City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JULY 14, 2026 FROM: FINANCE DEPARTMENT WARDS: ALL SUBJECT: PROFESSIONAL CONSULTANT SERVICES AGREEMENT FROM RFP NO. 2539 WITH KEENAN & ASSOCIATES OF TORRANCE, CALIFORNIA FOR PROPERTY AND CASUALTY INSURANCE BROKER AND RISK CONSULTING SERVICES FOR THE TERM OF THREE (3) YEARS WITH AN OPTION TO EXTEND FOR TWO (2) ADDITIONAL ONE-YEAR TERMS NOT TO EXCEED FIVE (5) YEARS, IN THE AMOUNT OF $57,500 FOR THE FIRST YEAR AND $60,000 PER YEAR FOR YEARS TWO AND THREE FOR A TOTAL AGREEMENT AMOUNT OF $177,500 ISSUE:
Consider approving the Professional Consultant Services Agreement from RFP No. 2539 with Keenan & Associates of Torrance, California for Property And Casualty Insurance Broker And Risk Consulting Services for the term of three (3) years with an option to extend for two (2) additional one-year terms not to exceed five (5) years, in the amount of $57,500 for the first year and $60,000 per year for years two and three for a total agreement amount of $177,500.
RECOMMENDATIONS:
That the City Council:
Approve the Professional Consultant Services Agreement from RFP No. 2539 with Keenan & Associates of Torrance, California for Property And Casualty Insurance Broker And Risk Consulting Services for the term of three (3) years with an option to extend for two (2) additional one-year terms not to exceed five (5) years, in the amount of $57,500 for the first year and $60,000 per year for years two and three for a total agreement amount of $177,500; and Authorize the City Manager, or designee, to execute the Agreement with Keenan & Associates including making minor and non-substantive changes, including term extensions up to 2 additional one-year terms, subject to the availability of budgeted funds.
BACKGROUND:
The City cannot purchase insurance policies directly from commercial insurance carriers because the City does not have a Property and Casualty Brokerage License from the California Department of Insurance. As a result, the City enters into Professional Services Agreements with licensed insurance brokers to procure critical insurance policies. An insurance broker for procurement must be secured as the industry prohibits individual public agencies from going directly to underwriters for insurance policies.
The City’s Insurance Program is administered by the Risk Management Division of the Finance Department. Coverage is procured to protect the City and its operating companies against catastrophic loss and to comply with various bond covenants and agreements. The insurance broker will assist the City on a fixed-fee basis with assessing insurance markets, managing costs, and obtaining the broadest coverage.
DISCUSSION:
The broker will represent and support the City in discussions and transactions with insurance carriers, while securing coverage only with the City’s written authorization. In addition to providing claims advocacy, the broker will offer professional, unbiased recommendations on innovative alternatives to existing insurance programs to help reduce the City’s total cost of risk. Responsibilities include reviewing policies and endorsements for accuracy, providing coverage summaries and updates, processing certificates of insurance, and assisting with longrange insurance planning.
The broker will help manage all aspects of the City’s property and casualty insurance program, participate in ongoing meetings regarding insurance strategies and operations, and advise on alternative riskreduction strategies and their potential impacts. Further duties include marketing programs as needed, preparing budget estimates for renewals, and offering expert guidance on excess and property claims and complex riskmitigation issues.
Purchasing Overview
On February 17, 2026, the City’s Purchasing Division (Purchasing) issued Request for Proposals (RFP) No. 2539 on PlanetBids seeking prospective proposers to provide Property and Casualty insurance brokerage and risk consulting services.
The solicitation notification is summarized in the table below:
Action
Number of Vendors
External Vendors Notified
500
City of Riverside Vendors Notified
663
Vendors who downloaded the RFP
15 Proposals received
3 A total of one question was received from prospective proposers, and one addendum was posted. RFP No. 2539 closed on March 11, 2026, with a total of 3 responses. All responses were found to be responsive and responsible.
Under the guidance of Purchasing, four City staff from the Finance Department and the City Attorney’s Office, evaluated the proposals for two rounds, which resulted in Keenan & Associates ranking No. 1. The evaluation criteria, total points and rankings for each evaluation round are summarized in the tables below.
Round 1 – Evaluation Criteria
Evaluation Criteria
Total Points
Qualifications and Experience
30%
Approach and Methodology
35%
Professional References
20%
Pricing
15%
Round 1 – Evaluation Results
Vendor
Location
Proposed Cost
Evaluation Scores
Rank
Keenan & Associates
Torrance, CA
$177,500.00
830.51
1 Alliant Insurance Services
Los Angeles, CA
$150,000.00
828.75
2 EPIC Insurance Brokers and Consultants
Ontario, CA
$675,000.00
637.08
3 The top two proposers were within a competitive point range and were invited to move forward to Interviews (Round 2 Evaluation).
Round 2 – Evaluation Criteria
Evaluation Criteria
Total Points
Methodology
30%
Technical Capabilities
25%
Professional References
20%
Key Personnel and Roles
15%
Customer Service
10%
Round 2 – Evaluation Results
Vendor
Location
Evaluation Scores
Rank
Keenan & Associates
Torrance, CA
906.67
1 Alliant Insurance Services
Los Angeles, CA
755.00
2 Following the evaluation, Keenan & Associates was selected as the most qualified company to perform the requirements of the RFP.
This action is pursuant to Purchasing Resolution 24101, Section 508 which states, “Contracts procured through Formal Procurement shall be awarded by the Awarding Entity to the Lowest Responsive and Responsible Bidder, except that…(c) Contracts procured through Formal Procurement for Services or Professional Services, where a Request for Proposals or Request for Qualifications was used to solicit Bids, shall be awarded by the Awarding Entity in accordance with the evaluation criteria set forth in the Request for Proposals or Request for Qualifications.” The Purchasing Manager concurs that the recommended action is compliant with Purchasing Resolution 24101.
FISCAL IMPACT:
The total fiscal impact of the actions of this report is a total of $177,500 over a 3-year term. Sufficient funds are budgeted and available in FY 2026/27 Liability Insurance Trust Fund, Professional Services account 2320000-421000. Appropriations for future fiscal years will be included in the Department’s Budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Jackie Godinez, Risk Manager
Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Interim Finance Director Approved by: Edward Enriquez, Acting City Manager/Chief Financial Officer Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Award Recommendation
Keenan & Associates RFP Response
3-Year Professional Services Agreement
Approve PCSA from RFP 2539h Page 5