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Home My WebLink AboutFlorida Municipal Insurance Trustana SEAN HOME OFPEUCANISLAND CITY COUNCIL AGENDA TRANSMITTAL FORM Council Meeting Date: August 11, 2014 Agenda Item Title: FY 14/15 Property, Casualty and Liability and Workers Compensation Insurance Recommendation: Renew Property, Casualty, Liability (PCL) and Workers Compensation (WC) Insurance with the Florida League of Cities (FLC), Florida Municipal Insurance Trust (FMIT). Background: Effective September 30, 2014, the city's property, casualty, liability and workers compensation insurance contracts will expire. On August 14, 2013, City Council approved the waiving of competitive bid procedures and authorized the renewal of the above insurance with Florida League of Cities for an additional five (5) year term, subject to acceptable rates. We received a significant overall 18% or approximately $71,178 increase in the city's total renewal for the following reasons: Workers Compensation Coverage — had the most significant increase. 1. The City's workers compensation experience modification rating calculated by the National Council on Compensation Insurance, Inc. (NCCI) went from 1.14 to 1.50. The NCCI is an independent licensed rating and statistical organization for the State of Florida, that prepares objective insurance rates on organizations. The average modification rate for the City over the past twelve years is 1.1. This current renewal rate of 1.50 is a significant increase. An experience modification rating of 1.0 would represent premiums paid equaling losses paid. A rating of less than 1.0, would represent premiums paid exceeding losses, therefore, an experience modification rating exceeding 1.0 would represent losses paid, exceeding premium, which would not bode well for rating us. This modification rating is based upon our last three (3) years of claims, and is used to calculate our premium. Therefore this rating is based upon our FY 11, 12 and 13 premiums paid as compared to the losses paid. . Following is the data for the referenced years used in this calculation: Premium Paid Losses Paid Loss Ratio FY 10/11 $ 167,170 $ 176,002 1.053 FY 11/12 $ 117,043 $ 84,320 0.720 FY 12/13 $ 119,587 $ 287,928 2.408 In FY 10/11, losses paid only slightly exceeded premiums paid, however in FY 12/13 the losses incurred were significantly higher than the premiums paid. Unfortunately for the City, since the experience modification rating is based upon a rolling three year period, the FY 13 loss ratio will part of our calculation for another two (2) years. On a positive note, following is the analysis for FY 13/14 as of June 30, 2014, with one quarter to go. Premium Paid Losses Paid Loss Ratio FY 13/14 $96,831 $30,717 0.317 2. FY 14/15 projected payroll increased by $575,869 from previous fiscal year, thereby increasing the amount of workers compensation insurance required. 3. Florida state rate increased by 5 %. City staff will be meeting with the Florida League of Cities loss control representative to review this situation with the losses and how we can mitigate. General Liability Coverage • Losses used in the experience modification decreased from $253,140 to $139,659. Auto Liability Coverage • Losses used in the experience modification increased from $47,579 to $97,347. Auto Physical Damage Coverage • Losses used in the experience modification increased from $25,527 to $30,078. PropertV Coverage • Slight increase in premium due to new construction additions. John Ligon, Florida League of Cities representative and Debra Krueger, Administrative Services Director are present for any questions. If Agenda Item Requires Expenditure of Funds: Estimated Breakdown of Additional Renewal Premiums to renew with Florida League of Cities. Amounts included in the FY 14/15 Proposed Annual Budget: General CibMide Fund Total FY 14/15 Workers Compensation Budget $130,496 $120,636 Total FY 14/15 Property, Casualty & Liability Budget 264,000 223,000 Total FY 14/15 Budgeted Amounts $394,496 $343,636 Total FY 14115 Estimated FLC Insurance Renewal 465.674 414,327 Total FY 14/15 Estimated budget shortage, offset by savings in $ 71,178 $ 70,691 Group Medical Insurance Provider Change Finance Director Review Attachments: • Florida