HomeMy WebLinkAboutDocumentation_Regular_Tab 04_08/11/2011 �
VILLAGE OF TEQUESTA
" AGENDA ITEM TRANSMITTAL FORM
1. VILLAGE COUNCIL MEETING:
Meeting Date: Meeting Type: Regular Ordinance #: L'���: i�e�°e 'c �Y'2r ?exr
August 11, 2010
Consent Agenda: Yes Resolution #: �'i+ck here te �n`er t;x�.
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: $307,552, inclusive of 5% in broker fees, in
addition to $1,000 for premium increases for new autos.
Amount Budgeted for 2011/12: 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 $308,552 for Property and Casualty Insurance for FY2011/12.
5. APPROVALS:
� ��
Dept. Head: � Finance Director: (
Attorney: (for legal sufficiency) ��i���G� �`�' Yes ❑ No ❑
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Village Manager: —°"'" ���°`�'`�—
• SUBMIT FOR COUNCIL DISCUSSION: �
�
• APPROVE ITEM: ❑
• DENYITEM: �
• • • •
Memo
To: Michael R Couzzo, Jr., Village Manage
From: Merlene Reid, HR Director ��
Date: August 3, 2011
Re: Property & Casualty Insurance Renewals 2011/12
I have attached the Florida Municipal Insurance Trust (FMIT) Property and Casualty
Evaluation schedule, prepared by our Brokers, The Gehring Group, which shows a 6.3%
increase of $18,345.00 in insurance premiums (inclusive of broker fees), up from $289,207
in FY2010/11, to $307,552 for the upcoming 2011/12 Fiscal year (Exhibit A).
The increase is due to the following reasons:
$ Difference Reason
Workers $12,241 . During FY2009/10 we had 1 large claim which pushed our exp rating
Compensation from .98 to 1.
• Overall a oll increase of a roximatel 3%
General $1,439 1 Trip & Fall reported in FY2009/10
Liabili
Auto Physical $2,139 1 large open claim in FY 2009/10 ($36,034 incurred to date)
Dama e
Law $2,692 Addition of 10 Reserve Officer positions
Enforcement
Liabili
Public Official $2,994 There were no claims in this area and we are awaiting an explanation from
Liabil� the Lea ue in res ct of this increase
Savings of $4,033 in Property and Auto liability helped to offset some of the increases in the
other areas.
In addition to the premium of to $307,552 outlined, a further $1,000 is being requested to
cover the premium for 1 new car in the Police department and 1 truck in Public Works,
making a total of $308,552.
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 a total of 7% credit
for actively maintaining its Safety program (2%) and enforcing its drug free work place policy
(5%).Please note also that the Village will receive a minimum refund of premium of $15,839
in the 2" quarter of this year.
Based on the foregoing analysis, It is my recommendation that the Village renews the
2011/12 insurance with the Florida Municipal Insurance Trust (FMIT).
Reid, Merlene
From: Keith Davis [KeithCa3corbettandwhite.com]
Sent: Wednesday, August 03, 2011 3:06 PM
To: Reid, Merlene
Subject: RE: AGENDA ITEM
Merlene:
Reviewed and approved for legal sufficiency.
From: Reid, Merlene [mailto:mreid@tequesta.org]
Sent: Wednesday, August 03, 2011 11:38 AM
To: Forsythe, Jody
Cc: McWilliams, Lori; Gload, Michelle; Keith Davis
Subject: AGENDA ITEM
Jody,
Original has been sent over to you for your signature.
Keith — can you review for legal sufficiency. Thanks
Merlene
Merlene Reid, M.S., SPHR
Human Resources Director
Village of Tequesta
345 Tequesta Drive
Tequesta, FL 33469-3062
Tel: (561 J 768-0415
Fax: (561J 768-0697
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VILLAGE OF TEQUESTA `+ ' u P
FMIT PROPERTY & CASUALTY EVALUATION GEIIRI�'TG��GROU
2011-2012 FISCAL YEAR
.. ..
