COST FUNDING: $1,231,286/Fiscal Year 2013 Uniform Water Rate

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1 AGENDA ITEM D1 DATE: August 1, 2012 TO: FROM: SUBJECT: SUMMARY: Gerald J. Seeber, General Manager Charles H. Carden, Director of Operations and Facilities Tampa Bay Water Insurance Program Property and Casualty Insurance Program - Select the lowest responsive, responsible bidders: Public Risk Insurance and Wallace Welch &, Inc., in the amount of $1,231,286 - Approve Board action is requested to approve Tampa Bay Water s Property and Casualty Insurance Program for FY RECOMMENDATION: Staff members recommend contract awards to Public Risk Insurance and Wallace Welch &, Inc. to provide insurance for the FY-13 Property and Casualty Insurance Program and approval of the annual premiums in the amount of $1,231,286. COST FUNDING: $1,231,286/Fiscal Year 2013 Uniform Water Rate DISCUSSION: On May 23, 2012, a request for proposals to provide Tampa Bay Water s Property and Casualty Insurance Program was posted on DemandStar.com. Three Brokers/Agents submitted timely responses by the July 23, 2012 deadline as follows: Insurer Wells Fargo (PRIA) Wallace Welch &, Inc. Response Submitted a NO-BID Submitted Timely Submitted Timely The Request for Proposals was structured in a way that would allow Tampa Bay Water to accept any proposal(s) or portion thereof deemed to be in the best interest of Tampa Bay Water. Tampa Bay Water s risk management consultant, Interisk (Interisk), and staff members reviewed the submissions received by the deadline date. During the evaluation process, it was determined to be in Tampa Bay Water s best interest to purchase the general liability and vehicle insurance through Wallace Welch &, Inc. at an annual premium of $143,418 and the workers compensation and property insurance through the (PRIA) at an annual premium of $1,087,868. Interisk has provided its recommendation on the purchase of coverage; a copy of that recommendation is attached. As detailed in the attached recommendation, purchasing the coverage on a piece meal basis is the most cost effective approach.

2 Gerald J. Seeber August 1, 2012 Page 2 of 2 This recommendation is for a one year period with three option years, each to be presented for consideration by the Board on an annual basis. Staff members concur with the recommendation by Interisk that (PRIA) and Wallace Welch & were found to be the lowest, responsive, responsible bidder. BACKGROUND: Each year, staff members review the insurance market to assure that Tampa Bay Water has the proper coverages and that the coverages are being acquired at the most competitive prices. A determination was made that it would be in the best interest of Tampa Bay Water to further evaluate each of the insurance programs (property, inland marine, boiler and machinery, general liability, workers compensation and vehicle) through the solicitation of proposals process. The coverage for general liability and vehicle insurance is currently being provided through Wallace Welch &, Inc. and the workers compensation and property through the (PRIA). Attachment

3 I N T E R I S K C O R P O R A T I O N Consultants 1111 North Westshore Boulevard Suite 208 Risk Management Tampa, FL Employee Benefits Phone (813) Facsimile (813) July 31, 2012 Ms. Debra Woodall Contract Administrator Tampa Bay Water 2575 Enterprise Road Clearwater, Florida Subject: Property and Casualty RFP Contract No Debra: I have completed my review of the proposals that Tampa Bay Water received in response to its Property and Casualty Insurance RFP (Contract No ). Proposals were only received from Tampa Bay Water s current agents, (PRIA) and. While I was disappointed that proposals were only received from two agents, it does suggest that Tampa Bay Water s insurance program is well structured and priced. If Tampa Bay Water s Board agrees with my recommendations contained in the attached report, the same insurers will provide the coverages with comparable terms, conditions, limits and deductibles for the 2012/13 policy term as were provided in the 2011/12 policy term. While this will result in Tampa Bay Water paying $194,442 (18.75%) more for its 2012/13 program, a significant portion of the increase is attributable to the Insurable Values increasing nearly 6% and NCCI increasing the rate charged for Waterwork Operation Employees that significantly increase the amount of the Workers Compensation coverage. Attached is my narrative report that includes a side by side comparison of the major features of each proposal received. As always, please do not hesitate to call if you have any questions. Cordially, CORPORATION Sidney G. Webber CPCU, ARM

