HomeMy WebLinkAboutDocumentation_Regular_Tab 16_10/11/2006VILLAGE OF TEQUESTA
MEETING AGENDA ROUTING SHEET
MEETING DATE: October 11, 2006
REQUESTED ACTION/SUMMARY: Approval for placing the Village of Tequesta's
Property, Inland Marine, General Liability, Law Enforcement
Liability, Automobile and Workers' Compensation Coverage with
the Florida Municipal Insurance Trust (FMIT)
RESOLUTION OR ORDINANCE NUMBER: Res # 12-06/07 Ord #
ORIGINATING DEPARTMENT: Human Resources
FUNDING SOURCE: 2006/2007 BUDGET
ACCOUNT NUMBER: Various
CURRENT BUDGETED AMOUNT AVAILABLE: ~lJ-~rj~ ~~!% ®G~O
AMOUNT OF THIS ITEM: $402,746.00
AMOUNT REMAINING AFTER THIS ITEM: $'~;Z~?U4
BUDGET TRANSFER REQUIRED: Yes No
APPROPRIATE FUND BALANCE: Yes No
Piggyback Contract Name and #:
Or
Competitive Bid #
APPROVALS:
DEPARTMENT HEAD:
FINANCE DIRECTOR:
VILLAGE MANAGER: /~ r li~G~l yr'~~%~~ ~ ~ ~lri'7
VILLAGE MANA~R RECOMMENDATION:
APPROVE ITEM:
DENY ITEM: ^
VILLAGE ATTORNEY: APPROVED FOR LEGAL SUFFICIENCY
^ Yes ^ No
^ Not Applicable (n/a)
Memo
To: Michael R Couzzo, Jr., Village Manager
From: Merlene Reid, HR Manager
Date: October 6, 2006
Re: Change in Insurance Provider from PGIT to FMIT
The Village's Property, Inland Marine, General Liability, Law Enforcement Liability,
Automobile and Workers' Compensation insurance coverage is currently with the
Preferred Government Insurance Trust (PGIT). Attached is a Property and Casualty
evaluation schedule from Florida Municipal Insurance Trust (FMIT), along with
recommendation from the Gehring Group Professional Services, which shows a
19.95% ($78,670) savings in insurance premiums for the same items.
It is recommended that the Village award the 2006/07 insurance contracts to FMIT.
RESOLUTION ND. 12-06/07
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE ^F
TEQUESTA, PALM BEACH COUNTY, FLORIDA, PLACING THE
VILLAGE DF TEQUESTA'S PROPERTY, INLAND MARINE, GENERAL
LIABILITY, LAW ENFORCEMENT LIABILITY, AUTOMOBILE AND
WORKERS' COMPENSATION COVERAGE WITH THE FLORIDA MUNICIPAL
INSURANCE TRUST (EMIT) (PER ATTACHED SCHEDULE A) FDR A
COMBINED PREMIUM DF $402,746 AND AUTHORIZING THE VILLAGE
MANAGER TO EXECUTE THE APPLICABLE AGREEMENT ON BEHALF OF THE
VILLAGE.
WHEREAS, the cost of the combined premium will be allocated
between General Fund #001, Water Utility Fund #401 and
Stormwater Fund #403 as appropriate and;
WHEREAS, the attached schedule does not include coverage of
the Municipal Building which will be added at a later date;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE DF TEQUESTA, PALM
BEACH COUNTY, FLORIDA, AS FOLLOWS;
Section 1: A resolution placing the Village of Tequesta's property,
inland marine, general liability, law enforcement liability,
automobile and workers' compensation coverage with The Florida
Municipal Insurance Trust (EMIT) (per attached schedule) for a
combined premium of $402,746 and authorizing the Village Manager to
execute the applicable agreement on behalf of the Village is hereby
approved.
