HomeMy WebLinkAboutReso 2024-3712RESOLUTION NO. 2024 - ��--
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,
2024, THROUGH SEPTEMBER 30, 2025, IN AN AMOUNT NOT TO EXCEED ONE
MILLION NINE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS AND NO CENTS
($1,975,000.00), 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 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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201
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, on September 211t, 2023, via Resolution No. 2023-3548, 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, 2023, through September 30,
2024, in an amount not to exceed $1,900,000.00; 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, 2024, through September 30, 2025; 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 Seventy -Five Thousand Dollars and No Cents ($1,975,000.00), for the one-year period
of October 1, 2024, through September 30, 2025, 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 Seventy -Five Thousand Dollars and No Cents
($1,975,000.00), for the one-year period of October 1, 2024, through September 30, 2025,
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.
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202
ATTESn
PASSED AND ADOPTED this 191h day of Septemb , 20 4.
Larisa Svechin, Mayor
4
Maurizio Betancuir, CMC, City Clerk
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
d/jA LQew
Alain E. Boileau, for Nabors, Giblin &
Nickerson, P.A., City Attorney
Moved • �� 1...' . J�1 , ,:..seconded •✓
Vote: /
Mayor Svechin (Yes) (No)
Vice Mayor Lama —5(Yes) (No)
Commissioner Joseph (Yes) (No)
Commissioner Stuyvesant (Yes) (No)
Commissioner Viscarra (Yes) (No)
@BCL@FCOA2F23.Doc Page 3 of 3
203
Insurance Renewals for 2024 - 2025
FY 2023-2024 FY 2024-2025 Difference Account
Policy Cost Cost
Automobile Physical Damage $ 51,332.00 $ 63,181.00 $ 11,949.00 23.08% Auto Liability 001.2.5132.445005-00000
Automobile Liability $ 102,604.00 $ 123,648.00 $ 21,044.00 20.51% Auto Liability 001-2-5132.445005-00000
$ 153,936.00 $ 186,829.00 $ 32,893.00
Property Insurance $ 765,745.00 $ 782,411.00 $ 16,666.00 2.18% Property 001-2-5132-045006-00000
$ 781,891.00 $ 782,411.00 $ 16,666.00
Inland Marine $ 19,638.00 $ 21,527.00 $ 1,889.00 9.62% Property 001-2-5132-045006-00000
$ 19,638.00 $ 21,527.00 $ 1,889.00
Glass Policy $ 24,680.00 $ 24,510.00 $ (170.00) -0.69% Property 001-2-5132-045006.00000
$ 24,680.00 $ 24,510.00 $ (170.00) $ - I
Marine Hull $ 11,538.00 $ 8,794.00 $ (2,744.00) -23.78% Property 001-2-5132-045006.00000
$ 11,538.00 $ 8,794.00 $ (2,744.00)
General Liability
$
239,982.00 $
243,326.00 $
3,344.00
139%
General Liability
001-2-5132-445007.00000
Law Enforcement Liability
$
70,387.00 $
78,909.00 $
8,522.00
12.11%
General Liability
001-2-5132-445007.00000
Public Officials & Employment
$ 60,831.50
$ 19,727.25
$ 58,067.25
$ 1,956.00
$ 883.00
$ 44150
$ 441.50
$ SGO.001
PAID IN FULL
PAID IN FULL
Practices Liability
$
231,919.00 $
232,269.00 $
350.00
0.15%
General Liability
001-2-5132-045007400000
Cyber Liability
$
7,064.00 $
7,824.00 $
760.00
0.00%
General Liability
001-2-5132-04500740000
$
554,352.00 $
562,328.00 $
17,976.00
Crime
$
1,765.00 $
1,766.00 $
1.00
0.06%
General Liability
001-2.5132-445007.00000
$
1,765.00 $
1,766.00 $
1.00
Gov Crime / City Mgr Bond $ 500.00 $ 500.00 $ 0.00% General Liability 001-2-5132-445007.00000
$ 500.00 $ 500.00 $ -
Student Accident Policy $ 22,578.75 $ 24,000.00 $ 1,421.25 6.29% General Liability 001-2-5132-445007.00000
$ 22,578.75 $ 24,000.00 $ 1,421.25
Workers Compensation $ 291,089.00 $ 276,810.00 $ (14,279.00) -4.91% Workers Comp 001-2-5131-424000.00000
$ 291,089.00 $ 276,810.00 $ (14,279.00)
Premium Totals: 1,861,967.75 1,889,475.00 53,653.25 2.88%
N
O
,F+
Binder
September
$ 31,590.50
$ 61,824.00
25%
December
$ 15,795.25
$ 30,912.00
25%
March
$ 15,795.25
$ 30,912.00
$ 391,205.50
$ 195,602.75
$ 195,602.75
$ 10,763.50
$ 5,381.75
$ 5,381.75
$ 24,510.00
PAID IN FULL
PAID IN FULL
$ 8,794.00
PAID IN FULL
PAID IN FULL
$ 121,663.00
$ 39,454.50
$ 116,134.50
$ 3,912.00
$ 60,83150
$ 19,727.25
$ 58,067.25
$ 1,956.00
$ 60,831.50
$ 19,727.25
$ 58,067.25
$ 1,956.00
$ 883.00
$ 44150
$ 441.50
$ SGO.001
PAID IN FULL
PAID IN FULL
$ 24,000.00
PAID IN FULL
PAID IN FULL
$ 835,234.50
$ 388,715.25
$ 388,715.25
SEPARATE INV
SEPARATE INV
SEPARATEINV
'111 0h I OVI FTA WKS]
■ ANIFUNAMUMP
Expiring Renewal
Premiums as Proposed: 2023-2024 2024-2025
Property — Including Flood and Premium $781,891.00 $782,411.00
Boiler & Machinery Tax & Surcharges N/A N/A
Preferred Governmental Total $781,891.00 $782,411.00
General Liability Coverage Including
Premium
$554,352.00
$562,328.00
Unmanned Aircraft Liability, Law
Tax & Surcharges
N/A
N/A
Enforcement, Cyber, Public Officials/EPL
Total
$554,352.00
$562,328.00
GL: $243,326 Law Enforcement: $78,909
POL/EPL: $232,269, Cyber: $7,824
Automobile:
Premium
$153,916.00:
$186,829.00,
Liability: $123,648
Tax & Surcharges
N/A
N/A
Physical Damage: $63,181
Total
$153,916.00 !
