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Home My Public Portal About20-9797 Florida League of CitiesSponsored by: City Manager RESOLUTION NO. 20-9797 A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA AUTHORIZING THE CITY MANAGER TO ENTER INTO A RENEWAL INSURANCE AGREEMENT WITH THE FLORIDA LEAGUE OF CITIES, INC. (ADMINISTRATOR OF THE FLORIDA MUNICIPAL INSURANCE TRUST) FOR PROPERTY, LIABILITY AND WORKERS COMPENSATION INSURANCE FOR FISCAL YEAR 2020-2021, ACCEPTING AND IMPLEMENTING THE REQUIRED CONDITIONS AT A COST OF $2,495,253.00 (TWO MILLION, FOUR HUNDRED NINETY-FIVE THOUSAND, TWO HUNDRED FIFTY-THREE DOLLARS). PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, there is a continued need for municipal insurance coverage to include general liability, automobile, property, and workers' compensation for the City of Opa-Locka; and WHEREAS, the City of Opa-Locka ("City") desires to renew its current Florida Municipal Insurance Trust ("FMIT") policy, administered by the Florida League of Cities, Incorporated; and WHEREAS, the quote of $2,495,253.00 (Two Million, Four Hundred Ninety - Five Thousand, Two Hundred Fifty -Three Dollars)(attached hereto as Exhibit "A") is $162,708 (One Hundred Sixty -Two Thousand, Seven Hundred Eight Dollars) higher than what was budgeted for Fiscal Year ("FY") 2021 due to the workers' compensation coverage being 20% higher than anticipated; and WHEREAS, the annual workers' compensation audit in January was being conducted to compare actual wages to the wages provided to FMIT when the workers' compensation rate was initially determined; and WHEREAS, this year the City received a $262,352.00 (Two Hundred Sixty - Two Thousand, Three Hundred Fifty -Two Dollar) refund since the audit for FY 19 charges indicated wages paid were significantly less than what was originally provided to FMIT. For FY 20-21, the budgeted wages were significantly higher than what is anticipated to be paid. Consequently, it is anticipated that the workers' compensation audit, to be conducted next January, will result in another large refund to the City, eliminating the additional aforementioned additional charges; and 1 Resolution No. 20-9797 WHEREAS, execution of a renewal insurance agreement with the Florida League of Cities, Incorporated is in the best interest of the City. NOW THEREFORE, BE RESOLVED BY THE COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Section 1. Adoption of Representations. The recitals to the preamble herein are incorporated by reference. Section 2. Authorization. The City Commission of the City of Opa-Locka, Florida hereby authorizes the City Manager to enter into a Renewal Agreement between the City of Opa-Locka and the Florida League of Cities, Incorporated for municipal insurance coverage to include general liability, automobile, property, and workers' compensation for the City of Opa-Locka. 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. Scrivener's Errors. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the City Manager or the City Manager's designee, without the need of a public hearing, by filing a corrected copy of same with the City Clerk. Section 5. Effective Date. This Resolution shall take effect immediately upon adoption and is subject to the approval of the Governor or his designee. PASSED AND ADOPTED this 27th day of August, 2020. Attest to: Matthew Pigatt, Mayor Approved as to form and legal sufficiency: fe, o nna Flores Burnadette Norris eeks, P.A. City Clerk City Attorney 2 Resolution No. 20-9797 Moved by: Vice Mayor Davis Seconded by: Commissioner Bass VOTE: 5-0 Commissioner Bass YES Commissioner Burke YES Commissioner Kelley YES Vice -Mayor Davis YES Mayor Pigatt YES 3 City of Opa-locka Agenda Cover Memo Department Director Kierra Ward, MBA Department Director Signature: City Manager: John E. Pate CM Signature: .44. . .