� � � � �
Co Type Deductible Liability Limlts Premium Deductible �iabllity Limits Premiu
Property $ 100,000 $ 15,236,352 $ 61,261 $ 100,000 $ 15,236,352 $ 58,451 -4.6%
*5%TIV Wind � *5%TIV Wind
Deductible Deductible
Included in FMIT Included in FMIT
Inland Marine $500/$5,000 Per Schedule Premium $500/$5,000 Per Schedule Premium
G Liability $ 2,500 $ 2,000,000 $ 33,947 $ 2,500 $ 2,000,000 $ 35,386 4.2�
Public Official Liability &
Employment Practices Liability $ 2,500 $ 2,000,000 $ 24,874 $ 2,500 $ 2,000,000 $ 27,868 12.0%
Law Enforcement Liability $ 2,500 $ 2,000,000 $ 24,121 $ 2,500 $ 2,000,000 $ 26,813 11.29�
Auto Liability $ 2,500 $ 2,000,000 $ 20,886 $ 2,500 $ 2,000,000 $ 19,663 - 5.9%
- - - _
Personal Injury Protection N/A $ 10,000 N/A $ 10,000
Medical Payme N/A $ 5,000 N/A $ 5,000
Physical Damage Comprehensive
Coverage $ 1,000 Per Schedule $ 4,694 $ 1,000 Per Schedule $ 6,833 45.6%
Physical Damage Collision Coverage $ 1,000 Per Schedule Included $ 1,000 Per Schedule Included
Workers' Compensation
Experience Modification Factor 0.98 Payroll 1. 00 Payroll
$ 5,323,287 $ 105,652 $ 5,898,535 $ 117,893 11.6%
Total Annual Premium: $ 275,435 $ 292,907
Service Fee: $ 13,772 $ 14,645
Total Net Premium: $ 289,207 $ 307,552 63%
Return Of Premium Credit** $ (19,501) $ (15,839)
Adjusted Total Annual Premium: $ 269,706 $ 291,713
$ Increase or Decrease: N/A $ 22,008
% Increase or Decrease: N/A 8.2/
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 greatei
**Return of Premium Credit Minimum $15,839. Credit will be applied towards 2nd installment billing.
Actual 2010/2011 ROP credit received 6y Tequesta was $20,422.
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' Village of Tequesta
� � �'�� � � Property & Casualty &
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��'�4�: �� � Renewal Recommendation
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Effective Date: October 1, 2011
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 Florida League of Cities is presenting a return of premium credit
to Trust members which placed their property coverage with the FMIT during FY 09/10. The
Village of Tequesta will realize a savings of a minimum return of premium credit of ($15,839).
PROPERTY, INLAND MARINE, GENERAL LIABILITY, PUBLIC
OFFICIALS LIABILITY, LAW ENFORCEMENT LIABILITY
The FMIT property renewal quotation is $58,451 based upon an expiring Total Insured Value
(TIV) of $15,236,352. The renewal quotation represents a 4.6% decrease from the expiring
program for FY 10/11. The overall renewal quotation represents a decrease in premium of
$2,810.
As the incumbent provider for General Liability, Public Officials Liability/Employment
Practices Liability and Law Enforcement Liability, FMIT is offering renewal quotes of $35,386
for the General Liability coverage, $27,868 for the Public Officials Liability and $26,813 far the
Law Enforcement Liability. The collective liability premiums come to $90,067 an increase of
8.6% versus the current collective liability premiums of $82,942. The increase in premium is
primarily attributed to the addition of 11 employees to the Law Enforcement liability coverage.
The Gehring Group has also inquired into the increase to the Public Officials Liability coverage.
Gehring Group will provide an update at the scheduled Council Meeting to review the Property
and Casualty renewal program.
AUTO LIABILITY and AUTO PHYSICAL DAMAGE
FMIT also offers a renewal quotation for Automobile Liability of $19,663, a decrease of 5.9%
from the expiring premium of $20,886. FMIT also provided a renewal quotation for Automobile
Physical Damage at $6,833, an increase of 45.6% from the expiring premium of $4,694. The
increase in the Auto Physical Damage coverage is due to a currently open auto accident claim
that has incurred approximately $36,033 as of May 31, 2011.
WORKERS' COl�TPENSATION
FMIT is also the incumbent carrier for the Village's warkers' compensation program. As such,
it has provided a renewal quotation of $117,893 an increase of 11.6% from the expiring premium
of $105,652. This increase is ariributable to the Village's increased payroll estimate and the rise
of the experience modification factar from .98 to 1.00. Gehring Group and Village staff
continues to monitor claims and engage FMIT Workers' Compensation adjusters while
maintaining an active and ongoing Safety and Loss program.
G�IIRING,�GROUP
STATUTORY ACCIDENTAL DEATH & DISMEMBERMENT
The Hartford is the incumbent carrier far the Village of Tequesta's Statutory Accidental Death
and Dismemberment insurance program. The Hartford offered a 2-year pre-paid renewal of
$4,270, an increase of 10% versus the expiring 2-year prepaid premium of $3,882. The Gehring
Group requested alternative proposals from several carriers and were able to secure a proposal
from Chubb that provides an enhancement to several benefits while offering an annual premium
of $1,797, a decrease of 53.7%.
S UMiVIARY
• 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 while renewing with
the incumbent carriers of it's other ancillary, except for the Statutory AD&D through
the Hartford. The Gehring Group recommends that the Village accept the Statutory
ADBtD proposal from Chubb. The overall premium for the Village of Tequesta's
2011/201property and casualty insurance program, including the FMIT Minimum
Return of Premium Credit, is $295,557 an increase of 6.8% versus the expiring
program cost of $276,825.
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 1 l, 2011 Council meeting.
G�IIP�ING,�(�ROUP