Municipal Insurance Trust Proposal • NCCI Workers Compensation Experience Rating Al 2 ak IM Department of Insurance and Financial Services FLORIDA MUNICIPAL INSURANCE TRUST RENEWAL QUOTE FOR 2014 -2015 City of Sebastian FMIT 0539 Coverage Deductible Limit Premium General /Professional Liability $0 $1,000,000 $95,234 Automobile Liability $0 $1,000,000 $32,538 Automobile Physical Damage Per Schedule $12,473 Property $1,000 $27,845,440 $137,553 Workers' Compensation $0 Total Payroll Experience Modification 1.50 10/1/14 $6,270,014 $213,987 TOTAL NET PREMIUM $491,785 GRAND TOTAL PREMIUM $491,785 RETURN OF PREMIUM $26,111 REDUCED GRAND TOTAL PREMIUM $465,674 The FMIT Board of Trustees has approved a $7,000,000 return of premium for members that had property coverage in the 2012 -2013 Fund Year. The directive of the Board was to return property premium on the renewing members for 2014 -2015 that participated in the Trust's property program in 2012 -2013. Based on the property premiums paid in 2012 -2013 the City of Sebastian can expect $26,111 in return premium should they elect to renew coverage for the 2014 -2015 policy year. 'Includes: Drug Free Credit: Yes Safety Credit: Yes Jote: Coverage summaries provided herein are intended as an outline of coverage only and are iecessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and /or 'olicies will apply. _ NCCI INC 901 PENINSULA CORPORATE CIRCLE BOCA RATON FL 33487 -1362 7/1/2014 CONFIDENTIAL SEBASTIAN CITY OF 1225 MAIN ST SEBASTIAN FL 32958 -4165 Dear Madam or Sir: The National Council on Compensation Insurance, Inc, (NCCI), headquartered in Boca Raton, FL, is the nation's largest information company serving the workers compensation marketplace. We provide information services to industry stakeholders, including regulatory authorities, insurance companies, state funds, self insureds, independent bureaus, insurance agents, and employers like you. Our services include the promulgation of your workers compensation experience ratings. NCCI is committed to offering employers the most technologically advanced services possible to allow for the most secure, efficient, and timely delivery of experience ratings. A hardcopy experience rating is no longer being mailed. Instead, you can now access your experience ratings electronically, as well as provide your email address for notification of experience rating revisions. Your experience rating worksheet is now available for rating effective date 10/1/2014. Please log in to our website with the following information: Website Address: www.ncci.com /worksheets Risk ID: 094007518 PIN: JGo8Hg4Z The website will step you through the process to receive your rating and all revisions to this rating effective date. In the promulgation of your experience rating, a split rating approach is used to reflect both the frequency and severity of losses. Based upon a recent change to the experience rating calculation, the split of individual losses may vary by state. The difference by state is due to a recent change in the experience rating calculation. The amount of the loss up to the split is known as the primary loss which reflects frequency. The amount of the loss in excess of the split is known as the excess loss, which reflects severity. Under this split method, primary losses are given a greater weight in the formula than excess losses. For a detailed explanation of the experience rating modification and how it is calculated, please select the Experience Rating education links on the left side of the website_ Should you have any questions regarding this letter, please e-mail our Customer Service Center at customer_service @ncci.com or call our Customer Service Center at 800 - NCCI -123 and select the Experience Rating option. Sincerely, Experience Rating Department WORKERS COMPENSATION EXPERIENCE RATING OAV�--.f Risk Name: SEBASTIAN CITY OF Risk ID: 094007518 Rating Effective Date: 10/01/2014 Production Date: 07101/2014 State: FLORIDA ✓'°"^ '�` �"{e/)�. � ,,, Ac � osse , � s'� ��atx c Loss@ �`� a I ;Y 77,975 243,807 41,500 467,831 224,024 FL .20 151,20 229,180 _ 243,8071 193,5451 1,201 1 151,2051 229,1801 77,9751 41,5001 437,3521 ",i R ' m� s; x `� � ` M �� yr � .r � {n dJ „lA .. -.