Invitation to Quote Consulting Services for Insurance Review

Transcription

1 Invitation to Quote Consulting Services for Insurance Review Issue date: January 6, 2009 ITQ Acknowledgement Form Appendix C Bidders are asked to complete and return as soon as possible to the contact person listed below. Closing Date February 3, 2009 Project Term Closing Location 1 Month upon award By Mail: BC Transit PO Box 610 Victoria, BC V8W 2P3 By Courier or Hand: BC Transit 520 Gorge Road East Victoria, BC V8T 2K2 ITQ Contact Person Dee Mason, Purchasing and Project Officer dee_mason@bctransit.com Phone Fax BC Transit Website

2 TABLE OF CONTENTS 1 Invitation Invitation to Quote Definitions ITQ Terms and Conditions and Administrative Instructions Project Communications Enquiries and Requests for Clarification ITQ Acknowledgement Form Estimated Time-Frames Acceptance, Rejection, of Responses Compliance of Responses Eligibility Evaluation Committee Minor Clarifications Evaluation Interviews Negotiations Workers Compensation Bidder s Expenses Price Form of Contract Additional Phases of Work Delay Debriefing Cancellation of Invitation to Quote Cancellation of Services Submission Guidelines Mandatory Requirements Submission Format Desirable Requirements Evaluation Criteria The Work Invitation Background Description of Work Objective Appendix A: Confirmation of Compliance to Mandatory Requirements Appendix B: Submission Covering Letter Appendix C: ITQ Acknowledgement Form Appendix D: Sample of Professional Services Contract Attachment 1 Captive and Policy Overview Attachment 2 Statement of BC Transit Asset Values /25

3 1 Invitation This invitation to quote is for consulting services to conduct a market evaluation of property and liability insurance requirements for BC Transit based on existing coverage levels, deductibles, exceptions and incident experience. Currently BC Transit s insurance is secured through a sophisticated captive insurance company, The Transportation Property and Casualty Company Inc., pursuant to the Insurance (Captive Company) Act. BC Transit is a 10% shareholder in the Captive Company owned jointly with the South Coast British Columbia Transportation Authority (Translink). The Captive Company is managed out of TransLink s Burnaby offices. BC Transit wishes to obtain a fair market value estimate of the insurance coverage currently written directly or reinsured through the Captive Company. BC Transit is the provincial crown corporation responsible for public transit throughout the Province of British Columbia outside of the lower mainland with its headquarters and main administrative office located in Victoria, British Columbia. BC Transit directly employs over 700 staff and contracts with public and private companies and located communities to provide transit service. BC Transit s annual reports, service plans and other filings are available on the corporate website at: 3/25

4 2 Invitation to Quote Definitions The following terms will apply to this Invitation to Quote and to any subsequent Contract. A submission in response to this Invitation to Quote indicates acceptance of all the following definitions. 1. BC Transit: means a Corporation established under the British Columbia Transit Act, R.S.B.C., Ch. 421, as amended, having an office at 520 Gorge Road East, P.O. Box 610, Victoria, British Columbia, V8W 2P3. 2. Contract: means the written Professional Services Contract resulting from this Request for Qualification executed by BC Transit and the Contractor; 3. Contractor: means the successful Bidder to this Invitation to Quote who enters into a written Professional Services Contract with BC Transit; 4. Captive Insurance: means a corporation established for the sole purpose of providing insurance for its shareholder(s) within the limits and restrictions specified by the Insurance (Captive Company) Act of British Columbia and subject to the oversight of the Superintendent of Financial Instititutions. 5. Bidder: means an individual or a company that submits, or intends to submit, a response to this Invitation to Quote; 6. Must, or mandatory: means a requirement that must be met in order for a Response to receive consideration; 7. Should or desirable: means a requirement having a significant degree of importance to the objectives of the Invitation to Quote; 8. Final delivery: means all the work is completed and documentation and supporting material delivered to BC Transit offices to the satisfaction of the Coordinator. 9. Work: means the report and related activities specified in Section 5.3 of this ITQ required to achieve Final Delivery. 4/25

