HomeMy WebLinkAboutReso 2023-3548RESOLUTION NO. 2023 -�,)
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,
2023, THROUGH SEPTEMBER 30, 2024, IN AN AMOUNT NOT TO EXCEED ONE
MILLION NINE HUNDRED THOUSAND DOLLARS AND NO CENTS ($1,900,000.00),
AS OUTLINED IN EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO DO ALL
THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN
A99:141W:107_vu:1111
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 Commercial 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 an Agreement with Brown & Brown/Preferred Government Insurance Trust (PGIT) as
the City's provider for the Commercial 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 Commercial 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 Commercial 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 Commercial Package Policy and Workers Compensation, and
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miscellaneous 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 Commercial 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, on September 15th, 2022, via Resolution No. 2022-3387, the City Commission
approved an Agreement with Brown & Brown/Preferred Government Insurance Trust (PGIT) as
the City's provider for the Commercial Package Policy and Workers Compensation, and
miscellaneous insurances, for a one-year period of October 1, 2022, through September 30,
2023, in an amount not to exceed $1,800,000.00; 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 the one-year period
of October 1, 2023, through September 30, 2024; 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 Nine
Hundred Thousand Dollars and No Cents ($1,900,000.00), for the one-year period of October 1,
2023, through September 30, 2024, 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 Nine Hundred Thousand Dollars and No Cents
($1,900,000.00), for the one-year period of October 1, 2023, through September 30, 2024,
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 211t day of
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Larisa Svechin, Mayor
ATTEST: APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
Mauricio Betancur, CP
C, City Clerk Alain E. Boileau, for Nabors, Giblin &
Nickerson, P.A., City Attorney
Moved by: Seconded by: (/ i
Vote:
Mayor Svechin ,(Yes) (No)
Vice Mayor Joseph (Yes) (No)
Commissioner Lama % , (Yes) (No)
Commissioner Stuyvesant -''P, (Yes) (No)
Commissioner Viscarra (Yes) (No)
@BCL@BC09D9E7.Doc Page 3 of 3
CI Y OF SUNNY ISLE BEACH
SUINOW-11Y OF PROPOSE® PREMIUMS
Workers Compensation Payroll: 2022: $20,453,000 vs 2023: $21,715,000
11 IIS PROPOSAL CONTAINS ONLY A GENERAL DESCRIPTION OF THE COVERAGE(S) AND DOES NOT CONSTITUTE A
POLICY/CONTRACT. FOR COMPLETE POLICY INFORMATION,
INCLUDING EXCLUSIONS, LIMITATIONS, AND CONDITIONS, REFER TO THE POLICY DOCUMENT.
IN THE EVENT OF A DIFFERENCE. THE POLICY WILL PREVAIL,
62
Page 62
Expiring
Renewal
Premiums as Proposed:
2022-2023
2023-2024
Property — Including Flood and
_
i Premium j
$664,022.00
$781,891.00
Boiler & Machinery
Tax & Surcharges
N/A
N/A
Preferred Governmental
! Total
$664.022.00
$781,891.00
General Liability Coverage Including
Premium
$511,527.00
$554,352.00
Unmanned Aircraft Liability, Law
Tax & Surcharges
N/A
N/A
Enforcement, Cyber, Public Officials/EPL
Total
$511,527.00
$554,352.00
GL: $244,982, Law Enforcement: $70,387
POL/EPL: $231,9.19, Cyber: $7,064
Automobile
Premium
$139,883.00
$153,936.00
Liability: $102,604
Tax & Surcharges
N/A
N/A
Physical Damage: $51,332
Total
$139,883.00
$153,936.00
Inland Marine
Premium
$8,872.00
$19,638.00
Tax & Surcharges
N/A
N/A
Total
$8,872.00
$19,638.00
Crime/Fidelity
Premium
$1,634.00
$1,765.00
Tax & Surcharges !
