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Home My WebLink AboutDocumentation_Regular_Tab 06_08/14/2014 VILLAGE CLERK'S OFFICE AGENDA ITEM TRANSMITTAL FORM Meeting Date: Meeting Type: Regular Ordinance #: 8/14/2014 Consent Agenda: No Resolution #: Originating Department: Human Resources 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 BUDGET / FINANCIAL IMPACT: Account #: Various Amount of this item: $337,059 Current Budgeted Amount Available: Amount Remaining after item: N/A N/A Budget Transfer Required: No Appropriate Fund Balance: No EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda item) Consideration and approval of $337,059 for Property and Casualty Insurance for FY2014/15. APPROVALS: SIGNATURE: Department Head Finance Director � Reviewed for Financial Sufficiency � /'� /�� ✓ L.� , : , No Financial Impact ❑ __. __,: _.._,; �� Attorney: (for legal sufficiency) See attached Village Manager: �--=�-f�� Submit for Council Discussion: [� Approve Item: ❑ Deny Item: � SPECIAL INSTRUCTIONS FOR CLERK: ('rf you wish to have agreements signed, be sure to include the number of copies you want signed and place "Sign Here" sticker on them) Form Amended: 10/20/11 . � • Memo To: Michael R Couzzo, Jr., Village Manager �%;i'/!. �'' From: Merlene Reid, HR Director ; f � / �' Date: August 4, 2014 Re: Property & Casualty Insurance Renewals 2014/15 I have attached the Florida Municipal Insurance Trust (FMIT) Property and Casualty Evaluation schedule which was prepared by our Brokers, The Gehring Group. It shows a decrease of $5,240 in insurance premiums (inclusive of broker fees), down from $337,299 in FY 2013/2014 to $332,059 for the 2014/15 Fiscal Year (Appendix 1). The costs of insurance (properry, automobile, and workers compensation) provided a substantial savings from the current program, which helped to offset increases in our liability coverages. For fiscal year 2014/2015, the Village will realize a savings of 15% in our workers compensation insurance, for a savings of $23,040. With prior years claims being removed from the calculation, our experience modification factor is the lowest it has been since fiscal year 2010/2011 (a decrease from 1.18 in 2013/14 to .98). The renewal proposal includes general liability increase of $2,990 (8.9%), public officials/ employment practices liability increase of $8,061 (25.2%), and law enforcement liability practices increase of $6,544 (21.4%). These lines of coverage are comprised of a few open liability claims, one of which dates from fiscal year 2010/2011 in which the Trust has maintained a high reserve level. The Gehring Group continues to work with the Village and the Trust to close these claims as quickly as possible, thereby reducing our exposure level. The Village continues to receive a total of 7% credit for actively maintaining its Safety program (2%) and enforcing its Drug Free Workplace policy (5%). We will also receive a minimum Return of Premium Credit of $11,126, payable in the second quarter of the new fiscal year. In addition to the total premium of $332,059 outlined above, a further $5,000 is being requested to cover the anticipated premium for the 11 new vehicles budgeted across the police, public works and water departments (Appendix 2) making a total of $337,059. Based upon the foregoing analysis, I am recommending the Village renew the 2014/15 insurance program with the Florida Municipal Insurance Trust. VillageofTequesta G�HRING �GR�UP Property, Casualty & Workers Compensation Insurance I N 3 U R A N C F Y R O N f R S I . C O N 5 V l T 11 N T S 2014 / 2015 Renewal Evaluation FMIT Renewal - _ � -;� .. , Coverage Type Current Carrier Deductible Ltmits Premium Proposed Carrier Deductible Liabllity Limib Premlum ___ _- - Property , FMIT $ 100,000 $ 15,851,352 $ 60,651 FMIT $ 100,000 $ 15,851,352 $ 60,636 0.0% *5%TIV Wind *5%TIV Wind Deductible Deductible Inland Marine I FMIT $500/$5,000 Per Schedule Included in FMIT $500/$5,000 Per Included in Premium Schedule Premium General Liability FMIT $ 2,500 $ 2,000,000 $ 33,654 FMIT $ 2,500 $ 2,000,000 $ 36,644 8.9% Public Official Liability & FMIT $ 2,500 $ 2,000,000 $ 31,995 FMIT $ 2,500 $ 2,000,000 $ 40,056 25.2% Employment Practi L Law Enforcement Liability FMIT $ 2,500 $ 2,000,000 $ 30,641 fMIT $ 2,500 $ 2,000,000 $ 37,185 21.4� Auto Liability I FMIT $ 2,500 $ 2,000,000 $ 19,336 FMIT fi S 2,500 $ 2,000,000 $ 20,358 5.3% � �� _- - -- - - Personal Injury Protection N/A $ 10,000 I Included in � N/A I$ 10,000 Included in Premium Premium Medical Payments N/A $ 5,000 Included in N/A $ 5,000 Included in Premium Premium Physical Damage FMIT $ 1,000 Per Schedule $ 6,182 FMIT $ 1,000 Per $ 5,378 -13.0% Comprehensive Coverag Schedule Physical Damage $ 1,000 Per Schedule Included in $ 1,000 Per Collision Coverage Premium Schedule Workers' Compensation FMIT $ 154,841 FMIT $ 131,801 -15% Experience Modification Factor 1.13 0.93 Payroll: $ 5,586,209 Payroll: $ 5,828,264 Total Annual Premium: $ 337,299 $ 332,059 Return Of Premium Credit $ (15,090) $ (11,126) Adjusted Total Annual Premium: $ 322,209 $ 320,933 $ Increase or Decrease N/A $ (1,276) 9�o Increase or Decrease N/A -0.49'0 Gehring Group receives a 5% commission on all FMIT products 'Windstorm Deductible is 59� of the Total Insured Value Per Building Per Occurrence, subject to policy deductible, whichever is greater Appendix 2 Reid, Merlene From: Gload, Michelle Sent: Tuesday, July 01, 2014 11:01 AM To: Reid, Merlene Subject: RE: Vehicles Dept. 175 Police 7 patrol vehicles Dept. 210 Public Works 2 trucks Dept. 242 1 crane truck Dept. 243 1 truck From: Reid, Merlene Sent: Monday, ]une 30, 2014 8:26 PM To: Gload, Michelle Subject: Vehicles Can you send me the number of potential new vehicles that I will need to be insure next year. Thanks. Merlene Merlene Reid, MS, SPHR, Human Resources Director Village of Tequesta � 345 Tequesta Drive � Tequesta, FL 33469 Tel: (561) 768-0415 � Fax: (561) 768-0697 1 Reid, Merlene From: Keith Davis [KeithC�cwd-legal.com] Sent: Monday, August 04, 2014 4:52 PM To: Reid, Merlene Subject: RE: AGENDA ITEM - Property & Casualty Insurance Renewals 2014/15 The agenda item is approved for legal sufficiency. Keith W. Davis, Esquire '��l.f�, �� ,�s; �� "1'eL• (561) �86-7116 Fax: (�61) �86-96�11 I:mail: keith@cwd-le�al.com From: Reid, Merlene [mailto:mreid@tequesta.or�] Sent: Monday, August 04, 2014 3:58 PM To: Forsythe, Jody Cc: McWilliams, Lori; Gload, Michelle; Keith Davis Subject: AGENDA ITEM - Property & Casualty Insurance Renewals 2014/15 Jody, Original has been sent over to you for your signature. Keith — can you review for legal sufficiency and respond in writing. Thanks Merlene Merlene Refd, MS, SPHR, Human Resources Director Village of Tequesta � 345 Tequesta Drive � Tequesta, FL 33469 Tel: (561) 768-0415 � Fax: (561) 768-0697 This email has been scanned for email related threats and delivered safely by Mimecast. For more information please visit http://www.mimecast.com 1