5 3 ITQ Terms and Conditions and Administrative Instructions 3.1 Project Communications All enquiries related to this Invitation to Quote are to be directed, in writing, to the following person. Information obtained from any other source is not official and should not be relied upon. Dee Mason Purchasing and Project Officer Ph: Fx: BC Transit must receive one original and two copies of the quote no later than February 3, 2009 at 2:00:59 pm Pacific Time. Any quotes received after that date and time will be returned unopened. Submissions must not be sent by facsimile or electronic mail. Submission envelopes should be clearly marked with the name and address of the Bidder, the Invitation to Quote number, and the project or program title. Please review Mandatory Requirements Section Enquiries and Requests for Clarification All enquires or requests for clarification are to be received no later than January 20 th, BC Transit will endeavour to respond to all enquires no later than January 27 th, Enquiries and responses will be recorded and may be distributed to all Proponents at BC Transit s option. Any anticipated clarifications or changes to Terms and Conditions outlined in this document are to be submitted with as a Request for Clarification. BC Transit will review these requests and respond to all proponents with their position on these requests. 3.3 ITQ Acknowledgement Form Bidders are advised to fill out and return the attached ITQ Acknowledgement Form in Appendix C immediately. All subsequent information regarding this Invitation to Quote, including changes made to this document and the question/answer process of disclosure will be directed only to those respondents who return the form. Preferred methods would be electronic mail ( ) or fax ( ). Please return the ITQ Acknowledgement Form to BC Transit by January 13, Estimated Time-Frames The following table outlines the anticipated schedule for this Invitation to Quote process. Timing and the sequence of events resulting from this Invitation to Quote may vary and shall ultimately be determined by BC Transit. 5/25

6 Event Anticipated Date Invitation to Quote issued: January 6, 2009 ITQ Acknowledgement Form due: January 13, 2009 Requests for Clarification due: January 20, 2009 Responses to Request for Clarification: January 27, 2009 Invitation to Quote Closes: FEBRUARY 3, 2:00 PM PACIFIC TIME Target Award: End of February Acceptance, Rejection, of Responses BC Transit reserves the right, at its sole discretion, to accept or reject all or parts of any quote that: a) is incomplete, obscure, irregular or unrealistic; b) contains unauthorised conditions; c) fails or omits any required or mandatory term or condition; d) is non-compliant with the requirement of the Invitation. BC Transit shall not be obligated either to accept or reject any non-compliance with the requirement of the invitation. 3.6 Compliance of Responses Responses not providing all the Mandatory Requirements outlined in Section 4.1 may be rejected without further consideration. 3.7 Eligibility Responses will not be evaluated if the Bidder s current or past corporate or other interests may, in BC Transit s opinion, give rise to a conflict of interest in connection with this project. Responses from not-for-profit agencies will be evaluated against the same criteria as those received from any other Respondents. 3.8 Evaluation Committee Evaluation of Responses will be by a committee constituted by BC Transit staff, staff of partner agencies and/or their agents. 3.9 Minor Clarifications BC Transit reserves the right to request additional information from Respondents during the evaluation. The requested information would allow BC Transit to clarify issues in Responses. This could be, but is not limited to, missed information or information not clear in a Response. BC Transit will be under no obligation to receive further information, whether written or oral, from any Bidder. Respondents agree to hold BC Transit safe and harmless against any claims regarding receiving information for evaluation purposes. 6/25