4 1 TAMPA BAY WATER REQUEST FOR PROPOSALS FOR 2012/13 PROPERTY AND CASUALTY INSURANCE PROGRAM Interisk was engaged to assist Tampa Bay Water with obtaining competitive proposals for its 2012/13 Property and Casualty Insurance program. Following is an overview of Tampa Bay Water s current program. Coverage Agent Insurer Limits Annual Premium Real and Personal Public Risk ACE American $150 Million $836,968 Property Insurance Insurance Co. Boiler and Public Risk ACE American Incl. in Real and $150 Million Machinery Insurance Insurance Co. Personal Property Premises and Operations $2 Million per Occurrence St. Paul Guardian Liability and $4 Million Annual $107,096 Insurance Co. (Commercial Aggregate General Liability) Vehicle Liability and Physical Damage Public Officials Liability Umbrella/Excess Liability Crime Workers Compensation and Employers Liability Hull and Machinery Public Risk Insurance St. Paul Guardian Insurance Co. St. Paul Guardian Insurance C. St. Paul Guardian Insurance Co. Travelers Casualty and Surety Company of America Preferred Governmental Insurance Trust $2 Million $2 Million per Occurrence and $4 Million Annual Aggregate $5 Million Incl. in Premises and Operations Liability Incl. in Premises and Operations Liability Incl. in Premises and Operations Liability $2 Million $5,607 Workers Comp Statutory Empl. Liab. - $1 Million $83,954 St. Paul Fire & Marine Ins. Co. $64,300 $3,219 Total $1,036,844 Some of the coverages contain various sub-limits that will be outlined in more detail later in this report.

5 2 Interisk s assignment was segregated into two phases. Phase 1 was to review Tampa Bay Water s current program and render an opinion on the extent and quality of coverages being purchased. Phase 2 included: The development of the RFP package Coordination of the RFP process Evaluation of the proposals received Provide Tampa Bay Water with recommendations on which program(s) best serves its needs. Phase 1 began on February 21, 2012 with a detailed review of each of Tampa Bay Water s insurance policies and concluded on March 21, 2012 with a report issued by Interisk that opined that Tampa Bay Water s insurance program was well structured, provided by quality insurers and was competitively priced. The report did include minor recommendations for improvement. The more notable recommendations were: Evaluate gradually increasing the Real and Personal Property limits from $150 Million to the value of the highest valued location owned by Tampa Bay Water. This would be the Regional Water Treatment plant that had a cumulative value of slightly more than $204 Million. Initiate dialogue with to amend the Commercial General Liability policy to obtain coverage for claims originating from the Bill Young Reservoir. The policy that was initially reviewed did not provide coverage for Levees, Dikes and Retaining Walls. It was later learned that St. Paul Guardian intended to provide such coverage and a corrective endorsement was ultimately received. Phase 2 began on March 30, 2012 with the development of an RFP document that was posted on Demand Star in accordance with Tampa Bay Water s Purchasing protocols. In an effort to control the process and to ensure all interested agents had unrestricted access to the insurers they believed could structure a competitive program, agents were required to submit a list of insurers they wanted to approach, ranked in order of preference. A total of six (6) agents submitted requests for a total of thirtysix (36) different insurers. It was believed that the insurers requested represented the majority, if not all, of the insurers that had the capability and desire to provide the types and amounts of insurance being requested by Tampa Bay Water. On June 13, 2012, a mandatory Pre-Proposal conference and a site tour was conducted that was attended by all agents, with the exception of one (1). The agent that did not attend the conference and site tour later withdrew from the RFP process. Throughout the process, requests for additional information were received from the agents and various addendums were issued responding to the requests. Sealed proposals were received until July 23, 2012 when they were all publicly opened. Proposals were received only from and. A detailed analysis of each proposal was performed and the attached side-by-side comparison of the major features of each proposal was prepared. Each of the proposals will be discussed under separate caption. (PRIA) submitted a proposal from ACE American Insurance Company (the incumbent insurer) for Tampa Bay Water s Real and Personal Property insurance. ACE offered two primary programs. The first offered overall limits of $150 Million with a basic per claim deductible of $50,000. The terms and conditions of the proposed program were consistent with those of the expiring program. The proposed annual premium was $974,839 which is $137,871 (16%) higher than the expiring premium. A significant amount of this increase is attributable to the fact that Tampa Bay Water s Total Insured Values increased by nearly $23.5 Million (5.64%). ACE also increased their rates that they were

