Title
Extending Marsh Broker Contract an Additional Six Months to December 31, 2014 (NB)
Explanation
The City uses a competitive bid process to award our broker services contract. Typically, the City renews or awards this contract in September, which is the same time frame that the City’s insurance program is being marketed by the current broker. This makes transitioning to a new provider very difficult and puts our bid process in the middle of our insurance marketing efforts. Staff has been somewhat disappointed in the responses to our previous attempts to market this service. The City only received three proposals during the last attempt to market broker services. In an effort to increase competition, staff believes moving the process to January will allow more providers to prepare a response for the City to consider. Most public entities market their insurance programs during August and September which makes it difficult for vendors to devote time to a bid process which would conflict with their current client base.
Recently, our carriers scheduled a loss control visit to assess the relative risk of our high valued assets. This typically is part of the renewal process for the City’s property insurance program and the outcome of the recommendations and responses associated with the loss control visit are important to a successful marketing and pricing of the property insurance program. Of specific interest to the insurance markets are the City’s three power generation facilities. Marsh’s familiarity with the City’s operations and maintenance of those facilities has proven to be very beneficial in presenting a positive risk profile to the markets. It is staff’s belief that having this continuity will benefit the City of Gainesville and Gainesville Regional Utilities during both the loss control and placement processes.
Marsh USA, Inc. has agreed to continue to provide the service on a six month basis until the selection process has completed. Marsh U...
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