Item P14 P.14'
J �� BOARD OF COUNTY COMMISSIONERS
County of Monroe ire �f �r�l � � Mayor Heather Carruthers,District 3
The Florida.Keys Mayor Pro Tem Michelle Coldiron,District 2
Craig Cates,District I
David Rice,District 4
Sylvia J.Murphy,District 5
County Commission Meeting
April 15, 2020
Agenda Item Number: P.14
Agenda Item Summary #6754
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik(305) 295-3178
N/A
AGENDA ITEM WORDING: Approval to accept proposal from Marsh USA and purchase
Pollution Liability Insurance through Ironshore Specialty Insurance Company at a cost of $75,000
for a 3 year policy and authorize staff to sign all necessary forms.
ITEM BACKGROUND: This recommended Pollution Liability Insurance Policy issued by
Ironshore Specialty Insurance Company 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. Proposal from one (1)
agents/brokers was 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 Ironshore Specialty Insurance Company policy has a total premium of$75,000.00 for a three (3)
year period of 5/1/20-5/l/23. Since Marsh's proposal was the only received by the County, the
Committee unanimously recommended to renew its Pollution Liability coverage as proposed by
Marsh. This ranking and recommendation is supported by the County's insurance consultant.
PREVIOUS RELEVANT BOCC ACTION:
Staff went out for RFP on January 23, 2020, and only one proposal was received from Marsh USA,
Inc., (incumbent) and is being recommended for approval. The current policy with Marsh USA, Inc.
expires on May 1, 2020.
CONTRACT/AGREEMENT CHANGES:
Marsh presented a proposal from Ironshore Specialty Company, Marsh's Ironshore's 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 proposed a 3 year policy for a total
premium of$75,000.. This represents an increase of$3 008 (4.4%) from the prior premium.
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P.14
STAFF RECOMMENDATION: Approval to purchase Pollution Liability Insurance through
Ironshore Specialty Insurance Company for a total premium of$75,000 for a 3 year policy period of
5/1/20-5/1/23 and for staff to sign all necessary forms.
DOCUMENTATION:
Interisk Recommendation Letter
FINANCIAL IMPACT:
Effective Date: 5-1-2020
Expiration Date: 5-1-2023
Total Dollar Value of Contract: $75,000.00
Total Cost to County: $75,000.00
Current Year Portion: $71,792.00
Budgeted: Yes
Source of Funds: Internal Service Fumd/Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: N/A If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
04/15/20 503-08502 - RISK MGMT INSURANCE $75,000.00
REVIEWED BY:
Cynthia Hall Completed 03/31/2020 1:16 PM
Bob Shillinger Completed 03/31/2020 1:46 PM
Purchasing Completed 03/31/2020 2:05 PM
Budget and Finance Completed 03/31/2020 2:51 PM
Kathy Peters Completed 03/31/2020 3:42 PM
Board of County Commissioners Pending 04/15/2020 9:00 AM
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P.14.a
InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
March 26,2020
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County
i Ill 1211,Street
Suite 408
Key West,Florida 33040
Subject: Pollution Liability RFP
Dear Maria:
0
The County's Pollution coverage expires on May 1,2020. The current policy was issued by Ironshore
Specialty Insurance Company with a 3 year term running from May 1,2017 to May 1,2020. Ironeshore
enjoys a favorable rating from the AM Best Company,the leading evaluator of insurance company
operations. The policy has a per incident limit of$5 million and an annual aggregate of$5 million.A
deductible of$50,000 applies to all losses. The 3 year premium was$71,792($23,930 annually).
In accordance with the County's Purchasing protocols,a Request for Proposals(RFP) was posted on
Demand Star for the County's Pollution Liability coverage on January 23,2020. Provisions were made for
interested proposers to submit Requests for Additional Information through February 13,2020. An E
addendum to the RFP was posted on Demand Star on February 18,2020. Proposals were publically opened 0
on March 10,2020.
Marsh was the only agent/broker that submitted a proposal. They proposed to renew the coverage with
Ironshore and offered two(2)options. Both options offered terms and conditions comparable to the
expiring policy. The first option was a one year policy(May 1,2020 to May 1,2021)for an annual
premium of$25,000. This would represent a premium increase of$1,070(4.4%)compared to the expiring
policy. They also offered a 3 year policy(May 1,2020 to May 1,2023)for a premium of$75,000. This
would represent a premium increase of$3,208(4.4%)compared to the expiring policy.
On March 26,2020 an Evaluation Committee met to rank the proposals. The Committee consisted of:
➢ Ms.Maria Slavik—Monroe County
➢ Ms.Judith Clarke,P.E.—Monroe County
➢ Mr.Todd Stoughton—City of Key West
Since Marsh's proposal was the only one received by the County,the Committee unanimously
recommended to renew its Pollution Liability coverage as proposed by Marsh. Interisk concurs with this
recommendation.
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P.14.a
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cordially,
INTERISK CORPORATION
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Sidney G.Webber
CPCU,ARM
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