Item O9
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: February 16, 2005
Division: Management Services
Bulk Item: Yes -X- No
Department: Administrative ServiceslRiskManagement
AGENDA ITEM WORDING: Approval to renew Pollution Liability insurance through Marsh USA
broker.
ITEM BACKGROUND Provide Pollution Liability Insurance with limits of $5,000,000 with a
$50,000 deductible. The policy will contain a Retroactive date of 7/1 0/95. Indian Harbor Insurance
Company supplemented its original proposal by offering a three year policy for a total premium of
$114,445. This equates to an annual cost of $38, 148. This amount is significantly lower than Indian
Harbor's one year option. Approval is being requested for Risk Management to renew with Indian
Harbor for the three year option, it is recommended that the County consider renewing its Pollution
Liability Insurance with Indian Harbor for the next three years as proposed by Marsh USA.
PREVIOUS REVELANT BOCC ACTION: Approved Marsh Proposal in 2004.
CONTRACT/AGREEMENT CHANGES: Policy term will be from 3/12/05 to 3/12/08. Renewal
premium is $114,445 for a period of three years. 2004 premium was $67,260.00.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $114.445
BUDGETED: Yes -1L No
COST TO COUNTY: $114,445
SOURCE OF FUNDS: AD VALOREM
REVENUE PRODUCING: Yes No -X AMOUNT PER MONTH_ Year
APPROVED BY: County A~ OMB/Purchasing _ Risk Management _
DIVISION DIRECTOR APPROVAL: 0<
l IR. COLLINS
DOCUMENTATION:
Included ~
To Follow
Not Required _
DISPOSITION:
AGENDA ITEM #
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Marsh USA Broker Contract #_
Effective Date: 3/20/2005
Expiration Date: 3/12/2008
Contract Purpose/Description:
Pollution LiabilitvLiabilitv Renewal
Contract Manager: Maria Slavik 3178 County Attorney #7
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on 2~16-2005 Agenda Deadline: 2-1-2005
CONTRACT COSTS
Total Dollar Value of Contract: $ 68,000
Budgeted? Yes[g] No 0 Account Codes:
Grant: $
County Match: $
Current Year Portion: $
503-08502-530-450-_
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--~~-
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- ~.......-- --
ADDITIONAL COSTS
Estimated Ongoing Costs: $~yr For:
(Not included in dollar value above) (e~. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Division Director
Dat~, lI),
atlls' J c<'
o~tSll'
Changes
Needed ~~Retrwer
. , ", h' ___
YesONo ,,',' , ,,' '" ~
YesO Noff' ~~, I" j ('
Date Out
, I~' J\)("
Risk Management
o .M.BJPurchasing
County Attorney oll,s'jo( YesO No
\ "[' /~
1\", ,',' l'I.'
v-r~u"
Comments:
OMB Fonn Revised 2/27/0 I MCP #2
I NTERISK
CORPORA TION
Risk Management
Employee Benefits
1111 North Westshore Boulevard
Suite 208
Tampa, FL 336074711
Phone (813) 287-1040
Facsimile (813) 287-1041
Consultants
February 9, 2005
Ms. Maria Slavik
Risk Management Specialist
Monroe County
502 Whitehead S1.
Key West, Florida 33040
Subject: Pollution Liability Renewal
Dear Maria:
In preparation for the February 16, 2005 Board meeting, an Agenda item was prepared requesting that the
Board approve renewing the County's Pollution Liability insurance with Marsh USA and Indian Harbor
Insurance Company for a premium not to exceed $68,000. The Background of the Agenda Item indicated
that Marsh 'was still negotiating \\lth several other insurers and authorization was being requested to place
the coverage with the insurer submitting the best bid for the lowest premium.
Dawn at Marsh has received alternative proposals from the American International Group (AlG) and Arch
Specialty Insurance Company.