THE FOREGOING RESOLUTION WAS OFFERED by Council member
who moved its adoption. The motion was seconded by
Councilmember and upon being put to a vote, the vote was
as follows:
FDR ADOPTION AGAINST ADOPTION
The Mayor thereupon declared the Resolution duly passed and adopted
this day of A.D., ,
Mayor Jim Humpage
ATTEST:
Village Clerk Gwen Carlisle
SCHEDULE A
VILLAGE OF TEQUESTA
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PROPERTY & CASUALTY EVALUATION C~
2006.2007 PLAN YEAR
2005 - 2006 PR OPOSED 2006 - 2007 PROPOSED
PGIT PGIT FMIT
Coverage Type Deductible Liability Limits Premium Deductible Liability Limits Premium Deductible Liability Limits Premium
Property $ 10,000 $ 10,816,879 $ 42,117 $ 10,000 $ 11,330,351 $ 158,947 $ 10,000 $ 11,830,351 $ 128,149
Unknown 5%TIV Wind 5% TIV Wind
Ded Ded or Ded
$30,000 whichever is
Min/Occurrence greater
Inland Marine $ 5,000 $ 680,731 $ 5,846 $ 5,000 Per Schedule $ 6,246 $ 500 Per Schedule Included
$2,000,000 $2,000,000
General Liability $ 2,500 $4,000,000 $ 45,000 $ 2,500 $4,000,000 $ 49,982 $ 2,500 $2,000,000 $ 50,304
Public Official Liability 8
Em to ment Practices Liabilit
$ 5,000
$ 1,000,000
$ 13,248 ~
$
5,
0
00 i
1,000,000
$
$ 17,955
$ 2,5_00
$ 2,000,000
$ ___24,_438
Ommissions Prior Acts _
__
_
. _
Coverage Not Covered Not Covered $ 10,000 $ 1,000,000 $ 12,499
Auto Liabilit $
2,500 $2,000,000 $ 38,361 $ 2,500 $ 2,000,000 $ 37,332 $ ____ 2,500 $_ 2,000,000 $ 29,372
_
Personal Injury Protection ___
N/A _
$ 10,000 Included N/A $ 10,000 Included _ N/A $ _ 10,000 _ Included
Medical PP~ments N/A $ ____ 5,000 Included - N/A $ _ 5,000 __ Included ___ N/A $ ____ 5,000 __ Included
Uninsured Motorists Not Covered Not Covered __ __Not Covered
Physical Damage _ _
Comprehensive Covera e $ 1,000 Per Schedule $ 12,220 1,000
$ Per Schedule $ _ 13,771 $ 1,000_ Pe_r Schedule $ ___6_,0_34
Physical Damage _ _
__
Collision Coverage $ 1,000 Per Schedule Included $ 1,000 Per Schedule Included $ 1,000 Per Schedule Included
Crime Covera e Noi Covered Not Covered Not Covered
Empl~ment Practices Liabilit $ 5,000 $1,000,000 $ 5,876 $ 5,000 $ 1,000,000 $ 7,051 $ 2,500 $ 2,000,000 Included
Law Enforcement Liability $ 7,500 $2,000,000 $ 18,506 $ 7,500 $ 2,000,000 $ 19,480 $ 2,500 $ 2,000,000 $ 19,982
Workers' Compensation _
Modification Factor 0.95 Pa roll 0.80 Pa~oll 0.80 Pa roll
$ 4,479,244 $ 154,595 $ 5,069,206 $ 170,652 $ 5,155,257 $ 131,968
Annual Premium Sub Total: $ 335,769 $ 481,416 $ 402,748
Other: $ - $ - $ -
Total Annual Premium: $ 335,769 $ 481,416 $ 402,746
$Increase NIA $ 145,647 $ 86,977
Increase NIA 43.38% 19.95%
U:\Prospective Clients\Tequesta, Village ofN 00606 -Tequesta P&C Evaluation PGIT Renewal t FMIT (REVISED). xls
Village of Tequesta
~~
Property & Casualty &
Workers' Compensation
Renewal Recommendation
°~ Effective Date: October 1, 2006
On September 30, 2006 a Gehring Group representative met with Village staff to discuss the
renewal of the Property, Casualty and Workers' Compensation coverage's for fiscal year
2006/2007. The Gehring Group immediately began compiling and analyzing data and
establishing an open dialogue with municipal staff.
As the Gehring Group's main focus is on servicing the needs of the public sector community, we
offer the following analysis of two State Trust's which have provided quotations to the Village
of Tequesta. The Village's incumbent carrier, the Preferred Governmental Insurance Trust
(PGIT) offers a Claims Made form of coverage versus the Per Occurrence form of coverage
offered through the Florida Municipal Insurance Trust (FMIT). If the Village were to place its
coverage with FMIT it would be necessary to purchase retroactive, or ``tail coverage" to provide
the Village with adequate insurance coverage should claims be filed at a later date back to the
period of time in which coverage was provided with PGIT. A quotation for this coverage is
included in the analysis below.
Further, the way in which potential insolvency issues may be handled differ amongst the Trust's.
