283,867 based on current annual premiums.
Attachments: 1. 1. Exhibit A, 2. 2. Broker Services Agreement - FINAL - signed by RSC
Date Action ByActionResultVoteMeeting DetailsVideo
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ITEM:                     AUTHORIZATION TO CONTINUE UTILIZING A CONTRACT FOR INSURANCE BROKERAGE SERVICES

 

REQUEST:                     Authorization to continue utilizing The Gehring Group, Inc., a division of RSC Insurance Brokerage, Inc. and to enter into a new agreement with RSC Insurance Brokerage, Inc. to provide insurance brokerage services, at an annual cost of approximately $283,867 based on current annual premiums.

 

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EXPLANATION:                     The Village uses broker services for employee benefits and risk management consulting services on an as needed basis. 

 

The current broker contract will expire on July 31, 2024.  Pursuant to the Village’s Purchasing Manual, insurance brokerage services are  exempt from competition.  

 

Staff is seeking authorization to continue utilizing The Gehring Group, Inc., a division of RSC Insurance Brokerage, Inc., and to enter into a new agreement with RSC Insurance Brokerage, Inc. to provide insurance brokerage services at an annual cost of approximately $283,867 based on current annual premiums, see Exhibit A. 

 

Services provided by RSC Insurance Brokerage, Inc. include, and are not limited to:

 

                     Recurring Program Review and Monitoring

Ø                     Program design

Ø                     Funding mechanism

Ø                     Administrative provisions

Ø                     Claims/Loss experience

                     Legislative Compliance

                     Dedicated Personnel

                     Request for proposals

                     Renewal negotiations

                     Contract negotiations

                     Wellness services

                     Safety and Loss control services

                     Online benefits administration and enrollment system (Bentek)

                     Audit support

                     Employee education and training

 

The initial term of the contract is for five (5) years beginning on August 1, 2024, and includes a provision for five (5) additional one (1) year renewal options.  RSC Insurance Brokerage, Inc. has provided excellent insurance brokerage services to the Village since 2005.

 

Most recently, The Gehring Group, Inc., a division of RSC Insurance Brokerage, Inc.  helped the Village obtain a three-year rate commitment for property/casualty coverage starting in Fiscal Year 2023.  During FY 2024, many local governments were faced with 90% to 100% premium increases as the cost of construction and materials dramatically increased.  Meanwhile, thanks to the rate-commitment, the Village experienced a manageable increase based on new coverages.  Additionally, The Gehring Group Inc., a division of RSC Insurance Brokerage, Inc.  assisted the Village’s Utility successfully manage property/casualty coverage for their significant new construction, again as valuations have skyrocketed.   Also, The Gehring Group Inc., a division of RSC Insurance Brokerage, Inc. worked with the Village to obtain full reimbursement for $200,000+ for the recent electrical malfunction at the Utility Water Treatment Plant.   

 

BUDGET AMENDMENT REQUIRED:                     NO  

 

PUBLIC HEARING:                     NO                       QUASI-JUDICIAL:   

 

FIRST READING:                                            SECOND READING:   

 

LEGAL SUFFICIENCY:                     YES  

 

FISCAL IMPACT:                     Funds are allocated in the FY 2024 Risk Management Budget and overall Health Insurance Fringe Benefit Budget. 

 

WELLINGTON FUNDAMENTAL:                     Responsive Government 

 

RECOMMENDATION:                     Authorization to continue utilizing The Gehring Group Inc., a division of  RSC Insurance Brokerage, Inc. and to enter into a new agreement with RSC Insurance Brokerage, Inc. to provide insurance brokerage services, at an annual cost of approximately $283,867 based on current annual premiums.