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HomeMy WebLinkAbout1995 12 11 Regular CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS. FLORIDA 32708-2799 Telephone (407) 327.1800 MEMORANDUM To: Mayor and Commission From: John Govoruhk, City Manager Date: November 29, 1995 Re: General Services Director Memo of November 22, 1995 Subj: Recommedations of the Sub-Committee for Property/Casualty Insurance Attached herewith for your action is the recommendations of the sub-committee for selection of Property/Casualty Insurance for the City. This will be an agenda item at the December 11, 1995 Commission Meeting. J 0 Govoruhk City Manager /jp cc: General Services Director(w/o attach) c/-(y CtJillk attachment ~ \N T.~}:? ,s- et. .. ~ .)..,',-'.'. .~~,. 1- !::I ; ;.', C1 u -~ --i ,Ul . \ .',1. ,1..--",,'T"''I''t':ItPtJ " ; .'.... 1050 \..JI ~. J '. ~-:--::~~ -...,.." I 'I ; 1.,f {; , : .;f ; I' ~ \ '~." f\~;; ,::...,...~.:.",,~.;. ',':;. ...~~.~, ,: '; -. CITY OF WINTER SPRINGS, FLORIDA NOV 2 7 1995 1126 EAST STATE ROAD 434 WINTER SPRINGS. FLORIDA 32708 Telephone (407) 327-1800 CITY OF .\.".J!NTER SPRINGS City ~anagar General Services Department TO: THRU: FROM: RE: DATE: )/IEl\'IORAl'IDUM ~1ayor and City Commission John Govoruhk, City Manager John Ketteringham, General Services Direct~V Property Casualty Insurance Q , November 22, 1995 Attached is the Committees Final Report on Property Casualty Insurance Proposals received November 21, 1995. In sununary the Committee recommends the following: _ Exclude Arthur J. Gallagher from further consideration because coverage is $60,000 higher than other quotes. _ Award General Liability Insurance to the Florida League of Cities in the amount of $36,094, even though this quote is $4,573 higher than the $31,521 quote of J. Rolfe Da"ls. The General Liability quote of 1. Rolfe had a $25,000 deductible compared to Florida League's -0- deductible. Based on loss history, the City historically experiences much more than $25,000 annually in claims. Addition- ally, Public Official Liability, Medical Attendants lYfa1practice Liability and Law Enforcement Liability cannot be purchased from the League unless the City purchases General Liability. No other company bid on these coverages. _ Award Auto Physical Damage to the League for $40,764 - a savings of $8,602 annually . _ Award Property Insurance, to the Inland :Nlarine, and EDP quotes to the League rather than 1. Rolfe Davis because oflower prices. _ Award Bond, ($676) Crime and Accidental Death and Dismemberment ($2,100) to the League because no other Company bid on these coverages. Page 2 _ Award Boiler and ~1achinery Coverage to 1. Rolfe Davis for $2,990 at 1 million coverage \vith $2,500 deductible. _ Award \V"orker's Compensation to the Florida League of Cities at $149,054 even though the League's quote is $9,581 more than the Baylis and J. Rolfe Davis quotes (G R I T). The League's credit for other lines of coverage is reduced by more than the $10,000 difference if this coverage is not awarded to the League. _ Elect the circled option on Exhibit "C". The projected grand total premium of $233,015 assumes a $25,000 deductible but also has a "Stop Loss" mechanism which limits the City's deductible exposure to $120,538. If the City experiences normal losses, the premium would remain at $233,015. If the City experiences greater than normal losses, the premium would be $323,813 a savings of between $105,175 and $14,377 over our current plan premium ($338,190). - Institute changes to give the City a 10% Worker's Compensation credit of S18,067. - Institute Drug-Free Work Place changes achieving annual savings of $8,126. If these two programs were implemented, annual premiums would be reduced to $206,822 to $297,620 for the "Stop Loss" deductible program, a savings of between $131,368 and $40,570 annually over the City's