Select Committee on Insurance Relations - Property and Casualty — Charleston, WV
Date: 2021-07-15
Time: 17:00

CITY OF CHARLESTON
 West Virginia
 Council Member – 12th WARD
 Joseph Jenkins Finance Committee, Chair
 839 Gordon Drive Parking Committee, Chair
 Charleston, West Virginia 25303 Public Safety Committee
 304‐575‐9202
 joseph.jenkins@cityofcharleston.org


 AGENDA
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY
 July 15, 2021 5:00 PM
 To be held in person and over Zoom (audio only)
 AV ROOM #308, CITY HALL

*Join via internet: https://us02web.zoom.us/j/86561612439?pwd=NkRVU0NmRENaVk11dVFqN2krcW5yQT09
Passcode: 435150
*Join via Telephone: (312) 626‐6799 or (929) 436‐2866
Webinar ID: 865 6161 2439

__________________________________________________________________________________________


APPROVAL OF PREVIOUS MINUTES
  a. 7­1­2021


DISCUSSION
  To review and approve the Expression of Interest submitted by the City Manager.



JJ/ns


 *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com




 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

CITY OF CHARLESTON
 West Virginia
 Council Member – 12th WARD
 Joseph Jenkins Finance Committee, Chair
 839 Gordon Drive Parking Committee, Chair
 Charleston, West Virginia 25303 Public Safety Committee
 304‐575‐9202
 joseph.jenkins@cityofcharleston.org


 AGENDA
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY
 July 15, 2021 5:00 PM
 To be held in person and over Zoom (audio only)
 AV ROOM #308, CITY HALL

*Join via internet: https://us02web.zoom.us/j/86561612439?pwd=NkRVU0NmRENaVk11dVFqN2krcW5yQT09
Passcode: 435150
*Join via Telephone: (312) 626‐6799 or (929) 436‐2866
Webinar ID: 865 6161 2439

__________________________________________________________________________________________


APPROVAL OF PREVIOUS MINUTES
  a. 7­1­2021


DISCUSSION
  To review and approve the Expression of Interest submitted by the City Manager.



JJ/ns


 *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com




 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

 Page | 1 of
 MINUTES
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY

THE MEETING WAS HELD IN THE AV ROOM AND WAS MADE AVAILABLE TO THE PUBLIC VIA ZOOM
 PER THE AGENDA.

 5:30 P. M., JULY 1, 2021


Joseph Jenkins, Chairperson, called the meeting of the Select Committee on Insurance
Agent Relations – Property and Casualty to order at 5:30p.m., July 1, 2021.

Committee Members Present:
Joseph Jenkins, Chair
Shannon Snodgrass (over Zoom)
Bobby Reishman (left at approximately 6:35 pm, after all votes)
Mary Beth Hoover (over Zoom)
Adam Knauff

Members Absent:
Will Laird
Jennifer Pharr


Other Councilmembers Present:
None




A roll call was taken, and it was determined that a quorum was present.




 July 1, 2021

 Page | 2 of
 1. Approval of Previous Minutes –

Councilmember Reishman asked for unanimous consent to dispense with the reading of
the minutes for the January 28, 2021 meeting and that they be approved as distributed.
There were no objections, and the minutes were approved.



 2. Discussion –

Councilmember Jenkins stated that the meeting will be an open discussion about what
steps the Committee should take going forward. At the last meeting, they discussed
getting a consultant (or someone very familiar with the industry) to speak to the
Committee. Some people he had spoken to were not appropriate as they might want to
submit proposals or were not presently available. They also discussed researching what
other cities had done. Councilmember Jenkins added that it does appear to be a fairly
common practice for cities to put out RFP for insurance brokers. He found an RFP from
Petersburg, Virginia to be of note (also Eerie, Pennsylvania). Councilmember Jenkins
asked the Committee what specific steps they wanted to take going forward.

Councilmember Snodgrass added that her research led her believe that the best
process would be to put out an RFP, select 3 or so brokers via interview and scoring
and give them all the detailed information they would need to come back with quotes.
Councilmember Reishman agreed, and added that they need an overall package to
know what the insurance will cost the City. Councilmember Reishman added that he
wanted to make sure the brokers were very clear on what they need to bid.
Councilmember Snodgrass added that different brokers might have new ideas to
present to the Committee.

