HomeMy WebLinkAbout1992-06-29 92-335 ORDERull
Datew .Tune 29L11992 Item No. 92-335
Item/Subject: Authorizing Award of Contract to Maine
Municipal Association for City Insurance
Responsible Department: Purchasing/Finance
Commentary:
Three bids were received ranging from $222,958 to
$365,912. After a complete review
n
of all considerations
pertaining to the purchase ofr
City i it was determined
that MMA submitted the most competitive and emost favorable
—�rapasal—to—ttte City- Bangnz. ost-
of $222,958.00 and proposed the most favorable coverage when
considering deductibles and aggregate limits. Claims service
were
considered comparable between Dunlap 6 MMA.
The only concern noted with the mMA proposal was an exclusion
for AIDS related claims. This coverage is not offered at this
time by NMA but is reported to be available within a year.
The concerns noted with the Dunlap proposal were, the
$1,000,000 coverage
rage requested for out of state and federal
claims for the general liability coverage in which the
the $300,000 maximum under the Maine Tort Claims Act does not
apply.
Dunlap also did not offer the $1,000 deductible requested
for property insurance coverage (their proposal continued the
$25,000 current deductible for property coverage). Dunlap
also did not present clearly the aggregate limits in their
proposal and it was not until supplemental eriale were
received that the aggregates were fined. No ggregate
were proposed by MMA(.
Depa nt
Manager's Comments:
C ty onager
Associated Information:
Council Order/AXrrune:s�u..j
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced Fort
/7 Passage
/-7
First Reading
/7 Referral
Page 1 of 1
92-335
Asslgnedto Councilor Saucy, Jnne 29, 1992
CITY OF BANGOR
(TIRE) (JDlbtr,.... A tboriaing. Award.. ofcontract.. co.. Maine . Muoicipal..Association._for
By 614 Oft Cmawit Of Ctfy Of8anper
ORDERED,
TWT City Insurance consisting of Property, General Liability, Automobile.
Buffer d Machinery, Ambulance Malpractice and Police Professional Insurance is
awarded to Maine Municipal Association on the basis that they submitted the moat
competitive proposal in the amount of $222,958.00 for the first year of a three
year policy.
Ing' City Council Jane 29, 12
Amended by substituting Bap
Agency in place of Maine 1611' c
Change limit ft= $500,000,,
and if staff feels there 16tiue,
go to $500,000 the re9uast,L;n
Save to be made to the fiiCe
comnittee alsochange Chef 9u
of $222,958 to $2685526
.yote to dT Yee 2,mr��
,Noting'yaa gausEoQiy$taggfe. ,.
Cahoon; Frankel, SaUyet,Sovey,
Stone voting No Blanchette,
Seel
vote y y passage 7 yes-2.No
vatiuq Y§S'$r�8&,CahEryFt P'el
'sAwyer,$axi'soacy'Stone
voting No Boldacci,,BB+lanchette
pla
Ci y Clerk
9L335
0ROER
0,o0a '
to Authorizing Award of Contract to
"Mdi'de MmiI.cfpay'A'zbeelvei'ou %Y
City Insurance
...........................
; a �;
Assigned to
............... .unci.....
Councilman
Y,
tl -
S
9L335
0ROER
0,o0a '
to Authorizing Award of Contract to
"Mdi'de MmiI.cfpay'A'zbeelvei'ou %Y
City Insurance
...........................
; a �;
Assigned to
............... .unci.....
Councilman
PVcine MunLdpa' 92-M
Mod0flUn
row. c.on am:E - T^ae 17.1592 -
AVGLs. "NE ;Gazevi-5G .
city be
Ace Cave Peflagrino
Citi VPIL 73 Harlow Yr2a:.
Baugcr. Maine ^44Q!
Dear Dave:
Thank you for firs ::lipori,mity to sniew Q..= ins ens prcrn•:.t avbmlttsd be fila DvnILP
corporelion. GlerA.. it appwrs the policy ceeerngee proysed by Du Illp rna the Reliance
Insuznce Company aro consntant wiry she nsds itee:rhsd by the City oP Bangor.
Ill 2rder to fatilivate tile Gill' : dacicion i.? !h`s 9NISi6 1 Ati ice]:iJp+j 8 [i:2rl indicating m4 -
anniyss cf illi Cit's Joss frcqucnrc and ossc. Owe,-, the tbMillne deductible options
prouded in both the Dump an? 'KIMA bids. this should provide a basis to compare
nreTyrn S.
