09-29-1975 Supporting DocumentsMINUTES Nt)1191
SPECIAL MUTING
A Special Meeting of the City Council of the City of Clermont was held In the
Council Chambers on Monday, Soptember 29, 1976. The meeting was called to order at
7:15 P. M. by Mayor Claude E. Smoak, Jr., with the following members present: Council-
men Schroedel, Oswalt, Blackburn and Byrd. Other officials present were: City
Manager Hopkins, City Attorney Baird, City Clerk Carroll, and Director of Community
Services Smythe. Others present were: The Messrs. Chamberlain, Olivenbaum, Thompson,
and Planning & Zoning Commission members Czech, Dougherty, Jones, Cunningham, Williams,
Bay and Blanchard.
The invocation was given by Mr. Smythe, followed by repeating of the Pledge of
Allegiance in unison by those present.
Mayor Smoak announced the purpose of the meeting was to consider bids for the city's
insurance needs.
A single bid in the amount of$40,419.00 was submitted by Olivenbaum Insurance Agency,
representing The Aetna Insurance Company and the Life Insurance Company of North
America. The bid had been reviewed by Mr. Richard J. Chamberlain, insurance consultant,
and his analysis and recommendation submitted to Council in writing4 , Due to the
astronomical increase in the bid figure as opposed to the adopted 75-76 budget figure,
City Manager Hopkins submitted an comparative analysis including a list of capital
outlay items for possible deletion to order to devise a budget adjustment, if necessary.
In an effort to receive more competitive bidding, Council had taken action in revising
the bid specifications to extend the area for prospective bidders to any adjacent
county, and in view of this action, inquired of Mr. Chamberlain if he knew of any
reason for only one bid having been sumitted. Mr. Chamberlain advised that the
time element involved wherein there was a late start initially in the preparation of
proposals, was one factor, and, the general insurance climate existing at the present
time would be another significant fact. He further advised that following legislative
action eliminating municipalities from soverign immunity on proprietary functions,
additional insurance companies were no longer interested.
Council inquired of Messrs. Chamberlain and Olivenbaum as to such an extremely high
percentage increase, and they advised as follows: Current inflaction; Liability
classifications increased; Loss of soverign immunity; Increase in Workman's Comp
coverage, thereby affecting rates; Increase in the city's payrolls; Additional
property and equipment added, and the liability coverage on both general and vehicles
has been increased, thereby affecting rates.
It was the recommendation of Mr. Chamberlain that this bid be accepted, and negotiations
instigated with the underwriting company regarding some modification in certain areas
of coverage based on exposure, which he would be glad to do. Motion was made by
Councilman Schroedel, seconded by Councilman nlackhurn and rarripd that tnp hid ha
aim ar
Mayor Smoak adjourned the meeting to a workshop meeting with the P & Z Commission
at 8:05 P. M.
Claude E. Smoak, Jr., Maydr
Dolores W. Carroll, City Clerk
TO: (:I ty Counr. 11
FIMM: Cll.y Mnnngm'
SUI4.11?l;'I' Innul';uu•r
DA'I'N: 5cptambct 211, 1975
The bld on the clty'u Inoorance Ill 540419.
A hudgol cnmparlivo analysis In no 1'ollnwu:
73-71. 74-75 75-76 75-76
AvLoa l Bttlmnrud 14ud L_ Itld,_.._
$13198 $1.9691 $23825 $4041'1
Budget Bid
75-76
Liability $11000 $ 23327
Workmen's Comp 1L500 1.6019 ..
Bond L000 563
polico & Fire Accident 325 _ _ 510 _
u$23815 $ 40419
$404L9 Bid
23825 Budgct
$16494 Overrun
BUDCUI' ADJUSTMEN'_I'
_Ltcm __Before _ After _RoductIon _
police Recorder $ 2240 $ - $ 2240
Jenkins Runovatlo❑ 7500 5500 000
01
Cuntn ingocy Comm. Serv. 15000 14000
Dump 'Truck 7450 - 7450
Irrigation Pump 1000 - 1000
Chlorinator Generator 2000 - 2000
Sewer pipe 5000 4000 1000
$ 166)0
These Items are. being placed on hold in view of the increased Insurance costs.
They may be released during the fical year depending on our revenue/expenditure
experience. For Instance, the $12,500 to match a state grant for the swimmtng
pier may not materialize.
cc: City Clerk
Control Ler
CLty Attorney
Revere Corporation !�
115 Gnat Lomon Street
Post Ofpce uex 8,14
LAKE:LAND, I LORIDA 33002
PP.n;•r'G 1. CHAmRRLNM :rn
"A ;8.7465
n.;c Atnno-.�x September 29, 1975
Va, road,•'
I
Mr. Robert M. 1-loplcins, City Manager,
City of Clermont,
One Nestgate I'lara,
Clermont, Fla. 32711
i
Re: Insurance Bids
Dear Bob: i l
i'
I am sure all of us are extremely disappointed with the results
of the bidding for the insurance program for the City of Clermont
since only one bid was received. As discussed with you initially
however, it was my feeling that our bidding would be limited to
say the least caused primarily by two factors. One, the time
element involved as regards company preparation of proposals
caused by our late start initially and the delay in developing
accurate experience information and two, the general insurance
climate at the present time.
