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HomeMy Public PortalAbout13-8673 Agreement with Florida League of Cities Sponsored by: City Manager RESOLUTION NO. 13-8673 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH FLORIDA LEAGUE OF CITIES, FLORIDA MUNICIPAL INSURANCE TRUST ("FMIT"), FOR PROPERTY, LIABILITY, AND WORKERS' COMPENSATION INSURANCE FOR FY 2013-2014, AT A COST OF $997,304, PAYABLE FROM ACCOUNT NOS. 18-513451, 61-513451, 43- 538451, AND 34-534451, A BUDGETED ITEM; PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City negotiated with the Florida League of Cities ("FLC), Florida Municipal Insurance Trust ("FMIT") for Property, Liability and Workers' Compensation to renew its insurance coverage; and WHEREAS, the FLC provided the City with a renewal offer, at a cost of $997,304, subject to the following conditions: • The City shall employ or contract for services of a qualified Risk Manager to oversee loss prevention and insurance related activities. This person shall be authorized to implement appropriate business practices to reduce risk and loss. The position will be filled no later than January 1, 2014; • The City agrees to obtain independent legal advice prior to the termination of an employee; • Monthly police participation in league provided online training through FMIT; • Monthly onsite meetings with League risk control personnel to monitor risk control activities as outlined in the attached recommendation letter; • Payment of quarterly premiums in a timely manner and reimbursement to the FMIT of any deductibles billed to the City within 30 days of issuance; and WHEREAS, the conditions must be complied, or FMIT will issue a 45 day notice of cancellation; and Resolution No. 13-8673 WHEREAS, the City Commission of the City of Opa-locka desires the City Manager to enter into an agreement with Florida League of Cities, Florida Municipal Insurance Trust, for Property, Liability and Workers' Compensation Insurance for FY 2013-14. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Session 1. The recitals to the preamble herein are incorporated by reference. Session 2. The City Commission of the City of Opa-locka, directs and authorizes the City Manager to enter into an agreement with the Florida League of Cities, Florida Municipal Insurance Trust, for Property, Liability and Workers' Compensation Insurance for FY 2013-14, in the amount of$997,304, payable from Account Nos. 18-513451, 61-513451, 43-538451, and 34-534451, a budgeted item. Session 3. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 11th day of September, 2013. (lIALI IYIOR RA MAYOR Attest to: 4_tb • (1� J l:nna Flores ty Clerk Approved as to form and legal sufficiency: tt I A k 1 1 Wir -.. Jos ,• S. 4 a ler G' r ENS' OON MARDER PA C t, Attorney Resolution No. 13-8673 Moved by: COMMISSIONER JOHNSON Seconded by: COMMISSIONER HOLMES Commission Vote: 5-0 Commissioner Holmes: YES Commissioner Johnson: YES Commissioner Santiago: YES Vice-Mayor Kelley: YES Mayor Taylor: YES /OQP.LOCIr4. O O r. iF 9 �I D OApORATE�� City of Opa-Locka Agenda Cover Memo Commission Meeting 09/11/2013 Item Type: Resolution Ordinance Other Date: X (EnterXin box) Fiscal Impact: Ordinance Reading: 1st Reading 2nd Reading (Enter X in box) Yes No (Enter X in box) X Public Hearing: Yes No Yes No (EnterXin box) Funding Source: (Enter Fund&Dept) Advertising Requirement: Yes No (Enter Acct No.) 18-513451 (EnterXin box) 61-513451 34-534451 34-534451 BUDGETED Contract/P.O.Required: Yes No RFP/RFQ/Bid#: (EnterXin box) X N/A Strategic Plan Related Yes No Strategic Plan Priority Area: Strategic Plan Obj./Strategy: (list the (Enter X in box) specific objective/strategy this item will address) Enhance Organizational El Bus.