111 nw 1ststreet • suite 1300 miami-. miami, florida33128 ... · tmmid"miami-. procurement...

17
MIAMI-. tmmiD" Procurement Management 111 NW 1st Street • Suite 1300 Miami, Florida 33128-1974 T 305-375-5289 F 305-375-4407 305-372-6128 . miamidade.gov ADDENDUM NO.2 This addendum becomes a part of the subject Request for Proposals (RFP). /'-.> (-) c..-' j-- r-..:> ~: =.t: '.:.::. :;:tv :,....:: ::::0 N -'10"" -! •.•... -0 P'I ~ O'J N 0 en ::;-..,. 1.0 .;v CJ " : \ ~M'l :1:,. ::~ •G CJ':'--; J.. c. c-. Broker Services for Water & Sewer Department Property Insurance ~~:~.: l--' C) f~~ RFP No. 815 c:-.-; ..•.. ' --'-C-I 2~1 r.:-< ;._'"C-~ . -. ALL PROSPECTIVE PROPOSERS March 20, 2012 SUBJECT: TO: DATE: The following are the inquiries received and the corresponding responses: 1) Can the County provide a copy of the latest compensation report for the current broker's total compensation, including fee, commission, contingent or supplemental income and/or income from owned wholesalers (domestic or international) for the last contract year extension? Answer: Refer to B(l1) in Addendum 1, 2) Can the County provide a copy of the latest Statement of Values? Answer: Refer to B(2) in Addendum 1. 3) Can the County provide a copy of the last Catastrophic (CAT) Modeling done along with a confirmation of which RMS version was used (if available)? Answer: See the last CAT Modeling by visiting thefollowing link: ftp://ftp.miamidade.gov/Procurement Management/RFP%20815/ 4) Were secondary characteristics for CAT modeling been used in the modeling? Answer: This information is not readily available. 5) Can the County outline the current program structure - in terms of total limit, sublimits, premium and carriers by layer? Answer: See the Renewal Schematic provided herein as Attachment 1. 6) Can the County provide a copy of the binders for the excess layers as well? Answer: See the Starr Technical Risks Agency, Inc., and Chartis binders provided herein as Attachment 2. 7) Approximately how many additional flood policies/placements for locations in Zone A-V would the County anticipate having to purchase? Answer: Refer to B(5) of Addendum 1 and item number 23 below for information on the current flood policies. The number of additional flood policies is not known at this time.

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Page 1: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

MIAMI-.tmmiD"

Procurement Management111 NW 1st Street • Suite 1300

Miami, Florida 33128-1974T 305-375-5289 F 305-375-4407 305-372-6128 .

miamidade.gov

ADDENDUM NO.2

This addendum becomes a part of the subject Request for Proposals (RFP).

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Broker Services for Water & Sewer Department Property Insurance ~~:~.:l--' C) f~~

RFP No. 815 c:-.-;..•.. '--'-C-I

2~1r.:-<;._'"C-~. -.

ALL PROSPECTIVE PROPOSERS

March 20, 2012

SUBJECT:

TO:

DATE:

The following are the inquiries received and the corresponding responses:

1) Can the County provide a copy of the latest compensation report for the current broker's totalcompensation, including fee, commission, contingent or supplemental income and/or income fromowned wholesalers (domestic or international) for the last contract year extension?

Answer: Refer to B(l1) in Addendum 1,

2) Can the County provide a copy of the latest Statement of Values?Answer: Refer to B(2) in Addendum 1.

3) Can the County provide a copy of the last Catastrophic (CAT) Modeling done along with aconfirmation of which RMS version was used (if available)?

Answer: See the last CAT Modeling by visiting the following link:ftp://ftp.miamidade.gov/Procurement Management/RFP%20815/

4) Were secondary characteristics for CAT modeling been used in the modeling?Answer: This information is not readily available.

5) Can the County outline the current program structure - in terms of total limit, sub limits, premium andcarriers by layer?

Answer: See the Renewal Schematic provided herein as Attachment 1.

6) Can the County provide a copy of the binders for the excess layers as well?Answer: See the Starr Technical Risks Agency, Inc., and Chartis binders provided herein asAttachment 2.

7) Approximately how many additional flood policies/placements for locations in Zone A-V would theCounty anticipate having to purchase?

Answer: Refer to B(5) of Addendum 1 and item number 23 below for information on thecurrent flood policies. The number of additional flood policies is not known at this time.

Page 2: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Addendum NO.2Broker Services for Water & Sewer Department Property InsuranceRFP No. 815

8) Can the County confirm that the commissions on flood placements may be retained by the selectedbroker?

Answer: Yes, the County confirms this statement to be accurate.