��. (J) �1.n�� , s . ," .i, ....4` . M1 ,.1:�.' '� '+�..a i :✓s.l (A) * (F) (I) C * (1 - A) + G Actual 193,545 162,464 48,761 404,770 (E) C * (1 - A) + G (A) " (C) (K) Expected 77,975 162,464 30,241 270,680 - tWq W7 r� rr - ,5 :w L`iu.il. ri,..s.r7 +ter Mods ; ti ;�.._ (J) / (K) Factors 1.33 1.50 RATING REFLECTS A DECREASE OF 70% MEDICAL ONLY PRIMARY AND EXCESS LOSS DOLLARS WHERE ERA IS APPLIED. 0 Copyright 1993 -2014. All rights reserved. This product is comprised of compilations and information which are the propneary and exclusive property of the Nalional Council on Compensation tnsurance, tnc. (NCCI). No further use, dissernination, sale, transfer, assgnment or disposition of this product. inwhote or in part, may be made without the prior written consent of NCCI This product is furnished *As is' As available"With all defects and includes information available at the time of publication only. NCCI makes no representations or warranties of any land relating to the product and hereby expressly disclaims any and ffiI express, statutory, or implied warranties, including the implied warranty of merchantability, fitness for a particular purpose, accuracy, completeness, currentness, or correctness of any information or product furnished tereunder. Al responsiblity, for the use of and for any and all results derived or obtained through the use of the product are the end user's and NCClshall not have any liability thereto. Page 1 of 3 WORKERS COMPENSATION EXPERIENCE RATING L' Risk Name: SEBASTIAN CITY OF Risk ID: 094007518 Rating Effective Date: 10/01/2014 Production Date: 07/01/2014 State: FLORIDA 09-FLORIDA Firm ID: Firm Name: SEBASTIAN CITY OF r-nrriar• -,;iRRn Pnilev No. FMIT0539 Eff Date: 10/01/2010 ExpDate: 10/01/2011 09-FLORIDA Firm ID: Firm Name: SEBASTIAN CITY OF Carrier: 31860 Pollcv No. FMIT0539 Eff Date: 10/01/2011 Exp Date: 10/0112012 3.671 .29 597,6631 sse 21,934 6,361] c I s cc P imtom, L (I U cl 1 55091 IWC201111956 105 .291 I F 1 2,5911 2,5911 7403 1 2.131 .34 175,1611 3,731 1,269 WC201011737 05 F 3,622 3,6221 7720 1.541 .33 2,509,7561 38,650 12,755 WC201011683 05 F 7,7711 7,771 8380 1.351 .37 78,2641 1,057 391 WC201111927 05 F 11,2061 11,206 18810 .101 .401 1,915,5951 1,9161 7661 IWC201111765 05 F 1 16,1931 13,500 8820 .08 .37 99,9281 80 - 301 WC201111757 105 01 47,398 13,5001 9015 1.951 .40- 116,3311 2,268 907 WC201011743 05 F 73,200 13,500 9060 .961 -42 252,7521 2,426 1,019 NO. 2 06 225,2231 1,027 1,027 9102 1.761 .40 525,6241 9,2511 3,7001 WC201111874 06 F 2,070 2,070 9220 3.14 .37 65,5901 2,060 7621 WC201 111 BE56 06 F 1 2,2411 2,241 9402 3.321 .341 8751 29 10] WCE20101 1729 06 F 2,3001 2,300 9410 1.11 .401 541,3201 6,0091 2,4041 IWC201111826 06 F 2,3391 2,339 19765 IWORKPLACE SAFETY C 1 -1,9401 -6591 IWC201111922 06 1 F 1 2,5991 2,5691 19841 JDRUG FREE CREDIT 1 -4,7541 -1,6151 IWC201111877 106 1 F 1 4,1521 4,1521 Subject Total Act Inc (Policy Total: 6,878,859 Premium: 193,599 Losses: 178,709� 09-FLORIDA Firm ID: Firm Name: SEBASTIAN CITY OF Carrier: 31860 Pollcv No. FMIT0539 Eff Date: 10/01/2011 Exp Date: 10/0112012 I) Copyright 1993-2014. All rights reserved. This product is comprised of compilations and information which are the propheary and exclusive propertyof the National Council on 'onipensation Insurance. Inc. (NCCI). No further use, dissemination, sale, transfer, assgnmant or disposition of this product, in whole or in part, may be made without the prior written ,onsent of NCCI This product is furnished 'As is" As available* Wth all defects' and includes information available at the time of publication only. NCCI makes no representatons or varranties of any land relating to the product and hereby expressly disdarms any and all express, statutory, or implied warranties, including the implied warranty of merchantability. fitness Or a particular purpose, accuracy, completeness, currentness, or correctness of any information or product furnished hereunder. All responsiblity, for the use of and for any and all results lamed or obtained through the use of the product are the end users and NCCIshall not have any liability thereto. - Total by Policy Year of au cases $2000 or less U UiseaS8 LOSS A t:x-meuicai L.Overage U UZ11-W!" C Catastrophic Loss E Employers Liability Loss # Limited Loss Page 2 of 3 o Loss, :.'A6fI.n'c Act --rim. 5509 1 3,671 .291 525,7881 ...19,296 WC201212311 05 1 F 6,8641 6,8641 7403 1 2.13 .341 167,381 3,5651 1,2121 IWC201212249 05 1 F 11,3681 11,3681 7720 1 1.541 .331 2,079,8121 32,029 10,570 WC201212219 05 1 F 20,0611 13,500 8380 1 1.35 .37 119,8221 1,618 599 WC201212253 06 F 1 8391 8391 8810 1 .101 :40 1,611,8491 1,612 645 WC201212161 06 F 2,4361 2,4361 1 8820 1 .081 .371 99.3751 801 301 IWC201212124 106 1 F 1 2,5571 2,5571 9015 1.951 .401 105,7961 2,063 825 WC201212141 06 �06 F 4,369 _4,369 9060 .96H42 225,2231 2,162 908 IWC201212092 F 4,553 4,553 9102 1.76 1 . 