CITY COUNCIL WORK SESSION TUESDAY, APRIL 9, 2013 7:00 PM COUNCIL CHAMBERS CALL TO ORDER ____Graham ____DeLong ____Ludescher ____Nakasian ____Peterson White ____ Pownell ____Zweifel 1. Risk Management Agent Contract 2. Capital Improvement Plan/Capital Equipment Plan a. Highway 19 Study 3. Northfield Area Ambulance Association 4. Updates on the East River Trail & Tiger Trail Projects 5. Review upcoming agendas ADJOURN SPECIAL NEEDS: If you require special services to attend or participate in a public meeting, please call the City's Administration Office at (507) 645-3001 or e-mail Deb Little, City Clerk, at [email protected]. TDD users can call (507) 645-3030. Please call 24 hours before the meeting, if possible. WORK SESSION Date of City Council Work Session: April 9, 2013 To: Mayor and City Council City Administrator From: Elizabeth Wheeler, Director of HR & IT & Risk Subject: Agent of Record ACTION REQUESTED: Staff will present information and a recommendation on the selection of an agent of record for the City’s property, liability, automobile and workers compensation insurance to the city council for discussion and direction. SUMMARY REPORT: With my pending retirement in May 2013, the city must designate a licensed insurance agent as a condition of participating in the League of Minnesota Cities Insurance Trust for property, liability, automobile and workers compensation coverage. The Northfield City Council adopted Resolution 2013-026 on March 5, 2013 approving an RFP for acquiring the services of a Minnesota Licensed insurance agent. The city received four proposals by the deadline of March 25, 2013 and the Leadership Team is scheduled to interview all four agencies on April 4, 2013. The interviewing format will be similar to interviewing candidates for employment. Questions were developed relevant to an agent of record including core competencies, service standards, credentials, product knowledge and experience. Reference checks will be conducted following the interviews. Members of the interview panel will be prepared to discuss the proposals, the interviews and the reference checks during the work session on April 9, 2013. ALTERNATIVE OPTIONS: There is no alternative option. An agent of record must be designated for the city to continue participation in the League of Minnesota Cities Insurance Trust. FINANCIAL IMPACTS: The fee schedule for the submitted proposals is as follows: Company Fee 2013 2014 2015 2016 Bearence Management Group LLC $5,070 $7,600 $8,000 $8,000 Northern Capital Insurance Group $9,500 $9,500 $9,500 $9,500 Arthur J. Gallagher Risk Management Services $8,000 $12,000 $12,000 $12,000 Heartman Agency Inc. $13,500 $23,500 $23,500 $23,500 TIMELINES: A resolution to approve the agent of record is scheduled for the April 16, 2013 council meeting. There will also be meetings with the selected agent and staff in May 2013 to provide for a smooth transition. ATTACHMENTS: RFP Insurance Agent of Record Services Agent of Record Proposals RISK INVESTMENTS COMMUNICATIONS CONSULTING OUTSOURCING 2010 Centre Pointe Blvd Mendota Heights, MN 55120 T 651-379-7800 F 651-379-7801 www.bearence.com March 22, 2013 Ms. Elizabeth Wheeler Director of HR & IT City of Northfield 801 Washington Northfield, MN 55057 Dear Ms. Wheeler: On behalf of Bearence Management Group Company, it is my pleasure to provide the following proposal in response to your request for proposal for insurance services for the City of Northfield. This proposal outlines our experience, capabilities and commitment should we be selected as your agent of record. Bearence Management Group has an extensive background working with public entities including: cities, watershed districts, public schools, charter schools, cable communication commissions, and a variety of other joint powers entities. Our current business relationship with local municipalities provides us with an in-depth perspective on insurance and risk assessment solutions for government entities. With a staff of over 100 insurance professionals, our firm has the capacity and demonstrated expertise to assist the city with its risk management needs now and into the future. On behalf of Bearence , we thank you for this opportunity to provide our proposal. Should you have any questions regarding the information or if I may be of assistance in any way, please do not hesitate to call. Sincerely, Mark D. Lenz MDL:rr City of Northfield Minnesota Request for Proposal Insurance Agent of Record Services March 25th, 2013 Mark D. Lenz Senior Risk Consultant Bearence Management Group, LLC. 2010 Centre Pointe Blvd. Mendota Heights, MN 55120 www.bearence.com CITY OF NORTHFIELD AGENT OF RECORD RFP RESPONSE FORM INFORMATION ON THE FIRM Name of Firm: Bearence Management Group Branch Office: National