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_Add-on c)THE CITY OF PLEASANT LIVING To: FROM: DATE: SUBJECT: BACKGROUND: CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The Honorable Mayor & Members of the City Commission Steven Alexander, City Manager Agenda Item No.: C ) September 15, 2015 WORKER'S COMPENSATION, PROPERTY, GENERAL LIABILITY, AUTOMOBILE, PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES INSURANCE The City timely solicited and received proposals for the City's Workers' Compensation, Property, General liability, Automobile, Public Officials and Employment Practices Insurance coverage for FY 2015-2016 from carriers currently writing municipal businesses in South Florida. The following table summarizes the responses received for Workers' Compensation, Property, General Liability, Automobile coverage: FMIT INSURANCE DESCRIPTION Property Coverage Inland Marine Equipment Breakdown Coverage Crime and Bond Coverage General liability Coverage Police Professional liability Coverage Automobile Coverage FMIT Property. Auto and General Liability Total FMIT Insurance Description Workers Compensation FMIT Total Premium FMIT $142,150 Included Included Included $59,575 $156,330 $93.098 $451.153 $199,579 $650,732 THE CITY OF PLEASANT UVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM PGIT INSURANCE DESCRIPTION Property Coverage Inland Marine Equipment Breakdown Coverage Crime and Bond Coverage General Liability Coverage Police Professional Liability Coverage Automobile Coverage PGIT Prop, Auto and General Liability Total PGIT Insurance Description Workers Compensation PGIT Total Premium PGIT '$120,049 $836 Included $750 $88,993 $66,022 $123,238 $399,888 Declined to quote $399,888 PUBLIC OFFICIALS & EMPLOYMENT PRACTICES LIABILITY COVERAGE In addition to the package quotations summarized above, the City received an independent quote for its Public Officials & Employment Practices Liability coverage. Both FMIT and PGIT declined to quote this line of coverage, ACE American .Insurance Description Total Premium Limit of Liability $1,000,000 Deductible Per Claim: Public OfficialS/Public Entity Liability -$100,000 Employment Practices Liability -$150,000 Zoning Claims -$250,000 Workers' Compensation Coverage $50,887 The City Manager recommends that the City renew its Workers' Compensation policy with FMIT for a total premium of $199,579. FMIT offers the most competitive rates for Workers' Compensation Insurance. The City continues to receive the company's preferred rating because of the continuing coverage, including a 5% credit for its Drug Free Work Place policy and a 2% credit for its newly created Safety Policy. This year's renewal represents a decrease of approximately 7% over last year's premium. THE CITY OF PLEASANT LIVING AMOUNT: EXPENSE ACCOUNTS: ATTACHMENTS: CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The City Manager recommends that the City renew its policy with PGIT for its Property, General Liability and Automobile Insurance coverage for a total premium of $399,888. This represents an increase of approximately 3.8% over last year's premium. This increase is largely attributable to the addition of several new vehicles to the City's inventory. As set forth above, the PGIT proposal contains the most favorable rates for these lines of coverage and offers a two year rate guarantee. The City Manager further recommends that the City renew its policy with ACE American Insurance Company for the Public Officials and Employment Practices Liability policy for a premium of $50,887. The breakdown of the total premium costs for all lines of insurance is set forth below: Actual Proposed FY 2015 FY2016 FMIT WORKERS' COMPENSATION $214,533 $199,579 PGIT GENERAL LIABILITY, PROPERTY & AUTOMOBILE $385,086 $399,888 ACE PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES $49,136 $50,887 TOTAL PREMIUM $648,755 $650,354 Auto Expense (Various Accounts), currently budgeted amount $96,375 Workers Compensation (Various Accounts), currently budgeted $208,955 General Liability, Property, Public Officials -001-1330-513-4510, currently budgeted $519, 723 Proposed Resolutions Proposal Package from FMIT Proposal Package from Brown & Brown . 1 RESOLUTION NO. ____ _ 2 A Resolution authorizing the City Manager to execute a policy of insurance 3 with ACE for Public Officials and Employment Practices Liability 4 Insurance. 5 WHEREAS, the City, through its Agent of Record, Brown & Brown, solicited insurance 6 quotes for Public Officials and Employment Practices Liability Insurance. 7 WHEREAS The City received a renewal quote from ACE for the continuation of the 8 existing coverage, but received no other proposals for the necessary coverage 9 WHEREAS, the City Administration recommends that the City renew its coverage 10 with ACE for Public Officials and Employment Practices Liability Insurance for the 2015-2016 11 Fiscal Year based upon the current proposal; 12 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY 13 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: 14 Section I. The City Commission hereby authorizes the City Manager to execute the 15 insurance policy for Public Officials and Employment Practices Liability Insurance with 16 ACE for the 2015-2016 Fiscal Year. 17 Section 3. This resolution shall take effect immediately upon adoption. 18 PASSED AND ADOPTED this __ day of ____ " 2015. 19 20 21 ATTEST: APPROVED: 22 23 24 25 CITY CLERK MAYOR 26 27 28 READ AND APPROVED AS TO FORM, COMMISSION VOTE: 29 LANGUAGE, LEGALITY AND 30 EXECUTION THEREOF: Mayor Stoddard: 31 Vice Mayor Harris: 32 Commissioner Welsh: 33 Commissioner Liebman: 34 CITY A TIORNEY Commissioner Edmond 35