7 3.10 Evaluation Interviews BC Transit reserves the right to interview any Bidder during the evaluation and incorporate the results of interviews into the evaluation. At the request of BC Transit, a Bidder will travel to Victoria, B.C. and meet with BC Transit representatives at no additional cost to BC Transit Negotiations BC Transit reserves the right, at its sole discretion, to negotiate any aspect of any Bidder s Response during the evaluation, and/or after contract award. This includes, however is not limited to, reducing scope and cost of the contract with any leading Bidder. Any negotiated aspects will be incorporated into the contract Workers Compensation The Contractor and any approved sub-contractor must be registered with the Workers Compensation Board (WCB), in which case WCB coverage must be maintained for the duration of the work. Prior to receiving any payment, the contractor must submit a WCB Clearance Letter indicating that all WCB assessments have been paid Bidder s Expenses Bidders are solely responsible for their own expenses in preparing a quote and for subsequent negotiations with BC Transit, if any. If BC Transit elects to reject all quotes, it will not be liable to any Bidder for any claims, whether for costs or damages incurred by the Bidder in preparing the quote, loss of anticipated profit in connection with any final Contract, or any other matter whatsoever Price Bidders are to provide an all inclusive hourly rate. Any and all expenses the Contractor may incur during the performance of the contract, including but not limited to, transportation, hotel, communication, etc. is to be included as part of the hourly rated quoted Form of Contract This Invitation to Quote should not be considered a request for or an authorization to perform any work or supply any goods. Any development work undertaken to you, and any costs of replying to this Invitation to Quote will be at your own expense. In the event you have any questions regarding this Invitation to Quote contact the authorized person noted in Section 3.2 Enquiries and Contact Person. The successful bidder will enter into a Professional Services Contract similar to the Sample provided in Appendix D Additional Phases of Work BC Transit reserves the right to award additional phases of work in relation to this ITQ without further competitive process at the sole discretion of BC Transit. 7/25

8 3.17 Delay If a Professional Services Contract cannot be signed within thirty days of notification of the successful Bidder, BC Transit may, at its sole discretion at any time thereafter, terminate discussions with that Bidder and either negotiate a Professional Services Contract with the next qualified Bidder or choose to terminate the Invitation to Quote process and not enter into a Contract with any of the Respondents Debriefing At the conclusion of the Invitation to Quote process, all Respondents will be notified. Upon notification Bidders may request a debriefing meeting by contacting the ITQ contact person within 30 days of receipt of notice Cancellation of Invitation to Quote BC Transit reserves the right to cancel this Invitation to Quote at any time whenever BC Transit determines that such termination is in its best interest. BC Transit shall not be in any manner whatsoever responsible, liable or accountable for any costs, expenses, loss of profits, loss of opportunity or any other out of pocket expenses or economic losses of any Bidder resulting from BC Transit cancelling this Invitation to Quote Cancellation of Services BC Transit reserves the right: a. to cancel the contract at anytime during the performance of the contract whenever BC Transit determines that such termination is in its best interest. Upon notification the Contractor shall immediately stop work, place no further orders, terminate and/or place orders and subcontracts on hold. BC Transit will pay the Contractor for the value, as determined by the Coordinator, of all Work performed up to the date of termination. BC Transit shall not be liable to pay the Contractor any loss of profit or indirect costs. and/or, b. to terminate this contract at any time without penalty by notice in writing of any event or circumstance beyond the control of BC Transit, including without limitation, a strike, lockout or other labour dispute involving the employees or others, shortage of labour or material, riot, war, civil commotion, fire, flood, earthquake or other act of god, which prevents or is likely to prevent BC Transit from performing its obligations hereunder, or if the operations of the BC Transit are disrupted or threatened to be disrupted by strike or other labour dispute, whether legal or illegal, involving the employees or agents of BC Transit having entered into this contract. 8/25

9 4.0 Submission Guidelines 4.1 Mandatory Requirements 1. The original quote and 2 copies must be received at the closing location by the specified closing date and time (February 18, 2:00:59 PM Pacific Time). Envelopes must clearly identify the ITQ number, title and the name of the Contact Person. 2. The quote must be in English and must not be sent by facsimile or The quote must be signed by a person authorized to sign on behalf of the Proponent. 4. The proponent must be an independent insurance broker or consultant. 4.2 Submission Format In order to have your quote fully evaluated it suggested that you follow the outlined below. 1. Completion of Appendix A - Confirmation of Compliance to Mandatory Requirements. 2. A covering letter substantially similar in content to the sample covering letter provided in Appendix B. 3. A two page resume for yourself and any team members that may be participating in the initiative briefly outlining the following: a. Qualifications, including confirmation that bidder is independent insurance broker or consultant; b. Previous Experience; c. References; d. Availability in terms of additional current contracts for similar work with other contractors and ability to complete the work on time; e. A brief outline of approach and methodology to be used in the execution of this work; f. All expense included Hourly Rate; g. An estimate of the total hours required to complete the assignment. 4.3 Desirable Requirements Qualifications: It is desirable that the consultant has demonstrated experience in similar market assessments and hold CRM and/or RIMS designations. Previously Related Experience: References: 1. extensive experience in insurance brokerage including property and liability coverage 2. familiarity with the assets, operations and risks of major transportation service providers 3. familiarity with the concepts of enterprise risk management and risk transfer 4. exposure to captive insurance companies 1. Provide at least two current references in a project that has a similar scope 9/25

