HomeMy WebLinkAboutReso 2020-3092RESOLUTION NO. 2020 - 0922-
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, 2020 THROUGH SEPTEMBER 30, 2021, IN AN
AMOUNT NOT TO EXCEED ONE MILLION SIX HUNDRED
THOUSAND DOLLARS ($1,600,000.00), 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 15th, 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 16th, 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 21St, 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 20th, 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, on September 19th, 2019 via Resolution No. 2019-2974, 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, 2020 through September 30, 2021; and
82020 Pgit Insurance Renew(Property, Casualty, Auto, Workers Comp) Paget of 2
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 Six
Hundred Thousand Dollars ($1,600,000.00), for a one-year period of October 1, 2020 through
September 30, 2021, 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 Six Hundred Thousand Dollars ($1,600,000.00), for a one-
year period of October 1, 2020 through September 30, 2021, attached hereto as Exhibit "A".
Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all
other things necessary to effectuate this Resolution.
Section 3. Effective Date. This Resolution shall become effective upon adoption.
PASSED AND ADOPTED this 17th day of September 2020.
n! Geor e H. Scholl, Mayor
o 136tancur, CMC, City Clerk
APPROVED AS TO FORM AND
LEG SUFFI NCY
Edward A. Dion, City ttorney
Moved by: L 1�.5/171� gLe'm&Aeconded byi mwS$P, 05
Vote: *... Q
Mayor Scholl -- �B
(Yes)
(No)
Vice Mayor Svechin
(Yes)
(No)
Commissioner Goldman
(Yes)
(No)
Commissioner Lama
(Yes)
(No)
Commissioner Viscarra
(Yes)
(No)
82020 Pgit Insurance Renew(Property, Casualty, Auto, Workers Comp) Page 2 of 2
/SAF
SONNY
City of Sunny Isles Beach
18070 Collins Avenue
;..
Sunny Isles Beach, Florida 33160
?Y•/P9)•-..-�,4P 4
(305) 947.0606 City Hall
B°'>, FSO Ado
OL 54�
(305) 949-3113 Fax
MEMORANDUM
TO: The Honorable Mayor and City Commission
VIA: Christopher J. Russo, City Manager
FROM: Yael Y Londono, HR & Risk Management Director
DATE: 9/17/2020
Renewal of Property, Casualty, Auto, Workers Comp
RE: Insurance with Brown & Brown/Preferred Government
Insurance Trust (PGIT)
RECOMMENDATION:
It is recommended that the City Commission 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, 2020 through September 30, 2021 in an amount not to
exceed $1,600,000.00.
REASONS:
The renewal premium for the Commercial Package Policy (Property,
Liability, and Auto) and Workers Compensation is $1,501,135.00
which is $95,047 or 6.7% more than last year ($1,406,088.00). The
contributing factor for the premium increase is due to claims, payroll
and additional property.
Additionally, staff is allocating $98,865.00 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 the feasibility of self-insurance
in areas that we 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 effective, option.
In sum, staff recommends renewal of the Brown & Brown/Preferred
Governmental Insurance Trust (PGIT) proposal for the Package Policy
and 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
SUMMARY OF PROPOSED PREMIUMS
Expiring
Premiums as Proposed: 2019-2020
Renewal
2020-2021
Property - Including Flood and
Boiler & Machinery
Preferred Governmental
i
Premium $534,679.00
Tax & Surcharges N/A
Total $534,679.00
513,394.00
N/A
$513.394.00
I
Liability Coverage Including Law
Enforcement and Public Official's
GL: $161,820, Law Enforcement: $50,155,
POL/EPL: $153,675
Premium
Tax & Surcharges
Total
$316,646.00
N/A
$365,650.00
N/A
$316,646.00
$365,650.00
Automobile
Liability: $79,180
Physical Damage: $34,261
Premium
Tax & Surcharges
Total
$109,887.00
N/A
$113,441.00
N/A
$113,441.00
$109,887.00
Inland Marine
Premium
Tax & Surcharges
Total
$7,861.00
N/A
$9,659.00
N/A
$7,861.00
$9,659.00
Crime/Fidelity
Premium
Tax & Surcharges
Total
$1,634.00
N/A
$1,634.00
N/A
$1,634.00
$1,634.00.
Workers' Compensation
p
Premium
Tax & Surcharges
Total
$388,035.00
160.00
$450,011.00
160.00
$388,195.00
$450,171.00
Government Crime
Premium
Tax & Surcharges
Total
$500.00
0.00
$500.00
0.00
$500.00
$500.001
Marine Hull
Premium
Tax & Surcharges
Total
$3,150.00
0.00
$3,150.00
0.00
$3,150.00
$3,150.00
Sponsored Student Activity
*Indication Only: Pending Receipt of
Formal Quotation
Premium
Tax & Surcharges
Total
$19,261:00
N/A
$19,261.00
N/A
$190261100
*$19,261.00
Plate Glass -18070 Collins Avenue
151 Sunny isles Blvd
Premium
Tax & Surcharges
Fee
Total
$17,175.00
7,092.00
8,00
$17,175.00
7,092.00
8.00
$24,275.00
$24,275,00
I
TOTAL
$1,406,088.00
$1,501,135.00
Expiring Premiums on schedule of Summary of Proposed Premiums, reflects annualized
premiums on any midterm policy changes
Fees May Be Fully Earned
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