INTRODUCTION
Pierce Transit is seeking a Broker of Record to represent the Agency in the marketing of property and casualty insurance, employee benefits, and to provide risk management services in selected areas at the direction of Pierce Transit staff. The contract will be for three (3) years with two (2) option years. This invitation is not an authorization to approach the insurance marketplace on behalf of Pierce Transit. Prospective brokers failing to comply with this condition will be subject to immediate disqualification.

THE AGENCY
Pierce Transit is a municipal corporation organized under RCW 36-57A Public Transportation Benefit Areas. The Agency’s administrative offices are located at 3701 96th Street SW, Lakewood, Washington 98499.

SCOPE OF WORK
The Broker of Record will be responsible for:

1. Reviewing and evaluating Pierce Transit’s exposure to risk.

2. Approaching the insurance marketplace for the purpose of placement of insurance coverage in the best interests of Pierce Transit.

3. Prepare annual marketing strategy reports identifying anticipated market conditions and proposing a marketing strategy for Pierce Transit’s major loss exposure areas prior to policy renewal.

4. Assist in developing underwriting data and specifications for renewal negotiations.

5. Provide trended values for property insurance policies.

6. With the participation of the Risk Manager, obtain bids from the insurance industry and negotiate the best terms and coverage for the various exposure areas.

7. Evaluate the commitment and financial stability of the underwriters.

8. Service existing insurance policies by tendering losses, reviewing coverage issues, assisting in collection of losses, reporting values, issuing Certificates of Insurance as needed, processing policy changes, etc., in a timely manner.

9. Schedule quarterly meetings with the Risk Manager to discuss loss control issues, exposure changes, and general administrative matters.

10. Meet periodically with the Vice President of Human Resources and Labor Relations or designee to discuss benefits administration quality issues; assist in resolving problems. Attend monthly meetings to review insurance service delivery and cost issues.

11. Provide monthly cost reports for health and dental claims including fixed costs, gross premiums and paid claims, pooling charges and IBNR reserve.

12. With the participation of the Vice President, Human Resources and Labor Relations and the Benefits and Compensation Manager, obtain initial premium renewals and negotiate for the lowest renewal rates. Seek and analyze premium rates with comparable benefits providers in local market.

13. Provide updates on health and dental insurance markets, legislative issues and cost trends. Provide assistance in developing strategy for cost containment, annual renewals and labor contract issues.

14. Analyze Pierce Transit’s exposure to loss, adequacy of coverage, and develop options on coverage not presently purchased by Pierce Transit.

15. Provide service for day-to-day contract on insurance matters.

16. Assist Pierce Transit in developing insurance requirements for the various contracts (design, construction, and service) and in reviewing insurance policies, contracts, leases, and bonds as requested by Pierce Transit.

17. Prepare an annual report including a schedule of policies in force, coverage provisions, premiums, insurance claims experience for the prior policy year and recommendations for possible adjustments to insurance coverage for the next policy year. The report should provide a summary of broker support services rendered during the prior year, with recommendations for broker services recommended for the subsequent year.

18. Provide other services that are normally and customarily required of a municipal insurance broker.

BACKGROUND INFORMATION
Pierce Transit operates 242 transit coaches, 137 SHUTTLE vans, 286 vanpools, and 105 support vehicles. Properties include the main Pierce Transit facility, Commerce Street bus terminal, Lakewood Bus Shop, Tacoma Dome Station, 11 transit centers and operate 20 park and ride lots.

Current exposures include liability, auto general liability, fleet fire, building fire, boiler and machinery, office contents, surety and money and securities bonds, and vanpool.

Pierce Transit has 890 employees with a fiscal year that operates from January 1 through December 31. Our fixed route, SHUTTLE, and vanpool passenger boardings exceeded 13,300,000) in 2003 with miles driven in excess of 9,700,000) per year. Pierce Transit serves an area in excess of four hundred fifty (450) square miles and a population in excess of 744,000.

Pierce Transit employees are provided with health insurance through a preferred provider program (PPO) and a health maintenance organization, dental plan, group life, supplemental group life, management travel, and long-term disability.

MINIMUM BROKER QUALIFICATIONS

1. Licensed in the State of Washington.

2. 2. Ten (10) years’ experience as a licensed insurance broker, three (3) of which should be with at least two (2) municipal or public transit accounts.

3. Property and casualty premium volume in excess of one million dollars ($1,000,000) yearly.

4. Two (2) qualified principals or account executives with a minimum of ten- (10) years’ experience in commercial lines, either with an insurance company or as a licensed broker.

5. Must be able to demonstrate evidence of insurance agents’ and brokers’ errors and omissions insurance with a minimum limit of three million dollars ($3,000,000).

6. Must have a minimum of five- (5) years’ experience with at least three (3) employee benefit accounts having total employment in excess of eight hundred (800) employees each.

7. Annual commercial lines/fleet coverage premium volume of one million dollars ($1,000,000) or greater.

TERM OF CONTRACT
The contract resulting from this request for proposals shall be for a three- (3) year period from January 1, 2005 through December 31, 2007 with an option to renew the contract for two (2) additional one-year periods upon mutual agreement by both parties.