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HomeMy WebLinkAboutReso 2008-1329 RESOLUTION NO. 2008-J 32 (l A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE RENEWAL OF THE CITY'S WORKERS' COMPENSA TION INSURANCE WITH THE FLORIDA MUNICIPAL INSURANCE TRUST (FMIT), FOR THE PERIOD OF OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2009, IN THE AMOUNT OF ONE HUNDRED THIRTY- SIX THOUSAND FIVE HUNDRED FIFTY -FIVE DOLLARS ($136,555.00), AS OUTLINED IN EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on June 19, 2008, via Resolution No. 2008-1284, the City Commission renewed the City's Property, Casualty, and Auto Insurance with the Preferred Government Insurance Trust (PGIT) through the City's Insurance Broker, Brown & Brown Insurance, Inc., for a 15-month package policy which allowed the City to take advantage of a recent reduction in property insurance rates; and WHEREAS, the City of Sunny Isles Beach now wishes to renew the City's Workers' Compensation Insurance; and WHEREAS, due to the City's excellent claims history and an overall rate decrease of 16.8% for the upcoming year, the Florida Municipal Insurance Trust (FMIT) quoted a price of $136,555.00 which is $142,810.00 lower than last year's renewal premium of$279,365.00; and WHEREAS, FMIT is sponsored and administered by the Florida League of Cities, and is a premier insurance organization for public entities and is a non-assessable trust approved by the Florida State Legislature; and WHEREAS, the Florida Municipal Insurance Trust (FMIT) has submitted a proposal for renewal of Workers' Compensation Insurance, in the amount of One Hundred Thirty-Six Thousand Five Hundred Fifty-Five Dollars ($136,555.00), for the period of October 1, 2008 through September 30, 2009, as outlined in Exhibit "A", attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Agreement. The City Commission hereby approves the agreement with the Florida Municipal Insurance Trust (FMIT) for the City's Workers' Compensation Insurance, in the amount of One Hundred Thirty-Six Thousand Five Hundred Fifty-Five Dollars ($136,555.00), as outlined in Exhibit "A", attached hereto. R2008- Fla Municipal Ins Trust (Fmit) Workers Comp InsurancePage I of2 Section 2. Authority of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate the terms of this Resolution. Section 3. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 18th day of September 2008. t11ttfJ// orman S. Edelcup, Mayor ATTEST: A,4L Jane A. Hines, CMC, City Clerk APPROVE)} AS TO FORM AND LE SuFFICIENCY Moved by: yI; u M ~()Y TrtPrt-tR. Seconded by: C1\~ C9ool)h1Ml Vote: :)-0 Mayor Norman S. Edelcup Vice Mayor Lewis Thaler Commissioner Roslyn Brezin Commissioner Gerry Goodman Commissioner George "Bud" Scholl :;1Y es) _(Yes) ~Yes) ../ {Xes) ~(Yes) _(No) _(No) _(No) _(No) _(No) R2008- Fla Municipal Ins Trust (Fmit) Workers Comp InsurancePage 2 of2 FLORIDA MUNICIPAL INSURANCE TRUST COVERAGE PROPOSAL FOR CITY OF SUNNY ISLES BEACH PROPOSED EFFECTIVE DATE: October 1, 2008 ADMINISTERED AND PREPARED BY: PUBLIC RISK SERVICES OF THE FLORIDA LEAGUE OF CITIES, INC. P.O. BOX 530065 ORLANDO, FL 32853-0065 September 10, 2008 "The Florida Municipal Insurance Trust Guarantee" The FMITwill match any competitor's pricing for similar exposures, coverages, terms and conditions contingent 011 the ability of the competitor to verify that their rates are established by an independent actuary and that their reinsurance structure is currently in place. The competitor's reinsurer must have an AM Best rating of an A X or better. A specimen agreement is attached. This proposal contains a brief, general description of coverages. It is not intended to describe or cover all the terms, limits, conditions and exclusions of the agreement. The FMIT agreement language will supersede any differences between the agreement and this proposal summary. Exhibit "A" FLORIDA MUNICIPAL INSURANCE TRUST WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY Proposal for 2008-2009 City of Sunny Isles Beach LIMIT OF LIABILITY: Workers' Compensation: Statutory Employers' Liability: $1,000,000 Each Accident $1,000,000 By Disease $1,000,000 Aggregate by Disease Deductible $2,500 Total Payroll: $9,218,027 *Drug Free Workplace Credit (5%) Yes *Safety Credit (2%) Yes Experience Modification 10/1/08 0.86 NET PREMIUM: $136,555 WORKERS' COMPENSATION