9) Can the County confirm commissions earned by owned wholesalers (domestic or international) may beretained by the selected broker in addition to the fee awarded?

Answer: Refer to item 5 in the notes section of Form B-1, Price Proposal.

10)Who is the current outside claims adjusting firm?Answer: Refer to item B(12) of Addendum 1.

11) a) Can the County provide historical loss information including b) an aggregate loss amount for theHurricane Andrew loss?

Answer: a) Refer to B(7) in Addendum 1. b) This information is not readily available.

12) Can the County provide a copy of the current broker contract?Answer: Refer to B(11) in Addendum 1.

13) Can the County confirm the prior annual fees?Answer: Refer to B(11) in Addendum 1.

14) Is the County currently on installments? If yes, what is the payment plan?Answer: Annual premium payments are made at each renewal. Refer to B(11) in Addendum 1.

15) Is the County receiving any other services that are not listed or included in this RFP?Answer: The services required are listed in Section 2.0, Scope of Services.

16)Who are the domestic wholesalers?Answer: Refer to B(1) in Addendum 1.

17) Who are the foreign wholesalers and/or intermediaries?Answer: Refer to B(1) in Addendum 1.

18) Does the current contract include a Small Business Enterprise (SBE) subcontractor?Answer: There are no subcontractors on the current contract. Refer to B(9) of Addendum 1.

19) Does the current contract include a Disabled Veteran subcontractor?Answer: See item number 18 above. Additionally, the County does not track the use of aDisabled Veteran subcontractor as it is not relevant to this contract.

20) Can the County provide a current property program schematic showing a breakdown by layer andprovide the current annual remunerations for the domestic wholesaler(s)/intermediaries or any foreignwholesaler( s)/intermediaries?

Answer: See item number 5 above.

2

Page 3: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Addendum NO.2Broker Services for Water & Sewer Department Property InsuranceRFPNo.815

21) Is the County aware of any current carriers cancelling or non-renewing their participation? If yes,please provide the carrieres) name.

Answer: No.

22) Can the County provide a complete copy of the policies?Answer: Refer to B(3)in Addendum 1 and item number 6 above.

23) Can the County identify the current number ofNFIP policies?Answer: There are twenty one (21) bound policies for the Virginia Key location, and there are.twenty nine (29) policies pendingfor the Blackpoint location. For more information regardingNFl? policies, refer to B(5) in Addendum 1.

24) Does the County's current broker handle the flood policies?Answer: Yes.

25) a) How much does the County spend for NFIP flood coverage? b) Does the current contract addresscommissions which are outside of the contract? c) How much are the commissions?

Answer: a) The current NFl? flood coverage for the Virginia Key location is $104,705, and$10, 690for the Blackpoint location. b) See item number 8 above. c).The commissions arestandard NFl? commissions.

26) Does the current contract include appraisals? If yes, a) who paid for the appraisals, b) what was thecost of the appraisals, c) how many locations were appraised, d) were all the properties appraised, e)when was the last appraisal completed, and f) can the County provide the name of the appraisalcompany?

Answer: No, the current contract does not include appraisals.

27) Does the County have a copy of the 2011/2012 Catastrophe Analysis and the County has spent $10Kin prior years?

Answer: See item number 3 above.

28) Can the County provide loss information for the past 10 years?Answer: There is none.

29) Can the County provide a breakdown by location for FEMA commitments?Answer: This information is not readily available at this time.

30) How many property claims has the current broker liaised?Answer: The current broker has liaised one property claim.

31) a) Can the County describe what is meant by first tier subcontractor? b) Does it include the firm'swholly own intermediaries/wholesales? c) Does it include other intermediaries and/or wholesalers?

Answer: a) A first tier subcontractor contracts directly with the prime contractor. b) and c)Refer to item number 6 in Section 1.2, titled "Definitions" of the Solicitation.

32) How many loss control days has the current broker or carrier provided under the current contract?Answer: This information is not readily available.

3

Page 4: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Addendum NO.2Broker Services for Water & Sewer Department Property InsuranceRFP No. 815

33) What other coverages does the County purchase for Water & Sewer Department? Ifthere are othercoverages, who is the broker?

Answer: There are none.

34) Regarding the User Access Program, does this mean that the County would deduct 2% from the fees?Answer: Refer to Article 40, Form of Agreement in the Solicitation.

35) Can the County provide the names and positions of all members of the Evaluation/SelectionCommittee?

Answer: The Committee appointments are as follows: Annie Perez, Procurement ContractingOfficer II (Non-Voting Chabperson), Barbara Dunlop, Property and Casualty Manager, GraceCespedes, Deputy Finance Director, Vladimir Murad, Controller Water & Sewer Department\Scott Clark, Risk and Benefits Officer for Miami Dade County Public Schools, Calvin Ellis,City of Miami Director of Risk Management, and Terry Parker, Special Projects Administrator2 (Alternate).

