Item C3 BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 16,2014 Division: Employee Services
Bulk Item: Yes X No Department: Risk Management
Staff Contact Person: Maria L. Slavik X3178
AGENDA ITEM WORDING: Approval to accept proposal for Renewal from Ace Property and
Casualty Insurance Company through Arthur J. Gallagher for Airport Liability Insurance at a cost of
$33,749.16, with staff signing the necessary forms.
ITEM BACKGROUND: Provides $100 million in liability insurance coverage for Airport
Operations (Key West and Marathon). The policy does not contain a deductible. Effective date
7/27/14-7/27/15.
PREVIOUS REVELANT BOCC ACTION: Coverage was previously bid on May 1, 2012.
CONTRACT/AGREEMENT CHANGES: Renew the Airport Liability Insurance with Ace
Property and Casualty Insurance Company through Arthur J. Gallagher. The proposed annual premium
has increased by $1,607.15 or 5 %.
STAFF RECOMMENDATIONS: Approval to accept proposal for Renewal from Ace Property and
Casualty Insurance at a cost of$33,749.16.
TOTAL COST: $33,749.16 INDIRECT COST: BUDGETED: Yes X No
COST TO COUNTY: $33,749.16 SOURCE OF FUNDS:_Enterprise Fund
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year
APPROVED BY: County Atty X OMB/Purchasing X Risk Management X
DOCUMENTATION: Included X To Follow Not Required
DISPOSITION: AGENDA ITEM#
Revised 2/27/01
r
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Arthur J. Gallagher& Co Contract#
Effective Date: 7/27/2014
Expiration Date: 7/27/2015
Contract Purpose/D�escription:
Airport Liability Renewal
Contract Manager: Maria Slavik 3178 Risk Management #1
(Name) (Ext.) (Department/Stop#)
for BOCC meetin on 7/16/2014 Agenda Deadline: 7/1/2014
CONTRACT COSTS
Total Dollar Value of Contract: $ $33,749.16 Current Year Portion: $ 32,142.00
Budgeted? Yes® No ❑ Account Codes: 404-63001-530-450-
Grant: $ 403-63501-530-450-
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eg.maintenance,utilities,janitorial,salaries,etc.)
CONTRACT REVIEW
Changes Date Out
Division Director Date
In Needed Reviewer
Yes[]No .,
Risk Management .` Yes❑No❑'' Sf .
O.M.B./P'urc asing Yes❑No❑
County Attorney z Yes❑No k�
Comments:
OMB Form Revised 2/27/01 MCP#2
I NTERISK CORPORATION
Consultants 1111 North Westshore Boulevard
Risk Management Suite 208Tampa, FL 33607-4711
Employee Benefits Phone (813)287-1040
Facsimile (813)287-1041
June 16,2014
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West,Florida 33040
Subject: Renewal of Airport Liability Insurance
Dear Maria:
The County's Airport Liability policy expires on July 27,2014. The policy is currently provided by ACE
Property and Casualty Insurance Company with limits of$100 million. The policy also contains various
sub-limits. Some of the more notable sub-limits are as follows:
➢ Personal Injury and Advertising $50 million
➢ Fire Damage $250,000
➢ Medical Expense $25,000
➢ Excess Automobile Liability $50 million
➢ Excess Employers Liability $50 million
It is not believed that any of the above sub-limits materially impacts the protection being purchased by the
County.
There are no deductibles associated with this policy. The annual premium for the current policy(7/27/13—
7/27/14)is$32,142.00.
ACE has agreed to renew the County's Airport Liability policy with terms and conditions consistent with
the expiring policy for an annual premium of$33,749.16(including all fees and taxes). This represents an
increase in the County's premium of$1,607.16(5%).
Gallagher also submitted an alternative proposal from QBE Insurance Company with terms and conditions
consistent with the expiring policy and ACE's renewal proposal for an annual premium of$39,691.37.
Since QBE's premium is higher than the one being proposed by ACE with no enhancements of coverage,it
is recommended that the QBE proposal be eliminated from further consideration.
It is believed that ACE's renewal proposal is attractive and it is recommended that the County renew its
Airport Liability Insurance Policy with ACE Property and Casualty Insurance Company,as being proposed
by Arthur J.Gallagher for the policy term 7/27/14 to 7/27/15.
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Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cordially,
INTERIM CORPORATION
Sidney G.Webber
CPCU,ARM
CC: Teresa Aguiar