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VILLAGE OF TEQUESTA
AGENDA ITEM TRANSMITTAL FORM
1. VILLAGE COUNCIL MEETING:
Meeting Date: Meeting Type: Regular Ordinance #: Click he e to eater text.
August 5, 2010
Consent Agenda: No Resolution #: Click here to enter text.
Originating Department: Human Resources
2. AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Approval for the renewal of a 1 -year agreement with the Florida Municipal Insurance Trust (FMIT) for Property,
Liability, Automobile and Workers' Compensation
3. BUDGET / FINANCIAL IMPACT:
Account #: Various Amount of this item: $290,607, inclusive of 5% in broker fees,
and an additional $1,400 for premium increases for new autos
Amount Budgeted for 2010/11: Amount Remaining after item: N/A
N/A
Budget Transfer Required: No Appropriate Fund Balance: No
4. EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item)
Consideration and approval of $290,607 for Property and Casualty Insurance.
5. APPROVALS:
r
Dept. Head: Finance Director:
Attorney: (for legal sufficiency) Yes ❑ No E]
Village Manager: �—
• SUBMIT FOR COUNCIL DISCUSSION:
• APPROVE ITEM: /Q
• DENY ITEM: ❑
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Village of Tecluesta
Memo
To: Michael R Couzzo, Jr., Village Manager
From: Merlene Reid, HR Director A
Date: July 26, 2010
Re: Property & Casualty Insurance Renewals 2010/11
1 have attached Florida Municipal Insurance Trust (FMIT) Property and Casualty
Evaluation schedule which shows a decrease in insurance premiums (inclusive of
5% broker fees) from $312,457 in FY2009/10, to $289,207 ( -7.4 %) for the upcoming
2010/11 Fiscal year (Exhibit A). This schedule includes Workers' Compensation,
Automobile, Property and Liability insurance, including law enforcement and
employment practices liability.
In addition to the premium of $289,207 outlined, a further $1,400 is being requested
to cover the anticipated increase in automobile premium due to the anticipated
purchase of new trucks in the Police and Water Distribution departments at the start
of the new fiscal year, making a total of $290,607.
The Village's decision to only insure properties in excess of $100,000 continues to
help keep property insurance premiums low. Additionally, the Village retains its 7%
credit for actively maintaining its Safety program (2 %) and enforcing its drug free
work place policy (5 %).
Please note that for FY2009/10, FMIT will be making a Return of Premium Credit of
$19,501.00 on the property insurance; 33% more than the total of $14,657 refunded
for FY2008/09.
It is recommended that the Village renews the 2010/11 insurance with the Florida
Municipal Insurance Trust (FMIT).
VILLAGE OF TEQUESTA GEHRING AGROUP
FMIT PROPERTY & CASUALTY EVALUATION
2010 -2011 FISCAL YEAR
Current Renewal
Fl orida Muncipal Insurance Trust Florida Municipa
2 2010-2011 % Change
Co T Deduc 'ble F: Liab'1" , Limits . u r "p Dedu Li ` _� ._
Pro perty $ 100,000 $ 15,236,352 $ 61,021 $ 10 $ 15, 236,352 $ 61,261 0.4%
Included in FMIT Included in FMIT
Inland Marine $ 500 Per Schedule Premium $ 500 Per Schedule Premium
General Liability $ 2,500 $ 2 $ 38,592 $ 2,500
_ $ 2,000,000 $ 33,947 -12.0%
Public Official Liability &
Employment Pra ctices Liability $ 2,500 $ 2,000,000 $ 24,40 $ 2,500 $ 2,000,000 $ 24,874 1.9%
Law Enforcement Liability $ 2,500 $ 2,000,000 $ 19,333 $ 2,500 $ 2,000,000 $ 24,121 24.8%
Auto Liability $ 2,500 $ 2,000,000 $ 20,80 $ 2, 500 $ 2,000,000 $ 20,886 0.4%
Personal Injury Protection N/A $ 10,000 N/A $ 10,000
Medical Payments N/A $ 5 N/A / $ 5,000
Physical Damage Comprehensive
Coverage $ 1,000 Per Schedule $ 4,44 $ 1,000 Per Schedule .
$ 4,694 5.6/0
Physical Damage Collision Coverage $ 1,000 Per Schedule Included $ 1,000 Per Schedule Included
Workers' Compensation
Experience Modification Factor 1.07 Payroll 0.98 Payroll
$ 5,746,847 $ 128,979 $ 5,323,287 $ 105,652 -18.1%
Total Annual Premium: $ 297,578 $ 275,435
Service Fee: $ 14,879
$ 13,772
Total Net Premium: $ 312,457 $ 289,207 - 7.44%
Return Of Premium Credit" $ (14,657) $ (19,501)
Adjusted Total Annual Premium: $ 297,800 $ 269,706
$ Increase or Decrease: N/A $ (28,094) - 9.43%
Increase or Decrease: N/A -9.43%
Gehring Group receives a 5% Service Fee on all FMIT products
*Windstorm Deductible is 5% of the Total Insured Value Per Building Per Occurrence, subject to policy deductible, whichever is greater
* *Return of Premium Credit Minimum $19,501. Credit will be applied towards 2nd installment billing.