36) Can the County provide a copy of the 2011-2012 Water & Sewer Property Proposal(s) for all carriersinvolved in the placement.

Answer: The County does not have aformal proposal for carriers.

37) Could the County provide a) a breakout for the entire contract period of what was paid to the broker ineach year in total fees, b) what cat modeling services were performed and what was charged for theseservices, and c) if any commissions were received by wholesalers and/or intermediaries?

Answer: a) Refer to B(l J) in Addendum J. b) See item number 3 above. c) Refer to B(l) inAddendum J.

All other information remains the same.

Miami-Dade County

kAnnie PerezProcurement Contracting Officer II

cc: Clerk of the BoardHenry Gillman, Assistant County Attorney

4

,... '

Page 5: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Miami-Dade Water & Sewer

RFP 815Broker Services for WASD Property Insurance

Attachment 1October 31,2011 - 2012Property Insurance Program:

Option II Noted

2010 TIV: $2,032,397,9752011 TIV: $2,103,364,495

$ Delta: $70,966,520%Delta: 3.49%

LIMITS

$200M

2010 Premium:2011 Premium:

$2,871,715 excl. EngineeringI. $3,987,000 estimated to complete expiringII. $2,889,000 terms and conditions noted belowIII. $175,000 Savings to drop loss limit from $200M to$175M

ANNUALPREMIUMS

$1,997,286 expiring$2,264,000 actual

ACE American IStarr Tech$1,100,000

Including Terrorism

Chartis Global Energy$1,164,000

Including Terrorism

50% 50%

$100M Earthquake Occurrence I Annual Aggregate

$50M Flood Zone Occurrence I Annual Aggregate

MARSH

ADDITIONAL FEES I TAXES* SURPLUS L1NESS TAXES I FEES** US FET TAXES

TRIA TERRORISM:Stand Alone Limits: included within the Property ProgramStand Alone Premium: included within the Property ProgramBOILER & MACHINERY:Stand Alone Limits: included within the Property ProgramStand Alone Premium: included within the Property ProgramENGINEERING:$15815 Quoted b CHARTIS for services outlined in the Pro osal same as ex Irlo

Total:$2,889,000

$1,000,000$500,000$100,0005% TIV subject to a min. of $25,000 & a max. of $1,000,0005% TIV subject to a min. of $1 ,000,0005% TIV subject to a min. of $250,000; and a max. of $30,000,000$5,000

DEDUCTIBLES:All Perils PO/BI:Equipment Breakdown PO/BI:Earthquake:Flood:Flood (100 Year):Named Storm including Flood:Transit:

Slnfctu~.ppt

Page 6: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

RFP 815Broker Services for WASD Property Insurance

Attachment 2

TARR TECH NICAL RISKS AGENC~ INC.Name: Justin WeltscheffTitle: Senior UnderwriterPhone: 404-720-1968

3353 Peachtree Road, NE, Suite 1000Atlanta, GA 30326Fax: 404.946.1498

BINDER NO. STA 08262

Insurance applies only to those perils and/or coverages named and is subject to the terms and conditions of the Policy(ies) normally issued for the indicated perils and/or coverages.

NAMED INSURED:

MAILING ADDRESS:

COVERAGE:

SECURITY:

Board of County Commissions, Miami-Dade County

111 N.W. 1st Street. Suite 2340Miami, FL 33128-1987

All Risks of direct physical loss or damage, covering Property Damage. ExtraExpense, and Boiler & Machinery.

ACE American Insurance Company

PRODUCER: Marsh USA, Inc.AnN: Mr. Gregory Mann3560 Lenox Road, Suite 2400Atlanta, GA 30326

DESCRIPTION & LOCATION OF Per schedule on filePROPERTY INSURED:

TOTAL INSURED VALUE:

POLICY LIMIT OF LIABILITY:

STARR TECH PARTICIPATION:

FORM:

TERRITORY:

CANCELLATION:

TERM OF INSURANCE:

POLICY NUMBER:

ANNUAL PREMIUM:

CERTIFIED TERRORISM:

NON-CERTIFIED TERRORISM:

BROKER COMMISSION:

1

$2,128,864,495

$200,000,000 anyone occurrence.

50%, that being $87,500,000 part of $175,000,000 per occurrence excess of$25,000,000 primary layer excess policy deductibles anyone occurrence.

Expiring Marsh Manuscript Form plus endorsements listed under AdditionalTerms and Conditions

United States of America and the District of Columbia

90 days except 10 days for nonpayment of premium.