current program. JKj alll .t~')t')~! November 21, 1995 Mr. John Ketteringham General Services Director 1126 E. S.R. 434 Winter Springs, Fl. 32708 Re: RFP 95-022 Property/Casualty Insurance Dear Mr. Ketteringham: On October 19, 1995, David Brandt, Sherilyn Hill and myself were selected as the committee to review all proposals and determine the best property and casualty insurance program for the City of Winter Springs. The City of Winter Springs received quotes from the following organizations: 1. Arthur J. Gallagher and Co. 2. J. Rolfe Davis 3. Florida League of Cities, Inc. 4. Baylis Insurance Agency The quotes are provided in Exhibit A. The Arthur J. Gallagher proposal was approximately $60,000 higher than a comparable quote provided by the Florida League of Cities (The League). Since coverages are similar between these two proposals, the Committee recommended to exclude the Gallagher quote from further review. At this point, the committee compared The League proposal to J. Rolfe Davis (please see Exhibit A). The General Liability quote from J. Rolfe was approximately $5000 less, however, it had a $25,000 deductible compared to The League's $0 deductible. If The City suffers more than $5000 in claims, this savings is easily erased. Based on past loss history, the City's claims have exceeded this figure. Additionally, Public Official Liability, Medical Attendants Malpractice Liability and Law Enforcement Liability can not be purchased from The League unless The City also purchases General Liability from The League. Since J. Rolfe did not offer these very crucial coverages and it's $25,000 deductible is not a wise purchase, it only makes since to exclude the General Liability quote from J. Rolfe from further review. As evidenced by Exhibit A, the Auto Liability and Physical Damage quotes offered by The League are a better buy than that offered by J. Rolfe. Furthermore, the Property, Inland Marine and EDP quotes from The League are priced better than those offered by J. Rolfe. J. Rolfe did not offer quotes for Bonds, Crime or Accidental Death and Dismemberment. J. Rolfe did provide the most favorable quote for Boiler and Machinery coverage. Therefore, The League is excluded from further review regarding this line of coverage. Finally, the committee reviewed the Workers' Compensation proposals. Baylis Insurance did not provide any other quotes other than Workers' Compensation. Both Baylis and J. Rolfe quoted the same company which is GRIT. The proposals differ due to various reasons such as differences in payroll, managed care credits, etc. However, when the quotes are compared on an "apples to apples" basis, I have been assured by a representative from GRIT that the quotes are identical. The committee, therefore, compared the GRIT quotes to the quotes offered by The League. As you can gather from Exhibit B, the best GRIT quote was $139,473. The League's "apples to apples" quote was $149,054. However, if The League does riot write the Workers' Compensation coverage, the credit for their other lines of coverage is reduced by more than the $10,000 difference. Therefore the Grit quotes are excluded from further review. At this point in the review process, we have excluded both Gallagher and Baylis from further review and we do not recommend any of their quotes. We have, however, decided that J. Rolfe has the best quote for Boiler and Machinery coverage. As far as any other coverage, J. Rolfe is excluded from further review. "...,.; The committee proceeded to focus exclusively on The League. After reviewing the many options offered by The League, we recommend the circled option on Exhibit C. This option varies from your current program in that the liability coverages have a $25,000 deductible. However, there is stop Loss mechanism which limits the City's deductible exposure to a maximum of $120,538. Based