HomeMy WebLinkAboutRFP - P668 RISK MANAGEMENT INSURANCE CONSULTANTCity of Fort Collins
Admini-.rative Services
Purchasing Division
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
RISK MANAGEMENT CONSULTANT
PROPOSAL NO. P-668
PROPOSAL DATE: 3:00 P.M. (OUR CLOCK) MARCH 16, 1998
256 W Mountain Avenue • PO. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707
H. Premium
1) Building Property $12,890
2) Inland Marine $ 115
3) General Liability $11,517
4) Vehicle Liability/Property $28,592
5) Boiler & Machinery $ 1,538
I. Special Information -- Annual premium.
II. PUBLIC OFFICIALS AND EMPLOYEES LIABILITY
A. Carrier International Surplus Lines Insurance Company
B. Policy Number PO10002692
C. Policy Period 1/1/98-99
D. Limits $500,000 per loss and aggregate
E. Deductible $7,500 each loss
F. General Description of Coverage -- This policy will pay on behalf of the insured any
claims legally obligated because of a wrongful act, meaning any actual or alleged
error, misstatement or misleading statement, or act or omission and neglect on
breach of duty.
G. Agent/Broker -- Flood & Peterson Insurance Inc.
H. Premium -- $5,752
1. Special Information -- Annual payment; claims made form.
III. WORKER'S COMPENSATION
A. Carrier Colorado Compensation Insurance Authority
B. Policy Number 0051045
C. Policy Period 01/01/98-99
D. Limits Coverage A - Statutory Limits
Coverage B - $100,000 per accident
$500,000 per disease
$100,000 per employee
E. Deductible -- None
F. General Description of Coverage -- Standard W.C. policy.
G. Agent -- Flood & Peterson
H. Premium -- $115,000 (Estimated)
I. Special Information -- This is the second year that PFA has chosen a loss dividend
program.
Estimated payroll for 1998:
7704 - $7,000,000
8810 - $ 285,000
8811 - $ 78,000
Number of volunteer firefighters - 31
IV. EXCESS LIABILITY
The PFA and the Poudre Fire Protection District are named insureds on the City of Fort
Collins excess liability policy.
Due,
REVIEW AND ASSESSMENT
Professional firms will be evaluated on the following criteria. These criteria will be the basis for
review of the written proposals and interview session.
The rating scale shall be from 1 to 5, with 1 being a poor rating, 3 being an average rating, and 5
being an outstanding rating.
WEIGHTING
FACTOR QUALIFICATION STANDARD
2.0 Scope of Proposal Does the proposal show an understanding of the
project objective, methodology to be used and results
that are desired from the project?
2.0 Assigned Personnel Do the persons who will be working on the project
have the necessary skills? Are sufficient people of
the requisite skills assigned to the project?
1.0 Availability Can the work be completed in the necessary time?
Can the target start and completion dates be met?
Are other qualified personnel available to assist in
meeting the project schedule if required? Is the
project team available to attend meetings as required
by the Scope of Work?
1.0 Motivation Is the firm interested and are they capable of doing
the work in the required time frame?
2.0 Cost and Work Hours Do the proposed cost and work hours compare
favorably with the project Manager's estimate? Are
the work hours presented reasonable for the effort
required in each project task or phase?
2.0 Firm Capability Does the firm have the support capabilities the
assigned personnel require? Has the firm done
previous projects of this type and scope?
11
Reference evaluation (Top Ranked Firm)
The project Manager will check references using the following criteria. The evaluation rankings will
be labeled Satisfactory/Unsatisfactory.
QUALIFICATION
Overall Performance
Timetable
Completeness
Budget
STANDARD
Would you hire this Professional again? Did they
show the skills required by this project?
Was the original Scope of Work completed within the
specified time? Were interim deadlines met in a
timely manner?
Was the Professional responsive to client needs; did
the Professional anticipate problems? Were
problems solved quickly and effectively?
Was the original Scope of Work completed within the
project budget?
Job Knowledge If a study, did it meet the Scope of work?
12
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into the day and year set forth below, by and
between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter
referred to as the "City" and , [insert either a corporation, a partnership or an individual, doing
business as 1, hereinafter referred to as "Professional'.
WITNESSETH:
In consideration of the mutual covenants and obligations herein expressed, it is agreed by
and between the parties hereto as follows:
1. Scope of Services. The Professional agrees to provide services in accordance with
the scope of services attached hereto as Exhibit "A", consisting of () page[s], and
incorporated herein by this reference.
2. The Work Schedule. [Optional] The services to be performed pursuant to this
Agreement shall be performed in accordance with the Work Schedule attached hereto as Exhibit
"B", consisting of () page[s], and incorporated herein by this reference.
3. Time of Commencement and Completion of Services. The services to be performed
pursuant to this Agreement shall be initiated within ( ) days following execution of this
Agreement. Services shall be completed no later than . Time is of the essence. Any
extensions of the time limit set forth above must be agreed upon in writing by the parties hereto.