6 3 charging Tampa Bay Water by 10.25%. This rate increase is consistent with what other organizations are experiencing in the current Property insurance market place. While the current and proposed program contained a sub-limit of $75 Million for damage caused by wind related events, ACE also offered options for Wind sub-limits of $50 Million and $25 Million. Neither of the options were viewed as being advantageous for Tampa Bay Water and are being recommended to be eliminated from further consideration. ACE also offered a proposal with overall limits of $180 Million and optional Wind sub-limits of $75 Million, $50 Million and $25 Million. ACE proposed an annual premium of $994,039 for the option with a $75 Million sub-limit, a premium of $953,386 for the option with a $50 Million sub-limit and a premium of $883,272 for the option with a $25 Million sub-limit. This proposal and the various options were also viewed as not being advantageous for Tampa Bay Water and are being recommended to be eliminated from further consideration. PRIA also submitted a proposal from ACE for Tampa Bay Water s Boiler and Machinery coverage. The terms, conditions, limits and deductibles of the proposed coverage is consistent with those of the expiring policy. The premiums for this coverage were included in ACE s Real and Personal Property policy. PRIA submitted two proposals for Tampa Bay Water s Liability insurance that included coverages for Premises and Operations Liability (Commercial General Liability), Vehicle Liability, Automobile Physical Damage, Public Officials and Employment Practices Liability and Umbrella/Excess Liability. These coverages will be discussed collectively because of the similarity of the protection being provided and the fact that it is anticipated that they will all be provided by a single policy. One of PRIA s proposals was provided by the Preferred Governmental Insurance Trust (PGIT) and the other was provided by American Alternative Insurance Company. The PGIT proposal will be discussed first. The terms and conditions of the proposed PGIT s Liability program were consistent with those of Tampa Bay Water s current Liability program. Several optional limits were proposed. With the exception of the Automobile Physical Damage and the Public Officials/Employment Practices Liability coverages none of the coverages would be subject to a deductible. Automobile Physical Damage claims would be subject to a $1,000 deductible and each Public Officials/Employment Practices Liability claim would be subject to a $5,000 deductible. The following table displays the premiums proposed for PGIT s various Liability options. Coverage Limits Proposed Premium Premises and Operations Liability $2 Million $44,911 Premises and Operations Liability $5 Million $49,189 Premises and Operations Liability $7 Million $51,328 Vehicle Liability and Automobile Physical Damage $2 Million $44,740 Vehicle Liability and Automobile Physical Damage $5 Million $46,934 Vehicle Liability and Automobile Physical Damage $7 Million $48,397 Public Officials/Employment Practices Liability $2 Million $31,837 Public Officials/Employment Practices Liability $5 Million $35,199 To replicate the level of protection as closely as possible currently purchased by Tampa Bay Water, the options that provide limits of $7 Million for Premises and Operations Liability and Vehicle Liability will need to be purchased and $2 Million of Public Officials/Employment Practices Liability will need to be

