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Item I4M C ounty of f Monroe ELj » °o � BOARD OF COUNTY COMMISSIONERS /� r i � �� Mayor George Neugent, District 2 The Florida. Ke Se y I Mayor Pro Tern David Rice, District 4 Danny L. Kolhage, District I Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting October 18, 2017 Agenda Item Number: I.4 Agenda Item Summary #3299 BULK ITEM: Yes DEPARTMENT: Risk Management TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295 -3178 N/A AGENDA ITEM WORDING: Approval to purchase insurance for Monroe County emergency vehicles and portable equipment from American Alternative Ins. Co. through the VFIS insurance agency; use competitive bidding procedures purchase exemption, and authorize the Risk Management Administrator to sign the Florida Consent to Rate/Excess Rate Application. ITEM BACKGROUND: This American Alternative insurance policy provides coverage for damages to the County's emergency vehicles and portable equipment with an effective policy term of October 1, 2016 to September 30, 2017. This policy is uniquely beneficial over other policies because it provides emergency vehicle coverage on a "scheduled value" basis rather than an "actual cash value" basis and also provides "guaranteed replacement value" for the County's communication equipment used for firefighting, ambulance and rescue operation. Due to the unique terms and conditions of this policy coverage required by the County, this policy is exclusive in the market and is not benefited by the competitive bidding process. Staff seeks approval to exempt the acquisition of this policy from the competitive bidding procedures pursuant to and as authorized by County Purchasing Policy Ch. 10 — Purchase of Insurance, and Monroe County Code Sec. 2- 347(e)(5)g, which provides that policies, which due to the unique terms and conditions required by the County, are exclusive in the market and thus are not benefitted by the competitive bidding procedures may be exempted from formal competition. The County's risk management consultant's recommendation letter, Purchasing Policy Chapter 10 and MCC Sec. 2- 347(e)(5)g are attached as backup. PREVIOUS RELEVANT BOCC ACTION: 9/21/16 — BOCC approved the current emergency vehicles and portable equipment damages insurance policy. 7/15/15 - BOCC approved Ordinance 015 -2015 which added Sec. 2- 347(e)(5)g to the MCC and the Purchasing Policy was revised to authorize this type of policy to be acquired as an exclusion and exempt from the competitive bidding process. CONTRACT /AGREEMENT CHANGES: American Alternative Ins. Co. proposed an annual premium for the 2017/18 Emergency Vehicle Physical Damage policy of $61,455.00 and an annual premium for the County's Portable Equipment Damage coverage of $5,683.00 which includes $5.68 State - Imposed Surcharges and fees. The brings the total premium for the County's Emergency Vehicle Physical Damage and Portable Equipment coverage to $67,143.68 . This represents a decrease of $9,246.20 (12.1 %). STAFF RECOMMENDATION: Approval of the purchase of the American Alternative insurance policy through use of the competitive bidding procedures exemption, and for the Risk Administrator to sign the Florida Consent- to- Rate/Excess Rate Application. DOCUMENTATION: Interisk Corporation Recommendation Letter, Premium Summary & Florida Consent- to- Rate/Excess Rate Application MCC Sec. 2- 347(e)(5)g. Purchasing Policy Ch. 10 Purchase of Insurance FINANCIAL IMPACT: Effective Date: 10/1/17 Expiration Date: 9/30/18 Total Dollar Value of Contract: $67,143.68 Total Cost to County: $67,143.68 Current Year Portion: $76,389.88 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 Revenue Producing: No Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: If yes, amount: N/A 09/20/17 503 -08502 - RISK MGMT INSURANCE $67,143.68 REVIEWED BY: Maria Slavik Completed Chris Ambrosio Completed Bob Shillinger Completed Budget and Finance Completed 08/25/2017 10:49 AM 08/25/2017 11:32 AM 08/29/2017 5:17 PM 08/30/2017 