10 4.4 Evaluation Criteria BC Transit reserves the right, in its sole discretion, to award to any Contractor deemed to provide the BEST VALUE to BC Transit. BC Transit shall not be bound, implied or otherwise, to award this contract to the lowest priced and/or any qualified bidder. BC Transit will determine BEST VALUE by evaluating qualified submissions with the following attributes: A Demonstrated Ability 20% B Previous Related Experience 20% C References 10% D Cost 50% BC Transit reserves the right to interview any Contractor s resources prior to final selection. In addition, BC Transit reserves the right to incorporate interview results into the evaluation. Bidders must achieve the minimum of 70% of the points allocated in Section A through C in order to have their pricing component evaluated. Responses not meeting 70% will receive no further consideration. References of any proponents may be contacted to verify statements made in their submissions. BC Transit will not enter into contract negotiations with any proponents whose references are found to be unsatisfactory. 10/25

11 5 The Work 5.1 Invitation BC Transit is seeking the services of a consultant to conduct a market evaluation of property and liability insurance requirements for BC Transit based on existing coverage levels, deductibles, exceptions and incident experience. 5.2 Background Currently BC Transit secures all of its insurance requirements through the Transportation Property and Casualty Insurance Company a sophisticated Captive Insurance Company owned jointly with TransLink of Metro Vancouver. The Captive writes or reinsures BC Transit s property and liability coverage as well as arranging Crime, Director s and Officers and Boiler and Machinery coverage through third party insurers. The following attachments are included: 1. Captive and Policy Overview (Attachment 1) 2. Statement of BC Transit Asset Values (Attachment 2) Full policy descriptions and detailed incident experience are maintained at the Captive s offices in Burnaby and will be made available to the successful proponent. 5.3 Description of Work The proponent will prepare a report specifying the estimated cost of replacing existing captive insurance coverage through obtaining coverage in the open market through insurers with ratings of A- or better per AM Best credit ratings. The report will describe the assumptions and methodology underlying the development of current market rates. In addition, the report will include a description of the assets and operations covered and calculations underlying the estimated total market cost of the replacement insurance program. Further, the report will include a conceptual overview of the issues and implications of leaving the captive including closing and maintaining reserves for outstanding claims. 5.4 Objective The objective of this assignment is to prepare a report to be used by BC Transit senior management and the Board of Directors to compare the cost of maintaining coverage through the Captive versus obtaining cover in the open market. The report will also overview the risks and issues implicit in such a transition. 11/25

12 Appendix A: Confirmation of Compliance to Mandatory Requirements MANDATORY REQUIREMENT The proposal, 2 copies and 1 CD version of submission must be received at the closing location by the specified closing date and time (December 18, :00:59 PM Pacific Time). Envelopes must clearly identify the ITQ number, title and the name of the Contact Person. The proposal must be in English and must not be sent by facsimile or . The proposal must be signed by a person authorized to sign on behalf of the Proponent. Submission Covering Letter similar to the one in Appendix A. Proof that Bidder is an Independent Broker Proof of WCB Certification (Item 3.12) Price is all inclusive (Item 3.14) REFERENCE POINT IN RESPONSE MEETS 12/25

13 Appendix B: Submission Covering Letter Please submit on Letterhead or with Bidder s name and address Date Dear Sir/Madam Subject: Invitation to Quote name and number List any amendment nos. and dates The enclosed quote for services is in response to the above-referenced Invitation to Quote. Through submission of this bid we agree to all of the terms and conditions of the Invitation to Quote. We have carefully read and examined the Invitation to Quote and have conducted such other investigations as were prudent and reasonable in preparing the quote. We agree to be bound by statements and representations made in this quote and to any agreement resulting from the submission. Yours truly Signature Name: Title: Legal name of Bidder: 13/25

