Fort Walton Beach Council minutes — 10-20-1982 Special — reading text

MINUTES OF SPECIAL 167 CITY COUNCIL MEETING OF FORT WALTON BEACH FLORIDA ' October 20, 1982 7:30 p.m. INTRODUCTION A Special City Council meeting was held October 20, 1982, at 7:30 p.m. with the Insurance Consulting Company to discuss the insurance bids which had been received. Present: Absent: Mayor Kate Bagley Councilman Miller Councilmembers: Councilman Sundy John Franklin Councilman Bishop Patricia Thornber Al Grant James K. Baughman Also Present: City Clerk/Finance Director and City Attorney Mr. Bill Heeney of Corporate Risk Management, Inc. the consulting firm was a few minutes late due to airline scheduling. Mr. Franklin moved that the rules of the day be suspended and the session be made informal to make recommendations to Council the next Tuesday night. Mrs. Thornber seconded the motion. Mr. Baughman said the meeting was not called as such and felt they should proceed as a Special Council Meeting. It was indicated the bids had been extended until Nov. 1. Mr. Franklin felt the absent three counci Imembers should have a vote in the matter. Voting aye to the motion: Franklin. Voting nay: Thornber, Grant, Baughman. Motion failed. Mayor announced they would proceed with a special meeting. A copy of Corporate Risk Management's Summary of the Insurance Bids is attached hereto and made a part of these minutes. Mr. Heeney began with an explanation of his company's analysis of the bids using the comparison of the various quotations for coverages. He recommended leaving the $1,000.00 deductible. Fire Insurance Coverage The savings in Fire Insurance by going to a higher deductible was not felt feasible. His report recommended Risk Management Services (which shall be noted as RMS throughout the remainder of these minutes) for the Fire Insurance at a fee of $16,343.00 (including all-risk contents, plate glass, Business Interruption, & Extra Expense as options - $16,343.00 was for this total package. Mrs. Thornber moved that the Fire Insurance with options be awarded to RMS at $16,353.00. Motion seconded by Mr. Baughman. Voting aye: Thornber, Grant, Baughman. Voting nay: Franklin. Motion carried. Miscellaneous Property Floater This coverage was quoted low by RMS at $730.00. Mr. Baughman moved it be awarded to RMS; motion was seconded by Mr. Grant.(This was $250.00 deductible). Mr. Long of Long Insurance had some questions at this point which he and Mr. Heeney discussed. It was agreed at this point that Council would consider the Miscellaneous Property Floater Insurance, the Fine Arts Insurance, the Contractors’ Equipment Insurance, and the Garbage Gan Floater Insurance together. RMS was recommended for Fine Arts at $452.00 ($250.00 deductible); Constractors' Equipment at $2,711.00 ($1,000.00 deductible) and Garbage Can Floater at $1,180.00 with $5,000.00 . deductible. Voting aye: Thornber, Grant, Baughman. Voting Nay: Franklin. Motion carried. 168 10-20-82 Mr. Baughman clarified that his motion included Miscellaneious Property, fine Arts, Contractors' Equipment and Garbage Can Floater in the amount of 5,073.00. Flood Long Insurance was the only bidder for Flood Insurance and Corporate Risk recommended that it be maintained with Long Insurance at $2,000.00. Mr. Baughman moved for approval of that recommendation. Motion seconded by Mr. Grant and it carried unanimously. (Flood insurance approved by the Federal Program to be continued with Long Insurance.) Boiler & Machinery (Broadened Coverage) Corporation Risk Management recommended that this coverage be placed with RMS at $1,800.00. Mr. Baughman moved that since Long Insurance had bid the same amount that this coverage be left with Long Insurance. Motion seconded by Mr. Grant and carried unanimously. Crime Mr. Baughman moved that the Crime Insurance be awarded to Hunt Insurance at $866.00 as lowest quote. Corporation Management recommended that the limit be increased from $25,000.00 to $100,000.00 - which would make the Hunt figure $1,352.00. After a general discussion of the variety in the quotes on this item, Mr. Baughman clarified his motion to Hunt, low bidder with increased limit of $100,000.00 for a premium of $1,352.00. Motion seconded by Mr. Grant and carried unanimously. It was noted that bonds for Evans and Nolan were included in the Hunt quote, as well as the others. Automobile Liability Corporate Risk recommended the low quote RMS at $15,679.00 with $100,00/200,000; the Automobile, Physical Damage Option I - low