HomeMy WebLinkAboutReso 2019-2974 RESOLUTION NO. 2019- 2-1-71-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING THE RENEWAL
OF THE COMMERCIAL PACKAGE POLICY (PROPERTY,
LIABILITY, AUTOMOBILE), WORKERS COMPENSATION,
AND MISCELLANEOUS INSURANCES WITH BROWN &
BROWN / PREFERRED GOVERNMENT INSURANCE TRUST
(PGIT) FOR THE PERIOD OF OCTOBER 1, 2019 THROUGH
SEPTEMBER 30, 2020, IN AN AMOUNT NOT TO EXCEED ONE
MILLION FIVE HUNDRED THOUSAND DOLLARS
($1,500,000.00), AS OUTLINED IN EXHIBIT "A"; AUTHORIZING
THE CITY MANAGER TO DO ALL THINGS NECESSARY TO
EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on September 15, 2016, via Resolution No. 2016-2579 the City
Commission entered into an Agreement with Brown & Brown/Preferred Government Insurance
Trust (PGIT) as the City's provider for the Package Policy and Workers Compensation, and
miscellaneous insurances, for a one-year period of October 1, 2016 through September 30, 2017,
in an amount not to exceed $1,000,000.00; and
WHEREAS, on March 16, 2017, via Resolution No. 2017-2670 the City Commission
approved an increase in spending authority for additional insurance coverage with Brown &
Brown/Preferred Government Insurance Trust (PGIT), in an amount not to exceed $150,000.00;
and
WHEREAS, on September 21, 2017, via Resolution No. 2017-2720 the City
Commission approved the City Commission entered into an Agreement with Brown &
Brown/Preferred Government Insurance Trust (PGIT) as the City's provider for the Package
Policy and Workers Compensation, and miscellaneous insurances, for a one-year period of
October 1, 2017 through September 30, 2018, in an amount not to exceed $1,350,744.75, which
included a contingency amount of$200,000.00; and
WHEREAS, on September 20, 2018, via Resolution No. 2018-2853 the City
Commission approved the City Commission entered into an Agreement with Brown &
Brown/Preferred Government Insurance Trust (PGIT) as the City's provider for the Package
Policy and Workers Compensation, and miscellaneous insurances, for a one-year period of
October 1, 2018 through September 30, 2019, in an amount not to exceed $1,500,000.00; and
WHEREAS, the City of Sunny Isles Beach is in need of various insurance coverage to
protect it from liabilities, catastrophes, and other issues that may arise for a one-year period of
October 1, 2019 through September 30, 2020; and
WHEREAS, staff recommends acceptance of the Brown & Brown/Preferred
Governmental Insurance Trust (PGIT) proposal for the Commercial Package Policy and Workers
Compensation, and miscellaneous insurances, in an amount not to exceed One Million Five
R2019 Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page I of 2
Hundred Thousand Dollars $1,500,000.00, for a one-year period of October 1, 2019 through
September 30, 2020, attached hereto as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Insurance Renewal. The City Commission hereby approves the
insurance renewal by Brown & Brown/Preferred Government Insurance Trust (PGIT) for the
Commercial Package Policy and Workers Compensation, and miscellaneous insurances, in an
amount not to exceed One Million Five Hundred Thousand Dollars $1,500,000.00, for a one-
year period of October 1, 2019 through September 30, 2020, attached hereto as Exhibit"A".
Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all
other things necessary to effectuate this Resolution.
Section 3. Effective Date. This Resolution shall become effective upon adoption.
PASSED AND ADOPTED this 19th day of Sep mber 2 -20.
George '. Scholl, Mayor
ATTWr►T�
I'
Mauricio Bet., cur, CMC, City Clerk
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY
6444,,,t
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Edward A. Dion, City Attorney
Moved by: VJ 1t6- (Itoz- Jkii✓Ned
Seconded by: CO tccx►e� U t SC+a�r
Vote:
Mayor Scholl ✓ (Yes) (No)
Vice Mayor Goldman —'(Yes) (No)
Commissioner Aelion "(Yes) (No)
Commissioner Gatto (Yes) (No)
Commissioner Svechin V (Yes) (No)
R2019 Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page 2 of 2
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CITY OF SUNNY.ISLES BEACH ;
__^SUMMARY OF PROPOSED PREMIUMS
Expiring 1 Renewal.
• Premiums as.Proposed; I 2018-2019 ,_2019 202_0 1
Property—Including Flood and Premium $486,108.00; $531,685.00
Boiler&Machinery Fees&Surcharges N/A:; N/A ;
Total .$486;108:00 $531,68500
Liability Coverage Including LawPremium $310,639 00: .$316,646.00 1
Enforcement and.Public Official's Taxes&Surcha,ge N/A:' N/A
ii
Total $310,639.00 $316,646.00 1
•
Automobile premium $107,54600; 11-6041766--
Taxes
109,887.00Taxes&Surcharge t N/A.; N/A
Tota! $107,546.00 i $109,887.00
Inland Marine ' • PremiumiI $8,083.00 z $7,861.00
Taxes&Surcharges I - N/A! N/A t
Total # $8,083.00. $7,861.00
Crime/Fidelity Premium $1,634,00 $1,634.00 •
Taws.&Surcharge N/A i N/A '
Tai i $1,634.00 $1,634.00
Workers' Compensation ! Premium $371,899.00; $388,035:00 i
Taxes&Surcharges 160.00. 160.00
1 Total _ $372,059.00 $388,195.00
Government Crimme Premium $500.00 $500.00 i
f1Taxes&Surcharges 0.00-, 0.00 #
Total $506.50 $506.50
1
Marine Hull • t Premium $3,150.00 $3,150.00
ITaxes&Sureharges 0.00, . 0.00 ;.
