Item C23
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: February 18,2009
Division: Employee Services
Bulk Item: Yes ~
No
Department: Risk Management
Staff Contact PersonlPhone#:Maria L. Slavik X3178
AGENDA ITEM WORDING: Approval to extend the current General and Professional Liability
Insurance with Lantana Insurance Ltd. for Bayshore Manor and waiver of policy requiring going out for
RFP.
ITEM BACKGROUND: Coverage is for General Liability and Wrongful ActsNicarious Liability for
abuse as required to maintain our State of Florida Assisted Living Facility License. Also covers claims
alleging sexual and/or physical abuse. The current premium is $16,843.
PREVIOUS RELEVANT BOCC ACTION: In years past, attempts to locate alternative insurance at
a reasonable price have proved unsuccessful. As part of Interisk's services provided to the County, the
availability and pricing of insurance is perpetually monitored (including the insurance required by
Bayshore). Lantana, has been the only company willing to offer the protection need for a cost that is
acceptable to the County. When proposals for alternative coverage have been received, the premiums
have been as much as twice the amount being charged by Lantana.
CONTRACT/AGREEMENT CHANGES: Renew the General and Professional Liability Insurance
with Lantana Insurance, Ltd., for the period beginning 4/30/2009 through 4/3012010.
STAFF RECOMMENDATIONS: It is recommended that the BaCC waive the bid process and that
the County instruct Arthur J. Gallagher (the incumbent agent) to aggressively negotiate a renewal with
Lantana for the upcoming year.
TOTAL COST: approx. $16.483.00 INDIRECT COST: _N/A_ BUDGETED: Yes X No_
COST TO COUNTY: approx $16,843.00
SOURCE OF FUNDS: Ad valorum
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year
APPROVED BY: County Atty a ~rChaSing _ Risk Management ~
DOCUMENT A TION:
Included ~
Not Required_
DISPOSITION:
AGENDA ITEM #
Revised 8/06
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Arthur J. Gallagher & Co Contract #_
Effective Date: 4/30/09
Expiration Date: 4/30/2010
Contract Purpose/Description:
Bayshore Manor General and Professional Liability Insurance Renewal
Contract Manager: Maria Slavik 3178 Risk Management #7
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on 2-18-2009 Agenda Deadline: 2-03-2009
CONTRACT COSTS
Total Dollar Value of Contract $
NoD
$16,483
approx.
Account Codes: 503-08502-530-450-_
Current Year Portion: $
Budgeted? Yes[SJ
Grant: $
County Match: $
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ADDITIONAL COSTS
Estimated Ongoing Costs: $_/yr For:
(Not included in dollar value above) (eg. maintenance, utilities, ianitorial, salaries, etc.)
CONTRACT REVIEW
Changes
Date In Needed
Division Director '2/ l1 ,01 YesD No0 ,-
Risk Manag~ment Vo.1Q( YesD NO~
PJ{1.. (\~ 1,0 -/
o .M.B ./Pur:cb~ing I - :i)-ol YesD No[!]
County Attomey I~~'df YesD No@ ~ f. ~
Comments:
Date Out
/-z&-oq
OMB Form Revised 2/27/01 Mep #2
O,~~,T,Y ~o~~~~E
(305) 294-4641
Office of the Employee Services Division Director
The Historic Gato Cigar Factory
11.00 Simonton Street, Suite 268
Key West, FL 33040
(305) 292-t458 - Phone
(305) 292-"'564 - Fax
TO:
(-- '..... --------
BOARD OF COt:NTY CO~MISSIONERS
:\-fayOT George :\eugenT, District. 2
Mayor Pro Tem Sylvia J. Murphy. District:;
Kim Wiginb"on, District 1
Heather Carruthers, District 3
Mario Oi Gennaro. District 4
Board of County Commissioners
Teresa E. Aguiar, ~..~~J
Employee Services Dire~ ~
January 27, 2009
FROM:
DATE:
SUBJ:
General and Professional Liability Insurance
Renewal for Bayshore Manor
This item requests approval to waive purchasing policy and renew Bayshore Manor's General and
Professional Liability Insurance with Lantana Insurance, LTD. The current policy expires on April 30,
2009.
The availability of insurance for Assisted Living facilities is extremely limited and the current policy has
provided stable and quality insurance protection for the County since 2004. Based on the limited number
of insurers with the resources and desire to provide the necessary coverage along with the costs
associated with advertising, consultant fees and staff time, it is believed that obtaining competitive bid
proposals at this time is not justified and would not produce favorable results. It is understood that
Lantana Insurance, L TD has inspected Bayshore Manor and believes it is a well run facility. It is
anticipated that Lantana will offer a favorably priced renewal for the 2009/2010 policy year.
It is therefore the recommendation that the Board approve the request to waive the bidding process and
instruct Arthur J. Gallagher (the incumbent Agent) to aggressively negotiate and renew Bayshore
Manor's General and Professional Liability Insurance with Arthur J. Gallagher (the agent for the Lantana
policy). If you have any questions on this item, please do not hesitate to contact me at X4458.
..1.1' I t:..n.J..;:)f"\._~~ I ~1J"'t
t'~ tl:l
I NTERISK
CORPORA TION
Consultants
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
Risk Management
Employee Benefits
December 29,2008
Ms. Maria Slavik. CPM
Risk Administrator
Monroe COUDty
1100 Simonton Sf.
Suite 268
Key West, Florida 33040
Subject: Bayshore Manor - General and Professional Liability Insurance
Dear Maria:
Bayshore Manor's General and Professional Liability insurance expires on April 30,2009. Locating
quality insurance for facilities such as Baymore is extremely difficult because most insurers do not have
the desire or capability of providing inswance for nUfSing homes and assisted living facilities. The fact that
Bayshore is a relatively small facility, with only sixteen (16) beds, makes the task even more difficult.
In years past, auempts to locate alternative insurance at a reasonable price has proved unsuccessful. As
part of Interisk' s services provided to the County, the availability and pricing of insurance is perpetually
monitored (including the insurance required by Bayshore). Insurance comparable to that being provided by
the current insurer (lantana Insurance Ltd.) bas not been located. Lantana, has been the only company
willing to offer the protection needed for a cost tbat was acceptable to the County. Based on a lack of
insurers willing to provide Bayshore's insurance, it is believed that issuing an RFP at this time for
Baysbore's insurance would oot produce any meaningful results and in all probability would result in
Lantana being the only company issuing a response to the RFP. It is therefore recommended that the
County's efforts be focused 011 negotiating favorable renewal tenns with Lantana for Bayshore's insurance
for the 200912010 policy tenn and continue to survey the insurance market for an alternative to the Lantana
proifllD1. The CWTeDt annual premium for the Lantana policy is $16,483.
Lantana has inspected Baysbore and believes it is a well run facility. 1 have spoken to representatives of
Arthur J. GaJIagher (the agent for the Lantana policy) and they bave bad preliminary discussions with
Lantana and have been advised that they plan on issuing a renewal proposal for Baysbore and do not
anticipate any signiftcant increases in the premiums they are CUJTently charging.
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Please give me a caD if you have any questions or wish to discuss this issue in more detail.
Cordially,
INTERlSK CORPORA nON
J /6
/ " ! I
k,/ ~--
Sidney G. Webber
CPCU. ARM
CC: Teresa Aguiar