Foley Team Again Saves Taxpayer Dollars

DECEMBER 5, 2006, FARMINGVILLE, NY- Brookhaven Town Supervisor Brian X. Foley and the Town Board announced at a press conference Tuesday at Town Hall that due to the competitive bidding process instituted by the Foley administration, the Town of Brookhaven will pay $3.1 million less for its insurance next year than it paid in 2005, the final year of no-bid contracts in the town.

“This is an historic day for the Town of Brookhaven, the culmination of a year long effort to end 45 years of the shameful practice of wasting millions of taxpayer dollars on no-bid insurance contracts,” said Supervisor Foley. “Over the years, no-bid insurance has cost the town millions, and that is the cost of corruption.”

“This effort began shortly after we took office. There was an important step in the spring of 2006 when we opened up the broker process to bid and saved over $1 million. Now today we are very excited to announce that for the first time in history, the town has put its entire insurance program out to public bid.

“We've heard all year we couldn't do better, couldn't get better coverage and save money by putting the Town's insurance program out to public bid. Today we're proud to say that we can and will do better for Town taxpayers.

“Tonight, the Town Board will appoint Arthur J. Gallagher the broker of record in 2007 at an estimated cost for broker and policy premiums of $2.4 million, an extraordinary $3.2 million, or 57 percent, less than the Town paid for these services in 2005. We project that the Town will save a total of $7.9 million from 2006 through 2008 by competitively bidding the insurance program services. And in addition to the cost savings, we are receiving improved and expanded coverage.”

"Now that the final numbers are in, we have proven that by opening our insurance needs to the light of day through a competitive process of the open market we are saving the taxpayers over a million dollars in insurance expenses each and every year into the future,” said Councilman Steve Fiore-Rosenfeld. “This is exactly the type of reform we promised when elected. I'm glad to have worked with the Supervisor and the Insurance Working Group to shed light on this costly patronage laden past practice of our town.”

“I am delighted to support the award of the 2007 Town of Brookhaven Insurance to Arthur J. Gallagher,” said Councilwoman Carol Bissonette. “They have proven themselves to be the consummate professionals in their servicing of the Town's Insurance for 2006 and will do so again in 2007. They have presented a cohesive and definitive insurance package that expands the Town coverage while providing savings of millions of dollars to taxpayers. We are pleased to continue our relationship with this well established firm and are confident that AJ Gallagher will provide the best insurance coverage at significant savings.”

“This is definitive proof that open, honest government is good for the people of Brookhaven Town, and it will save them millions of dollars,” said Councilwoman Connie kepert.

“I am glad to see that the process I started under the previous administration has come to fruition,” said Councilman Kevin McCarrick. “Together, let us move forward with the program in the best interest of the taxpayer.”

The Gallagher firm was recommended by Supervisor Foley’s Insurance Working Group to take over as Broker of Record for the two-year period beginning January 1, 2007. The firm was the top scorer (95.8 out of 100 points) based on the scorecard developed to analyze the 14 submissions to the Request for Information (RFI). The fee for broker services was competitive at $135,000 for the first year, scoring 30 out of 30 points in the “Cost” section of the scorecard. The package of insurance carrier costs was the lowest out of the three Request for Proposal (RFP) finalists.

Arthur J. Gallagher & Co. is the fourth largest insurance broker in the country and champions best practices. The firm has the largest Public Sector Practice Group in the insurance industry (6,500 public entities nationwide; 40 towns, villages, cities, counties and school districts are serviced out of the New York office). New York municipalities served include the Town of Riverhead, the City of White Plains, the Village of Freeport, the City of New Rochelle, the City of Rye, and the Town of Eastchester. All municipal references contacted provided very positive feedback.

The services proposed for the Town are a continuation and expansion of the services provided during Gallagher’s 9-month appointment as the Town’s broker of record during 2006. The Town’s relationship with the team at Arthur J. Gallagher as broker of record during the transitional period of April 1, 2006 through the present has been extremely positive.

Town of Brookhaven Insurance Cost Savings

• Click Here to download Insurance Award Bullet Points 12-5-06
• Click Here to download Insurance Award savings chart

Brookhaven Town Supervisor Brian X. Foley is joined by Councilman Steve Fiore-Rosenfeld and Councilwoman Connie Kepert in announcing Tuesday that the town has saved millions of dollars in insurance costs for next year.

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Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone (631) 451-6955 • Fax (631) 451-6677