40 476,3031 8,383 3,3531 1 1 9220 3.141 .371 63,4331 1,9921 73711 9402 1 3.321 .341 1,0251 34 121 9410 9765 1 9841 1.11 .401 520,5421 IWORKPLACE SAFETY C JDRUG FREE CREDIT 5,778 -1,604 -3,929 2,311 -5471 -i239 Subject JTotal Inc �Policy Total: 5,996,3491 Premium: 111,758I 11-ossesAct ; 53,047� I) Copyright 1993-2014. All rights reserved. This product is comprised of compilations and information which are the propheary and exclusive propertyof the National Council on 'onipensation Insurance. Inc. (NCCI). No further use, dissemination, sale, transfer, assgnmant or disposition of this product, in whole or in part, may be made without the prior written ,onsent of NCCI This product is furnished 'As is" As available* Wth all defects' and includes information available at the time of publication only. NCCI makes no representatons or varranties of any land relating to the product and hereby expressly disdarms any and all express, statutory, or implied warranties, including the implied warranty of merchantability. fitness Or a particular purpose, accuracy, completeness, currentness, or correctness of any information or product furnished hereunder. All responsiblity, for the use of and for any and all results lamed or obtained through the use of the product are the end users and NCCIshall not have any liability thereto. - Total by Policy Year of au cases $2000 or less U UiseaS8 LOSS A t:x-meuicai L.Overage U UZ11-W!" C Catastrophic Loss E Employers Liability Loss # Limited Loss Page 2 of 3 WORKERS COMPENSATION EXPERIENCE RATING OAV�121Risk Name: SEBASTIAN CITY OF Risk ID: 094007516 Rating Effective Date: 10/01/2014 Production Date: 07/01/2014 State: FLORIDA 09- FLORIDA Firm ID: Firm Name: SEBASTIAN CITY OF Carrier: 31860 Policv No. FMIT0539 Eff Date: 10/01/2012 Exp Date: 10/01/2013 5509 3,67 1 .29 546,5641 20,091 lye-, } 5,817 �J-C,41,16461 � -+� WC201312555 tlJ� tu1 05 dFAt F 1 nc �?yA rs's`"LOS BSr 2,0591 OSSBS 2,059 7403 2.13 .34 133,6821 2,847 968 WC201312634 05 O 14,103 13,500 7720 1 1.54 .33 2,087,7531 32,151 10,610 WC201312562 05 F 19,157 13,500 8380 1.35 .371 130,8861 1,7671 654 WC201312519 105 F 23,895 13,500 8810 8820 .10 1 .08 .40 .37 1,603,991 94,6451 1.6041 76 642 28 IWC201312673 WC201312703 05 05 101 O 31,175 57,125 13,500 13,500 9015 1.95 .40 110,482 2,154 862 WC201312552 05 O 76,500 13,500 9060 1 .96 .42 226,589 2,175 1 914 WC201312552 06 F 1,050 1,050 9102 1 1.76 .40 476,8931 8,3931 3,357 IWC201312600 06 F 4,094 4,094 9220 3.14 .37 63,7191 2,001 740 WC201312706 06 F 6,917 6,917 9410 1.11 .40 476,0251 5,284 2,1141 9765 WORKPLACE SAFETY C 1 -1,486 -50511 1 9841 1DRUG FREE CREDIT 1 -3,641 - 1,2381 Policy Total: 5,951,229IPremium: 204,514 ILos es: Inc 236,075 D Copyright 1893.2014, All rights reserved. This product is comprised of canpitatiorr and information which are the propridary and exclusive property of the National Council on :ompensation Insurance, Inc. (NCCI). No fuller use, dissemination, sale, transfer, asignment or disposition of this product, in whole or in part, my be made without the prior written onsent of NCCt This product is furnished 'As is' As available' Wth all defects and includes information available at the lime of publication only. NCCI makes no representations or oarranties of any kind relating to the product and herebyexpressly disclaims any and all express, statutory, or implied warranties, including the implied warranty of merchantability, fitness 3r a particular purpose, accuracy, completeness, currentness, or correctness of any information or product furnished tereunder. Al responsibttty for the use of and for any and all results lerived or obtained through the use of the product are the end user's and NCClshall not have any liability thereto. Tnial