TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 3, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Mesirow Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Deferred Compensation Plan and Trust, in an amount not to exceed $9,134.00, and authorization for payment by direct voucher to Mesirow Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Retiree Health Care Trust (OPEB), in an amount not to exceed $6,691.00, Accounts 101-25000-612290 and P802-11000-798200 respectively, Requisition 1527541
Body
Dear Sir:
At the Board Meeting of December 21, 2017, in accordance with Contract 17-RFP-32, the Board of Commissioners awarded a purchase order to Mesirow Insurance Services, Inc. (Mesirow) to serve as the District's broker-of-record for the handling of fiduciary liability insurance and related services for a three-year period. In this capacity, Mesirow has responsibility for securing quotes from the insurance market for fiduciary liability insurance for the District. The current fiduciary insurance policy will expire on November 1, 2019.
On September 16, 2019, the District received certain bid quotations/market responses which Mesirow had solicited pursuant to the Detailed Specifications for fiduciary liability insurance for both the Deferred Compensation Plan and Trust and the Retiree Health Care Trust (OPEB) for a one-year period from November 1, 2019 through November 1, 2020. An annual aggregate liability limit of $5,000,000.00, subject to a self-insured retention of $10,000.00 per claim, was requested.
For the 2019 placement, six insurance carriers were approached. Two carriers provided quotations at the limits and retention level requested. Four carriers declined to offer a quotation.
It was determined that optimal program design, coverage and pricing for fiduciary liability coverage was offered by Great American Insurance Company, at the rate of $9,134.00 for the Deferred Compensation Plan and Trust and $6,691.00 for OPEB, for a combined policy premium of $15,825.00 which is a 2.1% increase over the prior year’s premium. This placement will provide an annual aggregate liability limit of $5,000,000.00, subject to a self-insured retention of $10,000.00 per claim.
The quotations/market responses were evaluated by Mesirow, the Risk Manager, and a representative from the Procurement and Materials Management Department. Based on their collective review, it is recommended that the District should place this coverage with Great American Insurance Company. The company is licensed to do business in Illinois, complied with the terms and conditions of the bid specifications, and has an A.M. Best Company rating of A+ (Superior), XV ($2.0 Billion or greater).
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Mesirow Insurance Services, Inc., in an amount not to exceed $9,134.00, for the Deferred Compensation Plan and Trust and authorize payment by direct voucher to Mesirow Insurance Services, Inc., for furnishing fiduciary liability insurance for the Retiree Health Care Trust (OPEB), in an amount not to exceed $6,691.00.
Funds are available in Accounts 101-25000-612290 and P802-11000-798200 respectively.
Requested, Beverly Sanders, Director of Human Resources, BKS:RAJ
Requested, Mary Ann Boyle, Treasurer
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 3, 2019