-s/C' Q Commission Meeting Date: 8/27/2020 Item Type: (EnterX in box) Resolution .'finance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading. (EnterXin box) 1a Reading 2'' Reading X Public Hearing: (Enter X in box) Yes No Yes No X X Funding Source: Account# : (Enter Fund & Dept) Ex: 84-513451 Advertising Requirement (Enter X in box) Yes No X Contract/P.O. Required: (Enter X 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 Communcation Area: Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) um • • III NM • Sponsor Name City Manager Department: City Manager Short Tide: A resolution authorizing the City Manager to renew the City's insurance coverage with the Florida Municipal Insurance Trust (FMIT) Staff Summary: It is in the best interest of the City to renew the contract with FMIT for the City's property, liability, vehicle and workers' compensation insurance. Financial Impact - The quote of $2,495,253 is $162,708 higher than was budgeted for FY 21 due to the workers' compensation portion being 20% higher than anticipated. However, there is a workers's compensation audit each January to compare actual wages to the wages provided to FMIT when the workers' compensation rate was initially determined. This year the City received a $262,352 refund since the the audit for FY 19 charges indicated wages paid were significantly less than were originally provided to FMIT. For FY 20, budgeted wages were significantly higher than what will be paid. Consequently, it is anticipated that the workers's compensation audit to be conducted next January will result in another large refund to the City, eliminating the additional charges indicated at the beginning of this section. It should be noted that the workers' compensation quote is based on a rolling average three-year average, in this case based on FY 17 to FY 19. FY 17 was a particularly bad year for the City in regard to workers' compensation. It will drop out of the three-year rolling average next year, resulting in a much more favorable charge to the City. This expense is budgeted in Account 84-513451. Pr posed Action: Staff recommends approval. Attachment Renewal Quote. Memorandum TO: 61a 4laQaa tWortikp Mayor Matthew A. Pigatt Vice -Mayor Chris Davis Commissioner Sherelean Bass Commissioner Alvin Burke Commissioner Joseph Kelley FROM: John E. Pate- City Manager DATE: August 21, 2020 RE: Liability Insurance Renewal — Florida League of Cities 2020/2021. Request: Description: A RESOLUTION OF THE CITY OF OPA-LOCKA, FLORIDA AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE FLORIDA LEAGUE OF CITIES, FLORIDA MUNICIPAL TRUST, FOR PROPERTY, LIABILITY AND WORKERS COMPENSATION INSURANCE FOR FISCAL YEAR 2020-2021, ACCEPTING AND IMPLEMENTING THE REQUIRED CONDITIONS AT A COST OF $2,495,253. The City's renewal with the Florida League of Cities has been increased to an annual amount of $2,495,253. A resolution of the City Commission of Opa-locka, Florida authorizes the City Manager to enter into an agreement with The Florida League of Cities for Property, Liability, and Workers Compensation. Financial Impact: The annual premium is $2,495,253. Implementation Timeline: October 1, 2020- September 30, 2021 Legislative History: Resolution NO. 19-9697 Recommendation(s): Staff recommends approval. Attachments: Premium Renewal Summary from Michael Morrill of Florida League of Cities PREPARED BY: Kierra Ward, MBA Human Resources Director Coverage General/Professional Liability Deductible Stoploss Amount Automobile Liability Deductible Stoploss Amount Automobile Physical Damage Property FMIT FLORIDA MUNICIPAL INSURANCE TRUST Protecting the Communities We Cal! Home RENEWAL QUOTE FOR 2020-2021 City of Opa-Locka FMIT 0435 Deductible $25,000 $184,132 $25,000 $75,000 Per Schedule $2,500 Workers' Compensation $0 Experience Modification 1.98 10/1/20 TOTAL FMIT PREMIUM 'Includes: Drug Free Credit: No Safety Credit: No Limit Premium $1,000,000 $1,307,920 $1,000,000 $61,993 $42,027 $20,096,423 $149,613 Total Payroll $6, 769, 987 $933,700 $2,495,253 Note: Coverage summaries provided herein are intended as an outline of coverage only and are necessarily brief. In the event of Toss, all terms, conditions, and exclusions of actual Agreement and/or Policies will apply.