HomeMy WebLinkAboutDocumentation_Regular_Tab 13_08/14/2008VILLAGE OF TEQUESTA
AGENDA ITEM TRANSMITTAL FORM
Meeting Date:
August 14, 2008 Meeting Type: Regular Ordinance #: N/A
Consent Agenda: No Resolution #: CI~~~ here t~ ester text.
Originating Department: Human Resources/Risk Management
2. AGENDA ITEM TITLE:
Approval for the renewal of a 1-year agreement with the Florida Municipal Insurance Trust (EMIT) for Property,
General Liability, Law Enforcement Liability, Automobile and Workers' Compensation
3. BUDGET /FINANCIAL IMPACT:
Account #: Various Amount of this item: $270,616 for premiums and broker fee
+ an additional $7,500 each in both the General and Water
funds, in the event deductible payments are required, a total of
$285,616.
Current Budgeted Amount Available: Amount Remaining after item:
$304,100 $18,484
Budget Transfer Required: Chaose an Appropriate Fund Balance: Cheese an item.
iter~~~
4. EXECUTIVE SUMMARY OF MAJOR ISSUES:
Consideration and approval of $285,616 for Property and Casualty insurance.
5. APPROVALS:
<~
Dept. Head: ~~ ~ Finance Director:-
Attorney: (for legal sufficiency)
~,f __-
Village Manager: ~ ~ _ -
• SUBMIT FOR COUNCIL DISCUSSION: ^
• APPROVE ITEM:
Yes ^ No ^
• DENY ITEM: ^
Memo
To: Michael R Couzzo, Jr., Village Manager
,,. ~ ; '
From: Merlene Reid, HR Manager j~j;: `
~i' ~z,
Date: August 5, 2008
Re: Property & Casualty Insurance Renewals
I have attached a Property and Casualty evaluation schedule from Florida Municipal
Insurance Trust (EMIT), along with a recommendation from the Gehring Group
Professional Services, which shows a decrease in insurance premiums (inclusive of
5% broker fees) from $341,677 in FY2007/08, to $299,946 for the upcoming year
(See Exhibit A for details). This schedule includes Property, General Liability, Law
Enforcement Liability, Automobile, and Workers' Compensation insurance.
Additionally, a return of premium credit of $29,330 is also being offered to the Village,
which will reduce the total payment to $270,616.
This decrease is due partly to the fact that the Florida Municipal Trust is reducing
renewal premiums to Trust members who insured with them during FY2007/08. The
Village Council's election to only insure properties in excess of $100,000 continues
to assist with keeping property insurance premiums low. Finally, the Village
continues to receive 7% in credit for actively maintaining its Safety program and
enforcing its drug free work place policy.
In addition to the premium payments, I am requesting a total of $7,500 in deductibles
in both the General Government and the Water Fund, in the event of claims in the
following areas:
General Fund Water Fund
Inland Marine 500.00 500.00
General Liabili 2,500.00 2,500.00
Auto Liabili 2,500.00 2,500.00
Ph sical & Collision Covera e 2,000.00 2,000.00
TOTAL $7,500.00 $7,500.00
It is recommended that the Village renew the 2008/09 insurance contracts with the
Florida Municipal Insurance Trust (EMIT).
1~
1~
V
Q M
~ M
~ N
U ~
~ a
ISO
L.L
0
Z
0
~'
Q
J
Q
W
J
Q N Q
W U }
~~ U
~ ~ N
Ii
p a a~
W ~ O
a~N
J ~' ~
J ~ O
~ ~ N
Q~
~
c ~
s
U O
•~-
O
~ O
~
~
~ O O
O C
O N
~ O
000
a0 O
~
O
N O
M
N
M
to a
N co v v
f~ O v a a M a rn M M o 0 0
O
a
~
~ 00 M N O
O a~ a
~ ~
~ N
a CO t
M t 0 00 M M 0
D N M
Of Of
j it ~,•~
(O O O
V V ~ -, O
~ V 3 V IC _
> ~T O O a-
~ ~
- N N ~ C
- - ~ ~ O
r N D ~ v V ~
L
a.
~ _m
°
°
°
, °
°
°
~
a o o
o o
o
o ~ ~ o ~
M O O O O O O
N
N
CO ~ O O O 0 0 0 ~ M
y N O ~ O O O ~
'p O
~ ~ , U
~ U ~
d p ~ N N N N ~ ~
~ N y
Q ~ ~ N
d 0)
d
O o
a N ~
ti.
I. ~
o -c °~ o 0 0 0 o Q Q' o o rn
m ~
° ~ ~
o
°
on
~ ~
~° Z Z
°o
°o
0 -
'
p O
j I
N
N N
N ~ .-
V' O
~
~ ~
7 0
0
'
I
0 ~ + II ~ ~,
EH b4 b4 d4 ER ER fA fH i
00 i s O ~ 0 (.O a s N a I~ M ~
~ ~ 4)
a N
M M M
N M 00 d N
O a a 0
r- O
a ~ 01
M 1A OO
O
~ ti ~ ~ N N N C ~ ~ ~ V M ~-
- - - -
d
L
~
N ~ O O O I O
O O ~~, N N - V
~
M ~
a O
O O O
O O O OI O
O O O I ~
-O ~
a ~
>, ~O
~
-
y
+r CO
M t
U O
O O O
O O 0 0~
O ~ ~ N
~ U 0)
U O
~ N
n
_
Op
~
'
~ N N O O O O ',
~
~ N
C
'
~ ~
N N N N N ~
O J d dI ~
L
7 ~ r I
V N ~
J
fA (~ fR 69 ER (A KJ UT
d p
0 ~~ 0 O
j .