by Pmlicv Year of all rases $2000 or less D Disease Loss X Ex- Medical Coverage U USL84W C Catastrophic Loss E Employers Liablity Loss # Limited Loss Page 3 of 3 Cp EpGUE Cf CZA, r o z ei �i e Department of Insurance and Financial Services FLORIDA MUNICIPAL INSURANCE TRUST RENEWAL QUOTE FOR 2013 -2014 City of Sebastian FMIT 0539 Coverage Deductible Limit Premium General /Professional Liability $0 $1,000,000 $110,041 Automobile Liability $0 $1,000,000 $28,441 Automobile Physical Damage Per Schedule $10,812 Property $1,000 $27,743,560 $135,077 Workers' Compensation $0 Total Payroll Experience Modification 1.14 10/1/13 $5,694,145 $129,263 TOTAL NET PREMIUM $413,634 GRAND TOTAL PREMIUM $413,634 RETURN OF PREMIUM $31,386 REDUCED GRAND TOTAL PREMIUM $382,248 The FMIT Board of Trustees has approved a $8,000,000 return of premium for members that had property coverage in the 2011 -2012 Fund Year. The directive of the Board was to return property premium on the renewing members for 2013 -2014 that participated in the Trust's property program in 2011 -2012. Based on the property premiums paid in 2011 -2012 the City of Sebastian can expect $31,386 in return premium should they elect to renew coverage for the 2013 -2014 policy year. *Includes: Drug Free Credit: Yes Safety Credit: Yes dote: Coverage summaries provided herein are intended as an outline of coverage only and are lecessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and /or 'olicies will apply. CrFY OF HOME OF PELICAN ISLAND 1225 MAIN STREET • SEBASTIAN, FLORIDA 32958 TELEPHONE: (772) 589 -5330 • FAX (772) 589 -5570 August 25, 2011 Mr. John Ligon Account Executive Florida League of Cities, Inc. 125 East Colonial Drive Orlando, FL 32801 Dear Mr. Ligon: Re: City of Sebastian Request for Proposal /Workers' Compensation and Property Casualty, and Liability Insurances This is to advise that at its Regular City Council Meeting, held on Wednesday, August 24, 2011 members of the Sebastian City Council awarded Florida League of Cities the provider of Workers' Compensation Insurance and Property, Casualty and Liability Insurance, effective October 1, 2011. For the completion and execution of any necessary documents, please feel free to contact Administrative Services Director, Debra Krueger, at 772 - 388 -8202. We certainly appreciate you interest in the City of Sebastian and look forward to working with you. Sincerely, Jean M. Tarbell Executive Assistant QIY OF SEBASTMN HOME OF PELICAN HAND CITY OF SEBASTIAN AGENDA TRANSMITTAL Subject: Renewal of Property, Casualty, Agenda No. /U . U � C? Liability and Workers' Compensation Insurance Coverage FY 10/11 Department Origin: Administrative Services Administrative Services D' Ap rove for Submittal by: City Manager Finance Director: City Attorney: City Clerk: Date Submitted: June 15, 2010 Al Mi er, City Manager For Agenda o£ June 23, 2010 Attachments: Email from John Ligon, Florida League of Cities Tabulation of Preliminary Renewal Savings EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: N/A Included in 2010 -2011 N/A Proposed Annual Budget SUMMARY Effective September 30, 2010, the City's Property, Casualty, Liability and Workers' Compensation insurance contracts for the City will expire. Florida League of Cities has provided preliminary projections of a 5% reduction in property, liability and casualty insurance premiums and a minimum of 10% reductions in workers compensation premiums. The reduction in workers compensation premium is, in part, due to the favorable change in `Experience Mod Rate,' which is a direct result of closing outstanding claims and their associated reserves, coupled with employees awareness of safety. Over the past twelve (12) years, the City's experience with Florida League of Cities continues to be positive as they have taken a firm stand against fraudulent claims and have been successful settling difficult claims. By renewing with Florida League of Cities we are able to save valuable staff time and money by not participating in the RFP process this year, in addition to still receiving a 5 — 10% reduction in premiums, as well as the estimated dividend in the amount of $31,394. Additionally, we are beginning the process to have our property appraised to ensure we have a more accurate