AlG has offered to provide the County with Pollution Liability insurance with terms and conditions that are
comparable to those currently being offered by Indian Harbor. The limits of liability will remain at $5
million, subject: to a $50,000 retention. AlG proposed an annual premium of $65,050 and a three (3) year
premium of $115,139. AlG's annual premium is $2,210 (3%) less than that proposed by Indian Harbor.
Normally it is not in an organization's best interest to change insurers unless a premium savings equal to
ten percent (10%) can be realized. It is therefore recommended that the AlG's annual proposal be
eliminated from consideratioll Indian Harbor has also proposed a three year policy (to be discussed later in
this letter) that is priced lower than AlG's. It is therefore recommended that AlG's three year proposal also
be eliminated from consideration.
Arch Specialty Insurance Company also submitted a proposal to renew the County's Pollution Liability
insurance for an annual premium of$63,568. Arch's proposal is $3,692 (5%) lower than the one proposed
by Indian Harbor. The limits, retentions, terms and conditions of the Arch's proposal are comparable to
those of the Indian Harbor program. As with the AlG proposal, it is not believed that Arch's proposal
provides significant premium savings to justify a change of insurers at this time.
Indian Harbor supplemented its original proposal by offering a three year policy for a total premium of
$114,445. This equates to an annual cost of$38, 148. This amount is significantly lower than Indian
Harbor's one year option. Because of the attractiveness of Indian Harbor's three year option, it is
recommended that the County consider rene\ling its Pollution Liability insurance \lith Indian Harbor for
the next three years as proposed by Marsh USA.
As always, please do not hesitate to call if you have any questions.
Cordially,
IN1ERISK CORPORATION
Sidney G. Webber
CPCU, ARM
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Februarv 16. 2005
Bulk Item: Yes .....K- No
Division: ManSWement Services
Department: .4.dmin1!1ltn1tive Servicesl.lli.MA~~
AGENDA ITEM WORDING: Approval to renew Pollution Liability insurance through Marsh USA
broker.
ITEM BACKGROUND Provide Pollution Liability Insurance with limits of $5;000;000 with a
$50,000 deduetible. The policy will contain a Retroactive date of7/10/95. Indian Harbor Insurance
Company supplemented its original proposal by offering a three year policy for a total premium of
$114,445. This equates to an emnJaJ cost of $38, 148. This amount is sipificantly lower than Indian
Harbor's one year option. Approval is being requested for Risk ~~ to renew with Indian
Harbor for the three year option, it is recommended that th8 County consider renewing its Pollution
Liability Insurance with Indian Harbor for the next three years as proposed by Marsh USA
PREVIOUS REVELANT BOCC ACfION: Approved Marsh Proposal in 2004.
CONTRACT/AGREEMENT CHANGES: Policy term will be trom 3/12/05 to 3/12/08. Renewal
premium is $114,445 for a period of three years. 2004 premium was $67,260.00.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: SI14.445 BUDGETED: Yes --X-. No_
COST TO COUNTY: SI14.445 SOURCE OF FUNDS: AI) V~REM
REVENUE PRODUCING: Yes No X AMOUNTPERMONTH
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APPROVED BY: County ~
Year
DIVISION DIREcroR APPROVAL:
OMBlPurcbasin Risk u........._
8- ......--e~_
qo\JL~~ o2-\IS'\<><
l.R. COLLINS
J
DOCUMENTATION:
Included ...x.-
To Follow
Not Required
AGENDA ITEM #
DISPOSITION:
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
t
CONTRACT SUMMARY
Contract with: Marsh USA Broker Contract #_
Effective Date: 3/20/2005
Expiration Date: 3/1212008
Contract PurposeIDescription:
Pollution LiabilitvLiability Renewal
-
u
Contract Manager: Maria Slavik 3178 r #7
(Name) (Ext.) (DepartmentIStop II)
-
for BOCC . 2-16-2005 . . Deadline: 2-1-2005
on
CONTRACT COSTS
Total Dollar Value of Contract: S 68,000
Budgeted? Y ~ No 0 Account Codes:
Grant:S
County Match: $
Current Year Portion: $
503-08502-530-450-_
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- -
--
- --
- --
ADDmONAL COSTS
Estim~ Ongoing Costs: $ /yr For:
fNnt inclnMrI in doDarvalue above) (C2. nuaint~ 1Jtj~' . . salaries, etc.)
