HomeMy WebLinkAboutCity of Tamarac Resolution R-87-331Temp. Reso. #4797
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-87--53
A RESOLUTION AWARDING BIDS FOR PROPERTY,
LIABILITY AND WORKERS' COMPENSATION INSUR-
ANCE; BID #87-19; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City requested and opened sealed bids for
Property, Liability and Workers' Compensation Insurance on July
29, 1987; and
WHEREAS, these bids have been analyzed by the Risk Manager
and Personnel Director, a copy of which has been provided to the
City Manager and to the Mayor and Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF TAMARAC, FLORIDA :
J�B_C_TJ_QN__1 That the City of Tamarac hereby awards
Property and Liability Coverage to the following:
a, 9enejal Liability - Florida League of Cities, low
bidder, at a premium of $156,481 for $2,000,000
bodily injury and property damage com�sned single
limit.
b. Automobile _Liability_and Phyaical_Damaae - Florida
League of Cities, low bidder, at a premium of
$109,732 for $2,000,000 bodily injury and property
damage combined single limit.
c. Boiler and Machinery - Zurich Insurance Company,
through Arthur J. Gallagher, the low bidder, at a
premium of $7,301 (includes a $1,000 engineering
fee), for $10,000,000 per occurrence broad form
coverage.
d. Property - Appalachian Insurance Company, through
Arthur J. Gallagher, the low bidder, at a premium
of $21,613 for all risk blanket coverage.
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Temp. Reso. #4749
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e. Inland Maripg - Florida League of Cities through
Insurance Company of North America, the low
bidder, at a premium of $2,718 for all risk cover-
age.
f. police _Professional - Florida League of Cities,
the low bidder, at a premium of $71,206 for
$2,000,000 bodily injury and property damage
combined single limits.
g. Public Officials 1Er1ors and missions) - Florida
League of Cities, the low bidder, at a premium of
$40,421 for $2,000,000 bodily injury and property
damage combined single limits.
h. Crime _and Medical Malpractice - This is to be
included in General Liability with the Florida
League of Cities at a premium of $5,125.
i. ElectronicData Processing - American States
Insurance Company through All Pro Insurance at a
premium of $1,679.
DECTIOOv_2 - That the City of Tamarac hereby awbrds a bid
for Workers' Compensation and to appoint Gallagher -Bassett as
Third -Party Administrator to be paid the following adminis-
trator fees:
a. $3,975 - First 30 claims
b. 133 - Each additional claim
C. 2,500 - Maximum loss prevention costs
d. 1,300 - Loss runs
e. 800 - SIMMS Deposit (check preparation,
distribution and accounting)
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Temp. Reso. #4797
SECTION 3 - That the City of Tamarac hereby awards a bid
for reinsurance through Employers' Reinsurance Corporation for
a $175,000 per occurrence self -insured retention at a premium of
$23,264.
SECTION 4 - This Resolution shall become effective
immediately upon its adoption. .p
PASSED, ADOPTED AND APPROVED this day of
1987.
ATTEST:
CAROL E. BARBUTO
CITY CLERK
I HEREBY CERTIFY that I have
approved this RESOLUTION as
to form.
RICHARD M. REDNOR
ACTING CITY ATTORNEY
MAY R
BERNARD HART
MAYOR: HART .,.�_.
DIST. 1: C/M ROHR . r�
DIST. 2: C/M STELZER --- a4Z—
MIST. 3: C/M HOFFMAN
DIST. 4: V/M STEIN -
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,-,r ,,. t7-33 / -'
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TO:
FROM:
THROUGH:
SUBJECT:
DATE:
COPIES:
C I T Y O F T A M A R A C
INTEROFFICE MEMORANDUM
8709-1906
John P. Kelly, City Manager
Judith Deutsch, Risk Manage
Larry Perretti, Personnel Dl�ector(;;;—)
BID *87-19: PROPERTY, LIABILITY AND WORKERS'
COMPENSATION INSURANCE
September 15, 1987
Mayor and Council, City Clerk
On July 29, 1987, the City opened bids for Property, Liability and
Workers' Compensation Insurance. The request for proposals was very
general so that the bidders could submit fully Insured, self -funded or
administrative services bids.
