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Home My WebLink AboutReso 2015-2452 RESOLUTION NO. 2015-2452, 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, 2015 THROUGH SEPTEMBER 30, 2016, IN AN AMOUNT NOT TO EXCEED ONE MILLION DOLLARS (S1,000,000.00), 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 19, 2013 via Resolution No. 2013-2098, the City Commission entered into an Aereement with Brown & Brown/Preferred Government Insurance Trust (PGIT) as the City's provider for the Packaee Policy and Workers Compensation, and miscellaneous insurances, for a one-year period of October 1, 2013 through September 30, 2014, in the total amount of Eight Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars ($865,950.00); and WHEREAS, on September 18, 2014 via Resolution No. 2014-2282. the City Commission entered into an Aereement with Brown & Brown/Preferred Government Insurance Trust (PGIT) as the City's provider for the Packaee Policy and Workers Compensation, and miscellaneous insurances, for a one-year period of October 1, 2014 through September 30, 2015, in an amount not to exceed One Million Dollars ($1,000,000.00); and WHEREAS, the City has the option to exercise two (2) one-year renewals; 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, 2015 through September 30, 2016; and WHEREAS, staff recommends acceptance of the Brown & Brown/Preferred Governmental Insurance Trust (PGIT) proposal for the Commercial Packaee Policy and Workers Compensation, and miscellaneous insurances, in an amount not to exceed One Million Dollars ($1,000,000.00) for a one-year period of October 1. 2015 through September 30, 2016, 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, for a R2015-Pgit Insurance Renew(Propeny.Casualty.Auto.Workers Comp) Page 1 of 2 one-year period of October 1. 2015 through September 30. 2016, in an amount not to exceed One Million Dollars (S1,000,000.00), as outlined in Exhibit "A", attached hereto. 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 2015 . . George Scholl. Mayor • ATTEST: • A � Jane A. Hines, MMC, City Clerk r l APPROVED AS TO FORM AND LEGAL" FFICIENCY JA„ •ttinot. City Attorney Moved bv: Cool—p111. 41V Seconded by: Vice, 'nn O0 GLA-I TO Vote: S- b Mayor Scholl f(Yes) (No) Vice Mayor Gatto ✓(Yes) (No) Commissioner Aelion t//(Yes) (No) Commissioner Goldman V (Yes) (No) Commissioner Levin i(Yes) (No) R2015-Putt Insurance Renoc(Propeny.Casualty.Auto.Workers Comp) Pace 2 oft SUMMARY OF PROPOSED PREMIUMS [Premiums as Proposed: _ Expiring Renewal 1 — Property– Includng Flood and Premium $313,548.00 5300,404.00 Boiler& Machinery, 1 Fees&Surcharges N/A N/A Total I 313,548.00 300,404.00 i Liability Coverage– Includes i Premium I 5288,939.00 5291,903.00 • Genera!Liability: $113,041.00 Taxes&surcharges I N/A N/A • Law Enforcement: 547,755.00 Total 288,939.00 . 291,903.00 • Public Officials &EPL: SI31,107.00 ! Automobile ` Premium 82,240.00 81,080:00 Taxes&Surcharges N/A N/A'- I Total 82,240.00 81,080.00 — ; Inland Marine j Premium 9,904.00 7,902.00 4 Taxes&Surcharges N/A N/A I Total 9,904.00 7,902.00 Crime/Fidelity I Premium 1,634.00 1,634.00 I Taxes&Surcharges i N/A N/A 1 Total 1,634.00 1,634.00 Workers' Compensation ;Premium 165,065.00 165,491.00 I Taxes&Surcharges N/A N/A I Total 165,065.00 f 165,491.00 I Government'Crime 1 Premium 500.00 500.00 Taxes&Surcharges 6.50 .6.50 ( Total 506.50 506.50 I Indication Marine Hull ` Premium 3,000.00 3,000.00- • ' Taxes&Surcharges 39.00 39.00 . I Total 3,039.00 3;039:00 Sponsored Student Activity Premium 4,812.80 5,000.00 *Pending Return of Renewal Application Taxes&Surcharges _ 35.00 .3100 with Exposure information. This indication Total 4,847.80 9,035.00 may change Indication Plate Glass j Premium 17,150.00 17,175.00 1 Taxes&Surcharges 230.00 4.00 Total 17,380.00 17,179.00 ' -- TOTAL; - —; $ 887,103.30 j S 874,173.50 Expiring Premium reflects annualized premiums on any midterm policy changes General Liability Ratable Payroll Increased From 59,504,532 To S 10,054,054 Workers Compensation & Public Officials/EPLI Payroll Increased From 513,923,749 To 514,304,464 Workers Compensation Experience Mod Reduction From .74 To .70 40 Exhibit "A" 9/102015 Item Cove/sheet sent?" is,�A City of Sunny Isles Beach t G;:. -r O, � 18070 Collins Avenue ); Sunny Isles Beach,Florida 33160 ��C. (305)947-0606 City Hall o + i.as • sus.'-•a (305)949-3773 Fax MEMORANDUM TO: The Honorable Mayor and City Commission VIA: Christopher J. Russo, City Manager FROM: Yael Y. Londono, HR&Risk Management Director DATE: 9/17/2015 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, 2015 through September 30, 2016 in an amount not to exceed S1,000,000.00. REASONS: The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers Compensation is $874,173.50 which is about $13,000 less than last year (5887,103.30). Additionally, we have been issued a two year rate guarantee on the Commercial Package Policy. Additionally, staff is allocating $50,000 for deductibles and $75,826.50 for additional premiums expected upon the completion of capital projects such as Gateway Park, 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. PGITs excess of loss policies list every individual member a named httpl/surryisles.novtsagenda.cam/agendaweb/CoverSheet.aspx?ItemID=1726 1/2 9/1072015 Item Coversheet 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: Description Summary of Proposed Premiums Item Number: 10.1. httpilsunnyisles.novusagenda.com/agendaweb/CoverSheet.aspx?ttemlD=1726 2/2