HomeMy WebLinkAboutReso 2022-3387RESOLUTION NO. 2022 - -�? 7
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,
2022, THROUGH SEPTEMBER 30, 2023, IN AN AMOUNT NOT TO EXCEED ONE
MILLION EIGHT HUNDRED THOUSAND DOLLARS ($1,800,000.00), 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 211t, 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. 2020-3092, 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
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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, on September 14th, 2021, via Resolution No. 2021-3277, 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, 2021, through September 30, 2022, 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, 2022, through September 30, 2023; 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 Eight
Hundred Thousand Dollars ($1,800,000.00), for a one-year period of October 1, 2022, through
September 30, 2023, 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 Eight Hundred Thousand Dollars ($1,800,000.00), for a one-
year period of October 1, 2022, through September 30, 2023, 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 15th day of September 2022.
A/ -
Dana Robin Goldman, Mayor
ATTES APPROVED AS TO FORM
AND LEGAL -S FFICIENCY:
Mauri 'o Betanc r, CMC, City Clerk Edward A. Dion, City Attorney
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142
Moved by ca �d ✓ econded by:i 411�61
Vote:
Mayor Goldman (Yes) (No)
Vice Mayor Viscarra (Yes) (No)
Commissioner Joseph (Yes) (No)
Commissioner Lama (Yes) (No)
Commissioner Stuyvesant (Yes) (No)
@BCL@E8063ECA.Doc Page 3 of 3
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CITY OF SUNNY ISLES BEACH
SUMMARY OF PROPOSED PREMIUMS
Expiring Premiums on schedule of Summary of Proposed Premiums, reflects annualized
premiums on any midterm policy changes
Fees May Be Fully Earned
47
145
Expiring
Renewal
Premiums as Proposed:
2021-2022
2022-2023
_ _
Property – Including Flood and
Premium
$549,727.00
_
$659,518.00
Boiler & Machinery
Tax & Surcharges
N/A
N/A
Preferred Governmental
Total
$549,727.00
$659,518.00
General Liability Coverage Including
Premium
$417,702.00
$511,527.00
Unmanned Aircraft Liability, Law !
Enforcement, Cyber, Public Officials/EPL I
Tax & Surcharges
Total
N/A
N/A
$417,702.00
$511,527.00
GL: $235,871, Law Enforcement: $67,371
POL/EPL: $202,142, Cyber: $6,143
^ Automobile:
Premium
$121,231.00
$139,883.00
Liability: $94,789
Tax & Surcharges
N/A
N/A
Physical Damage: $45,094
Total
$121,231.00
$139,883.00
Inland Marine
Premium— —
$7,047.00
$8,872.00
Tax & Surcharges
N/A
N/A
Total
$7,047.00
$8,872.00
Crime/Fidelity
Premium
$1,634.00
$1,634.00
Tax & Surcharges
Total
N/A
N/A
$1,634.00
$1,634.00
Workers' Compensation
Premium
$384,713.00
$354,484.00 j
Tax & Surcharges
160.00
160.00
Total
$384,873.00
$354,644.00
Government Crime
Premium
$500.00
$500.00
j Tax & Surcharges
0.00
0.00
Total
$500.00
$500.00
—
Marine Hull: Estimate Only
Quotation is PendingTax
Premium
& Surcharges
$3,300.00
0.00
$3,300.00
0.00
1 Total
$3,300.00
$3,300.00
Sponsored Student Activity: Estimate Only
Premium
$15,518.25
$16,000.00
Quotation is Pending
Tax & Surcharges
N/A
N/A
Total
$15,518.25
$16.000.00:
Plate Glass –18070 Collins Avenue
I Premium
$17,175.00
$17,518.00
151 Sunny Isles Blvd
Tax & Surcharges
Fee
Total
7,092.00
8.00
7,234.00
N/A
$24,275.00
$24,752.00
TOTAL u
$1,525,807.25
$1,720,630.00
Expiring Premiums on schedule of Summary of Proposed Premiums, reflects annualized
premiums on any midterm policy changes
Fees May Be Fully Earned
47
145
Exposure Differences
WC Experience Modification Factor: 2021:.99 vs 2022:.87
Workers Compensation Payroll: 2021: $18,485,200 vs 2022: $20,453,000
General Liability Rateable Payroll: 2021: $12,665,707 vs 2022: $14,369,316
Property Total Insured Value: 2021: $63,340,070 vs 2022: $66,090,070
Auto: 2021: 198 Units vs 2022: 200 Units
Total Insured Value of Vehicles: 2021: $5,609,444 vs 2022: $6,083,086
Payment Plans
146
Commercial Package
Agency Bill:
50% Down Payment and Two Additional
Installments of 25%
Payable to Brown & Brown
Workers Compensation
Direct Bill: Paid Quarterly and Directly
to Preferred Governmental
Fidelity & Deposit Crime, Gerber Life Student
Agency Bill — Annual Payment
Accident, USPlate Glass, RLI Marine Hull
25% Minimum Earned Premium applies to the PGIT Package
Quotation is Subiect To:
■ Signed and Initialed PGIT Package and WC Applications
■ Signed UM Forms
■ Signed Signature Page
■ Signed Florida Fraud Statement
■ Signed Acords
■ Workers Compensation Subject to Drug Free and Safety Applications/Programs
146
r` of sup+ r
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: Stan Morris, City Manager
FROM: Yael Y. Londono, HR & Risk Management Director
DATE: September 15, 2022
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'
Property, Liability, Auto, and Workers Compensation insurance with the Preferred Governmeni
Insurance Trust (PGIT) and/or Brown & Brown Insurance for the period of October 1, 2022 throug
September 30, 2023 in an amount not to exceed $1,800,000.00.
The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers
Compensation is $1,720,630.00 which is $194,822.75 or 12.77% more than last year ($1,525,807.25).
The contributing factor for the premium increase is due to claims, payroll and additional property.
Additionally, staff is allocating $79,370.00 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.
Item Number: 10.A
139
In sum, staff recommends renewal of the Brown & Brown/Preferred Governmental Insurance Trus
(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 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 PGI1
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 1
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
Insurance Renewals Spreadsheet - FY 22-23.pdf
CSIB 22-23 Summary of Proposed Premiums - Exposure Differences.pdf
Item Number: 10.A
140