Office: (if applicable) Address: Address: 2010 Centre Pointe Blvd., 104 5 76th Street, Suite 4000 Mendota Heights, MN 55120 West Des Moines, Iowa 50266 List Prior Names of Business if changes have been made: Bearence Management Group was founded in 2005. Bearence acquired Rosenbloom & Rosenbloom in Minneapolis and T.C. Field & Co. in St. Paul. Therefore, our roots extend as far back as 1912 with the start of T.C. Field in St. Paul and 1994 with Rosenbloom & Rosenbloom. Between our local offices, we provide property and casualty insurance, group employee benefits, financial strategies and human resources consulting to more than 3,000 companies and service more than 3,300 individual clients. Telephone Number of Office: FAX Number: Branch: 651.379.7800 Branch: 651.379.7801 National: 515.327.8450 National: 515.327.8457 Number of Years in Business: T.C. Field & Company was established in 1912, prior to its merger with Bearence Management Group, so the firm has been in existence for over 100 years. 2 Describe your firm’s experience and expertise regarding public entity risks by relating the markets to which the firm has access, the information technology capabilities of your firm, other public sector clients with whom you have a relationship and which of the clients are self-funded. Markets represented by direct agency contracts. Travelers QBE Allied Continental Western Chubb Bituminous CNA Hanover Hartford State Auto Fireman's Fund Auto Owners SFM RTW Indiana Progressive Chartis United Fire Group Selective Philadelphia Cincinnati Zurich United Heartland Liberty Mutual West Bend Mutual AmTrust ACE Many of the insurance companies identified above will provide insurance to municipalities and other public sector entities. Bearence Management Group utilizes the AMS 360 software management system to maintain accurate information on customers, policies and correspondence. This state of the art software system can generate excel spreadsheets for scheduling purposes to minimize data entry work and errors between us and our customers. Files are maintained electronically and information that is in a hard copy format is scanned and attached to a customer’s file for archival purposes. The firm has been extremely successful with public sector clients because it understands the needs of government and provides the appropriate vehicles for risk reduction and insurance protection. Our firm has served public sector clients since 1964. Our staff's expertise in local government has enabled our agency to recognize gaps in coverage and work directly with the underwriters, Berkley Risk Administrators Co., LLC, the underwriters for the LMCIT, to address bonding and to improve coverage for public entities. 3 Following is a list of the entities we represent and are insured through the LMCIT. We provide property casualty services to the entities listed below. None of these entities are self-insured. City of Andover League of Minnesota Cities City of Anoka Library Park Association City of Arden Hills Lower Rum River Water Management City of Bayport Lower St. Croix Valley Joint Cable Commissions Communications City of Birchwood Village MACTA Public Policy Institute City of Cambridge Minnehaha Creek Watershed District City of Coon Rapids Minnesota Environmental Science and Economic Review Board City of Dellwood Minnesota High Speed Rail Commission City of East Bethel Minnesota Valley Transit Authority City of Elko New Market Municipal Legislative Commission City of Excelsior Nine Mile Creek Watershed District City of Hermantown North Metro I-35W Corridor Coalition City of Lake St. Croix Beach North Metro Mayors Association City of Lexington North Metro Telecommunications Commission City of Loretto North Suburban Communications Commission, North Suburbs Access Corp City of Mahtomedi North Suburban Regional Mutual Aid Association City of Medicine Lake Northern Dakota County Cable City of Mendota Heights Prior Lake-Spring Lake Watershed District City of Minnetonka Public Risk Management Association Minnesota Chapter, Inc. City of Minnetrista Quad Cities Cable Communications Commission City of Ramsey Ramsey Housing and Redevelopment Authority City of Shoreview Ramsey-Washington Metro Watershed District City of Spring Park Red Rock Corridor Commission City of St. Anthony Village Rice Creek Watershed District City of Sunfish Lake Riley Purgatory Bluff Creek Watershed District City of Vadnais Heights Rush Line Corridor Task Force City of West St Paul Shoreview EDA and HRA City of Woodbury Six Cities Watershed Management Commission Coon Creek Watershed District South Metro Fire Department Coon Rapids Youth First South Washington County Telecommunications Commission Dakota County Domestic Preparedness South Washington Watershed District Dakota