14 Appendix C: ITQ Acknowledgement Form INVITATION TO QUOTE 09-05: Closing Date: February 3, 2009 In order to receive any further correspondence or potential amendments in relation to this ITQ, please complete this form and return no later January 13, 2009 (fax or preferred) to: Attention: Address: Dee Mason, Purchasing and Project Officer BC Transit 520 Gorge Road East PO Box 610 Victoria, BC V8W 2P3 Phone: Fax: (as appropriate): RESPONDENT INFORMATION: COMPANY NAME: ADDRESS: CONTACT PERSON: POSITION: PHONE NUMBER: FAX NUMBER: Check appropriate response in A below: A I authorize BC Transit to send further correspondence (if unable to fax or ) relevant to this ITQ that is deemed to be of an urgent nature by the following method: Courier collect: courier name and acct no. Mail: DATE: NAME: 14/25

15 Appendix D: Sample of Professional Services Contract Professional Services Contract Short Form - Contract Tracking # Contract P.O. #: Title: Between: Date of Contract: British Columbia Transit ("BC Transit") 520 Gorge Road East Victoria, BC V8T 2K2 and Contact: Phone #: Fax #: 1. In this contract, the following terms will have the meanings expressed below: Term: Services: Fees Records: period commencing on the Date of Contract and expiring no later than. services to be performed by the Contractor (See Schedule A for a breakdown) not to exceed $ (included taxes and all expenses) (See Schedule B for a breakdown) Notes, memoranda and other records in any form whatsoever resulting from the Services in Schedule A as requested by BC Transit 2. BC Transit hereby retains the Contractor to perform the Services in accordance with the terms of this contract. 3. The Contractor represents and warrants to BC Transit that it has the reasonable skills, expertise and experience necessary to perform the Services in a competent and professional manner. 4. The Contractor agrees to perform the Services with the reasonable skill and diligence required by customarily accepted professional practices and procedures normally provided in the performance of the services at the time when and the location in which the services were performed. 5. The Contractor acknowledges that it is an independent contractor and not the employee or agent of BC Transit, and will not in any manner, save as specified in Schedule "A", bind or purport to bind BC Transit, except with the express written authorization of BC Transit. 6. The Contractor and any approved sub-contractors must be registered and in good standing with the Workers Compensation Board of British Columbia (WCB), in which case WCB coverage must be maintained for the duration of the Contract. Prior to commencement of work, the Contractor is required to submit a WCB Clearance Letter indicating that all WCB assessments have been paid. 7. Upon complete performance of the Services to the full satisfaction of BC Transit, the Contractor will submit an invoice to BC Transit containing the following information: (a) amount of Fees charged by the Contractor, setting out the dates and hours during which the Services were rendered by each person performing the Services, provided that in no event will the amount of fees charged by the Contractor under this contract exceed the maximum amount set out in s.1; 15/25