3:13 PM Kathy Peters Completed 09/01/2017 12:35 PM Board of County Commissioners Completed 09/20/2017 9:00 AM Board of County Commissioners Pending 09/27/2017 4:00 PM I 60110M. I 4j11#j91T4j-1Q1L-QH6J 1111 Rorth Westshore Bouleva .4 Suite 2 Tampa, FL 33607-47 Phone (813) 287-10 Facsimile (813) 287-101 MUMMUMM Risk Administrator Monroe County 11 It 12 Street Suite 408 Ke y West, Florida 3304* ILL Ult 41111 F.LtLlplittzlit M atliumt— coverage of $5,683.00. The States Taxes, Surcharges and Fees amount to $5.68. This brings the total S67,143.68 forthe 1O. to a policy term. I I I I a. W-V 11M - all I WyAwwwww 0 10,11 1"W " I Wvy"" VFIS for the 2017/ 18 policy terna. M The following schedule reflects a side by side comparison of the 2016:17 premiums to the proposed 2017.18 premiums. 11P.111OU-03P - $ 1 1 lit) F-1 1141M FIN it 0 m9mr - TIFIN M. 11JR141"I to I too] 14 1 lids-1-i- a I' gol W-In"m [-my I lial INE".3. - nklgivwi Portable Equipment PolicE American Alternative provides its Portable Equipment policy on an "Inland Marine" form. The policy defines Portable Equipment as: commonly used inflre and rescue operations awayfrom yoserprenrises 17n.t011 1740111IMT11 .2 .2 Q E uJ .2 M .2 'a Qa Qa CL X W W M 0 Qa U- E E E .2 E Qk Q Q .2 M 'a E E 0 0 Q .2 M 0 CL I - 0 0 le An Q Q E 0 M 19 2016117 2017/18 Premium Percentage Coverage Premium Proposed Increase /(Decrease) Increase /(Decrease) as Issued Premium Emergency Equipment Vehicle $68,507.00 $61,455.00 (S7,052.00) (10.3%) Coverage Portable Equipment $7,875.00 $5,683.00 ($2,192.00) (27.8%) State Imposed Taxes, 57.88 $5.68 ($2,20) (27.9%) Surcharges and Fees $76,389.88 $67,143.68 ($9,246.20) (12.1%) 11P.111OU-03P - $ 1 1 lit) F-1 1141M FIN it 0 m9mr - TIFIN M. 11JR141"I to I too] 14 1 lids-1-i- a I' gol W-In"m [-my I lial INE".3. - nklgivwi Portable Equipment PolicE American Alternative provides its Portable Equipment policy on an "Inland Marine" form. The policy defines Portable Equipment as: commonly used inflre and rescue operations awayfrom yoserprenrises 17n.t011 1740111IMT11 .2 .2 Q E uJ .2 M .2 'a Qa Qa CL X W W M 0 Qa U- E E E .2 E Qk Q Q .2 M 'a E E 0 0 Q .2 M 0 CL I - 0 0 le An Q Q E 0 M 19 Please give me a call if you have any questions or wish to discuss this issue in more detail. Le1 EM .2 American Alternative will honor claims in any amount required to replace the damaged or destroyed equipment. I am not aware of any insurer that offers this feature. American Alternative's policy also provides coverage for damage to "personal effects" belonging to G) E volunteers, employees, directors, officers or trustees while in route, during and returning from any official duty authorized by the County. Most "Inland Marine" insurers are not willing to offer this feature. 0 Another attractive feature of American Alternative's policy, compared to similar policies offered by other "Inland Marine" insurers is that claims will be subject to a $250 deductible while traditional "Inland .2 'a Marine" policies typically contain a much higher deductible. CL It is therefore believed that the County will experience difficulty in receiving competitive bids if it's as Emergency Vehicle Physical Damage and Portable Equipment policies are competitively bid through an RFP process or even if the County seeks "informal" quotations, X VFIS has also requested that the County sign a "Florida Consent-to-Rate.'Excess to Application. This LU authorizes American Alternative to charge rates that are higher than those on file with the State. For the G) cc County to continue the Emergency Vehicle Physical Damage policy, you will have to sign the requested 5 application, It does not impact the coverages being provided by the policy. 