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Home My WebLink About12/03/85 Board of Public Works MinutesREGULAR MEETING DECEMBER 3. 1985 The regular meeting of the Board of Public Works was convened at 9:30 a.m. on Tuesday, December 3, 1985, by President John E. Leszczynski, with Mr. Leszczynski, Ms. Katherine G. Barnard and Mr. Michael L. Vance present. Also present was Assistant City Attorney Carolyn V. Pfotenhauer. AGENDA ITEM ADDED AND AGENDA ITEM STRICKEN Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, Resolution No. 26-1985 declaring several pieces of Fire Department equipment obsolete was stricken from the agenda. Additionally, five (5) traffic control devices were added to the agenda. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the minutes of the November 26, 1985, regular meeting of the Board were approved. OPENING OF PROPOSALS - INSURANCE COVERAGE Mr. Leszczynski advised that December 2, 1985, was the date set for receiving sealed proposals for the following insurance coverage: - Real and Personal Property (all risk) - Business Interruption (all risk) - Boiler and Machinery (physical damage) - Floater Coverages - Workmen's Compensation & Employer's Liability - Comprehensive General Liability - Comprehensive Automobile Liability & Physical Damage - Catastrophe (umbrella) Excess Liability - Crime Coverages & Public Officials Errors & Omissions Mr. Leszczynski further advised that proposals received for the above referred to coverage were being submitted to the Board today for opening. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found to be sufficient. The following proposals were opened and publicly read: BRIDGE, HOLLAND AND MILLER INSURANCE AGENCY, INC. 1011 East Washington Street South Bend, Indiana Proposal was submitted by Mr. William W. Bridge, President and is as follows: General Liability $ 290,182.00 Auto Liability 168,604.00 Workers Compensation 130,654.00 Boiler & Machinery 11,713.00 Floater Coverage (total) 9,443.00 GRAND TOTAL $610,596.00 ARTHUR J. GALLAGHER & COMPANY 10 Gould Center Rolling Meadows, Illinois Proposal was submitted by Steven A. Ring, Account Executive, National Risk Management Division, and is as follows: Proposal written on a claims -made basis. It was noted that the following two (2) options submitted contain a $100,000.00 deductible across the board pertaining to all coverage. Additionally the proposal sets up a $650,000.00 loss fund. The options submitted are as follows: 1 REGULAR MEETING DECEMBER 3, 1985 P 1 1 LONDON PACKAGE OPTION I Fixed Costs: London Package $ 315,000 Drop Down 7,500 Excess Property 99,000 Excess WCA 16,500 Self -Insurance Bond 1,500 Administration Fee 50,000 *Gallagher Bassett Services 57,560 Inspection Fee 2,500 Total Fixed Costs: $ 549,560 Terms: Maintenance Deductible Self -Insured Retentions Property Third Party WCA Loss Fund Fixed Costs: (estimated) (estimated) (estimated) $ 1,000 (see attached diagram) 100,000 100,000 100,000 650,000 LONDON PACKAGE OPTION II London Package $ 272,000 Drop Down 7,500 -Excess Property 99,000 =Self -Insurance Bond 1,500 Administration Fee 50,000 *Gallagher Bassett Services 37,560 Inspection Fee 2,500 Total Fixed Costs: $ 470,060 Terms: (estimated) (estimated) (estimated) Maintenance Deductible $ 1,000 Self -Insured Retentions (see attached diagram) Property 100,000 Third Party 100,000 Loss Fund 500,000 Additionally, the service fees to provide claims management, loss prevention and information services are as follows: Property $ 3,840 Automobile 22,155 General Liability INCL. Worker's Compensation 20,115 RISX-FACS 3,600 Loss Prevention 5,250 Administration Fee 2,500 Total Costs $ 57,460 Some coverages may be purchased through insurance sources and may not require adjustment services. Those coverages can be deducted. The proposal submitted by Arthur J. Gallagher and Company indicates that they are submitting their London Package Program which is a self-insurance product that encompasses the following coverages: property, general liability, police liability, automobile, contractors' equipment and workers' compensation. The proposal further indicated that the London marketplace is currently changing most of its liability forms from occurrence to claims made. Due to the fact that the City's expiration date is REGULAR MEETING DECEMBER 3, 1985 after December 31st, this package will have to be written on a claims made basis for general liability and police indemnity. Additionally, the sample policy is written on an occurrence basis. Mr. Vance