, O O
~ O O O Q Q O O O).
O O O
~
0 U
> Z Z O O ~
~
w 00 > ~ N N N N ~I ~- ~-
3 ~ ~ ~ i
D
d9 ~
i d~ EA
ER fA ER fA fA
•
L
U i ~
H H H
' H ~ H I H H
rT~
L
c0
T. C
~ I N
(` I K
r.'
J
~ .
._
~ U
~ N~
> C
O
~ d N
U
w a~
- V m
J o
w °
N U ~
N O)
vii o ~_ V~ `°
d
i ~ ~
T C ~ C ~ > ~ ~ N ~ ~ U ~
~ .-
~
_~Jd
l E ~ T m c m o ~ c ~
d ~Eo 0
S
m w ~
m
~ ~ = ~ a
m 0 L ~ ~ U gl
m ~a y d` 0 0
m
~ O O ~
U
~ m~
U m
U . ~ ~
~ y
N
~
~
N
a T
(6
U O
~ C
w O
J i m
O ,
O-
~+~ N
T-_
N
~ ~
a
~
Q fC
O
d N y
V E °'
O- C
c ~ O_ O N
~ ~ L O
a U L O
~ U O
~
;° V
~ ~
a C~ ~ w ~ Q ~ ,
O c =
d d
H fn ~ fA o
a ~-
~.0 _.
~I
,,
M~
1~
M~1
~H
N
m
d c
CA =_
N ~
~ C
N
0)
U
N
? C
d ~
~ N
U O
7 ~
~ 0)
0) ._
a
U Q
_ f6
O O
t1 _
O C
N
N T
~ a
N (6
C ."'
O C_
N
U 'O
O ~
J 3
~ O
~ a
m ~
c
a ~
_ d
~ U
CO O)
0) ~
N d C
V 0) U
~ 7 r
a
a ~ N
F ~ U
~ ~ o
N M
C M
f6
C ~ ~
o ~
N ~ ~CC
w C
w
~ C_
U o
o `~ a
~ N d
c° O U
N ~
>"
~ ~ .~
~ -a E
a> a>
n ~ 4.
O ~ 0
G7 0 `
~ ~ ~
L C d
~ ~
(7 3
Village of Tequesta
Property & Casualty &
Workers' Compensation
Renewal Recommendation
Effective Date: October 7, 2008
Based upon the soft market conditions over the last twelve months, 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, 2008. The Florida League of Cities is presenting a reduction in all renewal
premiums, along with a return of premium credit being offered to Trust members which placed
their property coverage with the FMIT during FY 06/07. The Village of Tequesta will receive a
minimum credit of $29,330.
As such, the Village's incumbent carrier provided a renewal quotation for fiscal year 2008/2009,
a review of the quotations received is included in the analysis below.
PROPERTY, INLAND MARINE, GENERAL LIABILITY, PUBLIC
OFFICIALS LIABILITY, LAW ENFORCEMENT LIABILITY,
AUTOMOBILE AND WORKERS COMPENSATION
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 $63,053 based upon an
expiring Total Insured Value (TIV) of $15,236,352. At Council's direction during last year's
renewal process, the Village elected to insure properties in excess of $100,000; property valued
less than $100,000 were removed from the property schedule of values on file with the FMIT.
The renewal quotation represents a 16.11 % decrease from the expiring program for FY 07/08.
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 decrease in premium of $12,1 OS at the
expiring deductible of $100,000 for All Other Perils. The Windstorm deductible remains
GEIII:IN(;~GP.OUP
unchanged at 5% of the Total Insured Value per building, per location, subject to the policy
deductible.
FMIT, as the incumbent provider for General Liability, Public Officials Liability/Employment
Practices Liability and Law Enforcement Liability, offers a renewal quote of $83,094 an 11%
decrease from the current year's premium of $92,894. FMIT also offers a renewal quotation for
Automobile Liability of $20,473, a decrease of 11.32% from the expiring premium of $23,086.
FMIT also provided a renewal quotation for Automobile Physical Damage at $3,971, a decrease
of 23% from the expiring premium of $5,192. During the last twelve months, several vehicles
were disposed of and were removed from the automobile schedule on file with the FMIT. The
decreases in the above lines of coverage equate to a savings of $13,634 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 $114,369 a decrease of 21.31 % from the expiring
premium of $145,347. This decrease stems from reductions from class code rates and no change
to the experience modification factor at .89 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 fora combined
premium of $284,960. This recommendation represents an overall decrease to the
Village of 12.21 % from the expiring premiums. If coverage is renewed through the
FMIT, a minimum return of premium credit of $29,330 can be applied towards the
initial payment or applied against the 2"d 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 14, 2008 Council meeting.
(_~EIIRING,~C_~ROUP