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Home My WebLink About2002-06-24 02-262 ORDERDate: 6-2402 Item/Subject Order, Authorizing Award of City Insurance Coverages Responsible Department Finance Commentary: Approximately ] weeks ago, the City issued a bid request for our various insurance coverages. Prior to the initial bid date, Dunlop Corporation requested a bid extension due to the length of time It was taking for them to receive quotations and information from the various companies from with whom they were seeking to place our coverage. The bid data was extended by approximately twelve days from May 29'^ to June 10". June 100 was selected in order to provide staff with sufficient time to analyze received bids in time for Rnance Committee consideration on June Ig". On June 10°, a complete bid was received from MMA's Property and Casualty Pool and a partial and Incomplete bid was received from Dunlop. Dunlop's bid included only excess workers' compensation and property insurance. In addition, the quoted cost of property coverage was a qualified bId without a firm price since it was contingent upon schedules of equipment values that could increase premiums. The Finance Committee considered the insurance bid at its meeting of June igu'. At that time, Dunlop indicated that they had received, that day, quotations on the City's insurance requests. The majority of Committee discussion was on whether the Committee would authorize recelpt of thls information after the extended bid deadline had passed. A motion to receive this information failed on a two to two vote. The Committee subsequently voted 3-1 (Coundlor Nealley In opposition) to recommend that the majority of the bid be awarded to the Maine Municipal Association's Property and Casualty pool and that the excess workers' compensation policy be awarded to Dunlop. Staff will provide Council with a separate memorandum outlining the issues involved in the Committee's disoussion of this item. During the current year, the City Is paying approximately $361,200 for insurance coverage. The proposed annual premium for the coming year will be about $398,900, which represents a 10.4% increase, considerably less than the 20-6096 increases thM were predicted. Department Head Mangles Comments: Recommend approval. a�piaI City Manager er Associated Informal lan: Oder, Awad Recommendation and Tabulation. Budget Approval: ico "`alar Legal Approval: /Ovolicidr Introduced for 2L Passage _ mrst Reading Page_ of Referral 02-262 S Assi bCouacilw rarriagcoa Jwe 26, 2002 CITY OF BANGOR (MLE.) Order, Aufl odsirg Award of Cay Insurance Coverages. By the Clty O wndl of (he Cly ofAWW..- ORDERED, That all insurance coverages except WorkersCompensatlon Excess Liability Insurance are hereby awared to the Maine Municipal Association Property and Casualty Pool. The Workers' Compersabon Excess policy is awarded! to The Dunlap CorpjHRH, the low bidder far this coverage. IN PITY COUNCIL Jose 24. 2002 Motion Mae and seconded Passage Motloa Made and seconded to Accent Recommendation of Pisan a Committee Councilor Mason gained a Question of Conflict Issue for Himself Council voted as, Conflict Nepresentatives of Mulap Corp. and NUk Described the Issues surrounding their Preparation of These Bids Met Jack, Resident of Bangor Asked If Extension of Deadline Created an Unfair Avaatage for garknHade and Seconded t Postpone this item to a gets Certain and to Accept Additional Information of the Dunlap Bid Motion Doubted Vote: 6 yes. 3 n Cwncilws voting yes: Allen. pelletal, Crawley, Malley, Palmer and Tremble Couocilws voting no: Parnham, Farrington and Colman Postponed to Date Certain (Jure 26. 