Loading...
HomeMy WebLinkAbout1988-10-24 88-441 ORDERAUG Mer do/24/88 emn Item No. 88-441 hem/Subjects Authorizing Contract with AME Risk Retention Croup Responsible Department: Finance Commanury: See Attached Managers Comments:' _ YT_)HrtO �U 7 y� 1m�Ttl V a� C yMamgn Assacia(ed lnfomutign: �jlp�r pn,� An BudgetAPProvel: espace Legal Approval: ci S arra, Introduced For ®Passage 1 1 LI First Reading Page— of— ❑Referral 88-441 Aesip:ed to Cowed« Tilley, October 24, 1988 CITY OF BANGOR (TITLES Mri¢C Anthorizing Contract with WE Risk Retention Group, Inc. By the OUR Couiwii of Qi/ of Du s - ORDERED, TMT the city Manager is hereby authorized to sign the participation agreement vith the WE Risk Retention Group, Inc; and be it$urther Ordered, THAT the City Reneger is hereby authorized to expend from the Airport hand the sum of $53,260 in payment of our Reserve Premium Contribution. Statement of Fact: The WE Risk Retention Group has been formed to provide n alternative to buying croareveial insurance for Airports. The City will save $47,200 in the first year by joining the group. In City §;ouncll onto her 24,1988 Ftssed I kj `- / 88-441 ORDER Title, Authorizing Contract with AO risk ...................................... reteutlon Group The. ...................................... T4Comcilman Bangor, the center of Mone — the Gateway to Maine's North Woods and Seashore Resorts 88-441 me,"o.new ("nVe7ean CHU of Pmts", Paine October 12, 1988 For: Edward Barred From: Ted delliaov Subject: Airport Liability Insurance Program de, we have discussed previously, the American Association of Airport Executives (APAE) has formed a risk retention group for the purpose of pro- viding an alternative to purchasing commercial Insurance for America's airports. - Me commercial markets have been and remain quite unstable with the difficulty of predicting premiums from year to year. The AAAB risk retention group was formed to try and stabilize and make more predictable the annual rates. We have been working with the group since its inception and recently received a quote for out February, 22, 1989 renewal date. Presently, we re paying .$1)0,000 for a $100 Million policy with a $25,000 deductible. The quote for the same coverage free the aAAR group is $122,800 or avings Go one year of $42,200.In addition, we could increase our deductible from $25,000 to $50,000 and savean additional $12,280 annually. Because this is an entirely new self-insured group, there Is a require- ment for an up front capital contribution equal to one-half of the first year premium. For us, this would amount to $55,260 less a deposit of $2,000 already paid assuming an increase to a $50,$00 deductible. The up front - 'capital is returnable in the event of a break-up of the group. In any event, the savings in premium will cover the contribution in just about one year and than the savings continue annually. It is our recommendation the City of Bangor join the PARR Risk Retention Group and send our capital contribution immediately to bind 1989 premium. We also recommend the increase in deductible from $25,000 to $50,000 since virtually all previous claims have been Order $25,000. TC1/lil cc: City Council Peter D'Errico