replacement value. Florida League of Cities will contribute approximately $2,500 of the estimated $5,500- $8,400 cost for this appraisal. Once the official premium rates have been received, the proposed contract will be submitted to Council for consideration. RECOMMENDED ACTION Move to waive competitive bid procedures and authorize staff to negotiate a one (1) year renewal of the Property, Casualty, Liability and Workers' Compensation Insurance contract with the Florida League of Cities. City of Sebastian - 2011 Workers Comp & PLC Renewal Rates Debbie Krueger From: John Ligon [JLigon @flcities.com] Sent: Monday, June 07, 2010 3:28 PM To: Debbie Krueger Cc: Kenneth Killgore Subject: RE: City of Sebastian - 2011 Workers Comp & PLC Renewal Rates Good afternoon Debbie, I will do my best to answer your questions below. Page 1 of 2 1. The trustees met this past weekend to approve the new rates for 2010 -2011 and if all goes well with the programming of the new rates I anticipate being able to have the renewal by the time you have requested. Most rates will be down this year for the various lines of coverage. Many factors go into the rating process such as changes in exposures, experience mod changes, payrolls etc. We have not received renewal package from the City as of today which would give us the projected payrolls for next so please provide this information before July 1. If I had to have a number for a preliminary budget I would take the City's premium of roughly 410,000 and subtract 5 %. However I believe in looking at the favorable change in the W/C mod the overall renewal will be down 10% and could be more. In addition to the premium reduction the FMIT will pay another dividend this year which should be around the same as last year which for the City was $31,394. The dividend is larger this year but premiums continue to fall and the dividend is a % of the premium for property coverage. I will be able to provide this number before I have the renewal and will let you know as soon as I receive it. 3. Yes, Most of our members use the following companies. They are based out of state but have adjusters in Florida. I would estimate the cost of your schedule between $5500 -$6500 and the FMIT can assist with a portion of the cost. We can pay around $50.00 per building which would be around $2500 when you adopt the appraisal. I would plan to accomplish this in the next fiscal year because I could not meet the deadline of July 15, 2010 for this year if you make changes. We can discuss further the timing. Assets Works Shaun Callahan 4955 Steubenville Pike Suite 401 Pittsburgh, PA 15205 T= 412 - 809 -0660 F= 412 - 809 -0777 Shaun.callahan@assetworks.com American Appraisal Lori Flemming 8833 Westmoreland Lake drive Cornelius, NC, 28031 T = 704 - 439 -2515 F = 704 - 439 -0384 Flemming @american - appraisal.com All you need to do to get a quote is to email your property schedule which I will forward and ask them to a quote and you will have an answer very soon. Debbie, indications that I am hearing is this will be another good renewal this year. The FMIT understands the difficult budgets Cities are facing this year and will make every effort to help reduce the insurance cost which is a large budget item for most cities. I will keep you posted as we get closer to July 1st Have a great afternoon, John 6/15/2010 W� 67y o' I W W a� d' A� I I O I z ro � N a° O �a zW a U z� w o aw a '-+ N kr) ONO - 1,0 I'D N N M L � a Goq 0.I sue, A, O � 00 ONO dam' N 00 M N O 00 M rq M L � Ua � Os 00 l- M O tn �. •--� M N M C� �' N Q N N N M CSI M 04 0.I sue, A, O � 00 ONO dam' N 00 M N O 00 M rq M L � Ua � Os V) E 0 o,c°-A a��,,, o t -� � � N H Q � cd c o 0 00 v cd N o N coq U Eb czj Cd w y o c Op t O E N .r M O cn N M p N c C' y O y � N U -� Un o rn °° 0 ed 00 E 0000` o a s s app E .� O N N N U bA r+ U N > � O p o o a� o a U U o w el N O p, U Q ;..4 C7 a 3 ti F� V) E 0 o,c°-A a��,,, o t -� � � N H Q � cd c o 0 00 v cd N o N coq U Eb czj Cd w y o c Op t O E N .r M O cn N M p N c C' y O y � N U -� Un o rn °° 0 ed 00 E 0000` o a s s app E .� CM Of SEBAST HOME Of PELICAN ISLAND CITY OF SEBASTIAN AGENDA TRANSMITTAL Subject: Renewal of Property, Casualty, Agenda No. Oq . 