4. Early Terminations Citv. Notwithstanding the time periods contained herein, the
City may terminate this Agreement at any time without cause by providing written notice of
termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the
termination date contained in said notice unless otherwise agreed in writing by the parties.
PSA 10/97
13
T.
All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent
to the following addresses:
If Professional: If City: With Copy To:
In the event of any such early termination by the City, the Professional shall be paid for services
rendered prior to the date of termination, subject only to the satisfactory performance of the
Professional's obligations under this Agreement. Such payment shall be the Professional's sole
right and remedy for such termination.
5. Design, Project. Indemnity and Insurance Responsibility. The Professional shall be
responsible for the professional quality, technical accuracy, timely completion and the coordination
of all services rendered by the Professional, including but not limited to designs, plans, reports,
specifications, and drawings and shall, without additional compensation, promptly remedy and
correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and
hold harmless the City, its officers and employees in accordance with Colorado law, from all
damages whatsoever claimed by third parties against the City; and for the City's costs and
reasonable attorneys fees, arising directly or indirectly out of the Professional's performance of any
of the services furnished under this Agreement. The Professional shall maintain commercial
general liability insurance in the amount of $500,000 combined single limits, and errors and
omissions insurance in the amount of
6. Compensation. [Use this paragraph or Option 1 below.] In consideration of the
services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed
fee in the amount of ($ ) plus reimbursable direct costs. All such fees and costs shall
PSA 10/97
14
not exceed ($). Monthly partial payments based upon the Professional's billings and
itemized statements are permissible. The amounts of all such partial payments shall be based
upon the Professional's City -verified progress in completing the services to be performed pursuant
hereto and upon the City's approval of the Professional's actual reimbursable expenses. Final
payment shall be made following acceptance of the work by the City. Upon final payment, all
designs, plans, reports, specifications, drawings, and other services rendered by the Professional
shall become the sole property of the City.
6. Compensation. [Option 1] In consideration of the services to be performed pursuant
to this Agreement, the City agrees to pay Professional on a time and reimbursable direct cost basis
according to the following schedule:
Hourly billing rates:
Reimbursable direct costs:
with maximum compensation (for both Professional's time and reimbursable direct costs) not to
exceed ($ ). Monthly partial payments based upon the Professional's billings and
itemized statements of reimbursable direct costs are permissible. The amounts of all such partial
payments shall be based upon the Professional's City -verified progress in completing the services
to be performed pursuant hereto and upon the City's approval of the Professional's reimbursable
direct costs. Final payment shall be made following acceptance of the work by the City. Upon final
payment, all designs, plans, reports, specifications, drawings and other services rendered by the
Professional shall become the sole property of the City.
7. City Representative. The City will designate, prior to commencement of work, its
project representative who shall make, within the scope of his or her authority, all necessary and
proper decisions with reference to the project. All requests for contract interpretations, change
PSA 10/97
15
orders, and other clarification or instruction shall be directed to the City Representative.
8. Project Drawinas. [Optional] Upon conclusion of the project and before final
payment, the Professional shall provide the City with reproducible drawings of the project
containing accurate information on the project as constructed. Drawings shall be of archival quality,
prepared on stable mylar base material using a non -fading process to prove for long storage and
high quality reproduction.
9. Monthly Report. Commencing thirty (30) days after the date of execution of this
Agreement and every thirty (30) days thereafter, Professional is required to provide the City
Representative with a written report of the status of the work with respect to the Scope of Services,
Work Schedule, and other material information. Failure to provide any required monthly report
may, at the option of the City, suspend the processing of any partial payment request.
10. Independent Contractor. The services to be performed by Professional are those
of an independent contractor and not of an employee of the City of Fort Collins. The City shall not
be responsible for withholding any portion of Professional's compensation hereunder for the
payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose.
11. Personal Services. It is understood that the City enters into this Agreement based
on the special abilities of the Professional and that this Agreement shall be considered as an
agreement for personal services. Accordingly, the Professional shall neither assign any
responsibilities nor delegate any duties arising under this Agreement without the prior written
consent of the City.
12. Acceptance Not Waiver. The City's approval of drawings, designs, plans,
specifications, reports, and incidental work or materials furnished hereunder shall not in any way
relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's
PSA 10/97
16
approval or acceptance of, or payment for, any of the services shall not be construed to operate
as a waiver of any rights or benefits provided to the City under this Agreement.
13. Default. Each and every term and condition hereof shall be deemed to be a material
element of this Agreement. In the event either party should fail or refuse to perform according to
the terms of this agreement, such party may be declared in default.
14. Remedies. In the event a party has been declared in default, such defaulting party
shall be allowed a period of ten (10) days within which to cure said default. In the event the default
remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek
damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail
himself of any other remedy at law or equity. If the non -defaulting party commences legal or
equitable actions against the defaulting party, the defaulting party shall be liable to the
non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred
because of the default.
15. Binding Effect. This writing, together with the exhibits hereto, constitutes the entire
agreement between the parties and shall be binding upon said parties, their officers, employees,
agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal
representatives, successors and assigns of said parties.