1 0 e Please give me a call if you have any questions or wish to discuss this issue in more detail. Le1 EM � �TOWD-URT"Y"t Moil. Name of Insured: The Monroe CounA=- Address: lilt stmet, 4 f loor Key West, FL 33040-1026 Policy Number: VFIS-CM-1055309-10 Period of Coverage: 10/l/2017-10/l/2018 Kind of Insurance & Hazards To Be Insured: Auto Phy Damage Wommy t T-W570M. I In- R-W, I R. PROM 121 r-M I Zma OZ. Premium: $61.445 , which is 172 % of t e usual premium developed at rates fil with the Division/Department of Insurance. i -s- ��WAII:Mil MOM premium noted above. The undersigned hereby requests issuance of said policy, and accepts such at the higher rate. Applicant's Signature a M I I I Edition 0612010 i.4.a 0 9 C ^4 JVFIS(3) Wsion of Gladeftr A PROPERTY & CASUALTY PROPOSAL PREPARED FOR: THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS PRESENTED BY: VFIS OF • r 1500 NW 1 s - ' 1 (800) 233-1957 This proposal is valid for 90 days EXCESS LIABILITY ................................ ................... 16 PREMIUM SUMMARY .............................^................... 17 \/FTS0RDER FORM .................. .................. ................. .' 10 STATE FRAUD WARNING NOTICES .... 19 � � VFOS Proposal 2 i.4.a 0 9 First Named Insured: THE M ONROE COUNTY BOARD OF COUNTY COMMISSIONERS Mailing Address: 1111 12TH STREET, 4TH FLOO KEY S , L 3304 - 1026 r *�� I, i.4.a It em's 1101111 [b] I ' a:' a a )1 11 102WARIANIII ONZIJ MWII a. r VFIS Risk Control provide a organization a of `.e r to assi you r r • these objectives. r of your exposures, help you reduce potential for • r ugh consistent and ongoing a ri efforts. management ®S Control Services tur experienced technical staff of professionals can assist ya a ur risk control efforts many ways. VFIS is proud r offer these valuable no cost to your organization. following are just some of a VFIS clients: 0 9 MJlMF4 r,r,r- M i.4.a i Yi t �t it ■ deductible on your vehicle coverage may provide only marginal premium savings. - �z 1. Kn ow odds. If the potential for given loss remote i'> be ab s CL address the exposure a different way than if the potential is more common. 4t rn summary y ou i to know how N equipment 1 X if you can aff ord to assume the risk of ■ sses y ourseor i know where frequent i` i t o c f rom a nd add thejj - Tccord i ngly . VFIS risk c ontrol pro ava ! ass y ou y our r contro management needs. I I MAU= a .2 m bd .2 'a CL CL I - 0 0 le A S E 19 a 0 rL x LU (1) m 0 0 E E E E .2 E bd CL I - 0 0 le A (D S E 0 m 19 i.4.a •. 0 9 4 I I If Portable Equipment coverage is provided on a blanket basis, coverage is provided for all p firefightin. ambulance and rescue related e owne or i for your schedule regular use. Note that boats over 100 horsepower are not covered under blanket; they must be Scheduled Portable Equipment Coverage �, i • .. 1.4.a Coverag I i It Bodily Injury 1 Property Damage Combined Single Limit Not Included "No Fault" or Statutory Personal Injury Protection of Included Medical Payments Not Included Uninsured Motorists Not Included Underinsured Motorists Insurance Value Hired & Borrowed Vehicles Included Commandeered 'Vehicles Included Temporary Substitute Vehicles Included Fellow Member Liability Included Incidental Garage Liability Included Physical Damage Comprehensive 7,8 see schedule below Physical Damage Collision 7,8 see schedule below Veh, Agreed Comp. Call. N o. Year Make Classification ACV Value Ded. Ded. 0001 1998 FORD AMB ALS $100,000 $500 $500 0002 2001 PIERCE PUMPER $285,500 $500 $500 0003 2003 PIERCE PUMPERLDH $195,706 $500 $500 0004 1988 SPARTAN PUMPERLDH $181,708 $500 $500 0005 2002 FORD AMB ALS $102,759 $500 $500 0006 2001 FORD AMB ALS $102,759 $500 $500 0007 2005 WELLS CARG TRAILER $18,000 $500 $500 0008 2005 PIERCE PUMPER L $344,000 $500 $500 0009 2005 PIERCE PUMPER LD $344,000 $500 $500 0010 2005 STERLING AMB ALS $152,000 $500 $500 0011 2007 E -ONE PUMPER $230,000 $500 $500 TANKER 0012 2007 OSHKOSH CHM FOAM $689,949 $500 $500 0013 1981 OS14KOSH PUMPER $83,381 $500 $500 0014 2007 PIERCE PUMPERLDH $375,000 $500 $500 0015 2007 PIERCE PUMPERLDH $375,000 $500 $500 OO16 2008 HORTON AMB ALS $180,000 $500 $500 0017 1988 - $550,000 $500 $500 0018 2007 PIERCE V $584,000 $500 $500 VFIS Proposal 0 9 I.4.a 0029 2 ! # •� N Il�il No. Year Make 0019 2006 STERLING 0020 2009 FORD 0021 2 010 FERR 0022 2009 FORD 0023 1998 OSHK 00 ! ! D •' 0# 2 010 H ME 0026 0 OSHK 0027 2003 FORD 0028 2010 FORD 0029 2 ! # •� N Il�il 0030 2014 FORD 0031 2015 D 0032 2014 " .: 00 # ■ ■. 