Title
AUTHORIZATION TO ENTER INTO A CONTRACT WITH ARTHUR J. GALLAGHER RISK MANAGEMENT SERVICES LLC FOR INSURANCE
BROKERAGE SERVICES
SPECIFICATION P-23018
Body
To the Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that an order be entered authorizing the General Superintendent and CEO or
their designee to enter into a contract with Arthur J. Gallagher Risk Management Services LLC,
to provide the Chicago Park District with various insurance brokerage services. The contractor
was selected pursuant to a publicly advertised Request for Proposals. No work shall commence, and no payment shall be made prior to an execution of a written agreement.
II. Award Information
Contractor: Arthur J. Gallagher Risk Management Services LLC
Contract Type: Corporation
Contract Term: Three (3) year initial term with two (2) one-year extension options
extensions.
Authorized Amount: Not-to-Exceed $277, 500.00 for the initial term.
Scope of Services: To develop, market and place insurance coverage for property, casualty, professional liability, marine excess liability, marine operators’ legal liability (MOLL), Hull & Protection and Indemnity, Soldier Field and other coverages as determined from time to time by the Chicago Park District, including Actuarial Reports.
Affirmative Action Goals: The Minority and Women Owned Business Enterprise participation for this contract includes 25% Minority Owned and 5% Women Owned.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to attest to the signing of the Agreement and keep an original copy of the agreement on file.
III. Budget and Financial Information
Budget Classification: Operating
Fiscal Year: 2024
Source of Funds: 022.8280.8280.623150.00001.01.01.00001
IV. Procurement Information
This contract was publicly advertised as a Request for Proposals (“RFP”) on February 5th, 2024. Three (3) proposals were received on February 28th, 2024, and all proposals were found by the Department of Purchasing (“Purchasing”) to be compliant and responsive.
The Evaluation Committee (“EC”) was comprised of four (4) voting members, all CPD staff, and they began their evaluation of the proposals at their first meeting on March 12, 2024. They met again on March 20th, 2024 to discuss the proposals. The EC concluded their evaluation on April 17, 2024.
V. Explanation
Arthur J. Gallagher Risk Management Services LLC has significant specialized knowledge,
expertise, and experience in providing insurance brokerage services.
Arthur J. Gallagher Risk Management Services LLC responsibilities will include, but are not
limited to, developing, marketing and placing insurance coverage for property, casualty,
professional liability, marine excess liability, marine operators’ legal liability, Hull & Protection
and Indemnity, Soldier Field and other coverage as determined from time to time by the Chicago Park District. Services include:
1. Develop, market, and place insurance and risk financing program.
2. Assist the Chicago Park District in obtaining underwriting information and preparing
applications.
3. Assist the Chicago Park District in confirming the accuracy of all underwriting
information used by the Chicago Park District.
4. Administer all aspects of Chicago Park District relationships with insurers and act as an
intermediary between the Chicago Park District and the insurers.
5. Provide annual insurance schedules and updates as requested by the Park District.
6. Assist in the management of property insurance programs and general liability insurance
programs.
7. Annually report the following to the Chicago Park District:
a. The types and amounts of coverage in force.
b. The degree of achievement of Park District, Broker and agreed upon insurance
objectives.
c. A monthly summary of fees incurred by the Park District.
d. An analysis of market conditions, trends, forecasts, and developments within the
insurance industry.
e. The status of all records, policies, and certificates.
8. Issue insurance certificates at the request of the Chicago Park District.
9. Provide other services as requested by the Chicago Park District such as, policy analysis
& special events.
10. Assist the Chicago Park District in defining risk profiles and management policy.
The initial term of the agreement will be for (3) years at a cost to the Chicago Park District of
$92,500.00 per year to be paid annually.
Therefore, it is in the best interest of the Chicago Park District to recommend Arthur J. Gallagher Risk Management Services LLC for award of the contract for insurance brokerage services.
VI. General Conditions
1. Conflicts: No agreement authorized herein shall be legally binding on the Chicago Park
District if entered into in violation of the provisions of the Public Officer Prohibited Activities
Act, 50 ILCS 105/0.01 et seq
2. Ethics: The Chicago Park District’s Ethics Code, Chapter III of the Code of the Chicago Park
District, shall be incorporated into and made part of all agreements authorized herein.
3. Contingent Liability: Any agreement lawfully entered into for a period of more than one year
shall be executory only for the amounts for which the Park District may become liable in
succeeding fiscal years pursuant to Section 17(i) of the Chicago Park District Act, 70 ILCS
1505/17(i). All agreements authorized herein shall contain a clause that any expenditure beyond
the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4.Economic Disclosure Statement (“EDS”): Contractor has submitted a full and complete EDS
prior to execution of the contract.