Referencing the packet listing the City’s current insurance coverage, Councilmember
Jenkins added that workers comp and cyber security might also be included. City
Manager, Jonathan Storage, agreed with Councilmember Snodgrass’ approach in
general. He added that making a short list of candidates is a common practice within the
City. The short list of brokers with the right work history will then compete by going into
the marketplace, and the City will be able to compare their quotes. He added that
insurance policies are good for one year, and he recommended a multi-year contract
once a broker was chosen. Councilmember Snodgrass agreed that a 3-year contract
with an out-clause would be best. Additionally, the RFP should ensure that a broker is
able to represent the various policies that the City needs. Councilmember Knauff
agreed.

Councilmember Reishman added that they should also consider the track record of the
broker. Councilmember Snodgrass added that the brokers will likely be going to roughly
the same companies, so it will probably come down to which broker can offer the better
deal. Councilmember Reishman and Storage added that certain brokers can have
exclusive relationships with insurance carriers. Councilmember Jenkins stated that



 July 1, 2021

 Page | 3 of
could be considered in their evaluations (such as if a broker has relationships with 5 big
companies versus 1). Councilmember Hoover added that it only seems like a small
number of agencies are willing to take on municipalities.

Councilmember Jenkins suggested that they reach out to the various national groups for
known entities that work with municipalities to send out the RFP. Councilmembers
Jenkins and Reishman liked the idea of sending out an Expression of Interest before the
RFP. Councilmember Snodgrass suggested targeting brokers who represent similar
municipalities. Councilmember Knauff asked if they, as Committee members, could
independently reach out to various potential brokers during the first phase. Storage
replied that. Storage recommended that, once the Committee agrees on a draft, that
they treat is as a regular purchase in that his office would publish, send emails to the
major entities and the League of Cities and field questions. This is to ensure that
Councilmembers are not bombarded with questions, and to ensure that all interested
parties get the same and equal information. Storage added that the EOI would contain a
schedule of events with a time period to submit written questions that the other
respondents could have access to. However, Committee members can send links to
potential brokers or send them directly to the City Manager’s Office.

Storage advised that proposals in the second phase might not be apples-to-apples
comparisons, as brokers may suggest that the City does not need total loss protection
on a particular building, etc. Additionally, the timing on quotes will be crucial. For
example, it would likely be too difficult for a broker to get accurate quotes for March
2022 too far out. Councilmember Jenkins added that once the short-list is chosen, it will
take time anyway for them to gather and process of all the data necessary.

Councilmember Reishman stated that they needed to get bids on what the City already
has, not necessarily recommendations on what to change. Councilmember Jenkins
added that it would be important to look at minimum levels and what the deductible and
self-insured is. Perhaps they will decide that it would be better to be less self-insured.
The EOI should state the City is open to potential changes. Those decisions can be
further narrowed once they have a base-line comparison. Councilmember Reishman
agreed. Councilmember Snodgrass agreed with the minimum levels, and added that
they should also look at creative packaging and entertain other products to possibly get
better quality coverage at less cost.

Councilmember Jenkins added that the wording will be important, particularly
concerning the listed minimum insurance. Councilmember Reishman added that they
did not have to choose the cheapest option, but they would need a baseline comparison
to be able to narrow down the candidates. Councilmember Jenkins added that it would
be beneficial to use a wholistic approach in terms of what levels of insurance they would
need to protect buildings, etc. rather than straight dollars. Councilmember Snodgrass
added that another factor would be qualified immunity. Councilmember Jenkins added
that the purpose of insurance is to protect from catastrophic loss, so they will need to
determine what levels they feel comfortable with keeping/changing.