ii Village of Tequesta
Property & Casualty &
Workers' Compensation
Renewal Recommendation
Effective Date: October 1, 2010
Based upon the soft market conditions over the last 3years, the increase in insurer capacity and
the premium reductions experienced in the property and casualty marketplace, the Gehring
Group recommends that the Village of Tequesta renew their property and casualty insurance
program with the Florida League of Cities /Florida Municipal Insurance Trust effective October
1, 2010. The Florida League of Cities is presenting a reduction in the overall renewal premium,
along with a return of premium credit being offered to Trust members which placed their
property coverage with the FMIT during FY 08/09. The Village of Tequesta will realize a
savings of ($25,091) from the expiring program, which includes a minimum return of premium
credit of ($19,501).
As such, the Village's incumbent carrier provided a renewal quotation for fiscal year 2010/2011,
a review of the quotations received is included in the analysis below.
PROPERTY, INLAND MARINE, GENERAL LIABILITY, PUBLIC
OFFICIALS LIABILITY, LAW ENFORCEMENT LIABILITY and
AUTOMOBILE
The incumbent provider for Property, Inland Marine, General Liability, Law Enforcement and
Automobile coverage is the Florida Municipal Insurance Trust (FMIT) administered through the
Florida League of Cities. The FMIT property renewal quotation is $61,261 based upon an
expiring Total Insured Value (TIV) of $15,236,352. The renewal quotation represents a .4%
increase from the expiring program for FY 09/10. Inland Marine, which provides coverage for
items such as heavy equipment, generators, miscellaneous equipment and antiques and objects of
art is included in the FMIT property quotation. The overall renewal quotation represents a
Increase in premium of $240.00 at the expiring deductible of $100,000 for All Other Perils. The
Windstorm deductible remains unchanged at 5% of the Total Insured Value per building, per
location, subject to the policy deductible.
GEHR.ING P
FMIT, as the incumbent provider for General Liability, Public Officials Liability/Employment
Practices Liability and Law Enforcement Liability, offers a renewal quote of $82,942 a 0.7%
increase from the current year's premium of $82,327. FMIT also offers a renewal quotation for
Automobile Liability of $20,886, an increase of .4% from the expiring premium of $20,807.
FMIT also provided a renewal quotation for Automobile Physical Damage at $4,694, an increase
of 5.6% from the expiring premium of $4,444. The renewal premiums plus the minimum return
of premium in the above lines of coverage equate to a savings of $28,861 to the Village of
Tequesta.
WORKERS' COMPENSATION
FMIT is also the incumbent carrier for the Village's workers' compensation program. As such,
it has provided a renewal quotation of $105,652 a decrease of 18.1% from the expiring premium
of $128,979. This decrease stems from reductions from class code rates and from the experience
modification factor at .98 The FMIT continues to offer the Village the standard credits for
maintaining and enforcing a Drug Free Workplace (5 %) and Safety Program (2 %).
SUMMARY
• The Gehring Group recommends that the Village of Tequesta place its Property,
Inland Marine, General Liability, Law Enforcement Liability, Automobile, Public
Officials and Workers' Compensation coverage with the FMIT for a combined
premium of $289,207. This recommendation represents an overall decrease to the
Village of 7.67% from the expiring premiums. If coverage is renewed through the
FMIT, a minimum return of premium credit of $19,501 can be applied towards the
initial payment or applied against the 2" installment payment.
The Gehring Group provides the above recommendations based upon information supplied to
our office. The Council will be fully advised of any changes in the recommendation at the
August 5, 2010 Council meeting.
GEH G RC�LTF
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Reid, Merlene
From: Trela White [trela @corbettandwhite.com]
Sent: Monday, July 26, 2010 1:22 PM
To: Reid, Merlene
Subject: RE: FMIT Property, Casualty & Worker's Comp Insurance Renewals 2010 -11
Hello Merlene,
You have informed me that there were no limitations with regard to Renewals on the above referenced insurance
agreements; thus, that being the case, this proposal would meet legal muster.
Thanks,
Trela
From: Reid, Merlene [mailto:mreid @tequesta.org]
Sent: Monday, July 26, 2010 10:55 AM
To: Forsythe, Jody; trela @corbettandwhite.com
Cc: McWilliams, Lori; Couzzo, Michael; Gload, Michelle
Subject: FMIT Property, Casualty & Worker's Comp Insurance Renewals 2010 -11
Jody,
I'll get the originals to you in a few minutes for your approval. Our brokers received the final numbers on Friday and I'm
trying to get it on the Agenda today.
Trela,
Please check for legal sufficiency. Thanks
Merlene
Merlene Reid, SPHR
Human Resources Director
Village of Tequesta
345 Tequesta Drive
Tequesta, FL 33469 -3062
Tel: (561) 575 -6200 x256
Fax: (561) 575 -6203
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