16 (b) amount of Expenses claimed by the Contractor, attaching receipts or vouchers for each expense claimed, provided that in no event will the amount of Expenses claimed by the Contractor under this contract exceed the maximum amount set out in s.1; and (c) where applicable, the amount of Goods & Services Tax ("GST") charged and the Contractor's GST registration number. 8. Subject to verification by BC Transit of the validity of the Fees and Expenses, BC Transit will pay the amount of approved Fees and Expenses within 30 days of the invoice described in s The Contractor will treat as strictly confidential all Records, and any information contained in such Records, which are provided to or obtained by the Contractor as a result of this contract or in the performance of the Services, whether or not such Records are provided by BC Transit. Records shall include, without limiting the definition, all documents, records, and communications (including ) whether oral, written, typed, digital, electronic or in any other format which contain and/or convey information, pictures, diagrams, technological information and /or calculations. The Contractor further agrees not to publish, release or disclose such Records or information to any third party at any time during or after the Term. Originals and copies of all such Records must be returned to BC Transit upon the earlier of termination of this contract or at the request of BC Transit. Any written records or oral information received by the contractor from BC Transit or any proponent, contractor or sub contractor within the scope of work of this contract shall be deemed confidential and kept confidential by the consultant unless otherwise agreed upon in writing by BC Transit. The use and disclosure of the confidential information shall not apply to information which (a) was known to the Contractor before receipt hereof BC Transit; or (b) becomes publicly known other than through the Contractor; or (c) is disclosed pursuant to the requirements of a governmental authority or judicial order. 10. All rights, title and interest in all Records and inventions produced by the Contractor in connection with this contract or in the performance of the Services will vest in and enure to the benefit of BC Transit upon full payment of monies due to the Contractor. The Contractor further agrees to execute any documents or do any acts which BC Transit may reasonably require to perfect such ownership. The plans and specifications prepared by the Contractor under the contract shall become the property of BC Transit upon full payment of all monies owed to the Contractor. BC Transit agrees, to the fullest extent permitted by law, to indemnify and hold the Contractor harmless from any claim, liability or cost (including reasonable attorney s fees and defense costs) arising or allegedly arising out of any reuse or modification of the Records by BC Transit or any person or entity that obtains the Records from or through BC Transit. 11. Prior to the end of the Term, BC Transit may terminate this agreement by written notice to take effect immediately upon receipt of it by the Contractor if: (a) the Contractor breaches any of its obligations under this contract; (b) the Contractor becomes insolvent, bankrupt or has a receiver appointed or makes any proposal under the Bankruptcy Act; or (c) the Contractor comes under the direct or indirect control of any corporation or person who does not control it at the date of execution of this contract. The Contractor will not be entitled to compensation for any services provided after the date of termination. 12. The Contractor assumes all risks incidental to its performance of this contract and agrees to indemnify and hold harmless BC Transit, its directors, officers, employees, agents, successors and assigns from any and all claims, damages, losses, expenses and demands by reason of any loss, bodily injury or damage to person or property resulting from the fault or negligence of the Contractor, its directors, officers, employees or agents in the performance or non-performance of any of their obligations under this contract. 16/25

17 13. The total amount of all claims BC Transit may have against the Contractor under this contract or arising from the performance or non-performance of the Services under any theory of law, including but not limited to claims for negligence, negligent misrepresentation and breach of contract, shall be strictly limited to $150,000. As BC Transit's sole and exclusive remedy under this contract any claim, demand or suit shall be directed and/or asserted only against the Contractor and not against any of the Contractor's employee s, officers or directors. The Contractor s liability with respect to any claims arising out of this contract shall be absolutely limited to direct damages arising out of the Services and the Contractor shall bear no liability whatsoever for any consequential loss, injury or damage incurred by BC Transit, including but not limited to, claims for loss of use, loss of profits and loss of markets." 14. The Contractor shall not assign, sub-contract or transfer any part of this contract without the prior written consent of BC Transit. 15. This contract constitutes all of the agreements between the Contractor and BC Transit and supersedes all prior written or oral agreements, representations, negotiations, and discussions between the parties. No modification of this contract will have any effect unless the modification is in writing and signed by both the Contractor and BC Transit. 16. This contract will be governed in accordance with the laws of British Columbia and the laws of Canada. The Contractor will perform its obligations under this contract in compliance with all statues, by-laws, regulations or other laws in force in British Columbia during the Term. 17. If any provision in this contract is found to be invalid or unenforceable, that provision shall be severed from the contract and the remainder of the contract shall remain in full force and effect. 18. The Contractor acknowledges that it has been informed and confirms its understanding of the policy statement adopted by BC Transit with respect to conflict of interest, and covenants and agrees that strict compliance with the policy by the Contractor and its employees is a fundamental condition to this contract, and any breach thereof shall entitle BC Transit, at its sole discretion, to terminate this contract, whereupon: (a) the Contractor shall reimburse BC Transit for any loss which it incurs as a result of the termination, and (b) the Contractor waives any right of recourse or claim for compensation arising from such termination. 19. BC Transit, at its convenience, may terminate this contract, in whole or in part, at any time by written notice to the Contractor. After receipt of a Notice of Termination for Convenience, the Contractor shall immediately stop work as directed in the Notice, and comply with all other requirements in the Notice. The Contractor shall be paid its costs, including necessary and reasonable agreement close-out costs and profit on that portion of the work satisfactorily performed up to the date of receipt of notification of termination as specified in the notice. The Contractor shall promptly submit its request for the termination payment, together with detailed supporting documentation. If the Contractor has any property in its possession belonging to BC Transit, the Contractor will account for the same and dispose of it in the manner BC Transit directs. All termination payment requests are subject to cost/price analysis to determine reasonableness and compliance with the contract, the contract termination agreement, applicable laws and regulations. Anticipated profits or the uncompleted portion of the work shall not be eligible for payment. BC Transit shall not be in any manner whatsoever responsible, liable or accountable for any additional costs, expenses, loss of profits, loss of opportunity or any other out of pocket expenses or economic losses. Signatures: 17/25

