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Home My WebLink AboutPR 12128:FLOOD COVERAGECITY OF pORT ARTHUR SAFETY&~SK MANAGEMENT TO: FROM: DATE: SUBJECT: MEMORANDUM Stephen B. Fitzgibbons, City Manager Lisa Colten, Safety & Risk Management Coordinator March 26, 2003 Resolution Approving the Purchase of Flood Coverage through Omaha Property and Casualty Insurance Company in the Amount of $40,131.00 per Annum COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 12128 authorizing the purchase of Flood Coverage through Omaha Property and Casualty Insurance Company [via the Texas Municipal League Intergovernmental Risk Pool (TML-IRP) through its agent, Victor O. Schinnerer [(formerly Amedcan Governmental Risk & Insurance Programs (AMGRIP)], at a cost of $40,131.00. The coverage period is from April 26, 2003 through April 26, 2004. The amount paid last fiscal year was $39,420.00. The principle reason for the increase in this year's premium is the reappraisal of the City's properties being insured. The recommended company is the City's current provider. Premiums and rates are set by the National Flood Insurance Program (NFIP) regardless of the agent used. BACKGROUND: The City advertised for bids for Insurance Coverage. Three bid specification packets w~re requested by, and delivered to: Victor O. Schinnerer (formerly Amedcan Governmental Risk & Insurance Programs (AMGRIP)/Texas Municipal League Intergovernmental Risk Pool (TML-IRP) Larry Womack & Company Houston Financial Partners/New England Financial The sole bidder was Omaha Property and Casualty Insurance Company [via the Texas Municipal League Intergovernmental Risk Pool (TML-IRP) through its agent, Victor O. Schinnerer (formerly Amedcan Governmental Risk & Insurance Programs (AMGRIP)]. The City has been using Victor O. Schinnerer/AMGRIP for its National Flood Insurance Program for many years. Victor O. Schinnerer/AMGRIP acts as the agent for the TML in procuring flood insurance for the City of Port Arthur. The TML underwrites all other property and casualty insurances for the City of Port Arthur, and has been doing so since 1985. The services provided by both Victor O. Schinnerer/AMGRIP and TML has been satisfactory. "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" Stephen B. Fitzgibbons March 26, 2003 Page 2 of 2 The sole bid was sent to RWL Group, the City's consultant, for analysis and recommendation. Subsequent to extensive review of the bid, the consultant submitted its recommendation (Exhibit "A" attached) that the bid received from Omaha Property and Casualty Insurance Company (via TMLNictor O. Schinnerer/AMGRIP) be accepted. The 'City's Flood Insurance program calls for the purchase of flood insurance through the National Flood Insurance Program (NFIP). The NFIP is the only provider of guaranteed flood insurance for propertiss across the Nation. Although all premiums and rates are set by the NFIP regardless of the agent use(~, the City is required to seek proposals for providing this coverage. BUDGETARY/FISCAL EFFECT: The proposed funding is as follows: General Liability Insurance Fund Account No. 612-1702-581.52-00 ..... $40,131.00 Budgeted funds are available to cover this expenditure. STAFFING/EMPLOYEE EFFECT: No effect on staffing levels. SUMMARY: I recommend approval of Proposed Resolution No. 12128 authorizing the purchase of Flood Coverage through Omaha Property and Casualty Insurance Company [via the Texas Municipal League Intergovernmental Risk Pool (TML-IRP) through its agent. Victor O. Schinnerar E(formerly American Governmental Risk & Insurance Programs (AMGRIP)], at a cost of $40,131.00 The coverage pedod is from A~ri126. 