2--7 Liability and Workers' Compensation Insurance Coverage FY 09/10 Dep rtment Origin: Administrative Services Approve for Submittal by: City Manager City Attorne . City Clerk: Date Submitted: August 18, 2009 For Agenda of. August 26, 2009 P)Virller, City Manager Attachments: Exhibit A - Tabulation of Renewal Savings Florida Municipal Insurance Trust Proposal for 2009 -2010 EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: N/A Included in 2009 -2010 N/A Proposed Annual Budget SUMMARY Effective September 30, 2009, the City's Property, Casualty, Liability and Workers' Compensation insurance contracts for the City will expire. Florida League of Cities has provided attractive renewal rates for the fiscal year 2009/2009 through the Florida Municipal Trust Fund, realizing a savings of $64,475. The detailed renewal rates and the Florida Municipal Insurance Trust proposal are attached for review. Over the past eleven (11) years, the City's experience with Florida League of Cities continues to be positive as they have taken a firm stand against fraudulent claims and have been successful settling difficult claims. By renewing with Florida League of Cities we are able to save valuable staff time and money by not participating in the request for proposal process this year, in addition to still receiving a substantial decrease in premiums in the amount of $35,252, as well as the dividend declared in the amount of $29,221. RECOMMENDED ACTION Move to waive competitive bid procedures and authorize a one (1) year renewal of the Property, Casualty, Liability and Workers' Compensation Insurance contract with Florida League of Cities for an additional one (1) year term. - N -� � �10 01 zz M Vi G N N N O � N •-i O1 •--� N 01 � N O � O � � O w H � W - N 00 ONO IT N N O O N C� N N M � 00 rn 00 00 M N �lc O N r a ds GM 0000 � -� � �10 01 N M Vi G N N N � N •-i O1 •--� N 01 � N O N 00 ONO IT N N O O N C� N N M � 00 rn 00 00 M N �lc O N r a ds GM 0000 � � r- 00 M M 000 Z Zt a G bn 0 CIS o � o en °o O cd c� N •� O a O N O U � O cj a� 00 F.U., to -C3 69 cn cn > sm. cd U Q. C's a� N kn C1 U 0 N � eC v Cd i H O Cd ' O N N Cd p � +- . bn 0 CIS o � o en °o O cd c� N •� O a O N O U � O cj a� 00 F.U., to -C3 69 cn cn > sm. cd U Q. C's a� N kn C1 U FLORIDA MUNICIPAL INSURANCE TRUST Proposal for 2009 -2010 City of Sebastian FMIT 0539 Liability Coverages - Comprehensive General Liability Police Professional Liability - Public Officials E & O /Employment Practices Liability Automobile Coverage - Comprehensive Automobile Liability - Personal Injury Protection (PIP) - Automobile Physical Damage Workers' Compensation - Employers' Liability - Total Payroll: Experience Modification - Effective Date - Drugfree Workplace Credit - Safety Credit Property Coverage - Total Real & Personal Property - Windstorm /Hail Deductible - Agreed Amount: - Coinsurance: - Valuation Basis: Coverage Form: - Blanket or Specific Miscellaneous Coverages - Electronic Data Processing - Equipment: - Software: - Equipment Breakdown - Inland Marine DEDUCTIBLE LIMIT NET PREMIUM $10,000 $1,000,000 $28,701 $10,000 $1,000,000 $34,170 $10,000 $1,000,000 $18,148 Total $81,019 $10,000 $1,000,000 $23,671 $10,000 $10,000 Included Comprehensive $1,000 n/a $7,610 Collision $1,000 n/a Included Total $31,281 $1,000,000/$1,000,000/$1,000,000 $168,246 $7,103,950 $0 STATUTORY 1,090 1011109 Yes Yes * Requires receipt of approved applications $25,000 $22,601,558 $126,982 (See important note under the Property Coverage section) No 100% Replacement Cost Special Specific Included In Contents Included Included In Contents Included Included In Contents Included Yes Per Schedule $1,549,635 Included Note: Items valued greater than $50,000: Deductible is either the listed 1 - Inland Marine - Blanket Coverage - Crime /Bonds Coverages - Money and Securities - - Robbery or Safe Burglary - Computer Fraud - Depositors' Forgery - Bond Type* Honesty Blanket Bond amount or 2% of the limit. (Whichever is greater) Yes $500 Items under $15,000 Included Loss Inside: $1,000 $50,000 Included Loss Outside: $1,000 $50,000 Included None n/a n/a $1,000 $50,000 Included $1,000 $50,000 Included $1,000 $100,000 Included *Certain Officers and Subordinates are excluded automatically from coverage by the terms of the designated Blanket Bonds: t. All Coverages -Finance Directors, Treasurers and Tax Collectors by whatever title known. 