TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Exercise Contract Option with Alliant Insurance Services
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise Option 1 (Year 4) to extend the District's contract with Alliant Insurance Services for the period beginning February 10, 2022 through February 9, 2023, for Insurance Broker Services.
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 providers, working in the best interest of the District 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 insurance, risk management, and contractual insurance provisions.
BUDGETARY/FISCAL IMPACT:
The cost of Option 1 (Year 4) is $84,000, set by the contract terms, and is included in the operating budget.
BACKGROUND/RATIONALE:
The District currently manages its risk through a program of self-insured retentions, planned 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; and Travel Accident coverages. The District contracts with licensed commercial insurance brokers to solicit and build insurance program options for review and approval by the Board.
The District's current Insurance Broker Services Contract No. 2018-1445 will expire on February 9, 2022. The contract term is for a three-year base period with three (3) one (1) year priced options.
Alliant's Option 1 (Year 4) contract extension represents only a 5 percent increase o...
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