Information we have on file indicates that PGIT is an Assessable Trust, which can spread the
outstanding amount of all unpaid claims amongst all members of the Trust leaving potential
members responsible for unknown potential liability. The FMIT Trust Programs are Non-
Assessable. Should the Trust become defunct, members would only be responsible for the
payment of their own outstanding claims at the time of the Trust's insolvency.
Based upon the information above and our review of the information gathered through
Tequesta's very supportive Human Resources staff, the Gehring Group obtained a quotation
from the Florida League of Cities/Florida Municipal Insurance Trust. We then compared the
quote provided by the Florida League of Cities to that of the incumbent insurance carrier, the
GEI IRINC;~GROUP
Preferred Governmental Insurance Trust (PGIT). The Gehring Group provides the following
recommendations for consideration to the Village of Tequesta:
PROPERTY, INLAND MARINE, GENERAL LIABILITY, AUTOMOBILE
The incumbent provider for Property, Inland Marine, General Liability and Automobile coverage
is the Preferred Governmental Insurance Trust (PGIT) administered through Public Risk
Underwriters. Regarding Property, the expiring premium is $42,117 and the PGIT renewal
quotation is $158,947. Inland Marine expiring premium is $5,846 and the PGIT renewal
quotation is slightly higher at $6,246. Renewal quotations were requested though the FMIT
which has offered Property and Inland Marine coverage at a premium of $128,149 approximately
$37,044 below the renewal quote at the expiring deductible of $10,000.
PGIT, as the incumbent provider for General Liability and Public Officials
Liability/Employment Practices Liability, offered a renewal quote with a 16% increase at
$67,937 versus the current year's premium of $58,248. The PGIT Automobile Liability renewal
has been offered with a slight decrease with a proposed premium of $37,332 versus the current
year's premium of $38,361. PGIT also provided a renewal quotation for Automobile Physical
Damage at $13,771, an increase of 13% over the expiring premium of $12,220. The FMIT has
offered quotations for General Liability of $50,304, Public Officials Liability at $24,438,
Automobile Liability at $29,372 and Automobile Physical Damage at $6,034. In addition, the
FMIT has provided Public Officials Errors & Omissions retroactive "tail coverage" quotation of
$12,499. Overall, these quotations represent a decrease from the expiring PGIT premiums with
lower deductibles thus providing the Village with additional protection.
The Gehring Group recommends that the Village of Tequesta place its Property, Inland
Marine, General Liability, Public Officials/Employment Practices Liability and Automobile
Liability and Physical Damage coverage with the FMIT for a combined premium of $250, 797.
LAW ENFORCEMENT
PGIT has offered a Law Enforcement Liability quotation at $19,480 over the expiring premium
of $18,506. FMIT has offered this coverage at a premium of $19,982.
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The Gehring Group recommends that the Village of Tequesta place its Law Enforcement
Liability coverage with the FMIT for an annual premium of $19,982.
WORKERS' COMPENSATION
PGIT is also the incumbent carrier for the Village's workers' compensation program. As such, it
has provided a renewal quotation of $170,652, an increase of 10% from the expiring premium of
$154,595. This increase should be explored further in light of the fact that the experience
modification factor for the Village has decreased from a .95 to a .80. Both Trust's have offered
the Village the standard credits for maintaining and enforcing a Drug Free Workplace (5%) and
Safety Program (2%).
The Gehring Group recommends that the Village of Tequesta place its workers' compensation
coverage with the FMIT for an annual premium of $131,968.
SUMMARY
• The Gehring Group recommends that the Village of Tequesta place its Property,
Inland Marine, General Liability, Law Enforcement Liability, Automobile and
Workers' Compensation coverage with the FMIT for a combined premium of
$402,746. This recommendation represents an overall savings to the Village of 23.43%
from the expiring PGIT premiums, for a savings of $78,670.
The Gehring Group provides the above recommendations based upon information supplied to
our office. Please note that the premiums illustrated are subject to alteration based upon revised
deductibles or limits of coverage and the receipt of updated schedules. As a condition of binding
coverage, the Florida League of Cities is requiring the Village to obtain an updated appraisal to
confirm the building values submitted as the Total Insured Value (TIV). Further review is
needed to advise the Village of any gaps in coverage which may exist. Specifically,
Communications Equipment (911), Boiler & Machinery, Flood Insurance, Storage Tank Third
Party Liability, and Pollution Liability. The Council will be fully advised of any changes in the
recommendation at the October 11, 2006 Council meeting.
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