&Economic Dev 0 Public Safety El Quality of Education 0 Qual.of Life&City Image ED Communcation CI Sponsor Name City Manager Department: City Manager Short Title: 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 INSURANCE TRUST, FOR PROPERTY, LIABILITY AND WORKER'S COMPENSATION INSURANCE FOR FY 2013-2014, ACCEPTING AND IMPLEMENTING THE REQUIRED CONDITIONS, AT A COST OF $997,304, PAYABLE FROM ACCOUNT NUMBERS 18-513451, 61- 513451,43-538451,AND 34-534451(BUDGETED ITEM) Staff Summary: Earlier this summer, the City received a notice of non-renewal from the Florida League of Cities(FLC)for property, liability and worker's compensation insurance coverage. The City immediately began negotiating with the FLC to reconsider their decision, but at the same time, staff began looking for alternative coverage. Unfortunately, initial estimates indicated the City's insurance would increase two to two and a half times what we were paying FLC. When the new Human Resources Director came on board, one of his first tasks was meeting with representatives CYI iF J} . ©PaC3 ®VIA C-:77;:La glop/dal Memorandum TO: Mayor Myra L. Taylor Vice-Mayor Joseph J . K •y Commissioner Timothy •s / Commissioner poroth/ i i ,11 Commissioner Luis B S.n FROM: Kelvin Baker, Sr. , City Mana DATE: September 10, 2013 RE: Resolution: Florida League of Cities FY 2013-2014 Renewal Request: 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 INSURANCE TRUST, FOR PROPERTY, LIABILITY AND WORKER'S COMPENSATION INSURANCE FOR FY 2013-2014, ACCEPTING AND IMPLEMENTING THE REQUIRED CONDITIONS, AT A COST OF $997,304, PAYABLE FROM ACCOUNT NUMBERS 18-513451, 61-513451, 43-538451, AND 34-534451 (BUDGETED ITEM) Description: Earlier this summer, the City received a notice of non-renewal from the Florida League of Cities (FLC) for property, liability and worker's compensation insurance coverage. The City immediately began negotiating with the FLC to reconsider their decision, but at the same time, staff began looking for alternative coverage. Unfortunately, initial estimates indicated the City's insurance would increase two to two and a half times what we were paying FLC. When the new Human Resources Director came on board, one of his first tasks was meeting with representatives from the Florida League of Cities to negotiate a way the City could remain partners. Financial Impact: $997,304 payable from account numbers 18-513451, 61-513451, 43-538451, and 34- 534451 Implementation Timeline: October 1,2013 Legislative History: none Recommendation(s): Staff recommends approval. 'GUE Of t N./11 r 4.* 5.■ Ck i Dr • Pr, 3C6 ' 1 g' rIr 4 • •- ' 4"r-9'4 11 • ,,vv\, po•ie • At September 5, 2013 Mr. T.C. Adderly City of Opa-Locka 780 Fisherman Street Opa-Locka, FL 33054 Mr. Adderly, Thank you for taking the time with meet with us on Tuesday, September 3rd. It was a pleasure meeting you and discussing some of the mutual concerns for the City and the League. The goal of the Florida League of Cities (FLC) and the Florida Municipal Insurance Trust (FMIT) is to always be of service to our members. We would appreciate the opportunity to work with the City of Opa-Locka as a partner to improve the day to day safety and loss prevention programs and continue as your insurance carrier. As we discussed, the city has a significantly deteriorated loss experience over the last five years to the point of raising serious concern. In fact, the degree of loss experience arising from the city threatens the FMIT's ability to continue the city's coverage. Because FMIT is a pooled trust that owes a fiduciary responsibility of prudent financial management and risk management to all members of the pool, we have determined some specific conditions that must be permanently implemented by the city in order to continue coverage. Therefore, FLC is pleased to deliver the attached renewal offer on behalf of the FMIT, subject to the conditions stated therein. Attached to the proposal is a form that will specifically outline conditions that must be permanently implemented to improve the city's risk profile. We discussed many of these during our meeting. The purpose of these conditions are to assist the City in improving the overall performance in terms of employee safety (reduced workers compensation losses) as well as trying to improve the loss frequency in General Liability claims, Law Enforcement claims and Employment Practices claims. Required conditions include: The City