PAYROLLS CODE DESCRIPTION PAYROLL 7382 BUS DRIVERS 206,288 7720 POLICE OFFICERS 3,563,042 8810 CLERICAL 2,946,843 8820 ATTORNEY - ALL EMPLOYEES 272,971 9015 BUILDINGS - OPERATION BY OWNER 688,231 9102 PARK NOC 671,679 9402 SEWER CLEANING 39,311 9410 MUNICIPAL, TOWNSHIP, COUNTY EMPLOYEES NOC 829,662 TOTAL PAYROLL 9,218,027 2 FLORIDA LEAGUE OF CITIES PUBLIC RISK SERVICES Public Risk Services is a full service operation formed to administer the Florida League of Cities' sponsored Trust. This office is located in Orlando, Florida and includes four primary departments. POLICYHOLDER RELATIONS Policyholder Relations/service is provided for the Florida League of Cities' sponsored insurance Trust. Service is provided throughout the state with PHR representatives in geographically defined territories. The North territory is serviced by Tom Conley in Tallahassee; the East territory is serviced by John Ligon in Orlando; the Central territory is serviced by Andy Hanson in Bradenton; and the South territory is serviced by Jim McGinn in Ft. Lauderdale. The department provides a quarterly "Trust Reporter" on a variety of subjects for public entities. UNDERWRITING Functions of this department include evaluating insurance exposures for prospective and current members; computing premiums for proposals. renewals and audits; and issuing policies. Department personnel are divided into four teams including a separate health unit along with territorial teams to work with each marketing representative. Additionally, premium billing and collection is coordinated between the Tallahassee and Orlando office. CLAIM ADJUSTING/MONITORING An integral part of the service is both the claims adjusting and the monitoring functions. All claims are handled "in house" by League personnel. RISK CONTROL The Florida League of Cities Risk Control Services provides resources to address all lines of coverage. We can assist in the member's goal of an elimination or reduction of losses. This includes assistance in implementing a formal risk control and safety & health program, risk control consultation visits, safety & health workshops, targeted field surveys and custom designed programs for specialized operations. In addition, Risk Control provides risk bulletins, toolbox talks, presentations, a comprehensive safety & health video/dvd library, insurance to value evaluations, tailored loss analysis, a quarterly magazine, and matching safety grant fund. 3 OVERVIEW OF THE FLORIDA LEAGUE OF CITIES RISK CONTROL SERVICES Our goal is to help our members meet their goal of eliminating losses and thereby saving lives, limbs, property and resources. Risk Control Services is set up to assist your own safety & health or risk management departments or those employees assigned as the safety coordinator in reducing or eliminating your exposures to loss. Please take full advantage of these services. 1 SAFETY AND HEALTH CULTURE This safety & health culture program assists the member in the implementation of a formal "measurable" risk control program. Risk Control provides an orientation and all materials necessary to implement the program. The success of the member with this program has been excellent. Once the culture is established, it is self generating. 2 TARGETED ONSITE SURVEYS This is a means of targeting where the losses are occurring, finding the root cause, isolate that cause, identify specific corrective actions, offer recommendations to make those corrective actions and monitor the results to assure that actions have the desired effects. 3 FIELD CONSULTATION The field consultation program provides members with advice regarding the development and implementation of meaningful policies and procedures that could assist the entity on managing their operations for success in loss avoidance. This service also includes a complete assessment of your present risk control efforts. 4 SAFETY TRAINING Workshops, seminars and other training formats are available to support your program. Some examples of programs: (1) How to make accident investigations (2) Job hazard analysis (3) Accident investigation (4) Proper lifting (5) Proper hiring techniques (6) Recreational safety 5 RISK BULLETINS. PAMPHLETS. POSTERS AND OTHER INFORMATIONAL HANDOUTS Informational materials on a variety of subjects are available to support your efforts. We also customized these to better match up with the member's operations. 