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Home My Public Portal About19-9697 Excute a Renewal Insurance Agreement with the Florida League of CitiesSponsored by: City Manager RESOLUTION NO.19-9697 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A RENEWAL INSURANCE AGREEMENT WITH THE FLORIDA LEAGUE OF CITIES, INC.; AUTHORIZING THE EXECUTION OF ALL NECESSARY DOCUMENTS BY THE PROPER CITY OFFICIALS; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, there is a continual need for municipal insurance coverage to include general liability, automobile, property, and workers' compensation for the City of Opa-Locka ("City"); and WHEREAS, the City desires to renew its current Florida Municipal Insurance Trust ("FMIT") policy, administered by the Florida League of Cities, Incorporated; and WHEREAS, the City Manager has determined that there has been an increase in the general liability insurance. Specifically, over the last five (5) years the City has lost Four Million Seven Hundred Fifteen Thousand Seven Hundred Seventy -Nine Dollars (S4,715,779.00); and WHEREAS, additional vehicles have been added and there has been a property rate increase due to recurring catastrophic hurricanes making landfall and other cities have seen an increase for property in the range of 17-20 %; and WHEREAS, there has been a 14 % increase in Workers' Compensation claims; and WHEREAS, the 2019-2020 annual renewal proposal from the Florida League of Cities for general liability, automobile, property, and workers' compensation coverage is Two Million Three Hundred Twenty -Nine Thousand Six Hundred Ninety -Seven Dollars ($2,329,697.00) for the City; and WHEREAS, execution of a renewal insurance agreement with the Florida League of Cities, Incorporated is overall in the best interests of the residents of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AS FOLLOWS: Resolution No. 19-9697 Section 1. Adoption of Representations. The foregoing "Whereas" clauses are hereby ratified and confirmed as being true and the same are hereby made a specific part of this Resolution. Section 2. Renewal of Insurance Agreement. The City Commission of the City of Opa-Locka, Florida hereby approves the execution of the Renewal Agreement, attached hereto as Exhibit "A", between the City of Opa-Locka and the Florida League of Cities, Incorporated. Section 3. Authorization of the City Manager and Proper City Officials. The City Manager and other proper City Officials are hereby authorized to execute any required documents in order to implement the intent of this resolution. Section 4. Effective Date. This Resolution shall be effective immediately upon its passage and adoption. PASSED and ADOPTED this 11th day of September 2019. Matthew A. Pigatt, Mayor ATTEST: a Flores, City Clerk APPROVED AS TO FORM AND LEGAL SUF ICIENCY: F CIF Burn., • - • orris -Wee •., Esq. City Attorney Moved by: Commissioner Kelley Seconded by: Vice Mayor Davis Resolution No. 19-9697 VOTE: 5-0 Commissioner Bass YES Commissioner Burke YES Commissioner Kelley YES Vice -Mayor Davis YES Mayor Pigatt YES City of Opa-Locka Agenda Cover Memo Department Director: Kierra Ward, MBA Department Director Signature. 3,10; ® 0-*\ Budget Administrator: Budget Administrator/ACM Signature: Finance Director: FD Signature: Department r City Manager: Newall J. Daughtrey ACM Signature: 1 - Commission Meeting Date: 09/11/2019 Item Type: (EnterX in box) Resolution Ordin ' ce Oth X Fiscal Impact: (EnterX in box) Yes No Ordinance Reading: (EnterX in box) 1st Reading 2nd Reading x Public Hearing: (EnterX in box) Yes No , Yes No X X Funding Source: Account# : (Enter Fund & Dept) Ex: 84-513451 (Insurance Charges — RISK) Advertising Requirement: (EnterX in box) Yes No X Contract/P.O. Required: (EnterX in box) Yes No RFP/RFQ/Bid#: x Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communication Area: im Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) ml III MI 1.1 Sponsor Name City Manager Department: City Manager Authorizing the City Manager to renew the contract with the Florida League of Cities. It is in the best interest of the City to renew the contract with the Florida League of Cities for the City's property,liability and worker's compensation