HomeMy WebLinkAbout6. Manager's Report 12/07/2010Mount Prospect
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGERD.
FROM: FINANCE DIRECTOR ? 1 ' O
DATE: NOVEMBER 29, 2010
SUBJECT: 2011 PROPERTY AND WORKERS COMPENSATION INSURANCE PROGRA
PURPOSE:
To present a recommendation for the property and workers compensation insurance program for the policy
beginning January 1, 2011 and ending December 31, 2011.
DISCUSSION:
The Village's current property and workers compensation insurance policies are set to expire on December 31, 2010.
With the assistance of the Village's insurance consultant, staff negotiated with the existing broker and insurance
companies to secure coverage for 2011. We did not seek alternative proposals for the 2011 renewal because of the
continued narrow market for municipal risks. There is only one competitive insurer for the excess WC - Safety
National. Federal (Chubb) has been the most competitive on cost and coverage for property. The following is a brief
summary of our expiring insurance program, an analysis of the proposals received, and a summary of the insurance
package being recommended by staff and its consultant.
Expiring Program
Attached is the current schedule of insurance in force, showing the type of coverage, the carrier, policy limits, and the
broker of record (Attachment 1).
Village buildings and vehicles were insured this past year by Federal Insurance (Chubb) Company. The amount of
coverage was $68.2 million, with a $25,000 deductible. The annual premium was $75,730. The broker offering the
coverage was Arthur J. Gallagher and Co.
The Village has been self- insured for liability insurance since 2005. Prior to 2005 the Village purchased conventional
coverage. The change in the insurance program was based on a recommendation from our insurance consultant
and the results of an actuary study. The Village elected to self- insure for liability coverage up to the point where
excess coverage is available from HELP, the high -level excess liability pool ($2,000,000).
Excess workers compensation coverage was purchased from Safety National, which insured the Village for individual
claims in excess of $500,000. There is a $1 million aggregate limit for worker compensation claims. The annual
premium was $48,485. The broker was Arthur J. Gallagher and Co.
Proposal Received
Nugent Consulting Group assisted the Village in securing proposals from our current broker and underwriters. Mr.
Nugent presents a summary of renewal offered by Arthur J. Gallagher and Co. for the upcoming policy period and a
breakdown of premium by coverage type for policy years 2006 -2010 (Attachment II).
The renewal quote for property coverage increased 8.8% from the prior year and totaled $82,454 while total insurable
values increased 11.3 %. The renewal quote for excess workers compensation coverage increased 8.9% from the
prior year from $48,485 to $52,841. This was due to a single large claim from 2005 that has reached into the excess
insured level. The self- insured retention level for public safety employees increased from $500,000 to $550,000
while the self- insured retention level for general employees remain unchanged from the prior year ($500,000). The
total for all premiums and commissions as quoted is $147,677, an increase of 8.1 % from the 2010 premium.
Property and Workers' Compensation Insurance Program
November 29, 2010
Page 2
The insurance companies being recommended are very sound financially and have an excellent claims payment
history. Chubb Group is rated A + +, XV (Superior) by A.M. Best, a recognized insurance company rating service.
Safety National Casualty Corp. is rated A, IX (Excellent).
RECOMMENDATION:
It is recommended the Village purchase property and excess workers compensation insurance from Arthur J.
Gallagher and Co. with premiums and broker's fees totaling $147,677.
DAVID O. ERB
FINANCE DIRECTOR
DOE/
Attachments
I: \Insurance \Memos\2009\2010\2011 Renewal -Property and WC.doc
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Mount Prospect Public Works Department
1 11
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
BACKGROUND
VILLAGE MANAGER MICHAEL E. JANONIS
SUPERINTENDENT OF STREETS & BUILDINGS
NOVEMBER 19, 2010
BID RESULTS FOR 3 -YEAR CUSTODIAL CONTRACT
($101,640)
This bid award is for a three -year (2011 -2013) custodial services contract. This contract
provides daily cleaning at the following buildings: Village Hall, Village Hall Parking
Structure, Police & Fire Headquarters Building (including above and underground
parking structure), Railroad Station, Fire Stations 12 and 14 (floors only), Pistol Range,
Public Works, Community Connections Center and the Emergency Operations Center.
The Police & Fire Headquarters Building and the Village Hall also require full -time day
porter positions, whereas the other buildings are cleaned at night or early evenings.
BID RESULTS
Sealed bids were opened at 10:00 A.M. on November 15, 2010. Bid notices were
mailed to 17 bidders, and a bid notice was placed in a local newspaper.
Representatives from 12 firms attended a pre -bid meeting, and 8 bids were received.
Bidder
Crystal Maintenance Services Corp.
ABC Commercial, Inc.
Total Facility Maintenance, Inc.
Perfect Cleaning Services, Inc.
GSF USA, Inc.
KMI (Koral Maintenance, Inc.)
Best Quality Cleaning, Inc.
Nationwide Janitorial Corp.
Total Bid Price (annually)
$101,640.00
$109,200.00
$133,861.44
$140,916.00
$153,784.20
$156,000.00
$177,600.00
$236,016.00
\\Pw1\pwlhpw$\ Administration \BIDS \RESULTS \Cleaning Bid 2011.2013. Rec.doc Page 1
Page 2
BID RESULTS FOR 3 -YEAR CUSTODIAL CONTRACT
November 19, 2010
DISCUSSION
The low bidder, Crystal Maintenance Services Corp., had our cleaning service contract
in 2000 -2004 & 2007 -2010. During our past 3 year contract Crystal Maintenance has
performed satisfactorily including taking on the new facilities added during the last 2
years. Their bid price which includes the new EOC and Community Connections
Center is 7% lower than the previous three year contract annual total. Crystal
Maintenance Services Corp. is a local company located in Mount Prospect. I have
contacted all of their references, and they give Crystal Maintenance Service Corp. an
acceptable rating.
Crystal Maintenance Services Corp. is, therefore, the lowest cost responsive bidder.
RECOMMENDATION
I recommend Crystal Maintenance Services Corp. be awarded the proposed three -year
cleaning services contract for a not -to- exceed annual amount of $101,640 for daily
cleaning services. Sufficient funds for this expenditure have been requested in the
2011 proposed budget. Expenditures in 2012 and 2013 will be limited to budgeted
amounts authorized by the Village Board.
PAUL BURES
Streets & Buildings Superintendent
I concur
Glen R. And er
Director of Public Works
pb
c: Director of Public Works Glen R. Andler
Deputy Director of Public Works Sean P. Dorsey
File
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