Total $3,150.00 i $3,150.00
Sponsored Student Activity Prc,,;iu,,, I $15,238 00'7 $15,238.00;
*Indication Only: Pending receipt of , Taxes do Surgharger N/A N/A i
renewal enrollment/participation in i Tota $15,238.00, *$15,238.00
order to receive a:firm.quotation ___ _-_.-!_________ ___ __ __ �______ _— . __ _,._ _.._f.
Kate,Glass—1.8070 Collins Avenue Premium $17,175.00 $17,175.00 E
151 Sunny Isles Blvd. 7,092.00`: 7,092.00 i
Taxa T & - 8.00 8 .00 I
— ----
Total j $24275.00 $24275.0OI
___�____ ..._ . .._ To tni —1-11,329x238:50 $1,399-077.50 f
1
Expiring Premium reflects annualized premiums on any midterm policy changes
Fees May Be Fully Earned 1
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- ,JN"Y,s,F City of Sunny isles Beach
0 oma. :fo
-'-.. `t.p 18070 Collins Avenue
•:., C = Sunny Isles Beach; Florida 33160
•
4� s,,f roe,°. Sir (305)947-0606 City Hall
''T'of svH°`'� (305)949-3113 Fax
MEMORANDUM •
•
- TO: • The Honorable Mayor and City Commission •
VIA: Christopher J. Russo, City 9 Mana er •. • •
• • FROM: Yael Y. Londono, HR & Risk Management Director
•
DATE: 9/19/2019 .
Renewal of Property, Casualty,Auto,Workers.Comp
. - - - . RE:. - Insurance with Brown& Brown/Preferred Government
Insurance Trust(PG:!T) -
QRECOMMENDATION: • ,
• - • It is recommended that the City.Commissio •
n approve the attached .
resolution to renew the City's Property, Liability, Auto; and. Workers. •
Compensation insurance with the ;Preferred Government Insurance •
Trust (PGIT) and/or Brown & Brown Insurance for the:,period of. •
.
October 1, 2019 through September 30, 2020 in an amount not to
exceed $1,500,000.00.
REASONS:
The renewal.premium.for.the Commercial Package Policy(Property,.Liability,... •
and Auto)and Workers Compensation is $1,399,077.50 which is.$69,839 or 5%.
. _ more than last year($1,329,238.50). The contributing factor for the premium
.. increase is due to claims, payroll and additional property.
. Additionally, staff is allocating$100,922.50 for•deductibles and for additional
premiums expected upon the completion of capital projects,which will be added -
• to the property insurance during.the,upcoming fiscal year.
Staff worked closely with Brown& Brown(Robert Hollander)to review
possible courses of action to reduce premiums to include increasing our
deductibles in certain coverage and theTeasibility of self-insurance in areas that
Owe as a City have had good claims experience. Based on the available options,
renewal with PGIT with the coverage and terms indicated is our best, most cost
163 •
effective, option. 0
In sum, staff recommends renewal of the Brown& Brown/Preferred
Governmental Insurance Trust(PGIT)proposal for the Package Policy and - O
Workers Compensation and miscellaneous insurances as attached. .
ADDITIONAL INFORMATION:
•
• - - -The City currently has Commercial Insurance Package (Property,
Casualty, and Auto) and Workers' Compensation insurance through
PGIT which is a premier insurance organization for public entities and is
• a non-assessable Trust approved by the Florida State Legislature. The
- PGIT-board of trustees has elected to purchase •an extremely
conservative excess of loss insurance structure which provides PGIT
members several levels of protection that reinsurance does not.
PGIT's excess.of loss policies list every individual member a named
insured, giving every member direct access to the insurance company
• for payment of claims.
Public .Risk Underwriters (PRU), which is a premier insurance service
organization.for public, entities and is.part of .Brown..& Brown, is the.
• underwriting group that tailors customized insurance. services and
products for the City.
The City has had a Commercial Package Policy (Property, Casualty,
and Auto) and Workers Compensation insurance coverage with PG IT O
since October 1, 2003. Prior to this date, from July 1, 2001 through
• October'l, 2003, insurance coverage was split between First Specialty
• Insurance for Property and Coregis Insurance for General Liability
coverage and• with the Florida League of Cities for ' Workers
Compensation. - -
FUNDING SOURCE:
Funding is available in the 2-5132 (Risk Management) operating
accounts for the Commercial Package Yfunding,folic and is available in
each department's 424000 (Workers Comp Insurance)account for the
Workers Compensation Policy.
• - . ATTACHMENTS:
• Description
Resolution
Insurance Summary Table 2019 • •
•
••
Item-Number: 16.E.
•
164