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Home My WebLink About98-174 Resolution No. 98-174 RESOLUTION ACCEPTING THE PROPOSAL OF RISK RESOURCES FOR INSURANCE CONSULTING SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, be and is hereby authorized and directed to accept the proposal on behalf of the City of Elgin of Risk Resources for insurance consulting services, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: July 22 , 1998 Adopted: July 22, 1998 Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk RISK A ' RESOURCES Independent Risk Management Consultants Insurance Advisors June 22, 1998 Michael Sarro Purchasing Director City of Elgin 150 Dexter Court Elgin, IL 60120-5555 RE: INSURANCE CONSULTING SERVICES Dear Mike: This is to confirm our telephone conversation wherein we talked about the use of our services. As you know, Risk Resources is a continuation of the consulting firm of Corporate Policyholders rk Counsel. We own Corporate Policyholders Counsel but have been phasing out the use of the name over the past several years and using the name Risk Resources. I have been associated with both Corporate Policyholders Counsel and Risk Resources since the early '70s. We are an independent risk management and insurance consulting firm. We do not sell insurance nor are we affiliated in any way with any insurance company, agency, brokerage or self-insurance service organization. We provide objective evaluations and independent counsel on all matters pertaining to risk management and insurance. As I understand it, for the October 1, 1998 renewal of your property and casualty insurance program you are interested in using our services to oversee that process and work with the broker to secure the broadest coverage available at the lowest possible price in today's marketplace. In order to do this, we anticipate reviewing the current property and casualty insurance • program, as well as up-to-date loss experience for all lines of coverage that are involved. We will then work with your insurance broker, monitoring and directing their activities to secure the best possible proposal at the lowest possible price. r GIALL ERfltS CTSTOFEL22 185 South York Street • Elmhurst, Illinois 60126 • Telephone (630) 617-5100 • Fax(630) 617-5128 E-Mail: riskmanage@aol.com ruk Michael Sarro June 22, 1998 Page 2 In order to do the above, we anticipate our total charges to be in the$8,000 to $10,000 range. We charge on an hourly basis for our time and our current staff member rates range from $180 to $205 an hour. To do the work as outlined, we will not charge you any more than $10,000. We look forward to hearing from you and receiving your authorization to proceed. Very truly yours, William Leinheiser Senior Vice President WL:cw av�. O,2 r `� orEt. Agenda Item No. City of Elgin ��a(CI)Its' July 1, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Insurance Consulting Services PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a proposal from Risk Resources (formerly Corporate Policyholders Counsel) for insurance consulting services . BACKGROUND It has been the City' s practice to utilize the services of Risk Resources, our long-time independent insurance consul- ` tant, to perform a comprehensive review of Elgin' s limited self-insured retention (SIR) program approximately every three years . The City Council approved the renewal of our current SIR program for the period October 1, 1997 through September 30, 1998 for worker' s compensation, property, and various liabili- ty coverages at your September 10, 1997 Committee of the Whole and September 24, 1997 regular meetings (Exhibit A) . As part of that process, the City Council was advised that prior to the October 1998 renewal, it would be in the City' s best interests to utilize Risk Resources ' services to thoroughly examine not only our current program, policies, coverages, and loss experience, but also the various SIR program proposals that will be requested from and submitted by Lundstrom Insurance, the City' s insurance agent/broker. Enclosed is a copy of Risk Resources proposal for this year' s services, which are expected to cost $8, 000-$10, 000 (Exhibit B) . It is noted that Risk Resources (Corporate Policyholders Counsel) has been providing our independent insurance consult- ing services for more than 20 years . They were instrumental in developing our first limited self-insurance program in 1980 and have been retained to periodically re-examine the program eft. and recommend changes as a result of various factors (insur- ance market conditions, new/increased exposures, loss experi- ence, etc) . Insurance Consulting Services July 1, 1998 Page 2 em. GROUPS/INTERESTED PERSONS CONTACTED None . FINANCIAL IMPACT Sufficient funds have been set aside in the 1998 Risk Manage- ment Fund under the general heading "Miscellaneous Profession- al Services" , account number 630-0000-796 . 30-99, for these services . JLEGAL IMPACT Acceptance of the Risk Resources proposal requires an excep- tion to the Procurement Ordinance pursuant to the Elgin Municipal Code Section 5 . 02 . 020B (6) . If the exception proce- dure is utilized, a two-thirds vote of the City Council (five votes) is required, with a finding by the City Council that an exception to the Requirements of the Procurement Ordinance is necessary and in the best interest of the City. ALTERNATIVES A - Accept the proposal from Risk Resources . B - Although not recommended, the City Council could decide not to use the services of our independent insurance consultant this year. RECOMMENDATION It is recommended that the City Council accept the proposal from Risk Resources to provide insurance services at a cost not to exceed $10, 000 . .ectfully subm' ted, r S•� • J. , ce ,• . Parker City Manager JAP/db elow CITY OF ELGIN,ILLINOIS Schedule of Insurance in Force October 1,- 1997 - September 30, 1998 Self-Insured Annual Type of Coverage Retention Premiums Coverage Provided By Liability Limits Workers'Compensation $300,000/occurrence $ 51,895 Safety National Casualty Statutory benefits/ occurrence$1,000,000 excess of SIR Comp.Gen.Liability $150,000/occurrence 154,051 St.Paul Fire&Marine Ins. $2,000,000/occurrence Include.Law Enf.Liab. $750,000/aggregate $3,000,000/aggregate Liquor liability Same as above 2,500 Same as above Same as above Automobile liability Same as above 32,588 Same as above Same as above Auto physical damage Same as above with Included Same as above Actual cash value $1,000 maint.deduct. w/auto liab. at time of loss Inland Marine Varies with coverage 39,373 Same as above Varies with coverage Crime $5,000/occurrence 4,888 Same as above $500,000/loss Incl.Empl.Blanket Bond Excess liability Same as above 56,000 Same as above $7,000,000/Loss $7,000,000/aggregate over the$2,000,000 CGL limits noted above Property including $100,000/occurrence 60,193 Same as above $93,847,000 aggregate Flood&Earthquake Pub.Official's Liab. Same as above 23,158 Same as above $2,000,000/occurrence $2,000,000/aggregate Boiler&Machinery $1,000 deductible 9,396 Hartford Steam Boiler $16,000,000/occurrence $16,000,000/aggregate Self Ins.Service N/A 32,548 St.Paul F&M Ins. N/A Contract(Liability Claims&Loss Control) Self Ins.Service N/A 35,250 Management Services,Inc. N/A Contract(Worker's Comp.) Treasurer's Surety N/A (A) Lumberman's Mutual Casualty $500,000 Bond Limit City Manager's Surety Bond N/A (B) Ohio Casualty Insurance $500,000 Bond Limit 5 I 4 (A) Four-year bond premium of$1,189 paid in 1995. (B) Three-year bond premium of$1,585 paid in 1995.