16. Law/Severability. The laws of the State of Colorado shall govern the construction,
interpretation, execution and enforcement of this Agreement. In the event any provision of this
Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such
holding shall not invalidate or render unenforceable any other provision of this Agreement.
17. Special Provisions. [Optional] Special provisions or conditions relating to the
services to be performed pursuant to this Agreement are set forth in Exhibit "C", consisting of
PSA 10/97
17
(_) page[s], attached hereto and incorporated herein by this reference.
THE CITY OF FORT COLLINS, COLORADO
John F. Fischbach
City Manager
Date:
James B. O'Neill II, CPPO
Director of Purchasing & Risk Management
DATE:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
[Insert Professional's name] or
[Insert Partnership Name] or
[Insert individual's name]
Doing business as [insert name of business]
as
Title:
CORPORATE PRESIDENT OR VICE PRESIDENT
Date:
ATTEST:
Corporate Secretary
PSA 10/97
18
(Corporate Seal)
BACKGROUND:
The City of Fort Collins and the Poudre Fire Authority (PFA) have separate
insurance programs as outlined in Attachments A and B. Each entity is in the
final year of a five year insurance program period and must go out to bid again
for renewal for another five year period. The Risk Manager for the City also
manages PFA's insurance program.
A Risk Management consultant has been used successfully in the past to approach
the insurance market to obtain insurance coverage and it is our intent to do the
same with this bid. Risk Management consultation services will only be needed
for the first year of the five y8ar commitment unless assistance is needed for
a renewal or other risk management issue.
We anticipate using the following process to renew coverages:
1. Select insurance brokers through the RFP process by evaluating
written proposals and interviewing.
2. Assignment of insurance markets to brokers.
3. Specifications prepared by the City and consultant are sent to
brokers.
4. Bids are analyzed, final negotiations are conducted, and insurance
coverage is placed.
The City utilizes a third party administrator for claims handling. A separate
RFP process is used to select this contractor. It is not anticipated that the
Risk Management consultant will be used to select the TPA.
SCOPE OF WORK•
1. Review the RFP criteria for broker selection. Once proposals are
submitted, assist if necessary with selection.
2. Assist with market assignments to brokers.
3. Review current insurance programs and make recommendations for program
enhancements.
4. Prepare insurance policy language for the bid specifications.
5. After specifications are released, field underwriting questions.
6. Analyze insurance bids and prepare written recommendations within two
weeks after the bid opening.
7. Review insurance policies to determine compliance with bid specifications.
S. Assist with last minute negotiations, if necessary.
SUBMIT A MINIMUM OF THE FOLLOWING INFORMATION•
TABLE OF CONTENTS
Request for Proposal
Page 1
Background
Page 2
Scope of Work
Page 2
Submittals
Page 3
Attachment A
Page 4-7
Attachment B
Page 8-10
Review and Assessment
Page 11-12
Sample Professional Services Agreement
Page 13-18
1. Qualifications of your firm and staff. Please include information about
education, professional designations earned, work experience, and
professional organization involvement of the person(s) who will be
involved with this project.
2. A cost schedule your firm will charge the City for services rendered.
Please include all applicable charges for consultants, secretarial,
copying, travel, etc... What do you anticipate the ultimate cost for
consultant services to be? Can you guarantee your fees not to exceed a
specified amount?
3. Explain how your firm will meet the requested scope of work.
4. References from other firms/public entities for whom you have provided
similar services.
5. Given the limited information from Attachments A & B, what changes if any
should each entity consider in its insurance program? What endorsements
or exclusions should or should not be included in the policies?
6. Will your firm contract out any portion of the scope of work? If yes, to
whom?
7. Do you sell insurance or act as a broker/agent? If yes, what portion of
your business encompasses this?
8. Do you carry Professional Liability or E&O coverage? If yes, what are the
limits? Are you named in any professional liability related lawsuit at
this time?
9. If you are utilized to help select a broker and determine market
assignments, is there a reason why you could not be objective in either
task?
CITY OF FORT COLLINS INSURANCE POLICY SCHEDULE - 1998
I. PROPERTY/CRIME/BOILER & MACHINERY INSURANCE
A. Carrier -
United States Fire, Hartford
B. Policy
Number -
2450011001-4 (Property)
933395607 (B&M)
19BY101089390BCM (Crime)
C. Policy
Period -
01/01/98-99
D. Limits:
1)
Blanket Limit -
$345,605,998
Includes buildings, contents, vehicles, mobile equipment,
valuable papers, EDP, business income, extra expense.
2)
Flood -
$75,000,000 aggregate
3)
Earthquake -
$75,000,000 aggregate
4)
Transit -
$ 500,000
5)
Demo/Debris Removal
$ 5,000,000
6)
Unscheduled Property
$ 2,500,000
Flood/Earthquake Limit
$ 1,000,000
7)
Newly Acquired Property
$ 5,000,000
Flood/Earthquake Limit
$ 1,000,000
8)
Off Premises Power
$ 1,000,000
9)
Errors & Omissions
$ 5,000,000
10)
Builders' Risk
$ 2,000,000
11)
Pollution Cleanup
$ 250,000
12)
Fidelity & Crime -
$ 1,000,000 Public Dishonesty
$ 300,000 Money/Securities
$ 1,000,000 Blanket Forgery
$ 1,000,000 Computer Fraud
10)
Boiler & Machinery -
$10,000,000/ occurrence for direct
damage.
