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Water & Wastewater Commission Review and Recommendation Government That Works For All COA Strategic Direction: March 11, 2020 Commission Meeting Date: Council Meeting Date: Department: Purchasing April 9, 2020 Client: Christina Romero, David Anders Agenda Item Recommend approval to amend an existing contract with Liberty Mutual Insurance Company D/B/A Liberty Mutual Insurance, for the continued payment of insurance premiums to the Rolling Owner Controlled Insurance Program VII, for an increase in the amount of $3,128,579, for a revised contract amount not to exceed $8,400,064. Austin Water’s requested authorization is $1,203,555. Amount and Source of Funding Funding is available in the Fiscal Year 2019-2020 Capital Budget of Austin Water. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Contract Amendment June 22, 2017 – Council approved the original contract and reallocation of funds from Marsh USA to Liberty Mutual Insurance Company, item 28, on a 10-0 vote with Council Member Troxclair absent. March 11, 2020 – To be reviewed by the Water and Wastewater Commission. reviewed for subcontracting opportunities This contract was in accordance with City Code Chapter 2-9C Minority Owned and Women Owned Business Enterprise Procurement Program. For the services required for this contract, there were no subcontracting opportunities; therefore, no subcontracting goals were established. Prior Council Action: Boards and Commission Action: MBE/WBE:  Under the Rolling Owner Controlled Insurance Program (ROCIP), the City obtains insurance coverage instead of requiring individual contractors to provide their own. This structure establishes improved contractor equity, removes insurance barriers that can impact small and minority contractors, assures broad and uniform insurance protection is in place for the City, and provides construction cost reductions through the volume purchasing of insurance coverage. The City implemented the first ROCIP program in 1992 and ROCIP VII is a continuation of the City’s efforts to achieve these goals. This contract allows for payment of the actual insurance premiums for the ROCIP VII to the selected insurance carrier. Council approved the ROCIP VII on February 16, 2017 with an anticipated $400 million in construction values and 27 projects as initial candidates for inclusion in the program. The City has now identified an additional 13 projects with total construction values of $246 million for inclusion in the program. This proposed amendment will allow for payment of the increased insurance premiums for these additional projects to be included in the program to then cover a revised total of $646 million in anticipated construction values. This proposed amendment will allow the City to take advantage of the favorable insurance rates that were negotiated during the 2017 soft insurance market while also maintaining broad and uniform coverage terms and conditions negotiated and purchased in 2017.