Item C14
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. . 14. < BOARD OF COUNTY COMMISSIONERS
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AGENDA ITEM SUMMARY
Meeting Date: September 17, 2008 Division: Employee Services
Bulk Item: Yes ~ No - Department: Risk Management
Staff Contact Person: Maria L. Slavik X3178
AGENDA ITEM WORDING: Approval to accept renewal with VFlS 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. 1.
CONTRACT/AGREEMENT CHANGES: The premium of $53,849 to be paid in four quarterly
payments. This represents an increase of $12,420 or (30%). Changing the deductible on the Emergency
Apparatus Policy from $500 per occurrence to $1,000.
STAFF RECOMMENDATIONS: Approval to accept proposal from VFlS Insurance Agency cost of
$53,849 to be paid in four (4) quarterly installments.
TOT AL COST: $53,849 BUDGETED: Yes -X- No -
COST TO COUNTY: $53,849
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year -
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APPROVED BY: County Atty~ 0 rchasing ~ Risk Management tf.tt.
DOCUMENT A TION: Included ~ To Follow - Not Required _
DISPOSITION: AGENDA ITEM #
Revised 2/27/01
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.'. MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: VFIS Contract #_
Effective Date: 10/1/2008
Expiration Date: 9/30/09
Contract Purpose/Description:
Portable Equipment and Emergency Vehicle Physical Damage
Contract Manager: Maria L. Slavik 3178 Employee Services #1
(Name) (Ext.) (DepartmenUStop #)
for BOCC meeting on 09-17 - 2008 Agenda Deadline: 9/212008
CONTRACT COSTS
Total Dollar Value of Contract: $ 53,849 Current Year Portion: $
Budgeted? YesCSJ No D Account Codes: 503-08502-530-450-_
Grant: $ _-_-_-_-_
County Match: $ _-_-_-_-_
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ADDITIONAL COSTS
Estimated Ongoing Costs: $-"yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes Date Out
.P"a!9i.% Needed ~ Reviewer
Division Director ~~ YesD No .",'
Risk Management jl\'if/d.$-b6 Y esO No~ " ~ ~ Q
fj(L. ~~ ~l\: .--t
O.M.B./Pu~a~ng ~-rz-06YesD NolYJ
County Attorney ? ku/op YesD No0
Comments:
OMB Form Revised 2/27/01 MCP #2
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('~'---- BOARD OF COUNTY COMMISSIONERS
O Mayor Mario Di Gennaro, District 4
. ~ Mayor Pro Tern Charles "Sonny" McCoy, District 3
OUNTY 0 MaN ROE Dixie M. Spehar, District 1
KEY WEST FLORIDA 33040 George Neugent, Dlstnct 2
(305) 294.4641 Sylvia J. Murphy, District 5
Office of the Employee Services Division Director
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 268
~~n~ 6'.'
(305) 292-4458 - Phone '. '
(305)2?2-4564.F~ ,.~ :"#
\':'.-"= ~~;'-j;ct
;"~.l.J~..~ .
TO: Board of County Commissioners
FROM: Teresa E. Aguiar,
Employee Services Director'
DATE: August 25, 2008
SUBJ: Insurance Renewal- with VFIS (Volunteer Fire Insurance Service)
Portable Equipment & Emergency Apparatus
This item requests approval to accept renewal with VFIS to provide Portable Equipment and Emergency
Apparatus Insurance coverage at a premium of $53,849 to be paid in four quarterly payments. 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. In 2005 (Hurricane
Wilma) the County replaced 5 emergency vehicles and received insurance proceeds from this policy of
approximately $280,000.
The Portable Equipment policy is primarily designed to cover the mobile radios used by the fire
departments. In 2005 (Hurricane Wilma) the County received insurance proceeds from this policy of
approximately $100,000 due to the loss in portable equipment.
It is understood that VFIS has indicated that the premiums for the 2008/2009 policy year will be as
follows:
Portable Equipment: $5,978 (Deductible $250)
Emergency Vehicle: $47,871 (Deductible $1,000)
The premiums have increased approximately 30% and it is believed that VFIS is the only organization
that offers this specialty coverage as verified in the attached memo from the County's Risk Management
Consultant dated July 23,2008. 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.
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INTERISK CORPORA TION
Consultants 1111 North Westshore Boulevard
Suite 208
Risk Management Tampa, FL 33607-4711
Em ployee Benefits Phone (813) 287-1040
Facsimile (813) 287-1041
July 23, 2008
Ms. Maria Slavik
Risk Management Specialist
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
Subject: Emergency Vehicle Physical Damage and Portable Equipment Insurance
Dear Maria:
For a number of years the County experienced difficulty in adequately protecting its vehicles and portable
equipment that is used firefighting, ambulance and rescue operations. Attempts to locate cost effective
insurance coverage proved unsuccessful. Back in the late 1990s and early 2000s, The American
Alternative Insurance Company through the VFIS Insurance Agency introduced a specialized insurance
program designed especially for such vehicles and equipment. The terms and conditions of the program
were, and continues to be, extremely favorable with low deductibles and attractive premiums.
As the County's Risk Management Consultant, Interisk continually monitors insurance programs in
attempts to locate more effective insurance program that addresses the exposures the County faces. To
date, the program offered by American Alternative and VFIS is the only program that offers affordable
coverage for the County's emergency vehicles and equipment. It is believed that the County would receive
few, if any. alternative insurance programs that can compete with the VFIS program. It is recommended
that the County view the American Alternative and VFIS program as a sole source and not seek
competitive bids until other insurers offer a competitive program.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cord iall y,
INTERISK CORPORA nON
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Sidney G. Webber
CPCU, ARM
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