6 COMPREHENSIVE SAFETY & HEALTH VIDEOIDVD LIBRARY AND CUSTOM SLlDENlDEO PROGRAMS You as a member will have access to over 10,000 videos/dvd on a wide selection of topics. And if your operation is unique or your situation is specific in nature, Risk Control Services has the capability to develop an custom video. 7 MATCHING SAFETY GRANT FUNDS The matching safety grant fund is a way of supplying money to our members to purchase safety and health related items. 8 INSURANCE TO VALUE EVALUATIONS Risk control has the capability to help with the members property evaluations and offers funds to reduce the cost of property schedule updating. 4 PLEASE READ THIS PAGE CAREFULLY NO COVERAGES, TERMS OR CONDITIONS ARE TO BE ASSUMED. All Trust Programs are Non-Assessable Terms of this Agreement: Premiums shown are subject to year-end audit adjustments. All coverages provided by the Florida Municipal Insurance Trust are on an occurrence format. The Florida Municipal Insurance Trust does not automatically include prior acts (tail) coverage. 2008/2009 PREMIUM INSTALLMENT PLAN First Installment Second Installment Third Installment Fourth Installment 25% minimum due October 1, 2008 25% minimum due January 1, 2009 25% minimum due April 1, 2009 25% minimum due July 1, 2009 NOTE: If the total net premium is under $6,000, the installment provision does not apply Payment will be forwarded to the League Office in Tallahassee. For any other coverages, the premium is billed by the Florida League of Cities and due in full at inception, regardless of the size of premium. Forty-five (45) Days Notice of Cancellation and Non-Renewal Ten (10) Days Notice of Cancellation for Non-Payment of Premium Any mid-term cancellations requested by the member will be processed on a short rate basis. Note: coverage summaries provided herein are intended as an outline of coverage only and are necessarily brief. In the event of loss, all terms, conditions and exclusions of actual Agreement and lor policies will apply. City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax (305) 947-2150 Building Department (305) 947-5107 Fax City Commission Norman S. Edelcup, Mayor Lewis J. Thaler, Vice Mayor Roslyn Brezin, Commissioner Gerry Goodman, Commissioner George "Bud" Scholl, Commissioner A. John Szerlag, City Manager Hans Ottinot, City AI/orney Jane A. Hines, City Clerk MEMORANDUM TO: The Honorable City Commission VIA: A. John Szerlag, City Manager FROM: Douglas Haag, Assistant City Manager-Finance DATE: September 18, 2008 RE: Renewal of Workers Compensation Insurance Policies RECOMMENDA TION: Approve the attached resolution to renew the City's Workers Compensation insurance with the Florida Municipal Insurance Trust (FMIT) for the policy period of October I, 2008 - September 30, 2009 in the amount of$136,555 BACKGROUND: The City recently renewed its property, casualty and auto insurance with Preferred Governmental Insurance Trust (PGIT) effective July I, 2008 to take advantage of a decrease in property insurance premiums. This leaves the workers compensation insurance to renew standalone effective October I, 2008. The renewal premium for workers compensation of $136,555 is $142,810 lower than last years renewal premium of $279,365. The reasons for the significant reduction in premium are largely due to the city's excellent claims history and an overall rate decrease of 16.8% for the upcoming year. I We also received a proposal from the Preferred Governmental Insurance Trust (PGIT) - the only other licensed municipal insurance pool in the state. The total cost of a comparable 12 month policy from PGIT is $173,670, a difference of $37,115. 1 Premiums are based on several factors. Since benefits are based on an employee's earnings, the total payroll of the City is taken into consideration. The payroll is then broken down by classifications and a rate is applied to each classification, based on the amount of risk of someone in that classification getting injured while on the job. For example, a police officer is considered a higher risk for a job related illness or injury than an accountant. This brings us to the next factor - the rate. A rate is applied to the payroll earnings for each classification. The rate for police officers is considerably higher than that of an accountant - $3.77 