Item M08County of Monroe
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BOARD OF COUNTY COMMISSIONERS
Mayor George Neugent, District 2
The Florida. Key
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Mayor Pro Tem David Rice, District 4
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Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
April 12, 2017
Agenda Item Number: M.8
Agenda Item Summary #2801
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik
N/A
AGENDA ITEM WORDING: Approval to accept proposal from Marsh USA and purchase
Pollution Liability Insurance through Allied World Assurance Company (AWAC) at a cost of
$71,492 for a 3 year policy and authorize staff to sign all necessary forms.
ITEM BACKGROUND:
This recommended Pollution Liability Insurance Policy issued by AWAC will provide coverage to
the County for potential liability associated with an accidental discharge of pollutants from one of its
fuel storage tanks and the potential liability associated with a pollution incident at other scheduled
County locations. Competitive proposals for Pollution Liability Insurance were sought. Proposals
from two (2) agents /brokers were received, reviewed and ranked by an Evaluation Committee.
Various options regarding the terms and conditions of the policies and deductibles were received
from each proposer. The AWAC policy has a total premium of $71,492 for a three (3) year period of
5/l/17- 5/l/20. The Evaluation Committee ranked the AWAC policy first. This ranking and
recommendation is supported by the County's insurance consultant.
PREVIOUS RELEVANT BOCC ACTION:
The equivalent insurance policy was last bid in January, 2011, and approved by the BOCC on April
20, 2011.
CONTRACT /AGREEMENT CHANGES:
Marsh presented a proposal from Allied World Assurance Company (AWAC). Marsh's AWAC
proposal included terms and conditions comparable to those of the expiring policy that included
limits of $5 million and a per occurence deductible of $50,000. Marsh /AWAC proposed a 3 year
policy for a total premium of $71,492. This represents a decrease of $4,944 from the prior premium.
STAFF RECOMMENDATION: Approval to purchase Pollution Liability Insurance through
AWAC for a total premium of $71,492 for a 3 year policy period of 5/l/17- 5/l/20 and for staff to
sign all necessary forms.
DOCUMENTATION:
Interisk Recommendation Letter re: Pollution Liability Ins. and Evaluation Comm.
FINANCIAL IMPACT:
Effective Date: 5/1/17
Expiration Date: 5/1/20
Total Dollar Value of Contract: $71,492.00
Total Cost to County: $71,492.00
Current Year Portion: $76,436.00
Budgeted: Yes
Source of Funds: Internal Service Fund Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
If yes, amount:
04/12/17 503 -08502 - RISK MGMT INSURANCE
$71,492.00
REVIEWED BY:
Maria Slavik
Completed
03/24/2017 10:18 AM
Chris Ambrosio
Completed
03/24/2017 4:31 PM
Bob Shillinger
Completed
03/26/2017 4:40 PM
Budget and Finance
Completed
03/27/2017 9:02 AM
Kathy Peters
Completed
03/27/2017 9:31 AM
Board of County Commissioners
Pending
04/12/2017 9:00 AM
I NTERISK
Consultants
Risk Management
Employee Benefits
March 20, 2017
Ms. Maria 5lavik
Risk Management Specialist
Monroe County
502 Whitehead St.
Key West, Florida 33040
Subject: 2017 Pollution Liability RFP
Maria:
CORPORATION
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607 -4711
Phone (813) 287 -1040
Facsimile (813) 287 -1041
The County's Pollution Liability insurance expires on May 1, 2017. Currently, the coverage is provided by
Ironshore Specialty Insurance Company with Iimits of $5 million and a per occurrence deductible of
$50,000. Coverage was provided for a 3 year term (5.'1;'74 -- 5 =17) for a total premium of $75,455..
Marsh USA serves as the County's agent for this coverage,
In accordance with the County's Purchasing Protocols, an RFP for the County's Pollution Liability
coverage was posted on Demandstar on January 24, 2017, An addendum was later posted on Demandstar
on February 14, 2017 that responded to all questions submitted by interested proposers. Sealed proposals
were received through March 14, 2017 when they were publically opened. Two agents submitted
proposals. One was submitted by the Seaboard Agency that is located in Key West and 2 separate
proposals were submitted by Marsh USA that is located in Sunrise Florida.
An Evaluation Committee was established that included the following County employees:
Ms. Maria Slavik
t Ms. Monique Lewinski
t Ms. Judith Clark
I was asked to serve as the technical advisor to the Evaluation Committee. As such I personally reviewed
each proposal submitted.
The Seaboard Agency proposed coverage from the Liberty Surplus Insurance Corporation, Liberty enjoys
a favorable rating from the AM, Best Company, the leading evaluator of insurance company operations.
Seaboard proposed terms and conditions comparable to those of the expiring policy that included limits of
$5 million and a per occurrence deductible of $50,000.. Seaboard proposed a 3 year policy for a total
premium of $65,000.
Marsh proposed one of their options from Ironshore Specialty Insurance Company (the incumbent insurer).
Ironshore enjoys a favorable rating from the A,M. Best Company. Marsh's Ironshore proposal included
terms and conditions comparable to those of the expiring policy that included limits of $5 million and a per
occurrence deductible of $50,000. MarshlIronshore proposed a 3 year policy for a total premium of
$76,964.
Marsh also submitted a proposal from Allied World Assurance Company (AWAC). AWAC enjoys a
favorable rating from the A.M. Best Company. Marsh's AWAC proposal included terms and conditions
comparable to those of the expiring policy that included limits of $5 million and a per occurrence
deductible of $50,000. Marsh/AWAC proposed a 3 year policy for a total premium of $71,492.
The Evaluation Committee met on March 20, 2017 to discuss the proposals received. The Committee
unanimously is recommending the Marsh/AWAC proposal. The Committee collectively had concerns with
Seaboard's experience with Pollution Liability coverages and their experience with governmental entities.
This was demonstrated by the fact that Seaboard had to rely on a "Co- Broker" to assist them in developing
their proposal and this organization would remain as a "Co- Broker" for the term of the policy.
I concur with the Evaluation Committee's recommendation to place the County's Pollution Liability
coverage for the 5,1= to 5 =1,20 policy term with Allied World Assurance Company as being submitted by
Marsh USA.
As always, please do not hesitate to call if you have any questions.
Cordially,
INTERISK CORPORATION
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Sidney G. Webber
CPCU, ARM