Although a limited number of proposals were received, the following
recommendations offer the City the desired protection as well as a
beginning towards self -Insurance.
1. PROPERTY AND LIABILITY
Two self -Insured proposals were received. Both were rejected
because of the reinsurance limitations placed by the excess
carriers In specific areas.
The city has been Insured through the Florida League of Cities for
the past two years. The property and Liability package proposal
for FY 1987/1988 Is $429,204, a 15% Increase over current year
premium.
By unbundling the coverage as recommended below, we can realize a
$13,928 savings and broader coverage In some areas.
(a) GENERAL LIABILITY -- Two fully Insured proposals were
received. I recommend the Florida League, the low bidder, at a
premium of $156,481 for $2.000,000 bodily Injury and property
damage Combined single limit.
(b) AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE - Two fully Insured
Proposals were received. I recommend the Florida League, the low
bidder, at a premium of $109,732 for $2,000,000 bodily In Jury
and property damage combined single limit.
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:ROFFICE MEMORANDUM: 8709-1906
e87-19: PROPERTY. LIABILITY AND WORKERS' COMPENSATION INSUR
:ember 15, 1987
2
(c) BOILER AND MACHINERY - Four fully Insured proposals mer4
received.. 1 recommend Zurich Insurance Company (AXV). t roi
Arthur J. Gallagher, the low bidder, at a premium of $7,3 1
(Includes a $1,000 engineering fee), for $10,000,000 per ccc
rence broad form coverage.
(d) PROPERTY - Eight fully Insured proposals were recely d.
recommend Appalachian Insurance Co. (A+V1) through Arthur J.
Gallagher, the low bidder, at a premium of $21,613 for all r
blanket coverage.
(e) INLAND MARINE - Two fully Insured proposals were rec i
recommend the Florida League of Cities through insurance Col
of North America, the low bidder* at a premium of $2,718 0
risk coverage.
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(f) POLICE PROFESSIONAL - Three fully Insured proposals were re-
cel%ed. I recommend the Florida League of Cities, the low tidder,
at a premium of $71,206 for $2,000.000 bodily Injury and prcperty
damage combined single limits.
(g) PUBLIC OFFICIALS ERRORS AND OMISSIONS) - Two fully 1 s r d
proposals were received. I recommend the Florida League Df
Cities, the low bidder, at a premium of $40,421 for $2,0 0
bodily injury and property damage combined single limits.
(h) CRIME AND MEDICAL MALPRACTICE - To be Included In G ne
Liability with the Florida League of Cities at a premium of
$5,125.
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(1) ELECTRONIC DATA PROCESSING - Two fully Insured prop sa I were
received. I recommend American States Insurance Company (A •
through All Pro Insurance at a premium of $1,679.
WORKERS' COMPENSATION
The City received one fully Insured proposal from Florida League
of Cities for $314,755 and two self -Insured proposals.
We have been Insured through the Florida League of Cities f 10
years. During that time, our premium has risen from $67 67 in
fiscal year 1977/1978 to $314,755• Our paid losses represent 50%
of premium and reserves are approximately 33% of premium as in
average over the 10-year period.
It is my recommendation that we self -Insure for Workers' C en-
satlon and appoint Gallagher -Bassett as the Third -Party d 1 Is-
trator. The administrative fees are as follows:
fi�se, F 7
INTEAOFFICE.MEMORANDUM: 8709-1906
BlQ e87-19: PROPERTY, LIABILITY AND WORKERS' COMPENSATION INSURANCE
September 15, 1987
Page 3
$3,975 - First 30 claims
133 - Each additional claim
2,800 - Maximum loss prevention costs
1,300 - Loss runs
800 - SIMMS Deposit (check preparation, distribution
and accounting)
Three reinsurance quotations were submitted. I recommend we
purchase Insurance through Employers' Reinsurance Corp. (A+X1) for
a $175,000 per -occurrence self -Insured retention at a premium of
$23,264.
By self -insuring, we gain the following:
(a) Claims control within our retention.
(b) Cash flow - payment for losses as they are settled
rather than as they are Incurred and reserved.
(c) Input In determining necessity and selection of reserves,
attorneys, rehabilitation, settlements, etc.
JD/p
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