18 Contract PO #: Amendment #: Schedule A Statement of Services (For Professional Services Contracts/Amendments) The Consultant will, to the satisfaction of BC Transit, as and when requested, provide The work will include: 18/25

19 Schedule B Statement of Fees (Includes Fees and Expenses) 1. Fees and expenses shall be calculated on the following rate(s); GST to be added on relevant invoices: Hourly rate Canadian Dollars The Consultant shall submit to the Authority a written claim for the payment of remuneration: (a) setting out the claim for all fees for Services rendered, showing the dates and hours during which the Services were rendered as above. (b) listing all expenses necessarily incurred by the Consultant in the performance of Services, supported by vouchers, receipts or other relevant documents verifying the amount of each expense. 19/25

20 Attachment 1 Captive and Policy Overview TransLink/ BC Transit Transportation Property & Casualty Company Inc 2008/09 Program 1 20/25

21 Captive Insurance TPPC established in 1988 in response to rapidly increasing insurance rates and declining capacity Insures assets and operations of BC Transit and TransLink Shareholdings BC Transit 10%, TransLink 90% Captive provides vehicle to build reserves to cover specified risks & access international reinsurance market Regulated by Superintendent of Financial Institutions Requirements include annual actuarial assessment of adequacy of reserves The Captive has an AM Best rating of A Excellent on it s financial strength and capitalization. 2 TransLink/BC Transit Captive Policies Primary Excess General Liability $2 million each & every with a $4 million double aggregate Policy TPC 004 *** Includes Terrorism Coverage ICBC ICBC WestCoast Express Non bus Bus only General Liability SkyTrain Liability Liability $200,000 $1 million Deductible Deductible Deductible $100,000 $100,000 $100,000 Policy TPC 001 Policy TPC 002 Policy TPC /25

22 TransLink/BC Transit Excess Policies Captive Policy Excess Liability Policy $150 million excess of $150 million with a $150 million Reinstatement Quota Share Basis 83.33% Lloyds of London 16.67% TPC 016 Reinsured by Chubb Atlantic Bermuda ***Includes Terrorism Coverage Captive Policy Excess Liability Policy $75 million excess of $75 million with a $75 million Reinstatement Quota Share Basis 60% Lloyds of London 40% TPC 015 Reinsured by Swiss Re ***Includes Terrorism Coverage Excess Liability Policy $25 Million Excess of $50 Million with a $25 million Reinstatement Arch Insurance ***Includes Terrorism Coverage Excess Liability Policy $25 Million Excess of $25 Million with a $25 million Reinstatement Lloyds of London ***Includes Terrorism Coverage 4 Primary Excess Liability Policy $23 million excess of $2 million with a $23 million Reinstatement Lloyds of London ***Includes Terrorism Coverage TransLink/BC Transit Property Program $200 Million Limit Captive Policy Excess All Risk All Property Policy $175 million excess of $25 million Quota Share Basis 62% Commonwealth Insurance 16% American Home Insurance 22% TPC 012 Reinsured by Swiss Re Primary Excess All Risk All Property Policy $25 million excess of $ 1 Million Canadian Underwriters Captive Policies Bus All Risk All Property Physical Damage Deductible Policy $1 million each and every $1 million each and every Policy TPC 005 Policy TPC /25

23 Captive Financial Position Initial Capitalization $200,000 Reserves at December 2007 $15.2 m Investment income since inception $14.6 m Dividends paid $7.5 m 6 Insurance Costs Total Insurance program $16.71 m Annual Captive Program $2.4 m TransLink Premiums $14.45 m BC Transit Premiums $2.26 m BC Transit ICBC Program $1.8 m BC Transit Captive Premiums $396,000 Other BC Transit premiums $60, /25

24 Attachment 2 Statement of BC Transit Asset Values 24/25

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