 July 1, 2021

 Page | 4 of
Councilmember Jenkins stated that the EOI should be written by the City Manager, and
the Committee can review it and give feedback, ideally within the next week. This would
give the Committee time to review it individually before their next meeting in 2 weeks.
Storage added that the most difficult thing in an EOI is to explain what is needed to get
to the next round. The scoring system will be key to this. Storage asked if they wanted
an emphasis on local vendors. Councilmember Jenkins stated that he would prefer a
preference on vendors that have concrete experience with similar municipalities.
Councilmembers Snodgrass and Knauff agreed. Storage added that it was very
important that their ultimate decision/recommendation could be justified. He agreed that
the ultimate goal is the get the best value (not necessarily the cheapest), and putting
value on geography only is not that helpful. Councilmember Snodgrass added that she
had been told that they will be shocked at the level of interest they will receive, which is
why it is important to be open and transparent during the process. Councilmember
Reishman added that the current company AssuredPartners has done a great job over
their many years with the City. While it may not have been done in this manner, it has
been looked at before.

Councilmember Snodgrass motioned that the City Manager will send a draft of the EOI
to the Committee by July 13, 2021, which will be discussed at the next meeting on July
15, 2021. Councilmember Reishman seconded. With no objections, the motion was
approved.

Councilmember Jenkins stated that at the next meeting they will work on a timeline for
the EOI, likely 30 days. Storage agreed that a minimum of 30 days is appropriate.
Storage added that the second phase would be to identify the 3 or so firms that they
would choose to present their best quotes based on an RFP written by the City
Manager and approved by the Committee.

Councilmember Snodgrass motioned that the City Manager will present to the
Committee an outline for phase 2 at the next meeting, July 15, 2021. Councilmember
Jenkins added that would be included in the EOI. Councilmember Snodgrass withdrew
the motion.

Councilmembers Reishman and Knauff asked how long it would take the eventual
chosen broker to get set up. Councilmember Jenkins replied that he was agreeable to
defer to the City Manager for that, but he imagined that the EOI would be available for
30-60 days, the Committee would create a short-list within 30 days and then an
additional 3-4 months for those responses.

Storage added that they should keep in mind that in addition to the brokerage services,
the City also has a TPA service, who manage the claims. Some insurance carriers
might not approve the current TPA, so they need to be prepared to potentially have to
choose a new TPA. Councilmember Jenkins stated that should be a factor during the
later stages of the process.

Councilmember Jenkins asked what parts of the process should go to full Council. He



 July 1, 2021

 Page | 5 of
viewed the Committee as Councilmembers getting the opportunity to work closely with
the Administration for something that could have been done without their input. Storage
added that it takes such a monumental amount of work and preparation to choose a
broker, that by the time the recommendation goes to Council, if Council doesn’t agree,
there isn’t time to make another choice. He added that this is such an important
purchase, that having Councilmember participation during the committee process is
important because it helps to sell the final decision to other Councilmembers since the
decision wasn’t just from one person.

Councilmember Snodgrass suggested that the Committee select one final broker to
present to Council to either approve or not. Councilmember Knauff agreed that they
should at least select the first round of brokers, and give their recommendation for the
final broker. Councilmember Jenkins added that he thought they should pick the brokers
from the EOI responses that are the best fit to submit proposals. The Committee should
then choose a broker from those responses to present to Finance and full Council via
resolution. Councilmember Snodgrass agreed, adding that to give full Council a choice
of three brokers would be a disservice since they would not have done all of the
research that the Committee will have done.




Councilmember Knauff motioned to adjourn the meeting.
Meeting adjourned.



 July 1, 2021

 Page | 6 of

MINUTES
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY

THE MEETING WAS HELD IN THE AV ROOM AND WAS ALSO MADE AVAILABLE TO THE PUBLIC VIA
 ZOOM PER THE AGENDA.

 5:00 P. M., JULY 15, 2021


Joseph Jenkins, Chairperson, called the meeting of the Select Committee on Insurance
Agent Relations – Property and Casualty to order at 5:00p.m., July 15, 2021.

Committee Members Present:
Joseph Jenkins, Chair
Bobby Reishman (over Zoom)
Jennifer Pharr
Shannon Snodgrass (over Zoom)

Members Absent:
Will Laird
Adam Knauff
Mary Beth Hoover




A roll call was taken, and it was determined that a quorum was present.