Effective: October 31,2011 at 12:01 AMExpiration: October 31,2012 at 12:01 AM

EUT NO51 08 38 A

$1,089,477

$9,471

$1,052

Net

Page 7: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Name: Justin WeltscheffTitle: Senior UnderwriterPhone: 404-720-1968

TARR TECHNICAL RISKS AGENC~ INC.3353 Peachtree Road, NE, Suite 1000

Atlanta, GA 30326Fax: 404.946.1498

BINDER NO. STA 08262

SUBLIMITS: Sublimits are per occurrence unless shown otherwise.The sublimits below are part of and not in addition to the Policy Limit of Liability.Sublimits are 100% and are subject to Starr Tech percentage participation.

EARTHQUAKE:CALIFORNIA EARTHQUAKE:SINKHOLE:FLOOD (including Storm Surge):ACCOUNTS RECEIVABLE:BUSINESS INTERRUPTION:CIVIL AUTHORITY:CONTINGENT TIME ELEMENT:DEBRIS REMOVAL:

DEMOLITION & INCREASED COSTOF CONSTRUCTION:

EDP MEDIA - EXTRA EXPENSE:EXPEDITING EXPENSE:EXTRA EXPENSES:INGRESS/EGRESS:LOSS ADJUSTMENT EXPENSES:MISCELLANEOUS UNSCHEDULED

LOCATIONS:OUTFALL PIPES:POLLUTION AND CONTAMINATION:SERVICE INTERRUPTION:TRANSIT:VALUABLE PAPERS & RECORDS:

BOILER & MACHINERY SUBLIMITS:

SPOILAGE:DATA RESTORATION:CFC REFRIGERANTS:

2

$100,000,000 Annual Aggregate, exceptNo Coverage$100,000,000$50,000,000 Annual Aggregate$1,000,000$500,00030 Days

$25,000,000$25,000,000 or 25% of Adjusted Direct Property Loss,

whichever is greater

$25,000,000$5,000,000$25,000,000$25,000,000

60 Days$500,000

$10,000,000$15,000,000No Coverage$5,000,000$5,250,000$1,000,000

$250,000 Any One Accident$250,000 Any One Accident$250,000 Any One Accident

Page 8: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Name: Justin WeltscheffTitle: Senior UnderwriterPhone: 404-720-1968

TARR TECH NICAL RISKS AGENC~ INC.3353 Peachtree Road, NE, Suite 1000

Atlanta, GA 30326Fax: 404.946.1498

BINDER NO. STA 08262

DEDUCTIBLES: All deductibles listed below are per occurrence except with respect to coverage provided under theBoiler & Machinery Endorsement (if provided) which shall be any One Accident.

ALL LOSSES, DAMAGES OR EXPENSES ARISING OUT OF ANY ONE OCCURRENCESHALL BE ADJUSTED AS ONE LOSS,AND FROM THE AMOUNT OF SUCH ADJUSTEDLOSS SHALL BE DEDUCTED: $1,000,000 Per Occurrence, EXCEPT

TRANSIT: $5,000 Per Conveyance

NAMED WINDSTORM:

FLOOD (includingStorm Surge):

EARTHQUAKE:

EQUIPMENT BREAKDOWN:

SERVICE INTERRUPTION:

5% of the Total Insured Values at each building(s) and/or damaged ocean outfallpipes involved in a loss or damage and submitted as a claim, for anyoneoccurrence for the peril of Named Windstorm, subject to a $250,000 minimum and$30,000,000 maximum per occurrence.

5% of the Total Insured Value at each location involved in a loss or damage andsubmitted as a claim subject to a minimum of $1,000,000 anyone occurrence withrespect to locations wholly or partially in the Special Flood Hazard Areas (SHFA)or areas of 100 year flooding as defined by FEMA.

5% of the Total Insured Value at each location involved in a loss or damage andsubmitted as a claim, for anyone occurrence for the peril of Named Windstorm,subject to a $250,000 minimum and $30,000,000 maximum per occurrence.

5% of the Total Insured Value at each location involved in a loss or damage andsubmitted as a claim subject to $25,000 minimum anyone occurrence and$1,000,000 maximum for all other flood loss or damage. .

$100,000

$500,000 per Accident

24 Hour Waiting Period

As respect real and personal property, all claims for loss, damage or expense arising out of anyone occurrence shallbe adjusted as one claim and from the amount of each such adjusted claim there shall be deducted the sum stated onthe Declarations Page.

Deductibles for Property Damage and Time Element shall be applied separately.

3

Page 9: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Name: Justin WeltscheffTitle: Senior UnderwriterPhone: 404-720-1968

TARR TECH NICAL RISKS AGENC~ INC.3353 Peachtree Road, NE, Suite 1000

Atlanta, GA 30326Fax: 404.946.1498

BINDER NO. STA 08262

ADDITIONAL TERMS AND CONDITIONS:

1. Coverages and/or Extensions of Coverage not specifically mentioned, even though they may be outlined in yoursubmission, are not included.

