HomeMy WebLinkAboutReso 2021-3227RESOLUTION NO. 2021- �z7
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, 2021
THROUGH SEPTEMBER, 30, 2022, 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 161h, 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 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 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 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, 2019, through September 30, 2020, in an
amount not to exceed $1,500,000.00; and
WHEREAS, on September 17th, 2020, via Resolution No. 2020-3211, the City Commission
approved an Agreement with Brown & Brown/Preferred Government Insurance Trust (PGIT) as
the City's provider for the Package Policy and Workers Compensation, and miscellaneous
@BCL@F40EC187.Doc Page 1 of 3
insurances, for a one-year period of October 1, 2020, through September 30, 2021, in an
amount not to exceed $1,500,000.00; and
WHEREAS, the City of Sunny Isles Beach is in need of various insurance coverages to
protect it from liabilities, catastrophes, and other issues that may arise for a one-year period of
October 1, 2021 through September 30, 2022; 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 Six
Hundred Thousand Dollars ($1,600,000.00), for a one-year period of October 1, 2021, through
September 30, 2022, 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, 2021, through September 30, 2022, 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 14th day of Septembe 2 1.
ncur, CMC, City Clerk
Larisa Svechin, Mayor
APPROVED AS TO FORM
AND LEGAL S ICIENCY:
V -Edward A. Dion, City Attorney
@BCL@F40EC187.Doc Page 2 of 3
Moved by:0il�,r (ssl iq, /,,� Seconded by:62aktsl'�tob%ER- atw�
Vote:
Mayor Svechin ✓ (Yes) (No)
Commissioner Goldman 47
(Yes) (No)
Commissioner Lama � (Yes) (No)
Commissioner Viscarra (Yes) (No)
@BCL@F40EC187.Doc Page 3 of 3
SUMMARY OF PROPOSED
Premiums as Proposed:
PREMIUMS
Expiring
2020-2021
Renewal
2021-2022
Property – Including Flood and
Boiler & Machinery
Preferred Governmental
_
Premium
Tax & Surcharges
Total
513,394.00
N/A
— $549,727.00
N/A
$513.394.00
$549,727.00
Liability Coverage Including Law
Enforcement, Cyber and Public Official's
GL: $185,765, Law Enforcement: $62,192
POL/EPL: $165,195, Cyber: $4,550
Premium
Tax & Surcharges
Total
$365,650.00
N/A
$417,702.00
N/A
$365,650.00
$417,702.00
Automobile
Liability: $87,061
Physical Damage: $38,336
i
Premium
Tax & Surcharges
Total
$113,441.00
N/A
$125,397.00
N/A
$113,441.00
$125,397.00
Inland Marine
j
i
Premium
Tax & Surcharges
Total
$9,659.00
N/A
$7,047.00
N/A
$9,659.00
$7,047.00
Crime/Fidelity
Premium
Tax & Surcharges
Total
$1,634.00
N/A
$1,634.00
N/A
$1,634.00
$1,634.00
Workers' Compensation
Premium
Tax & Surcharges
Total
$450,011.00
160.00
$384,713.00
160.00
$450,171.00
$385,033.00
Government Crime
*Indication – Formal Quotation Not
Received
i
Premium
Tax & Surcharges
Total
$500.00
0.00
$500.00
0.00
$500.00
$500.00
Marine Hull
*Indication – Formal Quotation Not
j Received
Premium
Tax & Surcharges
Total
$3,150.00
0.00
$3,150.00
0.00
$3,150.00
$3,150.00
Sponsored Student Activity
*Indication – Formal Quotation Not
Received
Premium
Tax & Surcharges
Total
$18,205.75
N/A
$18,500.00
N/A
$18,205.75
$18,500.00
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
N/A
$24,275.00
$24,267.00
TOTAL
$1,500,079.75
$1,532,957.00
Expiring Premiums on schedule of Summary of Proposed Premiums, reflects annualized
premiums on any midterm policy changes
Fees May Be Fully Earned
V* of
o O
0 0
00 00
N N H
O
N
O 0
N
T
LL
yr i
O O
O O O O O
O O
O O O O O
O O
N
O
n n
N N n O 1011
O
Lny aNa
Ln�} LA :Ln 9N
O N
" cdp�}p
1!i
N
pap
Ln
tT n LL LL
p
O N 11f N LL LL
O�1
N
Of
O O
t�pp
N O
m
mm m
m
N
a a
a a
v!
u1
v♦ V
in yr +n VF 4.4
v!