shall employ or contract for services by a qualified Risk Manager to oversee loss prevention and insurance related activities. This person President P.C.Wu.C,oaric -'esicient Pensacoia First v1.ce Present Lou C.Moseley,Mayor Warner • 'Second President Matthew D. Surrency,Mavot Hawthorne Executive Ditiector Michael Sittig • G'enerel Coxtse Harry Morrison, Jr. odE Op c % II1L Department of Insurance ana Financial SnrvIces FLORIDA MUNICIPAL INSURANCE` ''UST RENEWAL QUOTE FOR 2013-2014 City of Opa Lock . EMIT 0435 Coverage Deductible Limit Premium General/Professional Liability $25,000 $1,000,000 $470,019 Automobile Liability $25,000 $1,000,000 $56,806 Automobile Physical Damage Per Schedule $19,865 Property $2,500 $14,838,152 $98,341 Workers'Compensation $0 Total Payroll Experience Modification 1.37 10/1/13 $6,899,655 $374,386 GRAND TOTAL PREMIUM $1,0190417 RETURN OF PREMIUM $22,113 REDUCED GRAND TOTAL PREMIUM $997,304 The EMIT Board of Trustees has approved a$85000,000 retulm of premium for members that had property coverage in the 2011-2012 Fund Year. The directive of the Board was to return property premium on the renewing members for 2013-2014 that participated in the Trust's property program in 2011-2012, Based on the properly premiums paid in 2011-2012 the City of Opa Locka can expect$22,113 in return premium should they elect to renew coverage for the 2013-2014 policy year; includes: Drug Free Credit: No Safety Credit: No Note. Coverage summaries provided herein are intended as arr outline of coverage arrly aIid are necessarily brief. In the event of loss,all terms,conditions,and exclusions of actual Agreement and/or Policies will apply. m a n m n m IN r■ ti a a el i-I WI ea .! eVi m O • r/ N h U7 n n p o N OS N CC _ Q V -=..,_ � w f CO tin t '.O h 2 ^ tft g 1` $ 0 D 0 W arl ul N1- ak in� .h iK y ni 0. h li no ei m Op O 01 n c u 7 in ° m m(( o CD v o yr ° c° ° MI• D tO c0 m .i V' � n CO in I; O o a+ o In ° m • U N Q1 ° "" t, N o n r CO m v o J m O i�, -• i •v r 4. r; r' '1 ac o .d 7 Ili.- p a J O ui gl 3 Li . N tM`. eO . tO N O �.0 ...4 n1 N .- T N O N -I p v r, m C a-1 li .q o ~ O vi 1O ®• J 4 v i . y. i r/f. us n ,n in 1,0. y us y. v: y in e y r •-I fn. a y f u} y d• 0 L9 f • 4 f f d ® ? f Cis I J LL Og d Y O v O O ' O cn c i CO I FE c ctC ■ c sa Y -- C F I- -5 es i :F.' s la O Q C �IiO`�O P. C v ri iu . c C Ia C G^p Y • w J 5 In I O ~ t7 q m' �p i GJ J • V g 1 yi 1 O J`- j ei flu ° fit 4 o qo o 6t! ul P N E4 IN O 04 O ❑ O ›i0 T Ol Y •-1 N ,y g i - — a; it , * N le tra ... .... , m ..7, A Ih °I /... 'II In ,n $ Oa I ..■ 0 i 45 ati M W! w. T 4 1 $ t, . 0; .1 f.1 eg: 0 i i 1 --,-, .I ....:== I 1 1 i ‘n -, 2 '2 r... .,z.gh 01 e- 4 ,,,I ‘ k al. ..,, , R ,,A21 ,a g $ gl ta.I i Zi 1 i ag 011 ,.; to u) az m 1. g Ot ver .4 44 ,....__,--, ____,...- ..—_—_-- ,=.I r. I ' esi et• P m 7,11, IN tti ,rt or..1. <i• , 4.. i EC In A g ...1. . „,.. .1 .1., N. n ui 4 . cri V rf . g u, V N. co r... 0 M r4 11 IA 0. I ..., in. .. 44 m <A ..h. 4 a I O r . _u 4t m i OR 2 1 a. VA .3. rn er O O. N u. Lti os ,A. ,.-, .. . -......- ..S 0 ta * LID ev m O U I 1 4= tr■ ' v4 0 ...• ,; II— cd U tg O ta w tg j■ 1 cr. a 15. o 2 . c ur ,... :..n ..= ..1'' .., ...,, 1.1.9 1: CI 0 ti > ' 02- 0 ---. •-__ , , r, ..-1 .-4 0 d 0 I 0 4 . 3 , 0 in 0 0 0 g fa P) 1:3' g 0 L3 m ai 9 V . . pli g LII ,-.4 ai 0 8 0 ..-1 0 0 Esi q-1 0 N N N `,. N --... N N N N ,:i. 1 N 00 r, 5 o Page 2 August 30,2013 Item 2: Due to the high turnover rate of staff members,continuity and stability are lacking in the overall safety and health efforts of the City. Over the past four years the safety committee has had three separate starts due to staffing changes. In an effort to address longevity concerns,effective employment practices will help to insure solid candidates are secured. These areas include: 9 Effective Recruiting © The Interview Process o Complete Job Descriptions o Background Checks in compliance with current legal guidelines Item 3: An effective resource that proved to be effective in the past was when the City utilized a fuiltime Risk Manager on staff with authority to make