CONTRACT REVIEW
Risk Management
O.M.B./Purchasing
County Attorney ~
Division Director
Comments:
...
OMB Form Revised. 2127/01 Ma #fl
I NTERISK CORPORA TION
~
1111 North Westshcn Boulevard
SUite 208
T.npa, Fl33607-4711
Phone (813) 287-1040
FacsimIe (813) 287-1041
Consultants
FebmaIy 9, 2005
Ms. Maria Slavik
Risk~ SpecWHt
Momoe CouDly
502 Wh~ St.
Key West, Florida 33040
Subject: Pollution Liability Renewal
Dear Maria:
In JftP8I'8lioIlfor the FebruaIy 16, 2005 Boa:nl.~ an Aseada itaD was txcpared requestiDg 1hat the
Bo8nl approve n:aewing the CouDly's PoD.tinn Liabi1i1y _'~allICe with Marsh USA and IDdiaD Harbor
~ ~ for a premium not to ~ $68;000. The BadqpouDd of tile Aga1da Itan indicated
.. Marsh was still ~.with~ odIer....... and ~7JIOOn was being~ to place
the coverase with the iJIsurer SDlwittiog the best bid for the lowest premimn.
Dawn at Marsh bas receiwd a1~M: proposals from the American JatcmatiooaI Gmup (AlO) aad Arch
Specjalty IPsbraoc:e CompIny.
AlG bas offered to provide the County with PoIIutioo Liability iDsurance with tams and condifinM tbat are
~I~ to those -.n~,. being oIfeftd by Indian HadJor. The limi1s of liability wiIllemain at SS
mi1lm, subjea to a $SO,OOO J'deIIJMn AlG poposed an IIIDU8l ~Cdkdm ofS65,MO and a duee (3) year
prdum ofS1I5,139. AlG's 8DDD8l ~ is $2,210 (3%) less than 1hat proposed by IDdian Hatbor.
Normally it is not in an OIpni,..,.'S best iDIaat to chaDF insurers UDIess a ptemium saviDgs equal to
ten pm:eat (10%) can be reaIDJed. It is lheaeb'e ":(X,...~ that the AlG's..... ~oposal be
eH..w_,~ from ~aOOn Indian HadJor.. aIso~ a duee year po&y (to be discuss=d later in
this 1dta') that is priald 1owc:r than AlG's. It is tbcrdbIe ~ that AlG', duee year p:oposal also
be eHm~ from COD8ideration.
AR::h Specialty T......~1lOe ~ also submiUed a proposal to RDeW the County's PoI1utioa LiabiIily
u.raoce for an.... ~~ofS63,568. AIda's ~is $3,692 (5%) 1owc:rtban the ODe ~
by Indian HaIbor. The limits, Jetentions, terms and CODditkms of the Arch's pioposal are comperable to
those of the IDdian Harbor "081'" As with tile AlG pioposal, it is not beIicvecl1hat Ardl's proposal
provides siguificant pta..m saviDgs to justify a cbaDge of insurers at this time.
,.,
Indian HaIbor s.~ its orisJnR1 ~oposa1 by '-eriDg a 1bree year policy for a toIal..~ of
$114,445. This ClC(II8IeS to .. amma1 cost of $38, 148. 11ris _ is sj~ lower t1I8Il Indian
HaJboI:'s one year opIMa Bec:ause of the ~ oflDdian HaJboI"s tbRle year opdoo, it is
1eCOP'--wt tb8t the ComKy 00DSider n:aewiDg its Pollution Liability i~...oQe widl Iodian IfaJbor for
the next three years as .-oposed by Marsh USA
f' As always, please do DOl besitaIe to call ifyoo have any quesaioDs.
Cordially,
INTERISK CORPORATION
J z) iJ vtt-
SidDey G. Webber
CPCU, ARM
...