103-86 Ordinance
RECORD OF ORDINANCES
National Graphics Corp., COls., O. ~ Form No. 2806-A
Ordinance No. ___1Q3=86_______ Passedm___..u u ___u_m__________ ______u___n_19mu ..
AN ORDINANCE ACCEPTING A BID FOR
LAW ENFORCEMENT LIABILITY INSURANCE
PROTECTING THE VILLAGE OF DUBLIN,
OHIO, AND DECLARING AN EMERGENCY.
WHEREAS, bids have been received for Law Enforcement Liability Insurance;
and,
WHEREAS, the lowest and best bid is from Corroon & Black of Ohio, Inc. in
the amount of $15,202.00 for coverage from January 1, 1987 to January 1,
1988;
NOW, THEREFORE, BE IT ORDAINED by the Council of the Village of Dublin,
State of Ohio, 7 of the elected members concurring:
Section 1. That the bid of $15,202.00 for the period of January 1, 1987 to
January 1, 1988 be, and hereby is, accepted.
Section 2. That the Village Manager be, and hereby is, authorized to
enter into a contract with said firm for said insurance coverage,
Section 3. That this Ordinance be, and the same hereby is, declared to
be an emergency measure for the reason that the current coverage will
expire on December 31, 1986, and therefore this Ordinance shall take
effect and be in force immediately upon its passage.
Passed this 15th day of December , 1986.
1P!~
Mayor - Presiding Officer
Attest:
J~7J; Z{~
Clerk of Council
Sponsor: Administrative Assistant to the Village Manager
..,
t herebJ certify that copies of this Ordinance/Resolutinn
we~ posted in the Village of Dublin ;., ac:,;rrlc,'!;' .11
Section 731.25 of the Ohio Revised Code.
J~ ~, Z(./J~
Clerk of Council
MEMORANDUM
TO: Council Members and Village Manager
FROM: David Harding, Administrative Assistant to the Manager DW
SUBJECT: Law Enforcement Liability Insurance
DATE: December 9, 1986
After advertising for bids for Law Enforcement Liability Insurance, bids were
received and opened on Tuesday, December 3, 1986. Attached please find the bid
tabulation and ordinance accepting the recommended bid.
Proposals Received
Anson B. Smith & Company submitted a bid for coverage written by the Imperial
Casualty and Indemnity Company in the amount of $9,104.00. The coverage offered
is $500,000.00 per occurrence with an annual aggregate of $1,000,000.00, and
a $2,500.00 per occurrence deductible. It should be noted that the bidder in
this case did not comply with the bid specifications in a number of respects, nor
did their bid provide the requested documentation. The most serious failure to
comply with the bid specifications is reflected in the amount of coverage offered.
The specifications required the minimum coverage level of $1,000,000.00 Combined
Single Limit.
No explanation was enclosed as to why the minimum coverage requirement was not
met nor was there any attempt to explain other irregularities or deviations from
the specifications. Furthermore, the information they did provide was incomplete
and obscure. I inquired about why they offered coverage below the minimum required
by the specifications. I was informed that the $500,000.00 per occurrence with the
$1,000,000.00 annual aggregate was the maximum level of coverage they could offer,
In my judgment, they did not comply with either the substantive or procedural
requirements outlined in the Bid Invitation and Bid Specifications.
Corroon & Black of Ohio submitted a bid for coverage written by the National Casualty
Company in the amount of $17,523.00 for $1,000,000.00 Combined Single Limit coverage,
with an annual aggregate of $1,000,000.00 and a $2,500.00 per occurrence deductible.
They also provided an optional bid of $15,202.00 for $1,000,000.00 Combined Single
Limit coverage with a $5,000.00 deductible, as requested by the bid specifications.
Analysis and Recommendation
In light of my previous statements regarding the Anson B. Smith bid, I would
recommend rejection of said bid. This recommendation is based on the fact that
the bidder did not comply with either the substantive or procedural requirements out-
lined in the Bid Invitation and Bid Specifications. I have consulted with Mitch
Banchefsky of the Law Director's Office and he concurs with my judgment in this
matter.
Law Enforcement Liability Insurance
December 9, 1986
Page Two
The Anson B. Smith coverage amount of $500,000.00 per occurrence with an annual
aggregate of $1,000,000.00 represents less coverage when compared to our current
level of coverage. Our current level of coverage is $1,000,000.00 Combined
Single Limit with an annual aggregate of $1,000,000.00.
Even though the Corroon & Black premium is significantly higher than that of
Anson B. Smith, the coverage amount is significantly higher and meets our minimum
coverage requirements. In my judgment, the premium savings represented by the
lower bid of Anson B. Smith, would not outweigh the importance of maintaining
the minimum coverage level ($1,000,000.00 Combined Single Limit) contained in the
Corroon & Black bid. This minimum coverage requirement becomes even more important
since we currently do not have umbrella liability coverage. It should be noted
that the $1,000,000.00 Combined Single Limit coverage would be the maximum coverage
level available to us for this form of coverage.
I would therefore recommend acceptance of the Corroon & Black bid and further
recommend acceptance of bid option B in the amount of $15,202.00 which contains
the $5,000.00 deductible. In my judgment, the Village should be willing to retain
more of a risk, given the fact that we have not had a claim on this form of coverage
in the past three (3) years. Why spend the additional $2,321.00 on premiums
when the likelihood is that we will not experience a claim within the next year of
coverage? If an occurrence arises where a claim is filed and the Village is
determined to be liable, we would pay the $5,000.00 deductible.
It should also be noted that the company used by Corroon & Black to write the
coverage (National Casualty) has been endorsed by the International Association
of Chiefs of Police.
Since the current coverage expires on December 31, 1986, I respectfully request
that the attached ordinance be adopted as emergency legislation.
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