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Item C16 . BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: September 16, 2009 Division: Employee Services Bulk Item: Yes X No - Department: Risk Management Staff Contact Person: Maria L. Slavik X3178 AGENDA ITEM WORDING: Approval to accept renewal with VFIS to provide Portable Equipment and Emergency Apparatus Insurance. ITEM BACKGROUND: The policies provide insurance coverage for Emergency Vehicle and Portable Equipment damages and/or losses. PREVIOUS REVELANT BOCC ACTION: American Alternative Insurance Company through the VFIS Insurance Agency is specialized especially for portable equipment used in firefighting, ambulance and rescue operations. CONTRACT/AGREEMENT CHANGES: The premium of$50,551.16 to be paid in four quarterly payments. This represents an decrease of $5,252.51. ST AFF RECOMMENDATIONS: Approval to accept proposal from VFIS Insurance Agency cost of $50,551.16 to be paid in four (4) quarterly installments. TOTAL COST: $50,551 INDIRECT COST: BUDGETED: Yes X No - COST TO COUNTY: $50,551 SOURCE OF FUNDS: - Ad va10rum REVENUE PRODUCING: Yes - No-X AMOUNT PER MONTH - Year - ~.\\ o~asinglL APPROVED BY: County Atty X Risk Management X DOCUMENTATION: Included -K- To Follow_ Not Required _ DISPOSITION: AGENDA ITEM # Revised 2/27/01 - # MONROE COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACT SUMMARY Contract with: VFIS Contract # Effective Date: 10/1/2009 Expiration Date: 9/30/10 Contract Purpose/Description: Portable Equipment and Emergency Vehicle Physical Damage Contract Manager: Maria L. Slavik 3178 Employee Services #1 (Name) (Ext.) (Department/Stop #) for BOCC meeting on 09-16-2009 Agenda Deadline: 9/!12009 CONTRACT COSTS Total Dollar Value of Contract: $ 50,551 Current Year Portion: $ Budgeted? YesC8J NoD Account Codes: 503-08502-530-450-_ Grant: $ - - - - ----- 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 Date In Needed if ~Viewer Division Director '61L-Cft YesO No' ,.~., _ _ ~ RiskMana~ment ~ YesONoEJ O.~jPur ~~g MO'l YesONod -.~-.:.~ County Attorney 8- (I.{ - 01 YesO NoG" ~ 1M Comments: OMB Form Revised 2/27/01 Mep #2 r {~~ '" ,---...-.- BOARD OF COUNTY COMMISSIONERS OK~~IY ~o2~~E Mayor George Neugent, District 2 Mayor Pro Tem Sylvia J. Murphy, District 5 Kim Wigington, District 1 Heather Carruthers, District 3 (305) 294.4641 Mario DiGennaro, District 4 Office of the Employee Services Division Director . ~'\ The Historic Gato Cigar factory 1100 Simonton Street, Suite 268 Key West, fL 33040 i~ (305) 292-4458 - Phone (305) 292-4564 - fax '\:.~""': '.~_~... ~~ 1 --..., :_~...... ' TO: Board of County Commissioners FROM: Teresa E. Aguiar, ~J Employee Services Direct . \ DATE: August 13, 2009 SUBJ: Insurance Renewal- with VFIS (Volunteer Fire Insurance Service) Portable Equipment & Emergency Apparatus This item requests approval to accept renewal with the American Alternative Insurance Company through VFIS Insurance Agency to provide Portable Equipment and Emergency Apparatus Insurance coverage at a premium of $50,551.16 to be paid in four quarterly payments for the 2009/1 0 policy term. This insurance provides coverage for damages and/or loss to scheduled Emergency Vehicles and Portable Equipment. The Emergency Vehicle policy is designed to provide first party physical damage coverage for the County's Fire and Emergency vehicles. With some of the covered vehicles on the policy having values of$500,000 and more, it is believed that the amount is relatively low cost protection. The Portable Equipment policy is primarily designed to cover the mobile radios used by the fire departments. The premiums have an overall decrease of $5.252.51. To date, the pro!'Tfam offered by American Alternative/VFIS is the only pro!,Tfam that offers affordable coverage for the County's emergency vehicles and equipment. The County would receive few, if any, alternative insurance pro!,Tfams that can compete with the VFIS pro!,Tfam and it is recommended that American Alternative/VFIS be viewed as a sole source and not seek competitive bids until other insurers otTer a competitive pro!,Tfam. It is therefore the recommendation that the Board approve the request to renew these policies as proposed. If you have any questions on this item. please do not hesitate to contact me at X4458. . I NTERISK CORPORA TION Consultants 1111 North Westshore Boulevard Suite 208 Risk Management Tampa, FL 33607-4711 Employee Benefits Phone (813) 287-1040 Facsimile (813) 287-1041 August 12, 2009 Ms. Maria Slavik, CPM Risk Administrator Monroe County 1100 Simonton St. Suite 268 Key West, Florida 33040 Subject: Emergency Vehicle Physical Damage and Portable Equipment Damage Insurance Dear Maria: The County's Emergency Vehicle Physical Damage and Portable Equipment Damage policies are scheduled to expire on October I, 2009. Currently the coverages are provided by the American Alternative Insurance Company through the VFIS Insurance Agency. Both of these policies provide broad coverages and have served the County well in years past. The current premium for the Emergency Vehicle Physical Damage policy is $49,556.66 and the current premium for the Portable Equipment Damage policy is $6,247.01. I have reviewed VFIS' proposal for the renewal of these two policies. American Alternative has proposed to renew these policies with comparable terms and conditions for an annual premium of$46,060.04 for the Emergency Vehicle Physical Damage policy and $4,490.52 for the Portable Equipment policy. The following table compares the proposed renewal premiums for these policies as compared to the expiring policies. Policy 2008/09 Premium 2009/10 Proposed Increase/ (Decrease) Percentage Premium Increase/(Decrease) Emergency Vehicle Physical $49,556.66 $46,060.64 $(3,496.02) (7%) Damage Portable $6,247.01 $4,490.52 $(1,756.49) (28%) Equipment Policy It is believed that the proposed renewal premiums for both of these policies are attractive. It is therefore recommended that Monroe County renew its Emergency Vehicle Physical Damage and Portable Equipment insurance policies with American Alternative as proposed by VFIS for the 2009/1 0 policy term. Please give me a call if you have any questions or wish to discuss this issue in more detail. Cordially, INTERlSK CORPORA nON () j tv;~ ~/ Sidney G. Webber CPCU, ARM CC: Teresa Aguiar