Title
Approve and authorize the Contracts/Purchasing Officer to sign Renewal and Amendment No. 2 to professional services agreement with Marsh Risk and Insurance Services, effective July 1, 2014 through June 30, 2015, for workers' compensation and casualty insurance brokerage service, in an amount not to exceed $120,000 for a total compensation amount not to exceed $360,000.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Contracts/Purchasing Officer to sign Renewal and Amendment No. 2 to professional services agreement with Marsh Risk and Insurance Services, effective July 1, 2014 through June 30, 2015, for workers' compensation and casualty insurance brokerage service, in an amount not to exceed $120,000 for a total compensation amount not to exceed $360,000.
SUMMARY/DISCUSSION:
The County entered into an Agreement with Marsh Risk and Insurance Services on February 1, 2009, to provide workers' compensation and casualty insurance brokerage services after the issuance of a Request for Proposals in 2009. This most recent Agreement was approved July 1, 2012, with a termination date of June 30, 2013.
Renewal and Amendment No. 1 renewed the prior Agreement and increased the term of the agreement by one year, with a termination date of June 30, 2014. It also increased the amount of possible compensation to be paid by the County by $120,000 for a total amount not to exceed $240,000. The Renewal and Amendment also removed Exhibit A-Scope of Services/Payment Provisions and replaced it with Exhibit A-1 Scope of Services, which added language in Section 2 (i) relating to electronic delivery of documents and Section 7, which is a disclosure reflecting standard insurance wholesale practices.
Renewal and Amendment No. 2 will increase the term of the Agreement by one year, which will expire on June 30, 2015 and will also increase the amount of possible compensation to be paid by the County by $120,000 for a total amount not to exceed $360,000. Due to protracted negotiations between the parties and corporate legal reviewing, the proposed Amendment No. 2 was not ready for consideration prior to the last Board meeting in June 2014. There are no other changes to the existing Agreement as amended.
The Agreement with Marsh Risk and Insurance Services, as approved in 2012, is a non-standard agreement, inasmuch as the standard agreement template required changes to accurately reflect the nature of specialized professional services. Section 8 - Indemnification, language was changed to require indemnification and insurance appropriate for the professional brokerage services being rendered. Additional terms and conditions were also added as sections 15.18, 15.19, 15.20 and 15.21. These sections generally deal with clarifying dispute resolution and the nature of services being rendered.
OTHER AGENCY INVOLVEMENT:
The attached Renewal and Amendment No. 2 has been reviewed and approved by County Counsel as to legal form; the Auditor-Controller as to fiscal terms; and Risk Management for insurance and indemnity provisions.
FINANCING:
This contract will be paid from the General Liability (GL) - Internal Service Fund (ISF) and the Workers' Compensation (WC) - Internal Service Fund. The total cost of this contract shall not exceed $360,000 and the increased contract amount of the amendment has been included in the FY 2014-15 budgets, for budget unit 475-1210-COU003-8408 GL-ISF ($60,000/year); and budget unit 476-1210-COU004-8409 WC-ISF ($60,000/year).
By: ____________________________________________
Steve Mauck, Risk Manager, x.3006
Attachments:
Amendment No. 2 - Marsh Risk and Insurance Services