7 purchased. The total premium for these lines of coverage with a $7 Million limit for Premises and Operations Liability and Vehicle Liability and a $2 Million limit for Public Officials/Employment Practices Liability will be $131, The other Liability proposal submitted by PRIA was from the American Alternative Insurance Company. American Alternative proposed the following limits and premiums. Coverage Limits Premiums Premises and Operations $1 Million $75,589 Liability Vehicle Liability and Physical $1 Million $86,697 Damage Public Officials/Employment $1 Million $9,350 Practices Liability Umbrella/Excess Liability $10 Million $91,882 Total $263,518 PRIA also submitted a proposal for Tampa Bay Water s Crime insurance from Great American Insurance Company with limits and deductibles comparable to the current program for an annual premium of $4,559. PRIA submitted a proposal from the Preferred Governmental Insurance Trust for Tampa Bay Water s Workers Compensation Insurance for an annual premium of $113,029. It should be noted that this reflects a premium increase of $29,075 when compared to Tampa Bay Water s current Workers Compensation premium of $83,954. The reason for the increase is that Tampa Bay Water increased its payroll base that is used to calculate Workers Compensation premiums by $350,715 (4.2%) and the National Council on Compensation Insurance (NCCI) raised the rate for the class of employees referred to as Waterworks Operations from $3.91 per $100 of payroll to $4.80 per $100 of payroll. NCCI is a quasi governmental organization that governs Workers Compensation insurance and its pricing nationally. PRIA did not submit a proposal for Tampa Bay Water s Hull and Machinery insurance. did not submit a proposal for Tampa Bay Waters Real and Personal Property insurance or its Boiler and Machinery insurance. submitted a proposal from St. Paul Guardian Insurance Company (the incumbent insurer) for Tampa Bay Water s Premises and Operations Liability insurance with terms, conditions, limits and deductibles consistent with its current policy for a premium of $59,184. also submitted a proposal from St. Paul Guardian Insurance Company for Tampa Bay Water s Vehicle Liability and Physical Damage insurance with terms, conditions, limits, and deductibles consistent with its current policy for a premium of $21,612. In addition, submitted a proposal from St. Paul Guardian Insurance Company for Tampa Bay Water s Public Officials and Employment Practices Liability insurance with terms, conditions, limits and deductibles consistent with its current policy for a premium of $35,952. also submitted a proposal from St. Paul Guardian Insurance Company for Tama Bay Water s Umbrella/Excess Liability insurance with terms, conditions, limits and deductibles consistent with its current policy for a premium of $17,825.

8 5 submitted a proposal from Travelers Casualty and Surety Company of America for Tama Bay Water s Crime insurance with terms, conditions, limits and deductibles consistent with its current policy for a premium of $5,712. also submitted a proposal from St. Paul Fire & Marine Insurance Company for Tama Bay Water s Hull and Machinery insurance with terms, conditions, limits and deductibles consistent with its current policy for a premium of $3,133. did not submit a proposal for Tampa Bay Water s Workers Compensation insurance. Summary and Recommendations After a careful analysis of the proposals received in response to Tampa Bay Water s RFP for its 2012/13 Property and Casualty Insurance program, it is recommended that the proposals as reflected in the following table be selected. Coverages Current Program Agent Insurer Annual Premium Real & Personal Property $836,968 ACE American Insurance Co. $974,839 Boiler and Machinery Incl. ACE American Insurance Co. Incl. Premises and Operations 107,096 St. Paul Guardian Ins. Co. 59,184 Vehicle Liability Incl. St. Paul Guardian Ins. Co. 21,612 Public Officials Liability Incl. St. Paul Guardian Ins. Co. 35,952 Umbrella Liability Incl. St. Paul Guardian Ins. Co. 17,825 Crime 5,607 Travelers Casualty and Surety 5,712 Workers Compensation 83,954 Preferred Governmental Insurance Trust 113,029 Hull and Machinery 3,219 St. Paul Fire & Marine Insurance Co. 3,133 Total $1,036,844 $1,231,286 Increase/(Decrease) of Premium $194,442 Percent of Increase/Decrease 18.75% This will provide Tampa Bay Water with Property and Casualty Insurance with quality insurance from insurers with favorable ratings from the A.M Best and Company, the leading evaluator of insurance company operations. The only exception would be the Preferred Governmental Insurance Trust that is not a traditional insurer therefore is not rated by A.M. Best but is recognized as one of the premier insurers for governmental entities in the State of Florida.