on your past loss history with The League, the projected total cost of this program will be $233,015. If your losses are more than the average, the costs could reach a maximum of $323,818 which is highly unlikely, but still less than the cost of your current plan which I understand to be $338,190. Again, based on past loss history, your total cost will be in the area of $233,015. In summary, the City will save approximately $105,175. Additionally, with a few minor changes, the City can become eligible for a 10% managed care Workers' Compensation credit and increase the savings to $123,242. There is also a Drug Free Work Place credit that could increase the savings to $131,368(this also includes managed care credit), but this particular option may involve an investment of time and money to accomplish. I urge you to discuss these credits with a representative of The League at your earliest convenience. If the City is unwilling to take the risk of paying a higher cost in the event of unexpected liability losses, I recommend a first dollar liability plan. This will be a guaranteed cost of $280,954 as opposed to the $233,015 as mentioned above. The savings compared to your current plan is $57,236. With a managed care credit, the savings is $75,303. Finally, the savings with a managed care credit and a Drug Free Work Place credit is $83,429. Please note that not only is the City of Winter Springs going to yield a substantial savings this year, but it has also increased it's liability limit from $300,000 to $500,000. Additionally, it has added additional coverages such as "Boiler and Machinery" and "Accidental Death and Dismemberment." If you have any questions regarding our review, please feel free to contact me at 830-3936. .J~ S. Ashley Bacot { . ~ Risk Manager City of Altamonte Springs ~ COVERAGE GENERAL LIABILITY: PREMIUM DEDUCTIBLE LIMIT COMPANY POLLUTION COV SEPARABLE DISCRIMINATION SEX HARAS PUBLIC OFFICIAL lIAB: PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE MEDICAL ATT. MAL. PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE LAW ENFORCEMENT: PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE AUTO LIABILITY: PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE FL. LEAGUE GALLAGHER $36,094 SEE BELOW 0.000 0.000 2000000.000 2000000.000 FMIT POOL NO YES YES YES 14766.000 SEE BELOW o 2000000 FMlT NO 903.000 SEE BELOW o 2000000 FMIT NO 34453.000 SEE BELOW o 2000000 FMlT NO $40,764 SEE BELOW 0.000 0.000 2000000.000 2000000.000 FMIT POOL YES J. ROLFE BAYLIS $31,521 NO QUOTE 25000.000 1000000.000 NATIONAL UNION QUOTE NOT PROVIDED YES NO NO GL HAS 2 MIL AGG DEFENCE COST IN LIMIT QUOTE NOT PROVIDED NO QUOTE QUOTE NOT PROVIDED NO QUOTE QUOTE NOT PROVIDED NO QUOTE $49,366 NO QUOTE 25000.000 1000000.000 NATIONAL UNION YES AUTO PHYSICAL DAMAGE: PREMIUM DEDUCTIBLE COMPANY PROPERlY: PREMIUM/DED. OPTION PREMlDED FLOODLlMIT COMPANY SEPARABLE INLAND MARINE: PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE EDP: PREMIUM DEDUCTIBLE LIMIT COMPANY SEPARABLE WORKERS' COMP: PREMIUM DEDUCTIBLE E.L. LIMIT COMPANY AD&D: PREMIUM COMPANY 4230.000 SEE BELOW 500.000 500.000 FMIT POOL 12542/250 SEE BELOW/500 12040/1000 N/A 500,000 EXCESS 6000000? FMtT YES 2814.000 SEE BELOW 250/500/1000/2% PER SPECS FM1T YES 568.000 SEE BELOW 250.000 PER SPECS FMtT YES INC IN AUTO L1AB I LIlY NO QUOTE SEE PAGE 46 NATIONAL UNION NO QUOTE NO QUOTE 12747/1000 NO QUOTE NONE NORTHBROOK YES 7442.000 NO QUOTE 1000.000 PER SPECS NORTH BROOK YES 2515NO QUOTE 1000/2500 PER SPECS NORTHBROOK YES MUST HAVE SURGE PROTECTORS VARIOUS SEE BELOW BEST QUOTE = 139473 BEST QUOTE = 139473 0.000 0.000 1000000.000 1000000.000 1000000.000 FMSIF POOL GRIT 2100.000 AIG NO QUOTE GRIT NO QUOTE BOILER: PREM/L1MIT/DED PREM/L1MIT/DED PREM/L1MIT/DED PREM/L1 M IT/OED COMPANY SEPARABLE MISC. BONDS/CRIME HONESTY PREMIUM LIMIT DEDUCTIBLE COMPANY POSITION SCHEDULE PREMIUM MONEY/SECURITIES PREMIUM LIMIT DEDUCTIBLE COMPANY TOTAL PREMIUM: I . 