additionally advised that the Gallagher proposal indicates a service fee to provide claims management, loss prevention and information services. Mr. Vance advised that the two (2) proposals submitted today will be evaluated by his office and Corporate Policyholders Counsel, Inc., the City's consultant on this matter. Mr. Jerry Miller, Bridge, Holland and Miller Insurance Agency, advised that the proposal submitted by his company does not contain coverage for real and personal property, business interruption, catastrophe (umbrella) excess liability, crime and public officials errors and omissions but the company will be in a position, after January 4, 1986, to submit quotes for that coverage. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the proposals as submitted were referred to the City Controller's office for review and recommendation. In response to questions by the news media, Mr. Vance advised that in 1984 the cost of property insurance was approximately $38,000.00 with that cost increasing to $98,000.00 in 1985. Further, at the present time, the City can expect to pay approximately $200,000.00 for the first $1,000,000.00 of coverage for the umbrella coverage. Mr. Vance stated that insurance costs have risen substantially and he did expect the figures received today to be higher than in the past. In further response to inquiries by the news media, Mr. Vance stated that the City is required, by the Municipal Code, to seek proposals for insurance coverage every three (3) years. However, the insurance policies are written on an annual basis and proposals can be requested more often than three (3) years if desired. Mr. Vance stated that currently the City is under a self-insurance retention program retaining the first $100,000.00 of general liability with insurance retained for claims over that figure. He stated that the City's $1,000,000.00 coverage with a $5,000,000.00 umbrella coverage expires in January. He further stated that the proposal submitted by Bridge, Holland and Miller addresses the $1,000,000.00 needed coverage but does not address the $5,000,000.00 umbrella coverage. Mr. Vance stated that both proposals submitted are incomplete in the coverage required by the City. Further, even though the premium prices appear to be much higher than last year, they are affordable. However, he stated that he plans to review the proposals with Corporate Policyholders and will try to take any options the City can utilize to reduce the cost. Mr. Dick Maginot of WSBT-TV stated that there has been some movements taken in the State legislature to correct the problems which municipalities are experiencing in having to pay high premiums for insurance coverage. Mr. Vance responded that he was aware of that attempt but at the time he reviewed the matter he was not sure the City would benefit from the insurance pool that was proposed. However, at this time, because of the high premiums submitted for insurance coverage, perhaps the City would be in a position to benefit from the plan. APPROVE PROPOSAL OF MC GLADREY HENDRICKSON & P CITY-WIDE COST ALLOCATION PLAN AND INDIRECT COS FOR 1985 Mr. Michael L. Vance, Director, Administration submitted to the Board a proposal from McGladry Pullen, Certified Public Accountants, 340 South ERFORM RATE & Finance, Hendrickson and Columbia, 1 1 REGULAR MEETING DECEMBER 3, 1985 P.O. Box 7015, South Bend, Indiana. The proposal addressed the updating of the City's Indirect Cost Allocation and Rate Plan. This Plan is necessary as documentation in justifying costs to be reimbursed from the federal government, utilities and for other agencies receiving services from the City. The Plan was last updated in 1983 by the same firm. The maximum cost for Phase One which will establish the foundation for assessing any particular year is $6,400.00. The maximum cost for Phase Two which is the actual update of 1985 figures and 1986 perspective figures is $4,300.00. Mr. Vance reiterated that the Plan is necessary in documenting reimbursable costs to the federal government. