TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 2, 2025
COMMITTEE ON PROCUREMENT
Mr. John P. Murray, Acting Executive Director
Title
Issue purchase order to Alliant Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Deferred Compensation Plan and Trust, and the Metropolitan Water Reclamation District of Greater Chicago 401(a) Plan, in an amount not to exceed $8,183.00, and authorization for payment by direct voucher to Alliant Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Retiree Health Care Trust (OPEB), in an amount not to exceed $7,217.00, Accounts 101-25000-612290 and P802-11000-798200 respectively, Requisition 1645529
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Dear Sir:
Authorization is requested to issue a purchase order to Alliant Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Deferred Compensation Plan and Trust, and the Metropolitan Water Reclamation District of Greater Chicago 401(a) Plan, and authorization for payment by direct voucher to Alliant Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Retiree Health Care Trust (OPEB).
At the Board Meeting of December 1, 2022, in accordance with Contract 22-RFP-12, the Board of Commissioners awarded a purchase order to Mesirow Insurance Services, Inc., whose name was changed to Alliant Insurance Services, Inc. (Alliant) as of May 31, 2024, to serve as the District's broker-of-record for the handling of fiduciary liability insurance and related services for a three-year period. As allowed by Contract, the District elected to extend the term for an additional two years to expire on December 31, 2027. In this capacity, Alliant has responsibility for securing quotes from the insurance market for specified insurance policies including the current fiduciary liability insurance policy which will expire on November 1, 2025.
On September 17, 2025, the District received certain quotes and market responses which Alliant solicited pursuant to the detailed specifications for fiduciary liability insurance for the Deferred Compensation Plan and Trust, the 401(a) Plan, and the Retiree Health Care Trust (OPEB), for a one-year period from November 1, 2025 through November 1, 2026. 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 2025 placement, eight insurance carriers were approached. Three carriers provided quotes at the limits requested. Four carriers declined to quote, and one carrier did not provide a quote by the requested deadline.
The quotes were evaluated by Alliant, the Risk Manager, and the Senior Risk Analyst. It is recommended that the District purchase fiduciary liability insurance coverage from Great American Insurance Company, through Alliant, at the cost of $8,183.00 for the Deferred Compensation Plan and Trust, and the 401(a) Plan, and $7,217.00 for the Retiree Health Care Trust (OPEB), for a combined policy premium of $15,400.00. This is a $1,100.00 (6.67%) decrease 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 $7,500.00 per claim.
The Diversity Section has reviewed this contract and determined that Alliant Insurance Services, Inc., which serves as the District’s intermediary as required by the State of Illinois for the purchase of fiduciary liability insurance, and determined that it has met the requirements of Appendix A. The Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE) and/or Small Business Enterprises (SBE) goals are: 20% MBE, 10% WBE and 10% SBE.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order to Alliant Insurance Services, Inc., in an amount not to exceed $8,183.00, for the Deferred Compensation Plan and Trust, and the 401(a) Plan, and authorize payment by direct voucher to Alliant Insurance Services, Inc., for furnishing fiduciary liability insurance for the Retiree Health Care Trust (OPEB), in an amount not to exceed $7,217.00.
Funds are available in Accounts 101-25000-612290 and P802-11000-798200 respectively.
Requested, Thaddeus J. Kosowski, Director of Human Resources; and Steven J. Lux, Treasurer, TJK: BLW
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Precious Brady-Davis, Chairperson 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 2, 2025
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