20W at 5 p.m.) IM CITY COUNCIL June 26, 2002 Notion Made and seconded for Passage A Presentation was made by David Pelligrino, Pvrclasiug Agent, of the Stuff Beco®evda[iw for the Award of the Bid, Iudentify£ng ION Nick Paul as the Most Competitive Bid for the Mjoricy of Insurance Coverages Respreentatives of Dewlap Agency and Ipa Presented Details c Answered Council Ossetian, Aeeaedlno n.e41 02-262 ORDER Title, Authorizing Award of City Insurance Coverages Assigned to ��1,• Councilor V Y V LN^� Proposals. Councilor Mail" Paecused due to a Prior Commitment Motion Mae moa Movaded to Amend by Awarding the Majority of the City's Insurance Coverages to the qM Risk Pool and to Award the Workers' Compensation Excess Police and the Dental Professional Liability Coverages to the Dunlap Carp./BRM Milan Doubted Vote: 4 yeg.4 no. 1 absent Cowellwa voting yea: Crowley, Funds,v. Farrington A Ashman Councilors voting no: Allen. Baladacc£, Palmer A Tremble Councilor absent; Malley Motion Failed Passage Milan Mede and Seconded to Amend by Awarding All Insurance Coverage to the Dunlap Corp./Bmo motion Doubted Vote: 5 yes. 3 no, 1 absent Councilors voting yes, Allen, Baldacci, Crawley. Palmer A Councilors voting no; Parnham Farrington A Bobman Councilor Absent Nealley Nation Passed Passed As Amended L--0 1T CLE g'. oz-zaz ns ax®m® \ Aavigeadm Cauecbr CITY OF BANGOR (TITLE.) ORDER, Authonzing Awand a City Insurance Coverages 6y hae oy Owndlwme Otyafeari cv: ORDERED, That NI Irsuance Cpveages are hereby awamea m The Dunlap Cap./HRH ^":e`0<,•, CITYOFBANGOR AWARD RECOMMENDATION + 61DITEM(S): Property& Casualty Insurance -City -Wide DEPARTMENT: Purchasing/Finance BUDGET REFERENCE: Requisition No.: N/A Account Number: N/A Budgeted Amount: Available Balance: In proposed FY03 Budget Total Amount of Award Recommended: $398.904.00 Vendor(s) Recommended: Maine Municipal Association & Dunlap Com. Number of Bids Sent: 7 Number of Bids Received: 2 Date Advertised: April Z. 2002 Bid Opening Date: May 29 2002 Past Experience with Vendor:%Excellent—Gooc_Falr_Po r_No Prior Experience OTHER COMMENTS: Award all insurance coverage except Workers' Compensation Excess Liability Insurance to the Maine Municipal Association Property and Casualty Prgl, the only responsive bidder for this insurance. Award the Workers' Comp Excess policy to The Dunlap Corp./HRH the low bidder for this coverage. Most of the Dunlap bid was not responsive as it did not include general liab Iffy, automobile, medical malpractice, law enhancement liability, public officials liability or school leaders errors & omissions insurance coverage. The Dunlap bid was also not responsive because the quoted cost of coverage was contingent upon schedules of equipment values that could increase premiums. (This Is a qualified bid without firm bid prices.) The City is currently paying $361,194.00 annually for insurance coverage. The proposed annual premium for PY03 will be $398,904.00, which represents a 10.4% Increase, which Is considerably less than the 20%-60% Increases that have been pretlicted. This award will have to be approved by the City Council as is $10 0 .0 Pu sing ent APPROVALS CITY COUNCIL FINANCE COMMITTEE: Date: lune 19.2002 CITY OF BANGOR BID TABULATION Bid Opening: OW12102 PROPERTY& CASUALTY INSURANCE -Qualm Page 1 of 1 pal Made. The Dunlap Ooryoratkni Burger, ME ITEM DESCRIPTION M ANNUAL PREMIUM 1. PmVeNy Insurance 00 ']2,004.00 2. General Liable 00 No Bid 3, Autanobile .0 E No Bid 4. Boiler &Machinery .00 11,14100 5. Medical Melpractice VANNU�L .00 NO Bld 6. Las Enforcement Liability .00 NO Bid 7. PublicOF ials LlabAly .00 NO 60 8. SchoolLeaders Error & Onnersbns .00 No Bid B. Workers Can &Em ers Liability 1.00 20,11)00 10. Denim Prof. Liability .0 No Bitl T0TALAM0UNTBID: $427,520.00 -Qualm Page 1 of 1