Kotwithsvandmg Cie `':portznce of inmvanca costs, there are s:;'eral dis;;:ct 'ccnefi:s
associated t+•ith ,be o1h[A Ri=le Pool program. Ther- are as sollof: z
1. :at fa: tht the M?4A Risk Pool is act'nsnrance, allows vs to utilize the
lmnsunifica started tv the Agcy:a Tor: C!oimv Act. For this reason see provide
a FMO.A0 inft of bability Thore are many other stun?ions wldelt may gilt
rise to a claim vll. will occur outride the Maine Tort Claims Act. For these
i%pow;n .he Risk PN: provides a ii.iTlt 4f $1000.00 per occurrence. The
iota.l. limit of iiabihty ava!"ra'c!e regardless of how the claim is brought, is
g.A00.M.
The 71.000,000 Im., tray:dz :rris attar to Rich Poci member;. in pss:4rnlzr,
Tris limit is very inpormnt to Police D. partmentq h.falp-aclke issues, and Fire
Dina, ordeals all of wh%lm are inereasine:y subhct to Conroe of action hied
;:ndu Federal: Lew.
Concerns acv::-. (fie vehdity and potential appiioatioa of the'Amna Tort Claims
,act as the .Act relaec to hiss Pool claims are somewhat invalid for two
reasons. The law curl does not rnal:e the dccisians to litter the Maine Tort
Claims Act. !tis is done as deemed necessary by 1,;islnLon. Tae IBsr Pool
me-kers legizatic,I for any, proposed changes to unninsltieo which would
i'no
a.1 Risk Pool rtambrs. oecotid,y, rt, Pea ":iii respond to any legislative
ilS .Ic that nia) os yr in lorwr to continue to protect `hal la mm ailchtis to
the best of our abiihies.
2. The Risk Pool dos nc: hair, an; aggregate lisbtlity limit. AEaggregam limit
represents the total abaoluts licy 1: nit finch is a+auable for paymcct m any
giver policy year. Clearly this uncaps a nntendal for eaor'ered losses shoAd
Ile sggregate 'innt be p:erccd early is the policy year. Dunlap indicates
falehough 1 did net see the endprsement in the proposal or you* cunent
covert,55est that a per loomio.'1 and Far operation Aggrega±e does apply to
general liability cover t;es. This does n%gite some of the effects of the
anare ate. Rowcvor. it :a conccilable Gnat mere ^:an one .ols that penetrates
^.F.e aggregate :nil+yhl happen at :he sarns;xauon such es Ci R' Aali.
- 92-335 -
it also ap�e2ts r -be proposal mb+1II ed bv Gan p that Law crier tmt :l
't L..rty . , •i + -unl 3:ea�nte :e } aU.oJ, n 051':0
depending in�wi.ich limit ogtPrn thaCity acleera. ';ho pv:x department, by
o r) • U ih Y il" a y e c -ultil lh 1.•ms w <s could
I ..ahz. s r6 agg,Cgare .nr a -n T mly give., year.
he P*te,14,aR evk Fro!, -+r.Yt ndpt..icy a3gregate, is s;g:-,ificlaz , zrsrios To m.nmerdal
.m Tnot in chis regard.
3. 11e Risk Pro! program, as approred by Maea. LtgSsiaz or„ is assessable. We
are e%treaaely onsanco cf this fact, -aad fire very ov'deaT sn our fatzatan,,
a;;Angemen!, n:xess in, -:ran,-: p'archases sod our penile hzetd.ing.
By rhe sarnz. [char:, RE's Foci program profTs' helcng to the memlms"o.
Mese prof; ism .• be ^+wruse. so 1h_ m.nla-sl :ip in +hz. te!m of cirr!enC>. it
so de ^Amined the Risk Pwi Burd of IDracwrs. Tat polar@al fes
6viden.s rs r:ct acai:ayia i,. the package proposed by Dunlap.
..
The esp¢edimr.=. oo:kshsa? and sss:xiated Crorcra! Liu^itity, rats.cas vo[
iderti'ixd �srsnm; m <3e bid sperii ication= =n :ha DrrixF pro -01 Tee
:ur=.at _roue} z.^.d ;"e �ropsal coata:c the L^Mowing u�nnfmg Cpagz TO of :4
atelier. Iit Genera?' :a§n!tY Conditions):
'Premium And:%. W'e s; :! rmm um all promiumsfor this poky in acwriarce
with cur rake and rites 3mmiura shown en till policy as'at^Ants premmm'
an deposit premi'sms on: - q.-
OR this ;cliC)' : i a7, an :,'.:itional p:e^ivat :vay ba-suar:d 'op
Reiiam:z !cs::;an:a �orrja�sp opt;: zvJi:. Ton mr4.Fcelis eY. and;rat!c.