2. Faithful Performance Coverages -Personnel required bylaw to furnish an individual bond to qualify for office (Policemen excluded) - 3. Honesty Coverages - Personnel required by law to give bond for faithful performance duties. TOTAL ANNUAL EMIT PREMIUM $407,528 tIGIROI Tory k NO F I FCiNG CONTAINED �ltliTFiEN Tf�19 0-OTf; t5 C TVTiwIUIL' Ailwq C f i�ACi @ B I IF AMY OF FtL LINES dl" CO't�RR1i3i✓ �RE1�f4T ACC( t'-TFp FRICEN FE3R THE M*1. RR I_If�1 �E GNU > 1G.5.' Nk/k1f GFiAE1 R COVERAGE OFF7= INGS;Oi� T IAN= IflfiV fiNf3Rf�1NN RI�TSIwTHI THIS FM1T FZI SERVES THE`RIGHT, T�?:$�'I�L�C VERAGO . TFfEIR; kSCR1.?IO ! t AD I`IS" I RICII� I Elk > N$C5SSAI ... THE FOLLOWING COVERAGE(S) ARE BILLED SEPARATELY ON AN ANNUAL BASIS AND WILL NOT BE INCLUDED IN THE QUARTERLY INSTALLMENT INVOICE FOR THE FMIT: GRAND TOTAL PREMIUM RETURN OF PREMIUM REDUCED GRAND TOTAL PREMIUM $407,528 ($29,2231 $378,305 The FMIT Board of Trustees has approved an $8,000,000 return of premium for members in good standing that had property coverage in the 2007 -2008 Fund Year. The directive of the Board was to return property premium on renewing members that participated in the Trust's property program in 2007 -2008. Our intent is to establish a formula that would return premium on a pro -rata basis once the 2009 -2010 renewals are finalized. A check will be issued in mid - November 2009 or a credit can be taken on the 2009 -2010 second installment payment which will be billed in early December and due on January 1, 2010. A preliminary calculation has been made to establish a minimum amount the member can expect to be used for budget purposes. Based on the property premiums paid in 2007 -2008 the City of Sebastian can expect at least $29,223 in return premium should they elect to renew coverages for the 2009 -2010 policy year. 2 , Y 10� 001V Debbie Krueger From: Jim McGinn [JMcGinn @flcities.com] Sent: Tuesday, July 15, 2008 3:21 PM To: Debbie Krueger Subject: RE: 0539 City of Sebastian - Renewal Documentation Debbie, Not this year. It is just a regular renewal. Thank you. Jim - - - -- Original Message---- - From: Debbie Krueger [ mailto :dkrueger @cityofsebastian.org] Sent: Tue 7/15/2008 2:51 PM To: Jim McGinn Cc: Subject: RE: 0539 City of Sebastian - Renewal Documentation Are we expected to do sign anything ?? Debra Krueger, CGFO City of Sebastian Human Resource Director Telephone #772- 388 -8202 Fax #772- 388 -8247 email address: dkrueger @cityofsebastian.org - - - -- Original Message---- - From: Jim McGinn [mailto:JMcGinn @flcities.com] Sent: Tuesday, July 15, 2008 2:47 PM To: Debbie Krueger Subject: 0539 City of Sebastian - Renewal Documentation Debbie, If you have an questions please give me a call. Thank you. Jim 407.257.8060 - - - -- Original Message---- - From: Debbie Krueger [ mailto :dkrueger @cityofsebastian.org] Sent: Thu 7/10/2008 8:42 AM To: Jim McGinn Cc: Kenneth Killgore Subject: City of Sebastian - Renewal Documentation Hi Jim When get we expect to receive the renewal paperwork for workers comp and PCL? We would need to have council approve and I was trying to schedule when we could present it. 1 Thank you for your assistance. Debra Krueger, CGFO City of Sebastian Human Resource Director Telephone #772- 388 -8202 Fax #772- 388 -8247 email address: dkrueger @cityofsebastian.org CITY OF SE HOME OF PELICAN ISLAND 1225 MAIN STREET • SEBASTIAN, FLORIDA 32958 TELEPHONE: (772) 589 -5330 • FAX (772) 589 -5570 August 22, 2007 Mr. Jim McGinn, CPCU Account Executive Florida League of Cities, Inc. 125 Colonial Drive Orlando, FL 32801 Dear Mr. McGinn: This is to advise that at the Regular City Council Meeting held on Wednesday, August 22, 2007 members of the Sebastian City Council awarded Florida Municipal Insurance Trust the City's Workers' Compensation Insurance Program for fiscal year 2007/2008 in the amount of $245,557.00. City of Sebastian Human Resources Director, Debra Krueger, will be contacting you within the next few days to coordinate and finalize execution of the 2007/2008 Workers' Compensation Insurance Program. We appreciate your interest and look forward to working with the Florida League of Cities Sincerely, Jean M. Tarbell Executive Assistant cc: Sally Maio, CMC �: ` Debra Krueger, Human Resources Director