$500,000 business interruption and
extra expense.
Sublimits:
Expediting expense - $100,000
Water Damage - $1,000,000
Ammonia Contam. - $2,500,000
Hazardous Subst. - $100,000
Contamination - $1,000,000
E. Deductibles:
1) Property - $ 50,000
2) Earthquake - $ 50,000.
3) Flood - $200,000 for property located in
Flood Zone A.
4) Fidelity/Crime - $ 25,000
5) B & M - $ 10,000 all objects
24 hour waiting period for business
interruption and extra expense.
F. General Description of Coverage - Covers all city owned
and leased property including buildings, contents,
vehicles, mobile equipment, data processing equipment,
crime and fidelity loss. The Fort Collins/Loveland Airport is
included on the policy.
City of Fort Collins Insurance Policy Schedule - 1998
Page Two
G. Agent - Arthur J. Gallagher
H. Premium - $137,786 Property
$ 16,400 Boiler & Machinery
$ 6,529 Crime
(Does not include broker fee of $19,595. Premiums are subject to
change with addition of new property.)
I. Special Information - Annual payment. Department sustaining loss
pays first $500 of claim. The loss fund pays the next $49,500, and
then insurance coverage kicks in. The Cities of Fort Collins and
Loveland will split the $10,000 deductible in the event of a loss.
II. EXCESS LIABILITY
A. Carrier - Northfield Insurance
B. Policy Number - AA101160
C. Policy Period - 1/01/97-98
D. Limits - G.L. $1,000,000 per occurrence
$1,000,000 products liability aggregate
$2,000,000 general aggregate
Auto $1,000,000 per occurrence
Uninsured/Underinsured/No Fault - Minimum state limit
Law Enforcement - $1,000,000 per occurrence
$2,000,000 aggregate
Public Official - $1,000,000 per occurrence
$1,000,000 aggregate
E. Deductible - S.I.R. of $150,000 per occurrence
$625,000 aggregate
F. General Coverage Description - This liability covers claims in
excess of $150,000 per occurrence. Coverage applies for federal
actions, out of state actions and for claims where governmental
immunity may be overturned legislatively or judicially. Coverage
includes general liability with personal injury, including
discrimination, police professional, vehicle, and public official
liability. The coverage is written on an occurrence form except for
Public Officials Liability.
G. Agent - Flood & Peterson
H. Premium - $144,320 (Includes taxes and claims audit fee)
I. Special Information - Claims within the retention are administered
by Crawford & Co., 2850 McClelland Dr., Suite 1600, Fort Collins, CO
80525, phone # 225-9733. Claims that may exceed the retention
should be reported to the insurance company. Annual payment.
III. EXCESS WORKERS' COMPENSATION
A. Carrier - Safety National Casualty
B. Policy Number - SP3876CO
C. Policy Period - 01/01/97-98
D. Limits - Coverage A - Statutory Limits
Coverage B - $1,000,000
E. Deductible - $300,000 each accident
City of Fort Collins Insurance Policy Schedule - 1998
Page Three
F. General Description of Coverage - Excess insurance for employees
injured on the job.
G. Agent - Arthur J. Gallagher.
H. Premium - Estimated $41,400. Based on 9.0 cents/$100 of payroll.
I. Special Information - Annual payment with an annual audit to
determine final cost. Covers only the City of Fort Collins.
Required by the Division of Labor.
IV. VOLUNTEER INSURANCE COVERAGE
A. Carrier - Hartford
B. Policy Number - 34 SR652037
C. Policy Period - 07/01/97-98
D. Limits - $10,000 Excess Medical
$2,500 Death/Disability
$ 500 Dental
E. Deductible - $0
F. General Coverage Description - This is excess medical coverage for
volunteers if injured while working for the city. The medical
coverage is excess of other medical insurance the volunteer has.
G. Agent - Flood & Peterson
H. Premium - $3,207.40
I. Special Information - Annual payment. Forward claims to the agent.
Volunteer firemen are excluded.
V. AIRPORTLIABILITY COVERAGE
A.
Carrier -
Old Republic Insurance
B.
Policy Number
- PR603
C.
Policy Period
- 07/03/97-98
D.
Limits -
$10,000,000 CSL
E.
Deductible -
$1,000 (Hangerkeeper's Liability)
F.
General Coverage Description - Typical commercial general liability
coverage that
includes products/completed operations, premises
liability, and
hangerkeeper's liability.
G.
Agent -
Lockton Silversmith, Inc.
4500 Cherry Creek Drive South, Suite 400
Denver, CO 80222
Contact: Mary Bade, Phone # 1-753-2033
H.
Premium -
$12,375
I.
Special Information
- Annual payment. This policy is managed by the
City of Loveland.