9 TAMPA BAY WATER 6 REAL & PERSONAL PROPERTY Current Program Insurer ACE American Insurance Co. ACE American Insurance Co. ACE American Insurance Co. AM Best Rating A+ A+ A+ Total Insured Values Buildings & Contents $387,213,762 $410,284,931 $410,284,931 Mobile Equipment $5,136,163 $12,486,164 $12,486,164 EDP Equip $9,348,710 $9,348,710 $9,348,710 Business Interruption $13,191,507 $6,187,222 $6,187,222 Limits of Liability $150 Million $150 Million $180 Million Major Sub-Limits Named Windstorm $75 Million $75 Million $75 Million Flood $2.5 Million Annual Aggregate for $2.5 Million Annual Aggregate for property $2.5 Million Annual Aggregate for property property located in Flood Zones A& V located in Flood Zones A A & V located in Flood Zones A& V $25 Million Annual Aggregate for $25 Million Annual Aggregate for property not $25 Million Annual Aggregate for property not property not located in Flood Zones A located in Flood Zones A & V located in Flood Zones A & V & V Business Interruption $13,191,507 $6,187,222 $6,187,222 Mobile Equipment $2 Million $2 Million $2 Million Law and Ordinance $5 Million $5 Million $5 Million New Locations $5 Million $5 Million $5 Million Extra Expense $2.5 Million $2.5 Million $2.5 Million Expediting Expenses $2.5 Million $2.5 Million $2.5 Million Misc. Unnamed Locations $500,000 $500,000 $500,000 Debris Removal $5 Million/25% of Loss $5 Million/25% of Loss $5 Million/25% of Loss Deductibles/SIR Basic $50,000 $50,000 $50,000 Mobile and EDP Equipment $25,000 $25,000 $25,000 Communication Equipment $5,000 $5,000 $5,000 Flood 5% of TIV for damaged location 5% of TIV for damaged location subject to a 5% of TIV for damaged location subject to a subject to a $500,000 Min. $500,000 Min. Wind 5% of TIV for damaged location 5% of TIV for damaged location subject to a subject to a $500,000 Min. $500,000 Min. Coverage Form All Risk All Risk All Risk Agreed Amount Yes Yes Yes $500,000 Min. 5% of TIV for damaged location subject to a $500,000 Min. No Proposal Submitted

10 TAMPA BAY WATER 7 REAL & PERSONAL PROPERTY Current Program Blanket Coverage Yes Yes Yes Settlement Basis Real & Personal Property Replacement Cost Replacement Cost Replacement Cost Mobile and EDP Equipment Replacement Cost Replacement Cost Replacement Cost Business Interruption Actual Loss Sustained Actual Loss Sustained Actual Loss Sustained Premium $836,968 $974,839 $994,039 Comments Alternative Wind Limits Proposed Alternative Wind Limits Proposed Limits Premium Limits Premium $50 Million $934,186 $50 Million $953,386 $25 Million $864,072 $25 Million $883,272 No Proposal Submitted Footnote: TIVs increased from $414,908,142 to $438,307,027 (5.64%). Premiums increased by 16.47% rate is $ proposed rate is $0.222 (10.25% increase).

11 TAMPA BAY WATER 8 BOILER AND MACHINERY Current Program ACE American Insurance Insurer ACE American Insurance Co. Co. A.M Best Rating A+ A+ Limits $150 Million $150 Million Sub Limits Ammonia Contamination $500,000 $500,000 Hazardous Substance $500,000 $500,000 Water Damage $500,000 $500,000 Deductible $50,000 $50,000 Comprehensive Form? Yes Yes Settlement Basis? Replacement Cost Replacement Cost Blanket Basis? Yes Yes Premium Comments Incl. In Real & Personal Property Incl. In Real & Personal Property No Proposal Submitted No Proposal Submitted

12 TAMPA BAY WATER 9 PREMISES AND OPERATIONS LIABILITY Current Program Public Risk Insurance Preferred Governmental American Alternative Insurer St. Paul Guardian Insurance Co. Insurance Trust (PGIT) Insurance Company St. Paul Guardian Insurance Co. AM Best Rating A+ N/A A+ A+ Coverages Bodily Injury Yes Yes Yes Yes Property Damage Yes Yes Yes Yes Personal Injury Yes Yes Yes Yes Employee Benefits Yes Yes Yes Yes Blanket Contractual Yes No Yes Yes TECO included as Yes Yes Yes Yes Additional Insured Coverage for Levees, Dikes and Retaining Walls Limits Yes Yes Yes Yes $2 Million per Occurrence $4 Million Annual Aggregate $2 Million per Occurrence with no Aggregate $1 Million per Occurrence $3 Million Annual Aggregate $2 Million per Occurrence $4 Million Annual Aggregate Deductible None None None None Occurrence/Claims Occurrence except Claims Made for Occurrence except Claims Made for Employee Benefits Occurrence Occurrence Made Employee Benefits Liability Liability Premium $56,368 Premium $107,096 $44,911 $75,589 State Assessments 2,816 Total 59,184 Comments Optional Proposed Limits Limits Premium $5 Million $49,189 $7 Million $51,328 Premium not subject to audit Premium not subject to audit Package policy proposed to include Commercial General Liability, Automobile Liability, Public Officials Liability, Employment Practices Liability and Umbrella Liability. State assessments for entire policy reflected under Commercial General Liability policy. TRIA coverage was proposed at an annual premium of $2,317. If TRIA is purchased, State Assessments will increase to $2,870