00 • 2015 PIER 0035 2015 PIERC am 9 ! ` it r � 4 • r i # D 0 1 !# # # $500 i # # # $ $ 0 ! #0 1f # ! !! I #1 ## $179 $500 # 0 $179,000 $500 $500 $304,432 $500 $500 # $5 00 $ $424,902 $500 $500 $424,902 $500 $500 0 9 VFIS Proposal 1 1.4.a VFIS Proposal 11 I r, F-11 i! T-1W 4 J, 14 - 1 1 VCR F-11 [111t t Coverage Highlights I Expense for A plaintiff may sue your organization not for money but to require Injunctive Relief action of some type. They're seeking injunctive relief; they want your organization to do something or to stop doing something. This automatic coverage will reimburse your organization up to $50,000 for reasonable legal fees incurred in your defense. Example: A penon- who was denied -volunteer membership by brings legal action to be admitted as a nwriaber. Example: Amide nt see ks an injunction to stop the fire -depaftmeftt's installation of a siren directly behind het house. Outside Directorship Automatically covers your volunteers or employees who choosc. Liability to serve on the board of directors of an outside organization as long as that organization: • is not-for-profit, and • is related to the emergency services. Coverage is excess of any insurance. Estates, Heirs, and Included as insureds. Legal Representatives Spousal Liability Included, but only for acts within the course and scope of your operations. Unlimited Defense The cost to defend you against covered claims is the Costs responsibility of the company and will not erode your liability li Fair Labor Standards Limit of $100,000 each claim incurred provided for the defense Act Suit Defense of any claim for violation of the Fair Labor Standards Act. Coverage I I I VFIS Proposal 14 rill @I I ZYM rij IMI ii PI II im RM R, it I MIRIMSM-10111sm MIMM I i RIM aid, a tol My I I WATWILIAMY-1 ► I Expanded Aggregate The Aggregate Limit shown in the schedule applies separately a Limit each named insured (unless you have selected a $10,000,000 aggregate limit). VFIS Proposal 15 Property.......................................... Not Requested C: .2 CU .2 'a Crime ............................................ Not Requested q Portable Equipment .............................. $5,683 Auto.............................................. $61,455 General Liability ................................. Not Requested Management Liability ........................... Not Requested Excess Liability ................................. Not Requestet Total Estimated Annual Premium ............ $67,138 (excludes state-imposed taxes, surcharges and fees.) Total Estimated State-Imposed Taxes, Surchargesand Fees ............................ $5.68 VI S Proposal 17 VFIS ORDER FORM COMMISSIONERS (FL) C01239 Coverage Effective/ Accept Decline Premium Expiration Dates Initial to accept Initial to decline Quoted covet-age coverage Property $ Crime Portable Equipment Auto General Liability ........................ ..................... .................. Management Liability ....... ExcessLiability ....................... ...................... ..................... Total PaymentPlans Installment Option [ I Serni-Annual ($2,500 account minimum) (no installment fee) [ I Quarterly ($3,500 account minimum) [ J Ten Pay ($10,000 account minimum and 25% down payment) Signatum of insuranoc Rcpmscnta6vc Agency Name/Address MIR Producer/Service Rep Before you return this form, you must; I Provide the ICES D'S Federal ID# 1 Identify all mortgagees, loss payees and (for Auto only) additional insureds/lessors (provide address). 