As mentioned to you, a surprising numberof our very large
insurance companies have lost their Af rating due to depletion
of surplus and the ratio of premium writing to surplus. This
factor alone eliminated a number of companies that I feel could
have been interested since we did require an A+AAAAA company
I
from a coverage standpoint.
The only bid received as you are aware, was from the Olivenbaum i.
Insurance Agency in Clermont, being underwritten by the Aetna (-
Insurance Company. The Aetna as you are aware, has been your
carrier for the past number of years and certainly is capable of
doing an excellent job from the standpoint of claims and engineering
service for the City of Clermont as is your present agent.
In light of the foregoing, it would be my recommendation that the
City Council award the insurance to the Olivenbaum Insurance Agency
to be underwritten by the Aetna Insurance Company and Aetna Fire
Underwriters with the exception of the police and firemen's
accident policy which I would recommend also be awarded to the j
i
i
Page ?,
Mr, Robert M. Ilopkinu, City Ma1mgor
Reptcnibcr L9, 1971i
Olivenbaum Insurance Agency to be undel-ritten by Life Insurance
Company of North America.
Although the Aetna bid did not exactly conform in all respects to the
specifications, it does provide coverage per the schedules in the
specifications with the only real variations being in the limits of
liability afforded in the primary coverage in order for the Aetna
to write the Umbrella Excess policy.
As you and I have discussed, it is my feeling that negotiation
should be ente red into with the underweiiiug company regarding
some modification in certain areas of coverage based on exposures
and 1 of course will he happy to meet with people at the Olivenbaum
Agency and the Aetna Insurance Company in these negotiations.
Certainly no modification would be made in coverage without approval
from you and/or City Council.
I further feel that there is a possibility of improvement in the --
Umbrella Excess premium and limits and would suggest with your
concurrence that I explore this possibility immediately with the
thought in mind that although coverage has been ordered from
Olivenbaum Agency in Lhe Aetna for the Umbrella Excess that if
substantial improvement could be made within the next few clays
a change in this area could be effected without penalty to the city.
As stater], I feel that I should have discussions with the agency and
company regarding the policies to be ordered and further plan to
review all the policies after they have been received by you to con-
firm that they have been issued in conformity with the specifications
in bid.
Very truly yours,
REVERE CORPORATION
RJC:mb Richard J. Chamberlain
i��iw�»��uanz JN.Srll rllirl' (�1bewrly
776 MONTROSE STREET
r•.""'`v'1"""''unr•.rvc"" cLERM0NT, fLORIUA 32711
Pbunu J94•2923
CiTY OF CLERMOW, FLORIDA
131D FOP INSURANCE
TO: MY 01' CLI.R110111, I'LIIRIDA
We by re�)y agree to furnish he City of Clermont with insurance as per specificatio-'s (with
varia*.ions as noted below) Is follows:
BID COMF.ANY
1. CO!':4ERCIAL PACKAGE POLICY
Neal A Personal Property - $100.00 Deductible
(Property eligible for PIP is Blanket)
Itaoio Eguipmonl, - All Ri,k - 550.00 Deductible
Scl.eduled Property Floater
Coats & Motors
Glass
Automobile Comprehensive Liability -
* Godily Injury - S250,000/500,000.00
Auto Physical Damage - $100.00 Deducible Collision
on units valued at over $600.00 and $500.00 Deductible
Collision on all unit, valued dt over S",C00.00.
Cwied, Hired, Leased & Non -Owned Automobiles
Geceral Liability - Including Personal Injury & Products
* 5500,000.00 Bodily In,;ury and S500,000.00 Aggregate
Public Employees Blanket Bond
Broad Form Money & Secur,ties $19,389.00 Aetna Ins. Co.
2. 4lorkmen's Compensation (aanual)
Participation Plan as per attached
(Total Dividends paid City last 6 Years - S3458.41 S16,019.00 Ae:ni Fire Under
3. Public Official Mond - Comptroller
4. Volunteer Firemen Accident
S. S1,J0O,000.00 Umbrella
(1 Year Only)
6. Police & Firemen Accident Death & Dismemberment
dr _ ors
Ins. Co.
$563.00
Actna
Ins Co.
$323.75 _
Aen3
ins._Go.
$3938.00
AEtr.;_Ins.
Co.
$186.00
Li`e
Ins. Co. of
[4o,,t'�
Am erica
��LVGII�1Ghll.l7h �../)7.1/IlYIJlI'(< ��(�l.'1l�1�
776 MONTkOSE STREET
P. U. Bn. 210
CLERMON'f, rLORIDA 32711
111,onu 394-3923
CITY OF CLERMONT BID 1011 INSURANCE
PACT
* The• increased Bodily Lnjury limits we quoted because Aetna requires there as Unde"ly1119
limi'.s for the Umbrella policy. The Aetna will not write a 53,000,000.00 Umbrella.
The .,nnual premium for the Conunercial Package policy is predicated on amending :1le current
policy which expires on October 1, 1977. This may be renowed for one (1) year in 1d77 in
order to be concurrent with the three (3) year bid period.
01 IVENBAUfl'INSURANCE AGENCY
BY:
September 25, 1975 776 Plontrose Street
UATEL P.O. Box 210
Clermont, Florida 32711