vs. $.37 (rates are per $100 of earning/employee) After rates are applied to all of the classifications and summed up, an experience modification (aka 'mod') is applied to that total. The experience mod factor is based on the claims history of the City. The higher the claims, the higher the mod factor and the higher the premium. An experience mod of over 1.0 is considered high while a mod of 1.0 or lower means our claims experience has been good - few injuries and illnesses. Lastly, there are discount factors that are only available from trusts such as PGIT and FMIT for a drug free workplace, safety credit, etc. O"Vv\\~ To be com feted bv City Clerk's Oflice Funding available: l\gmda Item No.: \0 q-(~-C~ Finance Department Commission Meeting Date: Funding is provided in the FY 2008/09 budget. ADDITIONAL INFORMATION: The Florida League of Cities was originally created in 1922 with their original mission statement, "to meet and serve the needs of Florida's municipal governments." Much has changed since then. Addressing the concerns of our membership for affordable insurance, the Florida League of Cities established its first insurance program in 1977, providing Workers' Compensation coverage. Soon thereafter, Liability, Property, and Health insurance were added to the program. The Public Risk Services Department, which is a full service operation for public entities and is part of the Florida League of Cities, Inc. is the underwriting group that tailors customized insurance services and products for the City. Their headquarters is located in Orlando and our account representative (Jim McGinn CPCU, RMPE) is based in Fort Lauderdale. With over 600 members, the FMIT is the undisputed leader in the field of local government insurance. The Florida Municipal Insurance Trust, sponsored and administered by the Florida League of Cities, provides workers' compensation, liability, auto, property and health insurance to governmental entities in Florida. FMIT is a premier insurance organization for public entities and is a non-assessable trust approved by the Florida State Legislature.The Trust, which is owned by participating members, is now one of the largest programs of its kind. It offers custom policies and lower rates through a unique revenue-sharing plan that saves participants millions of dollars per year. Of the 412 towns, cities and villages in the state of Florida, 59 percent hold coverage with the Trust. FMIT insures over 400 Workers Compensation accounts. The Trust has assets totaling more than $380 million. The City has had a Commercial Package Policy (Property, Casualty, Auto) and Workers Compensation insurance coverage with PGIT since October 1, 2003. FMIT insured the City when we fIrst became incorporated and wrote the City's Workers Compensation previously; 9/1/97 through 7/1/01; and the Commercial Package Policy from 7/29/97 through 7/1/01. Finally, here is a listing of other Miami-Dade County FMIT Workers Compensation Members: A ventura Indian Creek Village Opa Locka Bal Harbour Key Biscayne Palmetto Bay Bay Harbor Islands Miami Shores Village Pinecrest Biscayne Park Miami Springs South Miami Cutler Bay Miami Gardens Sweetwater Golden Beach North Bay Village Virginia Gardens Hialeah Gardens North Miami Beach Page 1 of 1 Priscilla Walker From: Priscilla Walker Sent: Wednesday, September 24,2008 11 :09 AM To: Douglas Haag Cc: Linda Dosal; Anice Paul Attachments: Reso 2008-1315.PDF; Reso 2008-1314.PDF; Reso 2008-1313.PDF; Reso 2008-1330.PDF; Reso 2008-1329.PDF At its regular meeting of September 18, 2008, the City Commission approved the following resolutions. 1. Resolution 2008-1313 DEP Grant Application for Central Island Drainage ($250,000) 2. Resolution 2008-1314 FRDAP Application for Development of Bella Vista Park ($200,000) 3. Resolution 2008-1315 FRDAP Application for Acquisition of Heritage Park ($200,000) 4. Resolution 2008-1329 Renewal of Workers' Compensation Insurance w/Florida Municipal Trust ($136,555) 5. Resolution 2008-1330 Budget Amendments for Fiscal Year 2007/2008 Attached is a copy of the approving legislation to assist you in processing these items and/or for your records. Thank you. Prisci{Ca 'Wa{Rgr, CMC Deputy City Clerk/Office Manager City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 (305) 792-1703 Phone (305) 949-3113 Fax www.sibfl.net 9/24/2008