City of Fort Collins Insurance Policy Schedule - 1998
Page Four
VI. SPECIAL EVENTS POLICY
A. Carrier - St. Paul
B. Policy # - CK08306737
C. Policy Period - 1/1/98-99
D. Limits - $1 000 000
E
F
$1,000,000
$ 5,000
$ 100,000
$2,000,000
aggregate
Deductible - $0
per event
personal and advertising injury
medical expense
premises damage
products/completed operations
General Coverage Description - Coverage for users of the Lincoln
Center that do not have their own liability insurance. The user
pays a premium for the insurance directly to the city, who then
forwards the funds to the carrier. This is a typical commercial
general liability coverage that provides for bodily injury and
property damage.
G. Agent - Flood & Peterson
H. Premium - $5,000 flat. Users are billed to recoup
the cost of this policy.
VII. LOSS OF SALES TAX REVENUE
A.
Carrier -
Mount Hawley Insurance Co.
B.
Policy Number -
Binder 131963
C.
Policy Period -
1/01/98-99
D.
Limits -
$4 million
E.
Deductible -
$5,000 per occurrence
F.
General Coverage Description - This policy provides
the City with
income in the event that
the Foothills Fashion Mall is damaged by an
insurable event such as
fire or windstorm, and closes
for a period
of time resulting in lost sales tax revenues. The
City generates
approximately 10% of its
sales tax revenue from this
location. The
policy excludes Flood &
Earthquake.
G.
Agent -
Flood & Peterson
H.
Premium -
$14,448
I.
Special Information -
Annual Payment.
CITY OF FORT COLLINS
SELF-INSURANCE SCHEDULE
I. GENERAL LIABILITY. AUTOMOBILE LIABILITY. POLICE LIABILITY PUBLIC
OFFICIAL LIABILITY
A. Policy Number -- None Self -Insurance Resolution 88-1
formulated the program.
B. Policy Period -- 10/01/87 -- Indefinite
C. Limits -- $150,000 per occurrence
D. General Coverage Description -- Coverage for claims by the public
against the City for bodily injury and property damage, including
police liability, public official liability, and automobile
liability. The intent is to self -insure losses that are covered by
the State of Colorado Governmental Immunity Act.
E. Agent -- None. Program is administered by the Director of
Purchasing & Risk Management and the Risk Manager.
F. Special Information -- Funds are generated by departmental charges.
The Poudre Fire Authority and Downtown Development Authority
are excluded from this program. Claims are administered by:
Crawford & Company
2850 McClelland Dr., Suite 1600
Fort Collins, CO 80525
Permission to self -insure auto liability must be obtained
annually from the State of Colorado.
II. WORKER'S COMPENSATION:
A. Block Number -- 876
B. Policy Period -- 01/O1/89 - Indefinite
C. Limits -- $300,000 per accident/ $300,000 per employee for disease
D. General Coverage Description -- This policy pays unlimited medical
expense, loss of income, and rehabilitation for employees if
injured or diseased while in the course of employment. The
Employer's Liability provides coverage against the common law
liability of an employer for injuries to employees.
Employer's Liability usually applies in situations where
a worker does not come under the Worker's Compensation
Laws.
E. Agent -- None. Excess worker's compensation policy is administered
by Arthur J. Gallagher Inc.
F. Special Information -- This program is in its sixth year and covers
only the City of Fort Collins. Permission to self -insure is granted
by the State of Colorado Division of Labor. Claims are
administered by Crawford & Company. An excess workers' compensation
policy and a trust agreement are required by the Division of
Workers' Compensation.
POUDRE FIRE AUTHORITY & POUDRE FIRE PROTECTION DISTRICT
INSURANCE POLICY SCHEDULE - 1998
I. PROPERTY/LIABILITY /VEHICLE PACKAGE
A.
Carrier --
Penco/Hartford
B.
Policy
Numbers:
1)
Building Property --
34PKSQJ1438
2)
General Liability --
34CESQJ1439
3)
Vehicle --
34CESQJ1440
C.
Policy
Period -- 1/1/98-99
D.
Limits:
1)
Building Property/Contents --
$8,798,910 (Agreed Amount)
Inland Marine --
$250,000 (Valuable Papers)
2)
General Liability --
$1,000,000
Personal/Advertising --
$1,000,000
Fire Damage --
$500,000
Medical Expense --
$10,000 per person
$100,000 aggregate
Products/Completed Ops --
$1,000,000
General Aggregate --
$2,000,000
3)
Commercial Auto Liability --
$1,000,000
Uninsured Motorist --
$1,000,000
Personal Injury Protection --
Basic
Hired & Non -Owned Auto --
Included in above.
Garage Keepers --
$50,000
4)
Boiler & Machinery --
$7,012,520
Business Interruption --
$100,000
Expediting Expense --
$35,000
Hazardous Substance --
$35,000
Ammonia Contamination --
$35,000
Water Damage --
$35,000
E.
Deductibles:
1)
Building Property --
$500
2)
Inland Marine --
$250 (Valuable Papers)
2)
General Liability --
$0
3)
Vehicle Property --
$1,000 collision/comprehensive
Vehicle Liability --
$0
4)
Garage Keepers --
$500/2,500
5)
Boiler & Machinery --
$750
Business Interruption --
24 hours
F.