The. MA s2�U'a>1n e -e JC'. a ubt y m !(is 'u ler-a .g that
the Cftp s curmilt 1.10 sl.resmer..:a 'Cl made'. \C'a a. shle is cf,tZ
�ilY of Bargee "Fiio:.k!s' Cove; agt, tit t: atia:roa Sva daft ^.`. AFnI 1 .v5s', for a
one rima est of 53E.O:h) Thb prN:eerod a Gil ncei2 fig a leder ;rem the Cit;
Can;irming tbst all tr,ran in:a:AT± hkcly to rCse t in t c:aim hC,o bean aonfied :a the
txpbing.arI ier.
1 rcpe Thai the aDnve east s'he Ci!y iu ..'e decision meking Prc%�'-t I am lr•c3in3;o:wa:d
to sating you again nezl MWBy.
Sinaerel:,
Fames R Cheesoman
uxco tor. Wsk Managxmen!
Liatiiity Deduct.
5'7.23:.•
MY OF BANOOR
7ropa.(y Leduc?.
$ 1100
-PROPOSED
FR' EMI UJMS
oxur: ae<z.
is ao men: 4'rera me -a d:en ons uerwn.:as i-yure5 ir,
e mm. m-%ideni. 'm4,1 W::10:1y Charge
^>
Mc $1,00 daduOibh.
92-335.
one p: dscrttr
lc^s raser.red at S3S CKA, A £25.X0^ d^ductib;e shmid :se
xnti_ipatcd.
LSt02
. S500,coo ^
.33W,OW
Liability Deduct.n:za
a'..,5;f
Eability limits
habsl ty Evuts
-
Phi9fA.
DUNLAP
DUN AP '
PRO PLRi7 .'
353,418
WX,9
Y351
- Dedud.b!e`
(1.000
(25.000,,
(25,000).
Pro,vi)•Dz2ud.
p
naiz
none
nor..
Ge9uc?i11e
1.PT?)�
(i!J�0-sewarl
Ii,OWscwar)
.nUTOMO311-2
$Awl
$70,225
663.255
Dcduln:Me
0,0001
go -,LFR S MACHISFRYS
5.:52
;+5,350
$5,320
AM31ULANCE MAL.
531SUu
fn GMerx;
Ovuu.l
!Ded:ctible
(i 000)
Liability
Li WAY
L.4'.W'M<+r0RCE1fEtiT
63 -%?3
$38,631
.534.154
Deducub?z
u.uoo)
TO r:LS
:?22,556
?266,450
e2 IS Sm
'D<J„r.. co::
A:RM(1
S.1CFd0
s16.Mn
?ottix,z/deduc?.
S24Q?Sa
.VEAP50
$:ES:OSf
`propose] Dau.!itlz C'es:
-
1ID1a
Dur]cp
Liatiiity Deduct.
5'7.23:.•
none
7ropa.(y Leduc?.
$ 1100
k5.!01
'DeduvUbiex ase 'i±.000 ner
oxur: ae<z.
is ao men: 4'rera me -a d:en ons uerwn.:as i-yure5 ir,
e mm. m-%ideni. 'm4,1 W::10:1y Charge
^>
Mc $1,00 daduOibh.
^Tk;e City c: Ban,er ba=
-
one p: dscrttr
lc^s raser.red at S3S CKA, A £25.X0^ d^ductib;e shmid :se
xnti_ipatcd.
LSt02
Liability Deduct.n:za
a'..,5;f
Property Deduct.
8 iA00
624000"
•Sire City e: Bangor had one prop°rt;
1we fc•r $35.6'33 6u*inF itis y:ar rutainivp a `.:t1)
dnNactih;e. wwn the kO"A Ria'$ Pani,
,Liz bit ve.u; f have on13cusa:ee� a si?,OCO dz..'u; tibio
LWay
Lbiebiliw
Deduct.
5513811
Pro,vi)•Dz2ud.
p
naiz
none
nor..