13 TAMPA BAY WATER 10 VEHICLE LIABILITY Current Program St. Paul Guardian Insurance Insurer Preferred Governmental American Alternative St. Paul Guardian Co. Insurance Trust (PGIT) Insurance Co. Insurance Co. AM Best Rating A+ N/A A+ A+ Limits Liability $2 Million $2 Million $1 Million $2 Million PIP Statutory ($10,000) Statutory ($10,000) Statutory ($10,000) Statutory ($10,000) Uninsured/Underinsured Motorists None $100,000 $1,000,000 None Physical Damage ACV ACV ACV ACV Deductible/Retention Liability None Liability None Liability None Physical Damage - $1,000 Physical Damage - $1,000 Physical Damage - $1,000 Occurrence/Claims Made Occurrence Occurrence Occurrence Occurrence ISO Symbols Liability 1 (Any Auto) 1 (Any Auto) 1 (Any Auto) 1 (Any Auto) PIP Physical Damage Premium Comments 5 (Autos Subject to No Fault) 7 (Scheduled Autos) 8 (Hired Autos) Incl. In Premises and Operations 5 (Autos Subject to No Fault) 2 (Owned Autos) 8 (Hired Autos 5 (Autos Subject to No Fault) 7 (Scheduled Autos) 8 (Hired Autos) Liability None Physical Damage - $1,000 5 (Autos Subject to No Fault) 2 (Owned Autos) 8 (Hired Autos) $44,740 $86,697 $21,612 Optional Proposed Liability Limits Limits Premium $5 Million $46,934 $7 Million $48,397

14 TAMPA BAY WATER 11 PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES LIABILITY Current Program St. Paul Guardian Insurance Company Preferred Governmental American Alternative Insurer Insurance Trust (PGIT) Insurance Co. AM Best Rating A+ N/A A+ A+ $2 Million $2 Million/$2 Million $1 Million/$3 Million Limits $4 Million Annual Annual Aggregate Annual Aggregate Aggregate for EPLI claims Deductible/Retention $5,000 $5,000 St. Paul Guardian Insurance Company $2 Million $4 Million Annual Aggregate $5,000 Public Officials $5,000 EPLI $15,0000 Occurrence/Claims Made Claims Made Claims Made Claims Made Claims Made Retroactive Date 10/1/92 10/1/92 None Full Prior Acts 10/1/92 Include Employment Practices Yes Yes Yes Yes Liability Insured Individuals Elected Officials Yes Yes Yes Yes Appointed Officials Yes Yes Yes Yes Employees Yes Yes Yes Yes Volunteers Yes Yes Yes Yes Premium Comments Included in Premises and Operations $31,837 $9,350 A $5 Million/$5 Million option was proposed for an annual premium of $35,199 Proposal indicates that a $5 Million and a $7 Million Annual Aggregate option is available. Only 1 annual premium was displayed. Premium assumed to be for the $3 Million Annual Aggregate option Public Officials $24,777 EPLI 11,175 Total $35,952 Separate Proposal Forms for Public Officials and Employment Practices Liability submitted and were combined for this analysis.

15 TAMPA BAY WATER 12 UMBRELLA/EXCESS LIABILITY Insurer Current Program St. Paul Guardian Insurance (PGIT Program) (Glatfelter Program) American Alternative St. Paul Guardian Insurance Company AM Best Rating Company A+ Insurance Co. A+ A+ Limits $5 Million $10 Million $5 Million Primary Underlying Coverages Premises and Operations Yes Yes Yes Vehicle Liability Yes Yes Yes Public Officials Liability Yes No Proposal Submitted Yes Yes Deductible/Retention Limits of Primary Underlying Coverages Limits of Primary Underlying Coverages Limits of Primary Underlying Coverages Premium Included in Premises and Operations $91,882 $17,825 Comments