General Description of Coverage --
Standard property, boiler &
machinery, vehicle liability and
general liability coverage,
including ambulance malpractice.
G.
Agent
--
Flood & Peterson Insurance Inc.
4821 Wheaton Dr.
Fort Collins, CO 80525
Attention: Chris Richmond
Phone 226-3878
Poudre Fire Authority Insurance Policy Schedule
1998/99
Page Two
H. Premium:
1) Building Property -- $12,890
2) Inland Marine -- $ 115
3) General Liability -- $11,517
4) vehicle Liability/Property -- $28 592
5) Boiler & Machinery -- $ 1,538
I. Special Information -- Annual premium.
II. PUBLIC OFFICIALS AND EMPLOYEES LIABILITY
A. Carrier -- International Surplus Lines Insurance Company
B. Policy Number -- POI0002692
C. Policy Period -- 1/1/98-99
D. Limits -- $500,000 per loss and aggregate
E. Deductible -- $7,500 each loss
F. General Description of Coverage -- This policy will pay on behalf
of the insured any claims legally obligated because of a wrongful
act, meaning any actual or alleged error, misstatement or misleading
statement, or act or omission and neglect on breach of duty.
G. Agent/Broker -- Flood & Peterson Insurance Inc.
H. Premium -- $5,752
I. Special Information -- Annual payment; claims made form.
III. WORKER'S COMPENSATION
A. Carrier -- Colorado Compensation Insurance Authority
B. Policy Number -- 0051045
C. Policy Period -- 01/01/98-99
D. Limits -- Coverage A - Statutory Limits
Coverage B - $100,000 per accident
$500,000 per disease
$100,000 per employee
E. Deductible -- None
F. General Description of Coverage -- Standard W.C. policy.
G. Agent -- Flood & Peterson
H. Premium -- $115,000 (Estimated)
I. Special Information -- This is the second year that PFA has chosen
a loss dividend program.
Estimated payroll for 1998:
7704 - $7,000,000
8810 - $ 285,000
8811 - $ 78,000
Number of volunteer firefighters - 31
IV. EXCESS LIABILITY
The PFA and the Poudre Fire Protection District are named insureds on the
City of Fort Collins excess liability policy.
REQUEST FOR PROPOSAL
CITY OF FORT COLLINS
RISK MANAGEMENT CONSULTANT
PROPOSAL NO. P-668
The City of Fort Collins is requesting proposals from firms for a Risk Management consultant
Written proposals, three (3) will be received at the City of Fort Collins' Purchasing Division, 256
West Mountain Avenue, Fort Collins, Colorado 80521. Proposals will be received before 3:00 p.m.
(our clock), March 16, 1998. Proposal No. P-668.
Questions concerning the scope of the project should be directed to the Project Manager, Stewart
Ellenburg, ARM, Risk Manager (970) 221-6774.
Questions regarding proposals submittal or process should be directed to James B. O'Neill Il,
CPPO, Director of Purchasing and Risk Management (970) 221-6775.
Sales Prohibited/Conflict of Interest: No officer, employee, or member of City Council, shall have
a financial interest in the sale to the City of any real or personal property, equipment, material,
supplies or services where such officer or employee exercises directly or indirectly any decision -
making authority concerning such sale or any supervisory authority over the services to be
rendered. This rule also applies to subcontracts with the City. Soliciting or accepting any gift,
gratuity favor, entertainment, kickback or any items of monetary value from any person who has
or is seeking to do business with the City of Fort Collins is prohibited.
Collusive or sham proposals: Any proposal deemed to be collusive or a sham proposal will be
rejected and reported to authorities as such. Your authorized signature of this proposal assures
that such proposal is genuine and is not a collusive or sham proposal.
The City of Fort Collins reserves the right to reject any and all proposals and to waive any
irregularities or informalities.
Sincerely,
Ja es B. O'Neill Il, CPPO
D' ector of Purchasing & Risk Management
1
BACKGROUND:
The City of Fort Collins and the Poudre Fire Authority (PFA) have separate insurance programs
as outlined in Attachments A and B. Each entity is in the final year of a five year insurance
program period and must go out to bid again for renewal for another five year period. The Risk
Manager for the City also manages PFA's insurance program.
A Risk Management consultant has been used successfully in the past to make recommendations
on methods used to approach the insurance market to obtain insurance coverage and it is our
intent to do the same with this bid. Risk Management consultation services will only be needed for
the first year of the five year commitment unless assistance is needed for a renewal or other risk
management issue.
We anticipate using the following process to renew coverages:
1. Select insurance brokers through the RFP process by evaluating written proposals
and interviewing.
2. Assignment of insurance markets to brokers.
3. Specifications prepared by the City and consultant are sent to brokers.
4. Bids are analyzed, final negotiations are conducted, and insurance coverage is
placed.
The City utilizes a third party administrator for claims handling. A separate RFP process is used
to select this contractor. It is not anticipated that the Risk Management consultant will be used to
select the TPA.