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the proposal as submitted was approved and executed. APPROVE LICENSE APPLICATION - OPEN AIR STAND Mr. Leszczynski advised that the following Open Air Stand license application has been received: NAME: Ernest H. Stacy ADDRESS: 23700 Marquette Blvd. STAND TO BE LOCATED AT: 2308 L.W.W. DATES: 12/1/85 - 12/24/85 FOR THE PURPOSE OF: Selling Christmas trees Mr. Leszczynski further advised that favorable recommendations have been received from the Police Department, Department of Code Enforcement, and the Bureau of Traffic and Lighting for the above application. Additionally provided with the application was a letter of permission from the property owner. Upon a motion made by Ms. Barnard, seconded by Mr. Leszczynski and carried, the above license application was approved and referred to the Deputy Controller's office for issuance. DENY LICENSE APPLICATION - OPEN AIR STAND Mr. Leszczynski advised that the following license application has been received: NAME: Copestone BY: Dale Kaser ADDRESS: 3103 Western Avenue STAND TO BE LOCATED AT: 3103 Western Avenue DATES: 11/25/85 - 12/25/85 FOR THE PURPOSE OF: Selling Christmas Trees Mr. Leszczynski further advised that favorable recommendations have been received from the Police Department and the Bureau of Traffic and Lighting. Ms. Katherine Barnard, Director, Department of Code Enforcement, advised that the Department recommends denial of the license application based on numerous violations that exist on the exterior premises of 3103 Western Avenue as well as the fact that the applicants are operating a Secondhand Dealers store without a City license to do so due to the fact that they have numerous code violations. Ms. Barnard submitted photographs of the exterior of the above referred to premises for inspection by the Board. It was noted that the applicant is also the property owner. Therefore, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the license application was denied. APPROVE LICENSE APPLICATION - SECONDHAND DEALER Mr. Leszczynski advised that the following one (1) secondhand dealers license application has been received: 402 REGULAR MEETING DECEMBER 3, 1985 NAME: BY: ADDRESS: LOCATION OF STORE: FOR THE PURPOSE OF SELLING: Paul's Furniture 2nd Edition Paul A. Gill 321 N. LeBlvd de la Paix 225 South Lafayette Blvd. Secondhand home and office furnishings Mr. Leszczynski further advised that favorable recommendations have been received from the Bureau of Traffic and Lighting, Department of Code Enforcement, Police Department and Fire Department on the above application. Upon a motion made by Mr. Ms. Barnard, seconded by Mr. Leszczynski and carried, the above license application was approved and referred to the Deputy Controller's office for issuance of a permit. APPROVE RELEASE OF EXCAVATION BOND Mr. Melvin Humphrey, Engineering Department, recommended that the Excavation Bond for Stoner Plumbing and Heating be released effective December 29, 1985. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above referred to Excavation Bond was released. FILING OF ENVIRONMENTAL CLEAN-UP OF LOTS REPORT A report from the Department of Code Enforcement indicating a total of forty-eight (48) properties cleaned from November 25, 1985 to November 27, 1985 was submitted. Upon a motion made by Ms. Barnard, seconded by Mr. Leszczynski and carried, the report as submitted was filed. APPROVE TRAFFIC CONTROL DEVICES Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the following five (5) traffic control devices were approved: 1. NEW INSTALLATION, 2-HOUR PARKING 6A - 6P - 3313 Mishawaka. (Requested by Helen K. Beauty Salon.) 2. REMOVAL OF 2-HOUR PARKING 6A - 6P, REVISE TO NO PARKING - 500 N. Michigan, east side, north half block. (Annual Re -installation for winter season, December lst to April 1st.) 3. NEW INSTALLATION, NO PARKING - 300 LaMonte Terrace, south side. (Annual Re -installation for winter season, December 1st to April 1st.) 4. NEW INSTALLATION, $100.00 FINE FOR DUMPING TRASH OR DEBRIS - 900-1000 High, east side, from Sample to G.T.W. R.R. overpass. (Requested by Art Iron Company.) 5. NEW INSTALLATION, $100.00 FINE FOR DUMPING TRASH OR DEBRIS - 1400 Riverside Drive, east side. (Requested by Councilman.) APPROVE CLAIMS Mr. John W. Ferguson, Executive Director, St. Joseph County Job Training Program, submitted a list containing fifty-five (55) claims and recommended approval. Additionally, Deputy City Controller Carol M. Sanders submitted Claim Docket No. 26627 through Claim Docket No. 27182 and recommended approval. Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the claims were approved and the reports as submitted were filed. 1 1 0 REGULAR MEETING ADJOURNMENT There being no further business motion made by Mr. Leszczynski, carried, the meeting adjourned 1 ATTEST: Sandra M. Parmerlee, Clerk 1 DECEMBER 3, 1985 to come before the Board, upon a seconded by Ms. Barnard and at 10:01 a.m. IW, �L -0 Katherine Barnard Michael L. Vance