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Home My WebLink AboutReso 2017-2720 • RESOLUTION NO. 2017- 2/7-0 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, 2017 THROUGH SEPTEMBER 30, 2018, IN AN AMOUNT NOT TO EXCEED ONE MILLION THREE HUNDRED FIFTY THOUSAND SEVEN HUNDRED FORTY-FOUR DOLLARS AND SEVENTY-FIVE CENTS ($1,350,744.75), 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 15, 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 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 16, 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, 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, 2017 through September 30, 2018; 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 Three Hundred Fifty Thousand Seven Hundred Forty-Four Dollars And Seventy-Five Cents ($1,350,744.75), which includes a contingency amount of Two Hundred Thousand Dollars ($200,000.00) for a one-year period of October 1, 2017 through September 30, 2018, 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 R2017 Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page 1 of 2 one-year period of October 1, 2017 through September 30, 2018, in an amount not to exceed One Million Three Hundred Fifty Thousand Seven Hundred Forty-Four Dollars And Seventy-Five Cents ($1,350,744.75), which includes a contingency amount of Two Hundred Thousand Dollars ($200,000.00) 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 21st day of Septe , ser 201 . / George Scholl, Mayor • - ATTES 611-ro"'"--- 1vi, if Mauricio Betan fir, CMC, Acting City Clerk r. t d :t FFh‘, APPROVED AS TO FORM AND /1*' i! SU << NCY id LE/ inot,City Attorney Moved by: CONAvo SS L od ca- C(ktTO Seconded by: V(Cc PA H d2 GOczM IA/l Vote: Mayor Scholl ✓ (Yes) (No) Vice Mayor Goldman ✓ (Yes) (No) Commissioner Aelion —V--(Yes) (No) Commissioner Gatto — " (Yes) (No) Commissioner Svechin � (Yes) (No) R2017 Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page 2 of 2 SUMMARY OF PROPOSED PREMIUMS Premiums as Proposed: Expiring - Renewal— ; Property—Including Flood and Premium $409,955.00 $428,961.00 Boiler & Machinery Fees&Surcharges N/A N/A 1 Total $409,955.00 $428,961.00 I Liability Coverage Including Law Premium $286,231.00 $303,098.00. Enforcement and Public Official's Taxes&Surcharges N/A - N/A. 1 Total $286,231.00 $303,098.00 Automobile Premium $90,545.00 $104,542.00 ITaxes&Surcharges N/A N/A I Total $90,545.00 $104,542.00 Inland Marine Premium $8,660.00 $8,174.00 Taxes&Surcharges N/A N/A Total $8,660.00- - $8,174.00 Crime/Fidelity Premium $1,634.00 $1,634.00 Taxes&Surcharges N/A N/A Total $1,634.00 $1,634.00 1 Workers' Compensation Premium $194,194.00 $269,123.00 Taxes&Surcharges N/A N/A Total $194,194.00 $269,123.00 Government Crime Premium $500.00 $500.00 Taxes&Surcharges 6.50 6.50 I Total $506.50 • $506.50 i 1 Marine Hull Premium $3,150.00 $3,150.00 ITaxes&Surcharges 39.00 39.00. Total $3,189.00 $3,189.00. Indication Sponsored Student Activity Premium $12,787.50 . $14,338.25 Taxes&Surcharges N/A N/A Total $12,787.50 $14,338.25 Plate Glass Premium $17,175:00 $17,175.00 1 Taxes&Surcharges 4.00 4.00 Total $17,179.00 $17,179.00 1. ( - - TOTAL $1,024,881.00 $1,150,744.75 Expiring Premium reflects annualized premiums on any midterm policy changes Fees May Be Fully Earned WC Payroll—2017: $16,125,107 vs 2016: $14,659,731 WC Experience Modification Factor: 2017 .79 vs 2016 .78 WC Subject To Current Rates General Liability Ratable Payroll—2017: $11,040,840 vs 2016: $10,023,757 Automobile—2017: 203 Units vs 2016: 173 at inception 39 I NNY Fs �s°.,, ,:_ 4Fs. City of Sunny Isles Beach Co 18070 Collins Avenue Sunny Isles Beach, Florida 33160 9, Pi. : ,O9,%.3 4 (305)947-0606 City Hall or'suK " (305)949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission VIA: Christopher J. Russo, City Manager FROM: Yael Y. Londono, HR & Risk Management Director DATE: 9/21/2017 Renewal of Property, Casualty,Auto, Workers Comp RE: Insurance with Brown & Brown/Preferred Govemment 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, 2017 through September 30, 2018 in an amount not to exceed $1,350,744.75.00. REASONS: The renewal premium for the Commercial Package Policy (Property, Liability, and Auto) and Workers Compensation is $1,150,744.75 which is $125,863.75 or 12% more than last year ($1,024881.00). The contributing factor for the premium increase is due to claims, payroll and additional property. Additionally, staff is allocating $200,000.00 for deductibles and for additional premiums expected upon the completion of capital projects such as the Pedestrian Emergency Bridge, which will be added to the property insurance during the upcoming fiscal year. Staff worked closely with Brown & Brown (Robert Hollander) to review 66 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. 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. Previous 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 Resolution Proposed Premiums 67