N/A
N/A
Total
$1,634.00
$1,765.00
Workers' Compensation
Premium
$354,484.00
$290,929.00
Tax & Surcharges j
160.00
160.00
Total
i
$354,644.00
$291,089.00
Government Crime
Premium
$500.00
$500.00
Tax & Surcharges
0.00
0.00
I Total
$500.00
$500.00
Marine Hull
Premium
$3,300.00
$11,538.00
Tax &Surcharges
0.00
0.00
Total
$3,300.00
$11,538.00
Sponsored Student Activity: * Estimate
i
Premium
$20,616.50
*$22,000.00
Only as Quotation is Pending For 23-24
Tax & Surcharges
N/A
N/A
RenewallSubject to Participation Schedule
Total
I
$20,616.50
$22.000.00
-
Plate Glass — 18070 Collins Avenue
Premium
$17,175.00
$17,467.00
151 Sunny Isles Blvd
Tax & Surcharges
7,092.00
7,213.00
Fee
8.00
N/A
Total
$24,275.00
$24,680.00
-
—',
1 TOTAL
$1,729,273.50
i
$1,861,389.0
Expiring Premiums on schedule of
Summary of Proposed Premiums, reflects annualized
premiums on any midterm policy changes/ Fees May Be Fully r:'articd
Workers Compensation Payroll: 2022: $20,453,000 vs 2023: $21,715,000
11 IIS PROPOSAL CONTAINS ONLY A GENERAL DESCRIPTION OF THE COVERAGE(S) AND DOES NOT CONSTITUTE A
POLICY/CONTRACT. FOR COMPLETE POLICY INFORMATION,
INCLUDING EXCLUSIONS, LIMITATIONS, AND CONDITIONS, REFER TO THE POLICY DOCUMENT.
IN THE EVENT OF A DIFFERENCE. THE POLICY WILL PREVAIL,
62
Page 62
Insurance Renewals for 2022 - 2023
FY 2022-2023 FY 2023-2024 Difference Account
Policy Cost Cost
Automobile Physical Damage
$
45,094.00
$ 51,332.00
$ 6,238.00
13.83%
Auto Liability
001-2-5132-445005-00000
Automobile Liability
$
94,789.00
$ 102,604.00
$ 7,815.00
8.24%
Auto Liability
001-2-5132-445005-00000
Gov Crime / City Mgr Bond
$
139,883.00
$ 153,936.00
$ 14,053.00
Practices Liability
$ 202,142.00
$ 231,919.00
Property Insurance
$
664,022.00
$ 781,891.00
$ 117,869.00
17.75%
Property
001-2-5132-445006-00000
0.00%
$
664,022.00
$ 781,891.00
$ 117,869.00
$ 554,352.00
$ 42,825.00
001-2-5132-445007-00000
Inland Marine
$
8,872.00
$ 19,638.00
$ 10,766.00
121.35%
Property
001-2-5132-445006-00000
Workers Compensation
$
8,872.00
$ 19,638.00
$ 10,766.00
-17.929,.
Workers Camp
001-2-5131-424000-00000
Glass Policy
$
24,275.00
$ 24,680.00
$ 405.00
1.67%
Property
001-2-5132-445006-00000
$
24,275.00
$ 24,680.00
$ 405.00
$ -
Marine Hull
$
3,300.00
$ 11,538.00
$ 8,238.00
249.64%
Property
001-2-5132-445006-00000
$
3,300.00
$ 11,538.00
$ 8,238.00
General Liability
$ 235,871.00
$ 244,982.00
$ 9,111.00
3.86%
General Liability
001-2-5132-445007-00000
Law Enforcement Liability
$ 67,371.00
$ 70,387.00
$ 3,016.00
4.48%
General Liability
001-2-5132-445007-00000
Public Officials & Employment
$ 122,491.00
$ 35,193.50
$ 115,959.50
$ 3,532.00
Gov Crime / City Mgr Bond
$
500.00
$ 500.00
$
Practices Liability
$ 202,142.00
$ 231,919.00
$ 29,777.00
14.73%
General Liability
001-2-5132-445007-00000
Cyber Liability
$ 6,143.00
$ 7,064.00
$ 921.00
0.00%
General Liability
001-2-5132-445007-00000
$ 22,000.00
$ 511,527.00
$ 554,352.00
$ 42,825.00
001-2-5132-445007-00000
$
Crime
$
1,634.00
$ 1,765.00
$ 131.00
8.02%
General Liability
001-2-5132-445007-00000
$ 4,909.50
$
1,634.00
$ 1,765.00
$ 131.00
PAID IN FULL
PAID IN FULL
$ 122,491.00
$ 35,193.50
$ 115,959.50
$ 3,532.00
Gov Crime / City Mgr Bond
$
500.00
$ 500.00
$
0.00%
General Liability
001-2-5132-445007-00000
$ 22,000.00
$
500.00
$ 500.00
$ -
$ 377,895.50
Student Accident Policy
$
20,616.50
$ 22,000.00
$ 1,383.50
6.71%
General Liability
001-2-5132-445007-00000
$
20,616.50
$ 22,000.00
$ 1,383.50
Workers Compensation
$
354,644.00
$ 291,089.00
$ (63,555.00)
-17.929,.