2. Premium to be paid in full within 30 days of inception.3. Signed Statement of Property Values to be received within 30 days of the effective date.4. Signed Policyholder Disclosure Statement (TRIA election form) to be received within 30 days of the

effective date.5. Business Interruption coverage shall only apply to the main water treatment and wastewater treatment facilities per

the Schedule of Locations attached to the policy.6. Named Windstorm is defined as Named Storms Category 1-5, as designated by the National Oceanic and

Atmospheric Administration (NOAA).7. 72 Hour Occurrence Definition applies to all Wind (including tornado, Named Windstorm, etc), Flood, and

Earthquake.8. Drop down wording per expiring.9. The following Endorsements/Additional Endorsements will attach to and form part of the expiring policy:

a. ACE Declarations Pageb. Common Policy Conditionsc. Commercial Property Conditionsd. OFAC Endorsemente. Schedule of Forms and Endorsementsf. Schedule of Locationsg. Expiring Marsh Manuscript Formh. Biological or Nuclear Exclusioni. Data Distortion/Corruption Exclusionj. Millennium Endorsementk. Mold ExclusionI. Political Risk Exclusionm. TRIA Endorsementn. Bridge Wordingo. Signatures Pagep. State Amendatory Notices - FLq. Claims Notification

4

Page 10: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Name: Justin WeltschettTitle: Senior UndelWriterPhone: 404-720-1968

TARR TECHNICAL RISKS AGENC~ INC.3353 Peachtree Road, NE, Suite 1000

Atlanta, GA 30326Fax: 404.946.1498

BINDER NO. STA 08262

The Insurance Company (Security) named below, represented by Starr Technical Risks Agency, Inc., each for itself,severally but not jointly are hereby bound by an insurance undertaking for the account of the Insured named herein,effective at the exact hour and date shown below and expiring at the exact hour and date shown below or uponissuance of the policy, whichever shall first occur and insures the property above described for the amount set oppositeits name. The effective hour of commencement of this binder shall supersede any commencement hour provisionscontained in the policy.

This binder contains a broad outline of coverage and does not include all the terms, conditions and exclusions of thepolicy (or policies) that may be issued to you. The policy (or policies) contain the full and complete agreement withregard to coverage. Please review the policy (or policies) thoroughly with your broker upon receipt and notify uspromptly in writing if you have any questions. In the event of any inconsistency between the binder and the policy, thepolicy language shall control unless the parties agree to an amendment

INSURANCE COMPANY: ACE AMERICAN INSURANCE COMPANY

Subject to the conditions above, the COMPANYhereby binds the insurance applied for, to becomeeffective as of: 10/31/2011

This Binder Expires on: 10/3112012

5

Starr Technical Risks Agency, Inc.

Page 11: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

Named Insured:

Named Insured's MailingAddress:

Policy Number:

Insuring Company:

CHARTIS'C-Global Marine & Energy Property

All Risk Binder

Miami-Dade Board of County CommissionersWater & Sewer Authority111 NW 1st StreetSuite 2340Miami, FL 33133

63803826

National Union Fire Insurance Company of Pittsburgh, Pennsylvania

Producer: Name:Address:

Individual:

Marsh USA, Inc.3560 Lenox Road, Suite 2400Atlanta, GAMr. Greg Mann Phone #: 404-995-3048

Policy Term: Effective: 31 October2011

At 12:01AM Expiration: 31October2012

At 12:01AM

Locations Insured: Per the revised schedule of locations and values on file with the Company asreceived 11 October 2011

Total Reported Values: $$$

2,031,897,975 Real and Personal Property$500,000 Business Interruption

2,032,397,975 Total Insured Values

Territory:

Covering the Perils of:

Policy Form:

United States of America

"All Risks" of Direct Physical Loss or Damage including Boiler and Machinery,Business Interruption and Extra Expense per the coverages, sublimits andendorsements outlined herein.

Expiring policy from per Chartis Policy Number 58426984 and accompanyingendorsements, except as otherwise modified herein.

This Binder applies only to those perils and/or coverages named and Is subject to the terms andconditions of the pollcy(les) normally Issued for the Indicated perils and/or coverages.

This Binder contains a broad outline of coverage and does not Include all the terms, conditions, andexclusions of the policy (or policies) that may be Issued to you. The policy (or policies) contains the fulland complete agreem~nt with regard to coverage. Please review the policy (or policies) thoroughly withyour broker upon receipt and notify us promptly in writing "If you have any questions. In the event of anyinconsistency between the Binder and the policy, the policy language shall control unless the partiesagree to an amendment.