3. Choose $ 1,000,000 underlying limits when there i5 Excu5s Liability. insurance caveragesfor sphich VFIS kas provided a valid quote. VOTICE Any person who knowingly and with intent to defraud any insurance company or another person riles an application for insurance or statement of claim containing any materially false info anon, or conceal for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent act. which is a crime and may subject the person to criminal and civil penalties. U.0 I I I VFIS Proposal 18 Alabama Fraud Warning Any person who knowingly presents a fake or fraudulent claim for payment of a fair or benefit or who knowingly presents false information in an application for insurance is guilty of a crime and may be subject to restitution fines or confinement in prison, or any combination thereof. KentuEky Fraud Warning Any person who knowingly and with intent to defraud any insurance co pans or other person files an application for insurance containing any materially false infien or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. Arkansas Fraud Warp Un Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information on an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. Colorado Fraud Warning Delaware Fraud WoEflin& Any person who knowingly and with intent to defraud any insurance company or another person files an application for insurance or statement of claim containing any materially false information, or conceals for the purpose of misleading, information concerning any fact material thereto, commits a fraudulent act, which is a crime and may subject the person to criminal and civil penalties. Florida Fraud Warnine Kansas Fraud Warning MAda =. Louisiana Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. Maine Fr It is a crime to knowingly provide false, incomplete or insurance misleading infon to an company for the purpose of defrauding the company. Penalties may include imprisonment, fines or a denial of insurance benefits Marvisind Fran Warning New Jersey Fraud n� �nin Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties, New Mexico Fruu Warning Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance i s guilty or a come and may be subject to civil fines and criminal penalties. 19 M .2 .2 is ui as E LU C: 0 .2 'a CL 4t as M Cy as is x LU as 0 C 0 0 E E E 07 E .2 E as as as -J C 0 as E E 0 0 as 0� C 0 0 CL I 0 0 as S as E to M 19 New York Fraud WarqLnA Any person who, with intent to defraud or knowing that lie Is facilitating a fraud against an insurer, submits an application or files a claim containing a raise or deceptive statement is guilty of insurance fraud. WARNING Any person who knowingly, and with intent to injure, defraud or deceive any insurer, makes any claim for the proceeds of an insurance policy containing any false, incomplete or misleading information is guilty of a felony. I Any person who knowingly and with intent to defraud or solicit another to defraud an insurer: (1) by submitting an application, or (2) by filing a claim containing a false statement as to any material fact, may be violating state law, ... Pennsvivania Rhode Island Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. Tennessee Fraud Warning It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits. Vermont Fir Any person who knowingly presents a false statement in an application for insurance may be guilty of a criminal offense and subject to penalties under state law, Virginia Fraud Warning It is a crime to knowingly provide false, incomplete or misleading information to no insurance company for the purpose or defrauding the company. Penalties include imprisonment, fines, and denial of insurance benefits. Washington Fraud Warning It is a crime to knowingly provide false, incomplete, or misleading information to an insurance company for the porpoise of defrauding the company. Penalties include imprisonment, fines, and denial of insurance benefits. West Virginia Fraud Warning Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison. M .2 .2 is at 4) E LU C: 0 .2 'a CL 4t Q) M as is x LU as 0 as or C 0 0 E E E E E as Q Q -J C 0 as E E 0 Q Q 1:y C 0 0 CL L . 0 0 4) S Q E tr M 20 19 MCC Sec. 2-347(e)(5) 5. Assurance that federally funded contracts comply with the provisions contained therein. 6. Assurance to cooperate on surveys for compliance. CHAPTER 10. PUELCHASE QEjB&VWCB 677��