at $13,996; also that General Liability the same way $21,638.00 and Medical Payment Coverage was included in that. They did not recommend the deductible in the case of General Liability. Mr. Heeney recommended the City should go to $500,000 CSL or $21,181.00. (There was an error of $5,502.00 in the printeddata.) Corporation Risk recommen- ded keeping all the automobile and general liability together and RMS was lower on all three:. Mr. Baughman moved that the three be awarded to RMS - Automobile Liability $21,181.00 with $500,000 CSL; Automobile Physical Damage at $10,177.00 with Option II; and Comprehensive General Liability at $27,524.00 with $500,000 CSL. Motion seconded by Mr. Grant. (Mr. Heeney had recommended $13,996 with Option 1, - - - since the City was keeping the 1,000.00 deductible felt should stay with the $1,000.00 deductible. Motion carried unanimously. Ambulance Attendants Corporate Risk noted a letter to Long Ins. after the bids were in asking if they would continue this coverage for $500.00 and asking what Long's fee would be if Council increased the limits $500,000.00. Corporate Risk recommended leaving the coverage with Long, however RMS had included in their policy, if Council went to $500,00 and it would really be comparing $738.00 with $515.00. (Corporate Risk recommended the $738.00 with RMS for Ambulance Attendants coverage. Mr. Baughman moved approval of that recommendation. Motion seconded by Mr. Grant and carried unanimously. 10-20-82 169 Public Officials & Employees Liability Corporate Risk said the best proposal for this coverage was from Markel which was a special broker out of Richmond and they bid $1,440.00, with a million dollar limit. Mr. Baughman moved the low bidder, Markel; Motion seconded by Mr. Grant and carried unanimously. Police Professional Liability Corporate Risk Management recommended $500,000 CSL at $1,228.00; RMS - motion seconded by Mr. Grant and carried unanimously. Trustees & Fiduciaries. Liability Corporate Risk Management recommended two million dollars limit and the best quote for the two million limit was from Gallagher at $1,637.00. Mr. Baughman moved for approval of the Gallagher bid; Motion seconded by Mr. Grant and carried unanimous ly. Umbrella Liability Corporate Risk suggested Council give serious consideration to this coverage. Mr. Grant felt comfortable with the one million dollars. Mr. Baughman. asked about three million dollar coverage for $5,254.00 from RMS. Mr. Baughman moved for the three million coverage from RMS at $5,254. Motion seconded by Mr. Grant. After the discussion of the slight difference in cost, Mr. Baughman changed his motion to the five million dollar coverage from RMS at $5,754.00. Motion seconded by Mr. Grant and carried unanimously. Workmens Compensation Corporate Risk indicated they had come up with four plans - guaranteed cost plans where you get no credits if you have good experience but are not penalized if you have poor experience. Based on their study, Gallagher was the best plan under the guaranteed cost - $74,886.00 - Maximum. ¢f*. . @7' . He indicated the other three plans were loss ratio plans based on results of loss experience. He indicated the best plan of those was RMS at $44,000.00; their maximum cost of $74,269.00 was better than the others. Mr. Grant moved to award the workmen's compensation to RMS for the loss ratio plan at $74,269.00.00 Motion seconded by Mr. Baughman and carried unanimously. The City Clerk asked Mr. Heeney if he felt there were anything that should be added or anything that should be deleted. Mr. Heeney indicated there were some extensions they had included in the specificationas and options, but some of the things would be automatically included. He felt the old program was basically a sound program and he felt what had been done that evening was fine also. He indicated Page 19 of the report included. the complete comparison in summary form which showed approximately $47,000.00 reduction, noting a couple of options had been added back to that. Mr. Heeney indicated the travel accident coverage for volunteer firemen and auxiliary policemen was not included in the specifications and he recommended this be left with Long; noting the premium would be about $200.00 (special accident coverage for the two categories). Mr. Baughman moved that this be approved if Mr. Long would accept. Motion seconded by Mr. Grant and carried unanimous ly. Meeting adjourned at 9:21 p.m. approver Jy by, bo q 99x ATTEST: cit ere ¢ poy J 170