insurance. Staff recommends approval. City of Opa-locka Kierra Ward Human Resources Director MEMORANDUM Office: 305-953-2815 Email: kward@opalockafl.gov To: Newall J. Daughtrey, Acting- City Manager From: Kierra Ward, Human Resources DirectoroV IP Re: Liability Insurance Renewals Date: August 30, 2019 The City has received the renewal proposal from the Florida League of Cities for FY20. The annual premium amount for liability and worker's compensation coverage is $2,329,697. I inquired as to the reason for the increase and was advised of the following: • The general liability increase is loss driven: over the last 5 years the City has lost $4,715,779 • Additional vehicles added to be insured • The property rate increase is recurring catastrophic hurricanes making landfall. Most members saw an increase of property in the 17-20% range. • 14% increase in Worker's Compensation claims Staff has begun an internal audit of City vehicles that are listed on the schedule for insurance with the fleet staff within the Public Works and Police Department with the intent to confirm that all vehicles listed are operable. If vehicles are identified to be inoperable and on the schedule I will recommend that they be temporarily removed. There are regularly scheduled meetings with the City's Risk Consultant to review the State of Florida's Audit findings and review worker's compensation statuses and risk exposure. Updates will be provided in the Human Resources Bi-weekly report. Efforts will continue to recruit a full-time Risk Manager to assist in independently managing all claims against the City. *********************END OF MEMORANDUM*************************_** Human Resources Department •780 Fisherman Street 4"' floor, Opa-locka, FL 33054 • (305)953-2815 Coverage General/Professional Liability Deductible Stoploss Amount Automobile Liability Deductible Stoploss Amount Automobile Physical Damage Property CI Tire DEPARTMENT OF INSURANCE SERVICES FLORIDA MUNICIPAL INSURANCE TRUST RENEWAL QUOTE FOR 2019-2020 City of Opa-Locka FMIT 0435 Deductible $25,000 $205,990 $25,000 $75,000 Per Schedule $2,500 Workers' Compensation $0 Experience Modification 1.68 10/1 /19 TOTAL FMIT PREMIUM *Includes: Drug Free Credit: No Safety Credit: No Limit Premium $1,000,000 $1,316,459 $1,000,000 $51,919 $54,005 $20,096,423 $132,833 Total Payroll $7,486,544 $774,481 $2,329,697 Note: Coverage summaries provided herein are intended as an outline of coverage only and are necessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and/or Policies will apply. Kierra Ward From: Michael Morrill <mmorrill@flcities.com> Sent: Tuesday, August 13, 2019 5:47 PM To: Kierra Ward Cc: Anyelina Cuevas Subject: Re: FMIT 0435 City of Opa-Locks Follow Up Flag: Follow up Flag Status: Flagged This is an EXTERNAL email. Exercise caution. DO NOT open attachments or click links from unknown senders or unexpected emails. If if this is a suspicious message please contact itsupport@opalockafl.gov Good afternoon Kierra, The exposure changes that went into the underwriting for FY 18-19 are as follows: The general liability increase is loss driven: over the last 5 years the City has lost $4,715,779 The auto liability is reduced from last years premium and the auto physical coverage is nearly flat and this is with a net addition of 9 vehicles on the year. (118 increased to 128 vehicles) The property rate increase is due to back to back years with a catastrophic hurricanes making landfall. The reinsurance market has hardened which trickles down to insurance Trusts like the FMIT. Most members saw an increase of property in the 17-20% range. The payroll remained the same YoY, however the workers compensation experience modification factor increased from 1.48 to 1.68 (14% increase). The experience modification factor is a multiplier used to calculate your workers' compensation premium. It shows how your City's workers' compensation claims experience compares to other businesses similar in size and types of jobs. Lastly, the board of elected officials voted not to contribute this year to the Return Of Premium program. Due to back to back hurricanes the board didn't see it responsible to designate funds this year. The FMIT instead took the money