Workers Camp
001-2-5131-424000-00000
$
354,644.00
$ 291,089.00
$ (63,555.00)
Premium Totals: 1,729,273.50 1,861,389.00 132,115.50 7.64%
Binder
September
$ 25,666.00
$ 51,302.00
25%
December
$ 12,833.00
$ 25,651.00
25%
March
$ 12,833.00
$ 25,651.00
$ 390,945.50
$ 195,472.75
$ 195,472.75
$ 9,819.00
$ 4,909.50
$ 4,909.50
$ 24,680.00
PAID IN FULL
PAID IN FULL
$ 11,53&00
PAID IN FULL
PAID IN FULL
$ 122,491.00
$ 35,193.50
$ 115,959.50
$ 3,532.00
$ 61,245.50
$ 17,596.75
$ 57,979.75
$ 1,766.00
$ 61,245.50
$ 17,596.75
$ 57,979.75
$ 1,766.00
$ 882.50
$ 441.25
$ 441.25
$ 500.00
1 PAID IN FULL
PAID IN FULL
$ 22,000.00
PAID IN FULL
PAID IN FULL
$ 814,509.00
$ 377,895.50
$ 377,895.50
SEPARATE INV
SEPARATE INV
SEPARATEINV
61
The City of 5uml Wes Beach 2023 lnsmu•ance Renewal
Year Over Year Exposure Changes
Coverage
Current Carrier
Expiration Date
2022 Premium
2023 Renewal
% Change
Property
PGIT
10/1/2023
$664,022
$781,891
18%
Liability Package:
PGIT
10/1/2023
$511,527
$554,352
8%
Auto
PGIT
10/1/2023
$139,883
$153,936
10%
Inland Marine
PGIT
10/1/2023
$8,872
$19,638
121%
Crime/Fidelity
PGIT
10/1/2023
$1,634
$1,765
8%
Workers Compensation
PGIT
10/1/2023
$354,644
$291,089
-18%
Government Crime
Fidelity & Deposit Co
10/1/2023
$500
$500
0%
Marine Hull
RLI Insurance
10/1/2023
$3,300
$11,538
250%
Sponsored Student Activity
Gerber Life Insurance
10/1/2023
$20,617
$22,000
7%
Plate Glass
USPlate Glass
10/1/2023
$24,752
$24,680
0%
$1,729,751
$1,861,389
8%
Coverage
Exposure Changes
2022
2023
Percent Change
Property
(TIV) $66,422,439
$78,219,685
18%
Liability Package:
(Payroll) $14,369,316
$14,926,706
4%
Auto
(Vehicles) $6,083,086
$6,978,564
15%
Inland Marine
(Equipment) $1,825,300
$5,268,337
189%
Workers Compensation
(Payroll) $20,453,000
$21,715,000
6%
Marine Hull
(Equipment) $160,000
558,454
249%
63
TO:
VIA:
FROM:
DATE:
RE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305)949-3113 Fax
MEMORANDUM
Honorable Mayor and City Commissioners
Stan Morris, City Manager
Yael Y. Londono, HR & Risk Management Director
September 21, 2023
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, 2023 throug
September 30, 2024 in an amount not to exceed $1,900,000.00.
The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers
Compensation is $1,861,389.00 which is $132,115.50 or 7.64% more than last year ($1,729,273.50).
The contributing factor for the premium increase is due to claims, payroll and the addition of new
property and/or equipment.
Additionally, staff is allocating $38,611 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
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 a<
attached.
ADDITIONAL INFORMATION:
With regards to the changes in exposure and premium increases, the following should be noted:
• Property: On the expiring policy term, the City's total insured value for all structures and
outdoor property stood at $66,422,439. This value was determined by the most recent appraisal
conducted by Asset Works in 2019. In preparation for the upcoming 2023 renewal, we
collaborated with our insurance agent, Brown & Brown, to obtain an updated appraisal. Thi
new appraisal considered factors such as the recent increase in construction costs, material
prices, labor expenses, and the impacts of inflation. As a result of this on-site appraisal
inspection, the City's property value was re -assessed at approximately $78,219,685.
Consequently, our property insurance renewal will reflect an 18% increase in appraised values,
accompanied by a flat property insurance rate for renewal. The premium increase for property
insurance is solely reflective of the increased exposures.
• Inland Marine: The primary reason behind the premium increase for our inland marine coverage
is the increase of exposures. These exposures have increased from $1,825,300 to $5,268,337.
Our decision to reclassify various ATVs from the vehicle schedule to the inland marine schedule
contributed to this increase. Additionally, the new appraisal accounted for 126 toters (beach
trash cans) and 489 decorative light poles and cameras. These newly included items have added
approximately $3 million in insured value to the inland marine schedule.
• Marine Hull: The primary reason for the increase is due to the addition of two new boat!
bringing the total to three. The covered values have increased from $160,000 to $558,454.
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 ever
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 Worker
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
Item Number: 10.A
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 23-24
CSIB 23-24 Summary of Proposed Premiums - Exposure Differences
Item Number: 10.A