$186,829.00
Inland Marine
Premium
$19,638.00
$21,527.00
Tax & Surcharges
N/A
N/A
Total
$19,638.00
$21,527.00
CrimelFidelity
Premium
$1,765.00
$1,766.00
Tax & Surcharges
N/A
N/A
Total
$1,765.00
$1,766.00
Workers' Compensation
Premium
$290,929.00
$276,650.00
Tax & Surcharges
160.00
160.00
Total
$291,089.00
$276,810.00
Government Crime
Premium
$500.00
$500.00
Tax & Surcharges
0.00
0.00
Total
$500.00
$500.00
$11,538.00
$8,794.00
Marine Hull
Premium
Tax & Surcharges
0.00
0.00
Total
$11,538.00
$8,794.00 ;
Sponsored Student Activity *Estimate
Premium
$22,578.75
*$24,000.00
Only as Quotation is Pending For 24-25
Tax & Surcharges
N/A
N/A
Renewal/Subject to Receipt of Participation
Total
$22,578.75
$24.000.00
Schedule
Plate Glass —18070 Collins Avenue
Premium
$17,467.00
$17,347.00
151 Sunny Isles Blvd
Tax & Surcharges
7,213.00
7,163.00
Fee
N/A
N/A
Total
$24,680.00
$24,51,0.00
TOTAL $1,861,947.75 $1,889,475.00
Expiring Premiums on schedule of Summary of Proposed Premiums, reflects annualized premiums on any
midterm policy changes/Fees May Be Fully Earned
25% Minimum Earned Premium applies to the PGIT Package
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F, or l -d' 205
City of Sunny Isles Beach: 2024 Insurance Renewal
Premium Summary
Line of Business
Current Carrier
Current Premium
2024 Renewal
% Change
Property
PGIT
$781,891
$782,411
0%
Liability Package:
PGIT
$554,352
$562,328
1%
Auto
PGIT
$153,936
$186,829
21%
Inland Marine
PGIT
$19,638
$21,527
10%
Crime/ Fidelity
PGIT
$1,765
$1,766
0%
Workers Compensation
PGIT
$291,089
$276,810
-5%
Government Crime
Fidelity & Deposit Co
$500
$500
0%
Marine Hull
RLI Insurance
$11,538
$8,794
-24%
Sponsored Student
Activity
Gerber Life Insurance
$22,578
$24,000
6%
Plate Glass
USPlate Glass
$24,680
$24,510
-1%
3%
$1,861,967
$1,889,475
1%
Year Over Year Exposure Changes
206
2023-2024
2024-2025
% Change
General Liability Exposures (ratable payroll)
$14,926,706
$15,229,782
2%
Law Enforcement Liability (# of officers)
59
63
7%
Public Officials / EPL
208
181
-13%
(total payroll)
$21,715,000
$22,547,000
4%
Automobile (vehicle count)
212
235
11%
(reported values)
$6,083,086
$8,531,715
40%
Inland Marine (scheduled)
$5,268,337
$5,789,493
10%
Workers Compensation (total payroll)
$21,715,000 1
$22,304,176 1
3%
206
O,rp OF 5LYe4 IR xl
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 19, 2024
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'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, 2024 through
September 30, 2025 in an amount not to exceed $1,975,000.00.
The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers
Compensation is $1,889,475.00 which is $53,653.25 or 2.88% more than last year ($1,861,389.00). 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 $85,525 for deductibles, additional flood policies and 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: lOX
199
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 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 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 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
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 24-25
2024 Summary of Proposed Prernurns
Item Number: 10.K
200