that would typically have gone into ROP and used that to offset some of the property rate increases. will confirm with my finance team that we can keep the City on a monthly payment schedule. Because of the losses that the City has experienced and the hardening of the property market, I don't think there will be much wiggle room for the bottom line premium total. The best route to draw the annual premium down is to focus on risk management, with the use of Jonathan Jaramillo, and get both the general liability and workers compensation claims down. All the best, i Michael J. Morrill Account Executive Florida League of Cities, Inc. 954.270.7296 www.flcities.com HERULE 0 CI Ce r.€ i From: Kierra Ward <kward@Opalockafl.gov> Sent: Tuesday, August 13, 2019 4:07 PM To: Michael Morrill <mmorrill@flcities.com> Cc: Anyelina Cuevas <acuevas@Opalockafl.gov> Subject: RE: FMIT 0435 City of Opa-Locks Good afternoon, Thank you for the renewal proposal. I have no final word on the RFP as of yet but will present the attached to the city manager. A few questions that I know I ask every year but would like to do my due diligence: 1. Is this rate negotiable (if we show improvements made to minimize risk exposure)? 2. Please provide reasoning as to why the premium has increased from last year to now? 3. If the City decides to renew with FMIT, will we be allowed the same payment schedule? I will await your response before presenting to the Manager. Thank you From: Michael Morrill [mailto:mmorrill@flcities.com] Sent: Tuesday, August 13, 2019 2:40 PM To: Kierra Ward Cc: Anyelina Cuevas Subject: FMIT 0435 City of Opa-Locka This is an EXTERNAL email. Exercise caution. DO NOT open attachments or click links from unknown senders or unexpected emails. If if this is a suspicious message please contact itsupport@opalockafl.gov Good afternoon Kierra, What did the state say about RFP/procurement for FY 19-20? Let me know if there's anything more I can do to assist with them. 2 Please see the attached FY 19.20 renewal for FMIT 0435 City of Opa-Locka. I'd be happy to schedule a time to come in & discuss renewal in the next couple weeks if your schedule permits and we can go over the FMIT dashboard and any other questions you have regarding FMIT's services. If there's anything else pending please feel free to reach out anytime with questions/concerns. This past policy year, we were proud to celebrate the 41st anniversary of the Florida Municipal Insurance Trust (FMIT or Trust) with you. Throughout our 41 years, FMIT has stood strong as a benchmark -setting market leader among Florida public entity risk pools and among state league -sponsored risk pools across the country. The credit for this success belongs to you and your organization's trust in FMIT as your risk management partner. Whether you have been an FMIT Member for one year or all 41 years, we would like to Thank You for your support and membership. We truly value your continued partnership with the FMIT, as you and the rest of the FMIT Membership Family are the reason for your Trust's long-term success. As part of our family, you can always count on us to be your Resource, your Advocate and your Partner for all your insurance needs. Best Regards, Michael J. Morrill Account Executive Florida League of Cities, Inc. 954.270.7296 www.flcities.com HMELE (4) Public Records Notice: Under Florida Law, email addresses and electronic communications are public records. If you do not want your email address or the content of your electronic communication released in response to a public records request, do not send electronic mail to this entity. 3 FLORIDA LEAGUE OF CITIES SPONSORED INSURANCE PROGRAMS DECLARATIONS I. DESIGNATED MEMBER: City of Opa-Locke Address: 780 Fisherman Street 4th Floor Opa-Locka, FL 33054 II. COVERAGE PERIOD From October 1, 2018 to October 1, 2019 12:01 A.M. Standard Time at the address of the Designated Member. III. AGREEMENT NUMBER Florida Municipal Insurance Trust (FMIT) FMIT #0435 IV. COVERAGES INCLUDED General Liability Automobile Property Workers' Compensation V. ESTIMATED ANNUAL PREMIUM Normal Expense Net Premium Constant Premium $2,073,649 $200 $2,073,849 C�- October 1, 2018 Signature of Authorized Representative Date