Limit of Liability:

Policy limit andParticipation:

The Company will pay n? more than its proportional share of the below limit(s) in anyone occurrence.$87,500,000 anyone occurrence which is 50% of $175,000,000 in excess of$25,000,000 limit which is in excess of deduetibles. '

Miami-Dade Board of County Commissioners Page 1 of 7 Date Issued: 28 October ~

Page 12: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

CHARTIS -e.Global Marine & Energy Property

All Risk Binder - .

Sublimits:~ The sublimits below are part of and not in addition to the Policy Limit of Liability.~ All sublimits are per occurrence unless noted as Annual Aggregate~ All sublimits stated as 100% program limit. The liability for sublimit!3 shall be the same proportion as the

share of the overall policy limit shown above.

CoveragePolicy LimitReal and Personal PropertyBusiness InterruptionEarth Movement (Annual Aggregate), including:

Earth Movement in CA (Annual Aggregate)Flood, including Flood in Zone A or V 1100 year includingsubzones (Annual Aggregate)SinkholeNamed WindstormAccounts ReceivableDebris Removal (25% or)Demolition IICCEDPExpediting ExpenseExtra ExpenseMiscellaneous Unnamed LocationsOutfall PipesLoss Adjustment ExpensesService InterruptionTransitValuable PapersBoiler and Machinery, includingSpoilage ..Data RestorationCFC Refrigerants

Deductlbles - All Deductibles are per Occurrence unless otherwise noted

Limit$200,000,000Policy Limit$500,000

$100,000,000No Coverage$50,000,000

$100,000,000$200,000,000$1,000,000$50,000,000$25,000,000$5,000,000$25,000,000$35,000,000$10,000,000$15,000,000$500,000

$10,000,000$5,250,000$1,000,000

$200,000,000$250,000$250,000$250,000

$1,000,000 Property Damage and Time Element combined - All Risks, except:

$100,000 Property Damage and Time Element for Earth Movement

5% FloodThe deductible shall be 5% of the Total Insured Value of each location involved in a loss ordamage and submitted as a claim, at the time of loss, subject to a minimum of $1,000,000,for locations wholly or partially in the Special Flood Hazard.areas or areas of 100-yearflooding as defined by the Federal Emergency Management Agency per occurrence,except:

With respect to Named Windstorms, the deductibles shall be 5% of Total InsuredValues at each location involved in loss or damaged and submitted as a claim, foranyone occurrence for the peril of Named Windstorm, defined as Named StormsCategory 1-5, as designated by the National Oceanic and AtmosphericAdministration (NOAA); subject to a minimum of $250,000 and a maximum of$30,000,000 per occurrence.

Miami-Dade Board of County Commissioners Page 2 of 7 Date Issued: 28 October ~

Page 13: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

CHARTISG-Global Marine & Energy Property

All Risk Binder

With respect to any other Flood loss or damage, the deductible shall be 5% of Total InsuredValues at each location involved in a loss or damage, subject to $25,000 minimum anyoneoccurrence and $1,000,000 maximum.

5% Named WindstormThe deductible shall be 5% of the Total Insured Value at each damaged building(s), and/orand damaged ocean outfall pipes involved in a loss or damage and submitted as a claim foranyone occurrence for the peril of Named Windstorm which is defined as Named StormsCategory 1-5, as designated by the National Oceanic and Atmospheric Administration(NOAA); subject to a minimum of $250,000 and amaximum of $30,000,000 peroccurrence.

$5,000 Transit:

$500,000 Boiler and Machinery Breakdown

The "%" of Property Damage deductible indicated above will apply as a percentage of the value, per theValuation section, at the time of the loss of the Pre~ises Described where the physical damage occurred.

The "%" of Time Element deductible indicated above will apply to the full twelve (12) months BI and Rentalvalues that would have been earned in the twelve (12) month period following the Occurrence had no lossoccurred at: .

a. the insured Locations(s) where the physical damage occurred, and

b. all other insured Locations affected by such physical damage.

Service Interruption is subject to a qualifying period of 24 hours. If the outage exceeds that time period, thenthe deductibles noted above will be applied to any loss.

Coinsurance: Not Applicable if a signed, acceptable statement of values is received within 90 days of therenewal, otherwise 100% coinsurance to apply

Valuation: The cost to rE:!pairor replace the damaged property with materials of like kind, size, capacity andquality subject to and as more fully shown in the policy Valuation section per the policy and endorsements.

Additional notes, terms and conditions:1. As respects acts of terrorism as defined in the Terrorism Risk Insurance Act of 2002, as amended bythe Terrorism Risk Insurance Program Reauthorization Act of 2007, the Insured has the option toaccept or reject coverage. Rejection of cover would be evidenced by the Insured signing the attachedPolicyholder Disclosure Statement and returning it to us prior to binding. Upon receipt of the signedand dated rejection, the Terrorism Exclusion (form 96557) shall be endorsed on to the Policy.