16 TAMPA BAY WATER 13 CRIME Insurer Current Program Travelers Casualty and Surety Company of Great American Insurance Company Travelers Casualty and Surety Company of America America AM Best Rating A+ A A+ Limits Employee Theft $2 Million $2 Million $2 Million Forgery or Alterations $2 Million $2 Million $2 Million Computer Fraud $2 Million $2 Million $2 Million Funds Transfer Fraud $2 Million $2 Million $2 Million Personal Accounts Forgery or Alterations $1 Million None $1 Million Claim Expense $25,000 None $25,000 Deductible/Retention $15,000 except for Claim Expense that is not subject to a deductible $15,000 $15,000 except for Claim Expense that is not subject to a deductible Premium $5,607 $4,559 $5,712 Comments

17 14 TAMPA BAY WATER WORKERS COMPENSATION Insurer Current Program Public Risk Insurance Preferred Governmental Public Risk Insurance Preferred Governmental Insurance Trust Insurance Trust AM Best Rating N/A N/A Limits Workers Comp Statutory Statutory Employers Liability $1,000,000 $1,000,000 Deductible/Retention None None Total Payroll $8,325,285 $8,676,000 Experience Modification Factor Premium $83,954 $113,029 Comments Wallace Welch and No Proposal Submitted

18 TAMPA BAY WATER 15 HULL AND MACHINERY Current Program Public Risk Insurance No Proposal Submitted Insurer St. Paul Fire & Marine Insurance Co. St. Paul Fire & Marine Insurance Co. AM Best Rating A+ A+ Limits 32 Beachcraft $43, Weeres Fish $62,500 Pontoon $19,602 Magic Tilt Trailer $1,800 $4,167 Deductible/Retention Beachcraaft and Seeres Fish Pontoon $1,000 $1,000 Magic Tilt Trailer $200 $200 Coverage provided on Agreed Amount Basis Yes Yes Premium $3,219 $3,133 Comments Coverage is restricted to losses occurring at the Bill Young Reservoir Coverage for the Magic Tilt Trailer is limited to Fire, Lightning, Explosion, Theft, Collision, Overturn and Windstorm Coverage is restricted to losses occurring at the Bill Young Reservoir Coverage for the Magic Tilt Trailer is limited to Fire, Lightning, Explosion, Theft, Collision, Overturn and Windstorm Proposal Form reflects a $200 deductible for the Magic Tilt Trailer while the Hull Coverage Outline reflects a $400 deductible for the Magic Tilt Trailer. John Ullrich advised that this was a typographical error and a $200 deductible will apply to the trailer. TRIA coverage is available for an additional premium of $94

19 16 TAMPA BAY WATER PREMIUM SUMMARY ONLY (AS EXPIRING) Coverages Current Program Public Risk Insurance (PGIT Program) Public Risk Insurance (Glatfelter Program) Wallace Welch and Real & Personal Property $836,968 $974,839 $974,839 No Proposal Boiler and Machinery Incl. Incl. Incl. No Proposal Premises and Operations 107,096 44,911 75,589 $59,184 Vehicle Liability Incl. 44,740 86,697 $21,612 Public Officials Liability Incl. 31,837 9,350 $35,952 Umbrella Liability Incl. No Proposal 91,882 $17,825 Crime 5,607 4,559 4,559 $5,712 Workers Compensation 83, ,029 $113,029 No Proposal Hull and Machinery 3,219 No Proposal No Proposal $3,133

20 TAMPA BAY WATER 17 PREMIUM SUMMARY ONLY (RECOMMENDED PROGRAM) Coverages Current Program Agent Insurer Annual Premium Real & Personal Property $836,968 ACE American Insurance Co. $974,839 Boiler and Machinery Incl. ACE American Insurance Co. Incl. Premises and Operations 107,096 St. Paul Guardian Ins. Co. 59,184 Vehicle Liability Incl. St. Paul Guardian Ins. Co. 21,612 Public Officials Liability Incl. St. Paul Guardian Ins. Co. 35,952 Umbrella Liability Incl. St. Paul Guardian Ins. Co. 17,825 Crime 5,607 Travelers Casualty and Surety 5,712 Workers Compensation 83,954 Preferred Governmental Insurance Trust 113,029 Hull and Machinery 3,219 St. Paul Fire & Marine Insurance Co. 3,133 Total $1,036,844 $1,231,286 Increase/(Decrease) of Premium $194,442 Percent of Increase/Decrease 18.75%