2003 through Apd126, 2004. The amount paid last fiscal year was $39.420.00. The principle reason for the increase in this year's premium is the reappraisal of the City's properties being insured. The recommended company is the City's current provider. Premiums and rates are set by the National Flood Insurance Program (NFIP) regardless of the agent used. Attachment "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR' Yahoo! Mail - ljcolten(~yahoo.com Page 1 of 2 wjt' :[-IOO[ Mail-: Exhibit "A' Close Window From: "RWL Group" <carolyn@rwlgroup.com> To: "Lisa Colten" <ljcolten@yahoo.com> Subject: City of Port Flood Renewal Bid 4-26-03/04 Date: Wed, 26 Mar 2003 16:27:40 -0600 Lisa: As we discussed, I have reviewed the renewal flood pricing received from TML. I am attaching the comparison spreadsheet I developed which compares last year's premium for each policy with the renewal premium, and indicates the percentage increase, if any. This is the National Flood insurance program and as such the pricing is controlled by National Flood. Since TML is the only bidder, I recommend you proceed with the renewal through them. The actual renewals should have been sent to the City already by Omaha Property and Casualty along with the individual invoice for each policy. TO renew, simply pay the invoice. As to the inflation option offered on some of the properties, if you are comfortable that the amount of coverage currently provided sufficiently addresses the value of the property, simply do not take the inflation option. I understand that the City wishes to be prudent, ~ut economic in its decision. Let me know if you have questions. Carolyn A. Miller, CPCU Senior Consultant RWL Group 300 North Coit Rd., Suite 810 Richardson, Texas 75080-5456 Phone: 972.907.9095 Fax: 972.907.9198 http://us~f~3~~m~~~~yah~~~c~r~dyrn/~h~wLett~r?b~x=Inb~x&M$g~d=~927-244699-~~334-~62~-5L~ 3/26/2003 City of Port Arthur 4-26-03 Flood Renewal Comparison A I B C D E F G 1 ~ercenta,qe 4-;,~-u;~/u4 w~tn 2 Policy Number 4-26-0Z/03 4-26-03/04 Increase Inflation Optior~ 3 3-0078-2282-2 526 526 0% 526 4 3-0078-2283-0 570 570 0% 572 5 3-0078-2284-8 1,122 1,122 0% 1,122 6~ 3-0078-2285-5 831 940 13% 979 7 3-0078-2286-3 3,888 4,351 12% 4,375 8 3-0078-2287-1 5,064 5,064 0% 5,064 9 3-0078-2288-9 3,327 3,327 0% 3,495 10 3-0078-2289-7 696 696 0% 704 11 3-0078-2290-5 773 773 0% 781 12 3-0078-2291-3 273 273 0% 286 13 ~-0078-2292-1 273 273 0% 286- 14 3-0078-2293-9 252 252 0% 268 15 3-0078-2294-7 222 222 0% 236 16 3-0078-2295-4 283 391 38% 406 17 3-0078-2296-2 314 345 10% 362 18 3-0078-2297-0 570 570 0% 572 19 3-0078-2298-8 20,122 20,122 0% 21,527 20 3-0078-2299-6 314 314 0% 327 21 22 39,420 40,131 2% 41,888 P.R. No. 12128 3/26/03 LJC RESOLUTION NO. A RESOLUTION AUTHORIZING THE PURCHASE OF FLOOD COVERAGE' THROUGH OMAHA PROPERTY AND CASUALTY INSURANCE COMPANY IN THE AMOUNT OF $40,131.00 PER ANNUM PROPOSED FUNDING BY: General Liability Insurance Fund: 612-1702-581.52-00 $40,131.00 Whereas, bid specifications pertaining to the insurance coverage specified below were made available to interested parties on March 3, 2003, and sealed bids for the same were accepted until 3:00 p.m. on March 26, 2003 (at which time all bids were opened and read aloud) in accordance with State law and the City Charter; and, Whereas, RWL Group has recommended that coverage be obtained from Omaha Property and Casualty Insurance Company [via the Texas Municipal League Intergovernmental Risk Pool (TML-IRP) through its agent, Victor O. Schinnerer [(formerly Amedcan Governmental Risk & Insurance Programs (AMGRIP)] as delineated in Exhibit "A"; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT the City Manager is hereby authorized to purchase insurance contracts and bind coverage for Flood Insurance, effective April 26, 2003, through Omaha Property and Casualty Insurance Company {via the Texas Municipal League Intergovernmental Risk Pool (TML-IRP) through its agent, Victor O. Schinnerer [(formerly American Governmental Risk & Insurance Programs (AMGRIP)]}, as recommended by RWL Group in Exhibit "A" which is for $40,131 without the inflation option; and, THAT the City Manager is hereby further authorized to execute all necessary instruments on behalf of the City of Port Arthur, with approval of the City Attorney, and to make payment of necessary premiums to bind coverage effective April 26, 2003, pending receipt of the Contracts of Insurance; and, P.R. No. 12128 3/26/03 LJC Page 2 of 2 THAT a copy of the caption of this Resolution be spread upon the Minutes Of the City Council. READ, ADOPTED, AND APPROVED this day of , A.D., 2003, at a __Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , Councilmembers NOES: Oscar G Ortiz, Mayor Al-rEST: Evangeline Green, City Secretary APPROVED AS TO FORM: Mark T. Sokolow, City Attomey APPROVED AS TO AVAILABILITY OF FUNDS: Rebecca Underhill, Director of Finance APPROVED FOR ADMINISTRATION: Stephen B. Fitzgibbons. City Manager