2. Terrorism exclusion NMA 2918 applies to all locations outside the United States and its territories.3. If Terrorism is not declined by signing the appropriate documentation, the applicable premium will be

invoiced and the policy will be subject to cancellation if the premium is not paid.4. Payment of loss under this policy shall only be made in full compliance with all United States of America

economic or trade sanction laws or regulations, including, but not limited to, sanctions, laws andregulations administered and enforced by the U.S. Treasury Department's Office of Foreign AssetsControl ("OFAC"). An endorsement stating this will be added to the policy.

5. Chartis Policy Jacket, Policyholders Notice, Conflict In Wording Endorsement, Millennium Endorsement,Political Risk Exclusion, Fungi Exclusion, Data Corruption Endorsement, Authorities Endorsement,OFAC Territory Endorsement; all as per expiring.

Miami-Dade Board of County Commissioners Page 3 of 7 Date Issued:28October2~

Page 14: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

CHARTISG-Global Marine & Energy Property

All Risk Binder

6. Please note all coverages offered are specifically detailed in this quotation. Coverages and/orextensions of coverages or policy language not specifically mentioned, even though they may bepresent in your submission, are not included.

7. 72 hour occurrence definition for Earthquake, Flood and Wind (where covered).8. Excludes Earth Movement in the State of California (as expiring).9. Excluding underwater Outfall pipes.10. Premium is subject to approximately 2.4% in Florida Surcharges.

Global Marine and Energy Property Premium:

$1,120,250 being 50% of $2,240,500 total program premium, excluding Acts of Terrorism as defined by theTerrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Extension Act of 2005("TRIA"), and the Terrorism Risk Insurance Program Reauthorization Act of 2007.

AND$43,750 being 50% of $87,500 total program premium for Acts of Terrorism as defined by the Terrorism RiskInsurance Act of 2002, as amended by the Terrorism Risk Insurance Extension Act of 2005 ("TRIA"), and theTerrorism Risk Insurance Program Reauthorization Act of 2007.

Loss Prevention Services: Fees are annual and exclusive of taxes or commissions.

Scope of service to include full loss prevention reports at the following locations:Alexander Orr Water Treatment Plant, Hialeah Water Treatment Plant, John E. PrestonWater Treatment Plant, North District Wastewater Treatment Plant, Central DistrictWastewater Treatment Plant, South District Wastewater Treatment Plant, Miami-DadeWater and Sewer Department Office, and Douglas Center Headquarters.

This engineering service includes project support in the form of fire protection plan reviewservice. This engineering fee is exclusive of any/all boiler and machinery jurisdictionalinspections at all locations. .

$15,815

Above premiums are exclusive of any and all taxes, surcharges and fees unless otherwise shown.State surcharges to be paid by the Insured are not Included in the premium above. All premiums, fees,taxes and/or surcharges are due within thirty (30) days of polley inception. .

Commission:

Cancellation:

No Commission

90 Days except 10 days for non-payment of Premium

Subject to the conditions above, the Company hereby binds the insurance applied for to become effective at12:01 AM on the effective date shown bove. .

Authorized Signature:

Underwriter Name:Underwriter Title:Office Address:

Mark J. SiceloffSenior Underwriter1200 Abernathy Rd. NEBuilding 600; suite 800Atlanta, GA 30328

E-Mail: [email protected] #: 770-671-2029

Miami-Dade Board of County Commissioners Page 4 of 7 Date Issued: 28 October 2011

Page 15: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

CHARTISG-Global Marine & Energy Property

All Risk Binder

POLICYHOLDER DISCLOSURENOTICE OF TERRORISM INSURANCE COVERAGE

(RIGHT TO PURCHASE COVERAGE)

You are hereby notified that under the Terrorism Risk Insurance Act, as amended, that you have a right to purchase insurance

coverage for losses resulting from acts of terrorism, as defined in Section 102(1) of the Act: The term "act of terrorism" means any act

that is certified by the Secretary of the Treasury-in concurrence with the Secretary of State, and the Attorney General of the United

States-to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have

resulted in damage within the United States, or outside the United States in the case of certain air carriers or vessels or the premises

of a United States mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian

population of the United States or to influence the policy or affect the conduct of the United States Government by coercion.

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM CERTIFIEDACTS OF TERRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES GOVERNMENT UNDER AFORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHTAFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THE FORMULA, THE UNITED STATESGOVERNMENT GENERALLY REIMBURSES 85% OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILYESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGEDFOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS THATMAY BE COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSuRANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAPTHAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY FOR LOSSES RESULTING FROMCERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAYBEREDUCED.