SCOPE OF WORK:
Make a recommendation on best process to use to approach the insurance markets.
2. Review the RFP criteria for broker selection. Once proposals are submitted, assist if
necessary with selection.
3. Assist with market assignments to brokers.
4. Review current insurance programs and make recommendations for program
enhancements.
5. Prepare insurance policy language for the bid specifications.
6. After specifications are released, field underwriting questions.
7. Analyze insurance bids and prepare written recommendations within two weeks after the
bid opening.
2
8. Assist with last minute negotiations, if necessary.
SUBMIT A MINIMUM OF THE FOLLOWING INFORMATION:
1. Qualifications of your firm and staff. Please include information about education,
professional designations earned, work experience, and professional organization
involvement of the person(s) who will be involved with this project.
2. A cost schedule your firm will charge the City for services rendered. Please include all
applicable charges for consultants, secretarial, copying, travel, etc... What do you
anticipate the ultimate cost for consultant services to be? Can you guarantee your fees not
to exceed a specified amount?
3. Explain how your firm will meet the requested scope of work.
4. References from other firms/public entities for whom you have provided similar services.
5. Given the limited information from Attachments A & B, what changes if any should each
entity consider in its insurance program? What endorsements or exclusions should or
should not be included in the policies?
6. Will your firm contract out any portion of the scope of work? If yes, to whom?
7. Do you sell insurance or act as a broker/agent? If yes, what portion of your business
encompasses this?
8. Do you carry Professional Liability or E&O coverage? If yes, what are the limits? Are you
named in any professional liability related lawsuit at this time?
9. If you are utilized to help select a broker and determine market assignments, is there a
reason why you could not be objective in either task?
3
ATTACHMENT A
CITY OF FORT COLLINS INSURANCE POLICY SCHEDULE -1998
I. PROPERTY/CRIME/BOILER & MACHINERY INSURANCE
A. Carrier
United States Fire, Hartford
B. Policy Number
2450011001-4 (Property)
933395607 (B&M)
19BY101089390BCM (Crime)
C. Policy Period
01/01/98-99
D. Limits:
1)
Blanket Limit
$345,605,998
Includes buildings, contents, vehicles, mobile equipment, valuable papers,
EDP, business income, extra expense.
2)
Flood
$75,000,000 aggregate
3)
Earthquake
$75,000,000 aggregate
4)
Transit
$ 500,000
5)
Demo/Debris Removal
$ 5,000,000
6)
Unscheduled Property
$ 2,500,000
Flood/Earthquake Limit
$ 1,000,000
7)
Newly Acquired Property
$ 5,000,000
Flood/Earthquake Limit
$ 1,000,000
8)
Off Premises Power
$ 1,000,000
9)
Errors & Omissions
$ 5,000,000
10)
Builders' Risk
$ 2,000,000
11)
Pollution Cleanup
$ 250,000
12)
Fidelity & Crime
$ 1,000,000 Public Dishonesty
$ 300,000 Money/Securities
$ 1,000,000 Blanket Forgery
$ 1,000,000 Computer Fraud
10)
Boiler & Machinery
$10,000,000/ occurrence for direct damage.
$500,000 business interruption and extra
expense.
Sublimits:
Expediting expense $100,000
Water Damage $1,000,000
Ammonia Contam. $2,500,000
Hazardous Subst. $100,000
Contamination $1,000,000
E. Deductibles:
1)
Property
$ 50,000
2)
Earthquake
$ 50,000.
3)
Flood
$200,000 for property located in Flood Zone
A.
4)
Fidelity/Crime
$ 25,000
5)
B & M
$ 10,000 all objects
24 hour waiting period for business
interruption and extra expense.
F. General Description of Coverage - Covers all city owned and leased property
including buildings, contents, vehicles, mobile equipment, data processing
equipment, crime and fidelity loss. The Fort Collins/Loveland Airport is included on
the policy.
4
City of Fort Collins Insurance Policy Schedule - 1998
G. Agent Arthur J. Gallagher
H. Premium $137,786 Property
$ 16,400 Boiler & Machinery
$ 6,529 Crime
(Does not include broker fee of $19,595. Premiums are subject to change with
addition of new property.)
I. Special Information - Annual payment. Department sustaining loss pays first
$500 of claim. The loss fund pays the next $49,500, and then insurance
coverage kicks in. The Cities of Fort Collins and Loveland will split the
$10,000 deductible in the event of a loss.
II. EXCESS LIABILITY
A. Carrier - Northfield Insurance
B. Policy Number - AA101160
C. Policy Period - 1/01/97-98
D. Limits G.L. $1,000,000 per occurrence
$1,000,000 products liability aggregate
$2,000,000 general aggregate
Auto $1,000,000 per occurrence
Uninsured/Underinsured/No Fault - Minimum state limit
Law Enforcement $1,000,000 per occurrence
$2,000,000 aggregate
Public Official $1,000,000 per occurrence
$1,000,000 aggregate
E. Deductible - S.I.R. of $150,000 per occurrence
$625,000 aggregate
F. General Coverage Description - This liability covers claims in excess of $150,000 per
occurrence. Coverage applies for federal actions, out of state actions and for claims where
governmental immunity may be overturned legislatively or judicially. Coverage includes
general liability with personal injury, including discrimination, police professional, vehicle,
and public official liability. The coverage is written on an occurrence form except for Public
Officials Liability.
