HomeMy WebLinkAboutCity AnnouncementsTO: Mark Rohloff, City Manager
FROM: Paul Greeninger, Safety & Risk Management Coordinator
Peggy Steeno, Finance Director
Lynn Lorenson, City Attorney
David Praska, Assistant City Attorney
DATE: March 17, 2009
RE: City of Oshkosh Liability Insurance
BACKGROUND
The Oshkosh Common Council made a request to get proposals for liability insurance to insure current rates and
service is competitive. It was decided that quotes would be requested for General Liability, Personal Injury Liability,
Law Enforcement Liability, Public Officials Liability and Automobile Liability insurance, currently being covered
through the League of Wisconsin Municipalities Mutual Insurance (LWMMI). Paul Greeninger, Safety and Risk
Management Coordinator, Peggy Steeno, Finance Director, Lynn Lorenson, City Attorney and David Praska,
Assistant City Attorney worked together to solicit and review proposals.
ANALYSIS
Quotes were requested from the current carrier, LWMMI, Wausau Insurance, Cities and Villages Mutual Insurance
Company (CVMIC), and The Horton Group. A deadline date of February 16, 2009, was set to get quotes in for
consideration. A few days prior to the deadline date, The Horton Group respectfully withdrew from consideration
due to time constraints. Upon receipt of the proposals, it was determined that the two most competitive quotes
were from LWMMI and CVMIC.
Results of the comparison of these two entities are summarized on the attached spreadsheet. CVMIC appears to
have a solid risk management program and emphasized those services in their presentation to staff, however the
LWMMI program covered certain services and some types of claims that are not covered under the CVMIC
program. For example, the claims review process is handled through professional adjusters in the LWMMI program
while municipalities under the CVMIC program provide their own claims review process. In addition, LWMMI
currently provides defense of excessive assessment claims, while CVMIC does not. The LWMMI program also
provides coverage for sewer back -up claims while the CVMIC program does not. Back in August of 2008, at the
request of the council, a request for a quote on no fault Sewer Back Up coverage was made to LWMMI. The quote
received was $1 per capita, or approximately $65,000. The aggregate limit of $300,000 is the most that would be
paid for all damages in any one policy period. The coverage would be for Actual Cash Value, NOT replacement
cost. If this coverage was purchased, both city staff and the homeowners may still have to deal with related sewer
backup claims in the event the homeowner's insurer or other interested party files a subrogation claim against the
City. It should be noted that CVMIC does not offer this type of coverage.
In addition to reviewing the information submitted, cities that have CVMIC insurance were contacted to provide
insight on how much staff time is being used in connection with reviewing claims under the CVMIC approach.
Individual cities (West Allis, Superior, Wausau, and Appleton) that currently have CVMIC were able to convey to the
group that the City Attorney's office spends significant time in the claims process, along with the Risk Management
personnel.
When comparing the quotes, it was determined that there would be additional costs not included in the base cost
provided by CVMIC based upon the number of claims processed. The CVMIC quote was then adjusted based on
the past 8 year average claims processed. With that adjustment, the CVMIC quote is higher than the LWMMI
quote.
Finally, in relation to claims processing, it was determined that neither CVMIC nor the municipalities under their
program routinely contacts claimants in connection with claims filed. LWMMI recently worked with the City to
develop a process ensuring greater contact with claimants in response to issues raised by the City. CVMIC
indicated that they would be able to adjust their processes to provide greater contact should the City choose at an
additional cost. Given the possibility that there could be a perception of bias processing claims through a
committee consisting of City employees, the group felt that maintaining an independent claims processor may also
be an advantage.
FISCAL IMPACT
A financial analysis can be found in a separate document, along with all quotes and other information gathered
during this process. The rate quotes came in as follows:
LWMMI - $275,551
Wausau - $429,268
CVMIC - $310,340
RECOMMENDATION
Based on the analysis and research done by the group , it is recommended that the City of Oshkosh remain with
the LWMMI, and that an analysis similar to what was done, be conducted every 5 years, assuming the service level
remains acceptable, and no significant rate increases occur during each 5 year period.
Respectfully Submitted, Approved:
Paul Greeninger, �Risk me nt Coordinator Mark Rohloff, City Manager
pa l q o �
David Prask�, Assistant City Attorney
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ON THE WATER
MEMORANDUM
DATE: March 19, 2009
TO: Honorable Mayor and Members of the Common Council
FROM: Mark A. Rohloff, City Manager /( — FC --
RE: Award of Engineering Services Agreement —
400 Block East (Jefferson) Lot, Design and Construction Services / AECOM
The Transportation Department requested proposals from two consulting firms with local offices to
provide design and construction - related services for the reconstruction of the 400 Block East (Jefferson)
parking lot. Based on review by the Departments of Transportation, Public Works and Community
Development, we selected AECOM to do this work. AECOM will be responsible for overseeing the design
of the parking lot, working with other local firms including T.R. Karrels & Associates, Stuart's
Landscaping, and the Paine Gardens, along with staff from the City's Electric Division. Upon completion
of the design, AECOM will prepare bid documents and specifications for construction. AECOM will then
provide construction management services to ensure that the parking lot conforms to the design. AECOM
will also support City staff in helping to mitigate the impact of the construction project on businesses,
customers and residents.
AECOM was selected to perform this work based on their credentials and their responsiveness to our
request for proposals. The proposed fee is $66,259. `
Section 12- 10(D)(5) of the Municipal Code provides that professional services of a specialized nature,
including engineering services, may be approved by the City Manager without the use of formal, sealed
quotes. In accordance with 12 -10(E) of the Code, I am hereby submitting this report regarding this
contract award. Funds for these services are budgeted in the Property Improvements section of the 2009
CIP.
Please contact me if you have any questions concerning this contract award.
MAR/cks
CA1Docurnents and Settings\jackiec\Local Settings \Temporary Internet Files10LK1461AEC0M 400 Block East 031909.doc
( 0
OJHKOlH
ON THE WATER
MEMORANDUM
DATE: March 19, 2009
TO: Honorable Mayor and Members of the Common Council
FROM: Mark A. Rohloff, City Manager , e(' 12
RE: Award of Engineering Services Agreement —
400 Block East (Jefferson) Lot, Dumpster Enclosures / T.R. Karrels & Associates
The Transportation Department requested a proposal from T.R. Karrels & Associates for design services
related to dumpster enclosures for the reconstructed 400 Block East (Jefferson) parking lot. T.R. Karrels
& Associates will be responsible for developing designs and specifications for these enclosures, working
in concert with property owners and city staff. Upon acceptance of the design of these enclosures, T.R.
Karrels & Associates will coordinate with AECOM to integrate these enclosures in the overall design and
construction of the parking lot. T.R. Karrels & Associates will also observe construction of the enclosures
to ensure compliance with the specifications.
T.R. Karrels & Associates was selected to perform this work based on their credentials and their previous
involvement with the City on related projects, The proposed fee is not to exceed $12,000.
Section 12- 10(D)(5) of the Municipal Code provides that professional services of a specialized nature,
including engineering services, may be approved by the City Manager without the use of formal, sealed
quotes. In accordance with 12 -10(E) of the Code, I am hereby submitting this report regarding this
contract award. Funds for these services are budgeted in the Property Improvements section of the 2009
CIP.
Please contact me if you have any questions concerning this contract award.
MAR/cks
CADocuments and Settings \jackiec\Local Settings \Temporary Internet Files \OLK146 \Karrels 400 Block East 031909.doc