 July 15, 2021
 1. Approval of Previous Minutes –

Councilmember Reishman asked for unanimous consent to dispense with the reading of
the minutes for the July 1, 2021 meeting and that they be approved as distributed.
There were no objections, and the minutes were approved.



 2. Discussion to review and approve the Expression of Interest submitted by the
 City Manager –

Councilmember Jenkins stated that the submitted EOI was what he had envisioned.

City Manager, Jonathan Storage stated that he drafted an EIO that was as
comprehensive as possible to show interested parties exactly what would be expected if
they were chosen. It also points out that there will be multiple stages to the
arrangement. The first round will be respondents showing that they are qualified to meet
the needs of the City, and will not be scored. The Committee will then choose a number
to interview, which will be scored. That evaluation criteria is listed in the EOI. Then, the
top 3 or so will be invited to bring back their best proposals (which will be scored) to the
Committee for its final decision. Storage noted that the pricing structure is listed as a
fixed fee (as opposed to commission), in order to best prepare the municipal budget and
take away incentives to up sale.

Councilmember Jenkins confirmed that the short list will then be narrowed to 5 or 3
candidates. He asked if there will be concerns that they will not be able to give the
Committee costs at that point. Storage replied they could choose to take that into
consideration. Since it will be a fixed fee, they would be asking them to quote their
entire field of services so it would be like a consulting fee that should not be tied to
relationships that they have in the insurance market. Storage added that he tried to
account for that in the scoring system, with a higher weight for best insurance package.
Councilmember Jenkins agreed with this when they evaluate the final round, but had
concerns regarding the short list. Councilmember Snodgrass agreed as well considering
the broker would not yet know the full details, and suggested leaving that out of the
short list.

Councilmember Reishman was concerned as the cost could be a significant factor.
Councilmember Snodgrass added that they will not be able to know that until the final
round. Councilmember Jenkins clarified that once the final 3 are selected, there will be
different evaluation criteria. At this point, cost is difficult to compare. Councilmember
Jenkins suggested that the cost scoring be reduced to 10 or 15. Storage added that the
Exhibit does provide a lot of detail, but he would be fine to remove it during the short list
phase. Councilmember Pharr asked if that would affect the schedule of events. Storage
replied that the schedule itself would not be altered. However, it would alter the scoring
criteria. All of that would be due in February, which would give the Committee a month
for review in order to bring their final decision to full Council in March.



 July 15, 2021
Councilmember Snodgrass added that the EOI looked great. She would like to have it
specify that the letters of reference come from current clients, perhaps municipalities.
Councilmember Jenkins suggested that they could change it to require 3 current
references, one of which is a municipality. The Committee agreed to remove the cost
factor from the short list and do 55/45. Councilmember Jenkins asked if they wanted to
raise the final number to 3 in case the Committee really liked more than 3. Storage
added that it would be very difficult on the administration side to send out all of that data
separately. He added that it is not a burden to have more interview candidates.
Councilmember Snodgrass suggested 6.

Councilmember Reishman motioned to approve the amendments offered by the
Committee. Councilmember Snodgrass seconded.
  Amend Section 3.1 to read “firms must submit 3 current client references, one of
 which must be a municipality.”
  Amend the first paragraph of Section 4.1 to read “no more than six firms.”
  Amend Section 4.2 to eliminate cost from the short list of evaluation criteria, and
 to increase the implementation services/experience qualifications criteria to 55/45
 points.
With the members being present having voted unanimously as affirmative, the Chair
declared the amendments approved.

Councilmember Pharr motioned to approve the Expression of Interest as Amended.
Councilmember Reishman seconded. With the members being present having voted
unanimously as affirmative, the Chair declared the Expression of Interest as Amended
approved.


Councilmember Jenkins thanked Storage and Finance Director, Andy Wood.
Councilmember Snodgrass asked if Storage was going to reach out to the brokers who
represent similar municipalities. Storage replied that they will be on the mailing list.
Additionally, they will publish the EOI on the City’s website, trade publications and
national publications (New York Times, Washington Post, etc.).

The Committee decided they would not be a need to meet until they are ready to create
a short list.




Councilmember Reishman motioned to adjourn the meeting.
Meeting adjourned.


 July 15, 2021