TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Exercise Contract Option with Alliant Insurance Services
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise Option 3 (Year 6) to extend the District's contract with Alliant Insurance Services, for the period beginning February 10, 2024, through February 9, 2025, for the provision of Insurance Broker Services.
Staff Contact:
Jill A. Sprague, General Counsel/Chief Legal Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District's insurance broker serves as an exclusive intermediary between the District and commercial insurance carriers, working on behalf of the District, as its client, to place its Transit Operations Insurance Program with highly rated insurance providers at the best available premium rates. The District's insurance broker also provides impartial guidance, consulting, and services in the areas of risk management, commercial insurance, and contractual insurance provisions.
BUDGETARY/FISCAL IMPACT:
The cost of exercising Option 3 (Year 6) is $84,000, as set by the terms of the initial contract, and is included within the operating budget.
BACKGROUND/RATIONALE:
The District currently manages its risk exposures through a program of contractual risk transfer, self-insured retentions, policy deductibles, and insurance. The District's insurance coverage portfolio includes Automobile and General Excess Liability; Cyber Liability; Excess Workers Compensation; Commercial Property; Auto Physical Damage & Boiler Machinery; Fiduciary Liability; Commercial Crime; Deadly Weapons Response; and Travel Accident coverages.
The District contracts with licensed commercial insurance brokers with public entity and transit expertise, to market the District to insurance carriers and s...
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