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Item Coversheet Page 1 of 2 <br /> Risk Management <br /> DATE: 9/15/2015 <br /> MEMO: 091515-1 <br /> TO: Honorable Mayor Moore-Wolfe and City Council <br /> FROM: Tim Gleason,City Manager <br /> John Williams,Mass Transit Administrator <br /> Gregg Zientara,Director of Financial Management <br /> Scott Clark,Risk Manager <br /> SUBJECT: Transit Liability Insurance and Claim Handling Services <br /> SUMMARY RECOMMENDATION: Staff recommends that Council adopt a Resolution awarding the annual contract <br /> for Transit System liability insurance and claims handling services to Lancer Insurance Co.and Admiral Insurance Co. <br /> BACKGROUND: <br /> Staff sought quotes for a firm to provide liability insurance and claims handling services for the Transit System for one <br /> year.The requested insurance would provide minimum coverage of$1,000,000 per occurrence for the primary layer of <br /> general liability and commercial auto,and would provide a total per occunence and aggregate limit of$10,000,000 of <br /> liability coverage. <br /> The attached Tabulation of Bids gives a comparison of the two proposals and their premiums that were submitted by two <br /> localinsurance brokers. <br /> Staff reviewed the proposals and determined that the Lancer proposal met the requirements for$10,000,000 aggregate <br /> liability coverage and the Travelers proposal only provided aggregate limits of$7,000,000 for general liability and <br /> $6,000,000 for the automobile liability. <br /> Combining the primary and excess layers,the Lancer proposal provides the requested aggregate liability limit of <br /> $10,000,000. The Lancer/Admiral proposal requires a deductible of$100,000 for the Automobile Insurance and for <br /> General Liability Insurance. The Travelers Insurance proposal requires a Self-Insured-Retention of$100,000. <br /> The Tabulation of Bids shows that the total cost for Lancer/Admiral is$161,884,including the cost of claims handling <br /> (TPA). The total cost for the Travelers Insurance bid is$219,597. <br /> Staff determined that the Lancer Insurance/Admiral Insurance combined proposal meets all of the Transit System's <br /> requirements,and is the best and least expensive proposal.Lancer Insurance and Admiral Insurance have served as the <br /> Transit System's liability inswanceproviders since September 22,2013,and staff members are satisfied with the services <br /> they provide.Staff finds that these insurance carriers are capable and competent to perform the work and would meet the <br /> needs of the Transit System. <br /> POTENTIAL OBJECTIONS: None known <br /> INPUT FROM OTHER SOURCES:Jerome Parker,General Manager,DPTS <br /> STAFF REFERENCE: For questions or comments regarding this item,contact John Williams Mass Transit <br /> Administrator at 424-2816 or Scott Clark Risk Manager at 424-2803.Both will be present at the City Council Meeting of <br /> September 21,2015 to address any Council concerns. <br /> BUDGET/TIME IMPLICATIONS: <br /> The cost of the liability insurance and claims handling services are included in the current budget. <br /> ATTACHMENTS: <br /> Description Type <br /> o Resolution To Accept Quote Resolution Lettcr• <br /> o Bid Tabulation Backup Material <br /> ❑ Lancer Proposal For Insurance [3acku}�Matcrial <br /> REVIEWERS: <br /> Department Reviewer Action Date <br /> Risk Managcmcnt I3righL Debbic nE�pro�cd 9/17/2pl�- IO:�K AM <br /> https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=249 9/21/2015 <br />