01/14/86 Board of Public Works Minutes

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11 REGULAR MEETING JANUARY 14, 1986 AWARD BID - PEST AND RODENT CONTROL AT POLICE DEPARTMENT AND THREE (3) POLICE SUBSTATIONS In a letter to the Board, Police Chief Charles T. Hurley advised that it is the recommendation of the Police Department that the low bid of Franklin Pest Control of Michiana, Inc., 614 West Calvert Street, South Bend, Indiana, in the amount of $54.00 per month for a total of $648.00 per year, be awarded for control of pests and rodents in the police facilities. It was noted that bids for this service were received and opened by the Board on December 31, 1985. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the recommendation was accepted and the bid awarded. APPROVE AWARD OF PROPOSALS FOR INSURANCE COVERAGE Mr. Michael L. Vance, Director, Administration and Finance, advised that he has received proposals in regards to the balance of the City's liability and property insurance coverage. It was noted that on December 31, 1985 the Board of Public Works awarded the proposal of Bridge, Holland and Miller Agency for the worker's compensation, auto garage keepers liability and general liability. Based on those quotes recently received, Mr. Vance recommended that an additional award be made to the Bridge Holland and Miller Agency for the scheduled property floater, blanket employee bonds and individual public official bonds. These aforementioned coverages will cost $14,407.00 for the policy year 1986. In the case of the boiler and machinery coverage, Mr. Vance advised that he received two (2) quotes, one from Bridge Holland and Miller at a price of $6,045.00 per year and one from Muszynski Insurance Agency at a cost of $5,906.00 for the same coverage. He, therefore, recommended that the Board award the proposal to Muszynski Insurance Agency. Additionally, Mr. Vance advised that only one (1) quote, in the amount of $91,750.00 for one million dollar coverage was received for the City's general liability umbrella coverage. In 1985, the coverage was in the amount of five (5) million dollars at a price of $27,000.00. Even though there has been a substantial increase in the premium and a substantial decrease in the coverage, Mr. Vance recommended that an award be made to Bath Van Mele and Associates for the umbrella coverage. Finally, two (2) proposals have been received for the City's property insurance coverage. Bath Van Mele proposed $248,713.00 and Bruner Cassady Neeser Agency at a cost of $151,766.00. On the basis of more complete coverage and lower cost, Mr. Vance recommended that an award be made to Bruner Cassady Neeser Agency. In conclusion Mr. Vance stated that with the approval of these recommendations, the City of South Bend will have coverage in all areas covered in previous years. In some cases the limits are lower and in all cases the premiums are higher. The higher premiums are a result of the tightening insurance market and do not reflect the City's experience. He further stated that although he is recommending to the Board that awards be made as outlined above, he also advised them that they may change depending on market conditions in the next three (3) months. If circumstances should force this to happen, Mr. Vance will advise the Board. In response to Ms. Barnard's question, Mr. Vance stated that his office and the City's consultant, Corporate Policyholders, will be monitoring the insurance market. A change which might occur is that the rates could go down. Further, in response to Mr. Leszczynski's question, Mr. Vance stated that the total cost of the coverage for 1986 is approximately $853,269.00 compared to an unaudited cost of $305,000.00 paid in 1985.