4560/500K/1000 4218/1 MIL.l2500 2300.000 HARTFORD STEAM YES 224.000 SEE BELOW 50000.000 N/A 500.000 CERTAIN PERSONELL EXC. SEE PP.13 AND 22 676.000 SEE BELOW 196.000 SEE BELOW 5000 IN/OUT N/A FMIT 303944.000 364184.000 ALL/NOTHING 2790/500K/1000 2500/500K/2500 3200/1 M 1L/1 000 2990/1 MIL/2500 NO QUOTE TRAVELERS YES QUOTE NOT PROVIDED NO QUOTE QUOTE NOT PROVIDED NO QUOTE QUOTE NOT PROVIDED NO QUOTE 56702.800 21958.100 15477.600 361047.500 92732.900 75149.100 AVI::H.AGl:: UCLJVv IIU'_'-v YEAR DED. 94/95 EXC. 93/94 EXC 92/93 11053.000 91/92 7552.000 90/91 12861.000 89/90 9773.000 88/89 14866.000 87/88 7891.000 1.100 1.150 1.200 1.250 1.300 1.350 YEAR LOSSES 94195EXC 93/94 EXC 92/93 51548.000 91/92 19094.000 90/91 12a9a.000 a9/90 288838.000 88/89 71333.000 87/88 55666.000 AVERAGE LOSSES TRENDING LOSSES 1.000 1.050 1.100 1.150 1.200 1.250 1.300 1.350 YEAR LOSS RAT STANDARD LCF 92/93 0.360 156851.000 91/92 0.140 156851.000 90/91 0.100 156851.000 89/90 2.300 156851.000 88/89 0.590 156851.000 87/88 0.480 156851.000 YEAR LOSS RAT STANDARD LCF 92/93 0.360 144856.000 91/92 0.140 144856.000 90/91 0.100144856.000 89/90 2.300 144856.000 88/89 0.590 144856.000 87/88 0.480 144856.000 T AXES PREMIUM 1.084 148467 1.084 106573 1.084 98955 1.084 517901 1.084 192266 1.084 171319 1235481 /6 205913.440 RETROINO DEDUCTIBLE 180379.000 CAP W. - 139473.000 GUARANTEED COSTINO DED ~/ gt:::::.;- tJe IT 4hlcrr-' . DI5C.Jj5li0 "'-'/4(2.11 jtrJ.) nHS V lltrl!.f:./:-u Itt-5D. . r It I!. l- fA t.. tJ Ii <iJ ():.J '/ r. I ~ .$j U/ ;) J .:., 1~1012Ji. II ot.Vc v f. (i: I IF nrV- L (z 11 t; I/E I) C~) /V~, vJ I?- , rF Tim Iv c:... I rrllll"L pi.......' r c- iLl: (JI T /) . fZ{.tJvctf 0 i-f,; ",v-..41q 5, (,5 c.., ]0 ./I r; I, 5 ~i '6 . Trf()f{.1i 6Jfl.'~ I Ttfi- _ ~V {... ~. /to (,.'1..- 0 (ZJ,~;?"lb tv tv I / 71(. l- ~ /1'4 li6 . TRENDING DED AVG DED.= BASIC 1.120 73720.000 1.120 73720.000 1.120 73720.000 1.120 73720.000 1.120 73720.000 1.120 73720.000 BASIC T AXES PREMIUM 1.120 69241.000 1.084 138369 1.120 69241.000 1.084 99679 1.120 69241.000 1.084 92644 1.120 69241.000 1.084 479551 1.120 69241.000 1.084 178819 1.120 69241.000 1.084 159473 1148534.551 /6 191422.425 166584.000 CAP 13078.000 DED. 179662.000 RETROIDED VS 128989.000 13078.000 DED 142067.000 GUARANTEED COSTIDED 12158300 8684.800 15433.200 12216.250 19325.800 10652.850 78471.200 /6 13078.533 Recommended $25,000 Liability Deductible Plan $500,000 $1,000,000 $2,000,000 Company Agenq General Liability: .... FMIT lEIGUE Police Professional liability: FMIT lEIGUE FMIT lEIGUE Public Officials liability: Medical Attendants' Mal.: .. FMIT lEIGUE Auto liability: FMIT lEIGUE Projected claims cost to City $35,960 $49,828 $56,763 $29,735 $29,735 $29,735 Above liability Total Premiums Auto Physical Damage and Property Coverage: $12,500 $12,500 $12,500 FMIT lEIGUE Workers' Compensation: W/Safety Only $149,054 $149,054 $149,054 FMSIF lEIGUE W/Safety & Drug Free Only $140,019 $140,019 $140,019 FMSIF lEfGUE W/Safety & Mngd Care Only $130,987 $130,987 $130,987 FMSIF lEIGUE W/Safety-Drug-Mngd Care $122,861 $122,861 $122,861 FMSIF lEfGUE Participation Credit: Credit Inc. Credit Inc. Credit Inc. Total: $227,249 $241 ,117 $248,052 Special Coverages: Acc. Death & Dism.: $2,100 $2,100 $2,100 AIG lEIGUE Boiler & Machinery: $2,990 $2,990 $2,990 TRAVELERS J. ROLFE Bond (Schedule Position): $676 $676 $676 AETNA lEfGUE Projected Grand Total (PGT): $246,883 $253,818 Max Grand Total (MGT): $337,686 $344,621 PGT WI Safety-Drug Free: $223,980 $237,848 $244,783 MGT: $314,783 $328,651 $335,586 PGT W/Safety-Mngd: $214,948 $228,816 $235,751 MGT: $305,751 $319,619 $326,554 PGT W/Safe-Drug-Mngd: $206,822 $220,690 $227,625 MGT: $297,625 $311,493 $318,428 MGT '" X + $90,803 l' IJ.O,51.;( SJC('L"SS L~~S_~/1 ~ r U,',;.,;, t "",,' . .