Acceptance or Rejection of Terrorism Insurance CoverageI hereby elect to purchase terrorism coverage for a prospective premium of $43,750.

I hereby decline to purchase terrorism coverage for certified acts of terrorism. I understand that I will haveno coveraae for losses resultina from certified acts of terrorism.

Policyholder/Applicant's Signature

Policyholder/Applicant's Printed Name

PAGE 1 Of 1

Form 96555 (2/08)@2007 National Association of Insurance Commissioners

Date

Miami-Dade Board of County Commissioners Page 5 of 7 Date Iss~ed: 28 Oeto~

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CHARTIS<"Global Marine & Energy Property

. All Risk Binder

TERRORISM EXCLUSION - CERTIFIED ACTSNamed Insured ..Policy Number ..

Effective Date. .. / /Endt Premium (Annual) Inc!. In Policy ...

Endorsement No.Issue Date .

This insurance does not apply to loss, injury, damage, daim or suit, arising directly or indirectly as a result of an "act ofterrorism", which is defined in the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk InsuranceProgram Reauthorization Act of 2007 (collectively, "TRIA") as follows:

(1) ACT OF TERRORISM.-(A) CERTIFICATION. - The term "act of terrorism" means any act that is certified by the Secretary [of theTreasury], in concurrence with the Secretary of State, and the Attomey General of the United States -

(i) to be an act of terrorism;(ii) to be a violent act or an act that is dangerous to -

(I) human life;(II) property; or(III) infrastructure;

(iii) to have resulted in damage within the United States, or outside of the United States in the case of

(I) an air carrier or vessel [described in TRIA]; or. (II) the premises of a United States mission; and

(iv) to have been committed by an individual or individuals as part of an effort to coerce the civilianpopulation of the United States or to influence the policy or affect the conduct of the United StatesGovernment by coercion.

(8) LIMITATION. - No act shall be certified by the Secretary as an act of terrorism if-(i) the act is committed as part of the course of a war declared by the Congress, except that thisclause shall not apply with respect to any coverage for workers' compensation; or(ii) property and casualty insurance losses resulting from the act, in the aggregate, do not exceed$5,000,000.

(C) DETERMINATIONS FINAL. - Any certification of, or determination not to certify, an act as an act ofterrorism under this paragraph shall be final, and shall not be subject to judicial review.(D) NONDELEGATION. - The Secretary may not delegate or designate to any other officer, employee, orperson, any determination under this paragraph of whether, during the effective period of the Program, an actof terrorism has occurred.

The following applies solely to commercial property policies:

Where required by state law, if an act of terrorism results in fire, the Insurer will pay for the direct loss or damage toCovered Property, as this term is defined in the commercial property policy, caused by that fire.

All other terms and conditions of the policy are the same.

Form 96557 (2/08) PAGE 1 of 1

Miami-Dade Board of County Commissioners Page 6 of 7 Date Issued: 28 O~011

Page 17: 111 NW 1stStreet • Suite 1300 MIAMI-. Miami, Florida33128 ... · tmmiD"MIAMI-. Procurement Management 111 NW 1stStreet • Suite 1300 Miami, Florida33128-1974 T305-375-5289 F305-375-4407

CHARTIS-e.Global Marine & Energy Property

All Risk Binder

WAR AND TERRORISM EXCLUSION ENDORSEMENT

Notwithstanding any provision to the contrary within this insurance or "any endorsement thereto it is agreedthat this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectlycaused by, resulting from or in connection with any of the following regardless of any other cause or eventcontributing concurrently or in any other sequence to the loss:

(1) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war bedeclared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming theproportions of or amounting to an uprising, military or usurped power; or

(2) any act of terrorism.

For the purpose of this endorsement an act of terrorism means an act, including but not limited to the useof force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting aloneor on behalf of or in connection with any organization(s) or government(s), committed for political,religious, ideological or similar purposes including the intention to influence any government and/or to putthe public, or any section of the public, in fear.

This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectlycaused by, resulting from or in connection with any action taken in controlling, preventing, suppressing orin any way relating to (1) and/or (2) above.

If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is notcovered by this insurance the burden of proving the contrary shall be upon the Assured.

In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shallremain in full force and effect.

NMA 2918 (08/10/2001

This endorsement shall only apply to locations outside of the United States and its territories and Canada fordifference in conditions/difference in limits exposure that is not subject to the Terrorism Risk Insurance Act of 2002,as amended by the Terrorism Risk Insurance Program Reauthorization Act of 2007.

Miami-Dade Board of County Commissioners Page 7 of 7 Date Issued: 28 octo~