N
O
n
n
O
- n
- 1011 N - 1011
d
�
9co pq
LL LL
^
- ^ 1L LL
. �. - N tal1:.N
Z 2
0"
y._...N
N
c
a s
a s
in
v1
in v} o °
+n in 4 in• N c. °
VF
0
o
O O o o
O o 0 0 o O o
0
N
O
m m O O
O u1 m O O OO
of
0
W d mw
0d
en m h o
wN w m
h N N to IN o O
N 00 a% m Pa O
0
P
'O E m
C M
ti
cn
00 m N N
v M v M
00 00 In O N m m
N N 14 N 0D
N
P
m pO'.
N N
m 00 M .i
M
N
in
N N OF VF
VF 14 VF N N VI. OF
N
V* of
o O
0 0
00 00
N N H
O
N
O 0
N
T
LL
yr i
O O
O O O O O
O O
O O O O O
O O
O O O O O
O O
O O O O O
N
Lny aNa
Ln�} LA :Ln 9N
O N
M
M M
N N
M M M M
N N N N N
u1 In
to v1 u1 M M
N N
N N N N N
N N
N ail 'i N N
O O
O O O O O
m
mm m
m m m m m
m ra m m m
N N
10 N N m f0
d d
d d v d d
a=i a=i
ami w w w w
l7 t7
l7 C7 t7 l7 l7
O oq
M C O O
O N
w
P N O O N
O
O O O N
ui
R
O1
N M N cn
M O N N
M
N
N N a
N N
i/F N Vf VTI ^ Vf V! VT V} V4 AM VF
O O O O O O O O 0 0 0 0 0 0 0 0
O O O O O O O O O O O 0 0O O O O
M N d^' W N Ol M lMD cn cn Ln Ln r4 o O O M M M
M I� O N N Na tD n N N m N In M O O
M a^ N M W ~ 0o w tD Lm Ln c4 d' N M 0o W
Ln M N N M m
dv1 VF VI• V? VWL6 Vf N N Vf Vf V1 VO4 4nI44!
0 0 0 0 0 0 0 0 0 00 1n 1n o 0
0 0 0 0 0 0 0 0 0 0 . o n 1. o 0
v Di vi o ad v o LA vi o tri Di ri ri
1
ID cn N n M n M N n m O o oo n n
I N M iD N N a tD W tD N In N O1 N N
-' M D1 d' m o N N m 0 00 1!1 O O
1 M N N In tD In N N 00 M 1n
1n 1n 11 'i m a a
TI+^ Vf in V! V}
Y
0
3
V1
c
`m`
1�
6
a
c,rx aF Sin n�4
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
MEMORANDUM
TO: Honorable Mayor and City Commissioners
VIA: Christopher J. Russo, City Manager
FROM: Yael Y. Londono, HR & Risk Management Director
DATE: September 14, 2021
RE: Renewal of Property, Casualty, Auto, Workers Comp Insurance with Brown &
Brown/Preferred Government Insurance Trust (PGIT)
RECOMMENDATION:
Staff is recommending approval of this Resolution.
REASONS:
It is recommended that the City Commission approve the attached resolution to renew the City'E
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, 2021 throug
September 30, 2022 in an amount not to exceed $1,600,000.00.
The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers
Compensation is $1,532,957.00 which is $32,877 or 2.19% more than last year ($1,500,079.00). The
contributing factor for the premium increase is due to claims, payroll and additional property.
Additionally, staff is allocating $67,043.00 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 Trus-
Item
rus
Item Number: 10.A
(PGIT) proposal for the Package Policy and Workers Compensation and miscellaneous insurances w
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 entitie!
and is a non -assessable Trust approved by the Florida State Legislature. The PGIT board of trustees ha
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 entitie!
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 PGIT since October 1, 2003. Prior to this date, from July
2001 through October 1, 2003, insurance coverage was split between First Specialty Insurance foi
Property and Coregis Insurance for General Liability coverage and with the Florida League of Cities fo
Workers Compensation.
FUNDING SOURCE:
Funding is available in the 2-5132 (Risk Management) operating accounts for the Commercial Package
Policy and funding is available in each department's 424000 (Workers Comp Insurance) account for
the Workers Compensation Policy.
ATTACHMENTS:
Resolution
Summary of Proposed Premiums
Insurance Renewals Spreadsheet - FY 21-22
Item Number: 10.A