Ai zea'.yss ci tuz deductiblt .av s mflke.tes that tee MMA Rise P?rol a�erage dtSUCUblz test is
Sl° v. per )lir av :he D•,:nOp Ago y e:'ara62 urluciiin"W t is 116.500 t,ex Year.
TOTAL A17U
ADJUSTMENTS $274,250 $254,326 $268,099;
Dunlap provides no deductible on G.L., MM
* Provides a $1,000 Deductible
Additional Cost doe to Deductible .....................$10,916
* Dunlap provides no deductible an Auto and NMA -
provides a $1,000 Deducible. Additional Cost due
to Deductible.........................................$12,025
* Based on past years actual claims
(Three years claims would average $22,311)
Anticipated claims because of addition of
insurance for streets..................................5,000
** Additional Property Deductible
Based on Actual Inas for 10 years ........:..............5,800
F_ zh-Yz
PREHIUH
COMPARISON POR
THE CITY OF BANGOR
i'[ qMl
1992
pUN1.Ap
DUNIAP
N.H.A.
$500,000 Limit
$300,000Lit
O00 Limit
AutoG.L.G Policy
AutoG.L. Police
Professional and
Ambulance
$1,000,000
out of State
.
—
AUTO
$10,285
$63,257
$64,031--
POLICE -
$38,631
$34,768
$32,722
PROPERTY
$63,879
$63,879
$53,918
-�' GENP&V. LIAB.
$90,335
$81,302
$62,925
- AMBULANCE
INCLUDED
INCLUDED
$3,800
BOILER
$5,320
$5,320
$5,562
$260,450
$248,526
$222,958 -
-
$18,000
(tail coverage)
$240,958
**Additional
Property
-
Deductible
Cost $5,800
$5,800
*Additional
Cast due to
$27,941
Liability Deductible
TOTAL A17U
ADJUSTMENTS $274,250 $254,326 $268,099;
Dunlap provides no deductible on G.L., MM
* Provides a $1,000 Deductible
Additional Cost doe to Deductible .....................$10,916
* Dunlap provides no deductible an Auto and NMA -
provides a $1,000 Deducible. Additional Cost due
to Deductible.........................................$12,025
* Based on past years actual claims
(Three years claims would average $22,311)
Anticipated claims because of addition of
insurance for streets..................................5,000
** Additional Property Deductible
Based on Actual Inas for 10 years ........:..............5,800
We note that the M.N.A. program excludes claims that arise out
of
Communicable disease, specifically excluding AIDS losses. We feel that this
exclusioncould result in losses of catastrophic n Our policy
contains such exclusion. We have heard that the argument that there is
not much expsure to AIDS in this area. This is not true l l!
There has been 168 deaths in the State of Haine due to AIDS. More are
crrently over 400 who have AIDS in this state. Marc are an additional
2,5000 people who have tested HIV positive. We see significant exposure
especially in the school systems. We feel the City and the teachers need
this coverage.
Dunlap's Company is subject to extensive State and regional inspection
to insure proper reserving practice and financially accurate statements.
.... ea
The MMA is not subject to such external inspection.
Should Dunlap's insurer fail, their insured is protected by the State
of Maine Insolvency fund. Me MMA is not protected.
The Dunlap policy will not
ass you for additional funds. The HMA
policy can access you if they so desire.
Me Dunlap policy lets you have flexibility in selecting limits and
coverages. Me MMA policy offers Few options.
The Dunlap Corporation has insured the City for 19 years. We have been
successful in implementing systems that have insured safety, reduced losses,
and minimized premiums.
We feel o e
and in this area has been
outanding. We feel Our urgently needed at this time due to
the elimination of the Safety Director position. Hugh Flynn will
-establish loss prevention procedures, make inspections, conduct classes
and help direct your safety program. His s the street" presence
assures significant on goingservice. You are well aware of Hugh's
expertise in this area.
We also provide the expertise of Pat Donahue. Her claimsnagement
adds value to our product that no else can duplicate. Her extensive
work for the City In reviewing Workers' Compensation losses vividly
demonstrates her high level of expertise.
Dunlap and Reliance demonstrated their flexibility in developing a new
method of handling sewer back-up claims. This eliminates a bad problem with
the citizens of Bangor.
Dunlap's local presence has "tested many uncovered expos over the
yea This has allowed us to contact officials and to cover Such
expos An out of town agent would never have the opportunity to see new
projects. etc.
Dunlap employs 31 people at our Bangor office and has been very active
in this community.