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Home My Public Portal About21-9898 FMIT Liability Insurance RenewalSponsored by: City Manager RESOLUTION NO. 21-9898 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. (ADMINISTRATOR OF THE FLORIDA MUNICIPAL INSURANCE TRUST) FOR PROPERTY, LIABILITY AND WORKERS COMPENSATION INSURANCE FOR FISCAL YEAR 2021-2022; ACCEPTING AND IMPLEMENTING THE REQUIRED CONDITIONS AT A COST OF TWO MILLION, SIX HUNDRED NINETY-EIGHT THOUSAND, NINETY-EIGHT DOLLARS ($2,698,098.00); 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, the reinsurance market has continued to harden, resulting in increases to carriers of more than 15-20%. The increase is also due to the estimated payroll increase that will affect the General Liability and Workers' Compensation as well as the increase due to new vehicles and law enforcement staff. For Fiscal Year ("FY") 22, budgeted wages were significantly higher, impacting Workers' Compensation. The Workers' Compensation quote is lower than the previous year due to the rolling three-year average (FY 18, FY 19 & FY 20); and WHEREAS, the 2021-2022 annual renewal proposal from the Florida League of Cities for general liability, automobile, property, and workers' compensation coverage is Two Million, Six Hundred Ninety -Eight Thousand Ninety -Eight Dollars ($2,698,098.00) for the City. The quote is Two Hundred Two Thousand, Eight Hundred Eighty -Five Dollars ($202,885.00) higher than what was budgeted for Fiscal Year ("FY") 2021 due to the aforementioned factors; and Resolution No. 21-9898 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: 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. 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 be effective immediately upon its passage and adoption. PASSED and ADOPTED this 18th day of August, 2021. Matthew A. Pigatt, Mayor ATTEST: LL a Flores, City Clerk 2 Resolution No. 21-9898 Approved as to Form and Legal Sufficiency: drk (17 Burnadette Norris -Week P.A. City Attorney Moved by: Commissioner Taylor Seconded by: Vice Mayor Williams VOTE: 4-0 Commissioner Taylor YES Commissioner Davis YES Vice -Mayor Williams 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 Commission Meeting Date: Item Type: (EnterXin box) Resolution Ord' ce Other X Fiscal Impact: (EnterXin box) Yes No Ordinance Reading. (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (EnterXin 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 ILA Required: (Enter X in box) Yes No RFP/RFQ/Bid#: X Strategic Plan Related (Enter X in box) Yes No Strategic Plan Priority Area: Enhance Organizational Bus. & Economic Dev Public Safety Quality of Education Qual. of Life & City Image Communcation m • NI • ■ III Strategic Plan Obj./Strategy: (list the specific objective/strategy this item will address) Sponsor Name City Manager Department: Human Resources Short Title: 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 City's Liability, Automobile, Property and Workers' Compenstion insurance. The quote of $2,698,098 is $202,885 higher than FY 20/21, as anticipated The reinsurance market has continued to harden, resulting in increases to carriers of more than 15-20%. The increase is also due to the estimated payroll increase that will affect the General Liability and Workers' Compensation; increase of new vehicles and law enforcement staff. For FY 22, budgeted wages were significantly higher, impacting Workers' Compensation. It is hoped that the Workers' Compensation audit to be conducted early next year may result in a rebate to the City, alleviating some of the City's cost. It should be noted that the Workers' Compensation quote is lower due to the rolling average three- year average, in this case was based FY 18, FY 19 & FY 20. Financial Impact The proposed FY 22 budget anticipated higher rates due to anticipated workers' compensation issues and increase property being insured as the result of the recently completed asset study. The proposed FY 22 Budget budgeted $2,777,854 for this coverage, $79.756 more than the indicated premium. As indicated, there is a workers's compensation audit early next year to evaluate FY 21 results versus what the City had originally submitted for this coverage, which could eliminate much of the $79,756 surplus. Proposed Action: Staff recommends approval. Attachment: INSURANCE TRUST Protecting the Communities We Call Home RENEWAL QUOTE FOR 2021-2022 City of Opa-Locka FMIT 0435 Coverage Deductible Limit Premium General/Professional Liability $25,000 $1,000,000 $1,449,807 Automobile Liability $25,000 $1,000,000 $68,132 Automobile Physical Damage Per Schedule $47,008 Property $2,500 $20,096,423 $167,115 Workers' Compensation $0 Total Payroll Experience Modification 1.82 10/1/21 $7,787,101 $966,036 TOTAL FMIT PREMIUM *Includes: Drug Free Credit: No Safety Credit: No $2,698,098 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.