TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 3, 2024
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue purchase order to Alliant Insurance Services, Inc. for Furnishing Fiduciary Liability Insurance for the Deferred Compensation Plan and Trust, in an amount not to exceed $8,961.00, 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 $7,539.00, Accounts 101-25000-612290 and P802-11000-798200 respectively, Requisition 1624317
Body
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 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. (Mesirow), 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. 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, 2024.
On August 30, 2024, the District received certain quotes and market responses which Alliant 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, 2024 through November 1, 2025. 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 2024 placement, seven insurance carriers were approached. Two 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 place this coverage with Great American Insurance Company at the cost of $8,961.00 for the Deferred Compensation Plan and Trust and $7,539.00 for the Retiree Health Care Trust (OPEB), for a combined policy premium of $16,500.00. This is a $1,500.00 (8.33%) 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 $8,961.00, for the Deferred Compensation Plan and Trust 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 $7,539.00.
Funds are available in Accounts 101-25000-612290 and P802-11000-798200 respectively.
Requested, Thaddeus J. Kosowski, Director of Human Resources, TJK: BLW
Requested, Stephen J. Lux, Treasurer
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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, 2024
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