G. Agent Flood & Peterson
H. Premium $144,320 (Includes taxes and claims audit fee)
I. Special Information - Claims within the retention are administered by Crawford & Co., 2850
McClelland Dr., Suite 1600, Fort Collins, CO 80525, phone # 225-9733. Claims that may
exceed the retention should be reported to the insurance company. Annual payment.
III. EXCESS WORKERS' COMPENSATION
A.
Carrier
Safety National Casualty
B.
Policy Number
SP3876CO
C.
Policy Period
01/01/97-98
D.
Limits
Coverage A - Statutory Limits
Coverage B - $1,000,000
E.
Deductible
$300,000 each accident
67
City of Fort Collins Insurance Policy Schedule - 1998
F. General Description of Coverage - Excess insurance for employees injured on the
job.
G. Agent Arthur J. Gallagher.
H. Premium - Estimated $41,400. Based on 9.0 cents/$100 of payroll.
I. Special Information - Annual payment with an annual audit to determine final cost.
Covers only the City of Fort Collins. Required by the Division of Labor.
IV. VOLUNTEER INSURANCE COVERAGE
A.
Carrier
Hartford
B.
Policy Number
34 SR652037
C.
Policy Period
07/01/97-98
D.
Limits
$10,000 Excess Medical
$2,500 Death/Disability
$ 500 Dental
E.
Deductible
$0
F. General Coverage Description - This is excess medical coverage for volunteers if
injured while working for the city. The medical coverage is excess of other medical
insurance the volunteer has.
G. Agent Flood & Peterson
H. Premium $3,207.40
I. Special Information - Annual payment. Forward claims to the agent. Volunteer
firemen are excluded.
V. _AIRPORT LIABILITY COVERAGE
A.
Carrier
Old Republic Insurance
B.
Policy Number
PR603
C.
Policy Period
07/03/97-98
D.
Limits
$10,000,000 CSL
E.
Deductible
$1,000 (Hangerkeeper's Liability)
F.
General Coverage Description
- Typical commercial general liability coverage that
includes products/completed operations, premises liability, and hangerkeeper's
liability.
G.
Agent
Lockton Silversmith, Inc.
4500 Cherry Creek Drive South, Suite 400
Denver, CO 80222
Contact: Mary Bade, Phone # 1-753-2033
H.
Premium
$12,375
I.
Special Information -
Annual payment. This policy is managed by the City of
Loveland.
VI.
SPECIAL EVENTS POLICY
A. Carrier
St. Paul
B. Policy #-
CK08306737
C. Policy Period
1/1/98-99
D. Limits
$1,000,000 per event
$1,000,000 personal and advertising injury
$ 5,000 medical expense
$ 100,000 premises damage
$2,000,000 products/completed operations
aggregate
6
CITY OF FORT COLLINS
SELF-INSURANCE SCHEDULE
GENERAL LIABILITY, AUTOMOBILE LIABILITY POLICE LIABILITY PUBLIC
OFFICIAL LIABILITY
A. Policy Number -- None Self -Insurance Resolution 88-1 formulated the program.
B. Policy Period -- 10/01/87 -- Indefinite
C. Limits -- $150,000 per occurrence
D. General Coverage Description -- Coverage for claims by the public against the City
for bodily injury and property damage, including police liability, public official liability,
and automobile liability. The intent is to self -insure losses that are covered by the
State of Colorado Governmental Immunity Act.
E. Agent -- None. Program is administered by the Director of Purchasing & Risk
Management and the Risk Manager.
F. Special Information -- Funds are generated by departmental charges. The Poudre
Fire Authority and Downtown Development Authority are excluded from this
program. Claims are administered by:
Crawford & Company
2850 McClelland Dr., Suite 1600
Fort Collins, CO 80525
Permission to self -insure auto liability must be obtained annually from the State of
Colorado.
II. WORKER'S COMPENSATION:
A. Block Number -- 876
B. Policy Period -- 01/01/89 - Indefinite
C. Limits -- $300,000 per accident/ $300,000 per employee for disease
D. General Coverage Description -- This policy pays unlimited medical expense, loss
of income, and rehabilitation for employees if injured or diseased while in the
course of employment. The Employer's Liability provides coverage against the
common law liability of an employer for injuries to employees.
Employer's Liability usually applies in situations where a worker does not come
under the Worker's Compensation Laws.
E. Agent -- None. Excess worker's compensation policy is administered by Arthur J.
Gallagher Inc.
F. Special Information -- This program is in its sixth year and covers only the City of
Fort Collins. Permission to self -insure is granted by the State of Colorado Division
of Labor. Claims are administered by Crawford & Company. An excess workers'
compensation policy and a trust agreement are required by the Division of Workers'
Compensation.
8