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Home My WebLink AboutReso 2009-1471RESOLUTION NO. 2009- J.j.1l A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE RENEWAL OF THE CITY'S WORKERS' COMPENSATION INSURANCE WITH THE FLORIDA MUNICIPAL INSURANCE TRUST (FMIT), FOR THE PERIOD OF OCTOBER 1, 2009 THROUGH SEPTEMBER 30, 2010, IN THE AMOUNT OF ONE HUNDRED THIRTY- FOUR THOUSAND NINE HUNDRED THIRTY-TWO DOLLARS ($134,932.00), AS OUTLINED IN EXHIBIT "A"; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach 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 1.2% for the upcoming year, the Florida Municipal Insurance Trust (FMIT) quoted a price of $134,932.00 which is $1,623.00 lower than last year's renewal premium of$136,555.00; 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-Four Thousand Nine Hundred Thirty-Two Dollars ($134,932.00), for the period of October 1, 2009 through September 30, 2010, 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-Four Thousand Nine Hundred Thirty-Two Dollars ($134,932.00), for the period of October 1, 2009 through September 30, 2010, as outlined in Exhibit "A", attached hereto. Section 2. Authority of City Manager. The City Manager is hereby authorized to do all 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 2009. R2009- Fla Municipal Ins Trust (Fmit) Workers Comp InsurancePage 1 of2 ATTEST: ~lLL Jane A. Hines, CMC, City Clerk AS TO FORM AND CIENCY Moved by: 'If u rY\~ V \h~-e,y- Seconded by: (1~Y"t\.l~-totJ~ ~~,I/ Vote: Li -0- \ Mayor Norman S. Edelcup V(Yes) Vice Mayor Lewis Thaler V(Yes) Commissioner Roslyn Brezin -L(Yes) Commissioner Gerry Goodman :., _A:b~M- I.....JL....kY es) Commissioner George "Bud" Scholl ~euf1_(Yes) _(No) _(No) _(No) _(No) _(No) R2009- Fla Municipal Ins Trust (Fmit) Workers Comp InsurancePage 2 of2 ~ FLORIDA LEAGUE OF CITIES, INC. Public Risk Services P. O. Box 530065 Orlando, FI 32853-0065 RENEWAL QUOTE FOR 2009-2010 City of Sunny Isles Beach FMIT 0820 Workers' Compensation Experience Modification $2,500 0.81 10/1/09 Total Payroll $10,226,000 $134,932 TOTAL PREMIUM $134,932 *Includes: Drug Free Credit: Yes Safety Credit: Yes Workers' Compensation Renewal premiums were developed using the payrolls reported on the 2007-08 final audit or projected payrolls submitted and the 10/1/09 experience modification factor. *AVAILABLE CREDITS: Drug Free Credit 5% Safety Credit 2% *ARE YOU RECEIVING ALL AVAILABLE CREDITS? IF NOT, CALL YOUR REPRESENTATIVE FOR INFORMATION. Your PHR Representative is available to discuss any questions you may have or changes you wish to make. Exhibit "An 8/6/2009 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFORMATION PAGE ITEM 4. CONTINUED CLASSIFICATION OF OPERATIONS FL-9 Intrastate 1.0. 91103249 LOC. 1 Employees: 161 NAICS: 921190 Total Payroll: 10,226,000 Sunny Isles Beach, (Miami-Dade) FL 33160 f'rom 10/01/2009 To 10/01/2010 ~US co: ALL OTHER EMPLOYEES & Drivers POLICE OFFICERS & Drivers ~LERICAL OFFICE EMPLOYEES NOC ~TTORNEY - ALL EMPLOYEES & 2lerical, Messengers, Drivers ~uildings - Operation: By owner, essee or real estate management ~irm: all other employees PARK NOC - ALL EMPLOYEES & Drivers ~TREET CLEANING & Drivers ~UNICIPAL, TOWNSHIP, COUNTY OR pTATE EMPLOYEE NOC f\R Adjustment ~enefits Deductible Limit: 2,500 Factor: 0.069000 ~mployer Safety Premium Credit Drug-Free Workplace Credit ~otal After Credits ~xperience Modification Final STANDARD PREMIUM ~dvance Discount 'Jormal Premium we 00 00 alA CODE NO. POLICY NO. FMIT #0820 PAGE NO. 1 Estimated Total Annual Remuneration Rates Per $100 of Remun- eration 7382 271,000 6.00 7720 3,545,000 3.63 8810 2,870,000 0.28 8820 277,000 0.22 9015 879,000 4.16 9102 1,402,000 4.20 9402 50,000 7.07 9410 932,000 2.84 9664 9765 9841 9898 0063 1.078 0.020 0.050 0.810 Estimated Annual Premiums Subject to Modification All Other 16,260 128,684 8,036 609 36,566 58,884 3,535 26,469 21,765 -20,756 -5,601 -13,723 260,728 -49,538 211,190 -18,555 192,635 08/06/09 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFORMATION PAGE ITEM 4. CONTINUED CLASSIFICATION OF OPERATIONS FL-9 Intrastate 1.0. 91103249 LOC. 1 Employees: 161 NAICS: 921190 Total Payroll: 10,226,000 Sunny Isles Beach, (Miami-Dade) FL 33160 ~xpense Constant ~ncentive Credit ~et Premium ~errorism Risk Insurance Act WC 00 00 01A CODE NO. 0900 9740 POLICY NO. FMIT # 0 82 0 PAGE NO. 2 Estimated Total Annual Remuneration Rates Per $100 of Remun- eration Estimated Annual Premiums All Other b.oooo Subject to Modification -57,903 134,932 08/06/09 200 o Preview Page 1 of2 City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Doug Haag, Assistant City Manager-Finance DATE: 9/17/2009 RE: RENEWAL OF WORKERS COMPENSA nON INSURANCE POLICY 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 1, 2009 - September 30,2010 in the amount of$134,932 REASONS: The renewal premium for workers compensation of $134,932 is $1,623 or 1.2% lower than last years renewal premium of $136,555. This is exceptional considering that the City's covered payroll increased by 11% (from $9,218,027 to $10,226,000) since last year. The reasons for the significant reduction in premium are largely due to the city's favorable claims history. This is reflected in the City's Experience Modification factor which decreased from .86 to .81. In addition, there was also a rate decrease. 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 $186,302, a difference of $51,370. Funding is provided in the FY 2009/10 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 Agenda Item _10, 0 http://sibagenda. sibfl.net/agenda/Preview.aspx?ItemID=7 6&MeetingID=O Date q-\i-()q Preview Page 2 of2 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. PREMIUMS 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 gets injured while on the job. For example, a police officer is considered a higher risk for ajob 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 factor is applied to that total. The experience modification 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. FUNDING SOURCE: Funding is provided in the FY 2009/1 0 budget. ATTACHMENTS: . Resolution . Renewal Quote . Premium Breakdown http://sibagenda.sibfl.net/agenda/Preview.aspx?l temID=7 6&MeetingID=0&MeetingDate=9... 9/8/2009