corrections. This is a common process for a city the size of Opa-locka. Supervision with effective and ongoing training will insure all the interests of the city will be addressed. Additional recommendations for training: Accident Investigation for Supervisors Hostile Work Environment Training HR training for staff and HR Hotline access Police Department Follow CALEA standards with intent to complete the accreditation process As the risk control consultant I will be available to come along side to help guide and assist throughout the safety process. Respectfully, Affified S. Palma Risk Control Consultant Department of insurance and Financial Services Florida League of Cities,Inc. 407 616 2259 a i s� fa�iL e5._tiy RENEWAL CONDITIONS Attached is a conditional renewal offer from the Florida League of Cities (FLC) and the Florida Municipal Insurance Trust(FMIT). The purpose of this form is to outline certain conditions that shall be required by the FMIT as your insurance carrier. The purpose of these conditions are to assist the City in improving the overall performance in terms of employee safety (reduced workers compensation losses) as well as trying to improve the loss frequency in General Liability claims, Law Enforcement claims and Employment Practices claims. Required conditions include: • The City shall employ or contract for services by a qualified Risk Manager to oversee loss prevention and insurance related activities. This person shall be authorized to implement appropriate business practices to reduce risk and losses. It is agreed that this position shall be filled not later than January 1, 2014. • The City agrees to obtain independent legal advice prior to the termination of any employee. • Monthly police participation in league provided online training through the FMIT. • Monthly onsite meetings with League risk control personnel to monitor risk control activities as outlined in the attached recommendations letter. • Payment of quarterly premiums in a timely manner and reimbursement to the FMIT of any deductibles billed to the City within 30 days of issuance. Failure by the City to comply with the above conditions will result in an immediate issuance of a 45 day notice of cancellation by the FMIT. The city fully understands and agrees to the terms of the conditional renewal. City Manager Date • " THE GREAT CITY " i 4.4s< �J. :O4 O 1./1fj// j APADga%13Q tWort•dr Kelvin L.Baker,Sr. 305-953-2821 City Manager 305-953-2823 Fax: 305-953-2870 Memorandum To: Mayor Myra Taylor Vice Mayor Joseph L. Kelley \ Commissioner Timothy Holm:s Commissioner Dorothy'Dottie Jo s• Commissioner Luis B. Santiagt From: Kelvin L. Baker, Sr., City Manag:r Date: June 26, 2013 Re: Florida League of Cities, FMIT 0435—Insurance Cancellation/Non Renewal, Effective October 1, 2013 Please be advised the City received notice of non-renewal from the Florida League of Cities stating cancellation of the City of Opa-locka Coverage, effective October 1, 2013 for the following: • Worker's Compensation/Employers Liability • Liability • Automobile • Property,Allied Lines, Crime and Bond The decision for non-renewal was based on the City not meeting underwriting requirements and a high degree of losses, as well as excessive claims. Back in 2001, the City was counseled by the League regarding the City's Risk practices, and the need to hire a Risk Manager. It is due to the latter plus a high loss run ratio that caused the League to cancel the City of Opa-locka's Liability Coverage. The agent of record is looking into finding other insurer that will cover the City's liability insurance prior to the expiration date. If you have any questions, please advise. Cc: David Chiverton, Asst. City Manager Wonda Cooper, Director Human Resources Attachment End of Memorandum www.oDalockafl.Qov CITY HALL• 780 FISHERMAN STREET,4TH FLOOR, OPA-LOCKA, FLORIDA 33054 • (305)688-4611 AN EQUAL OPPORTUNITY EMPLOYER AND DOES NOT DISCRIMINATE ON THE BASIS OF HANDICAP NOTICE 01?NON-RENEWAL 2513 JUN 1 2 AM 10: HAND DELIVERED Florida League of Cities,Inc. P.O.Box 530065 Orlando,FL 32853-0065 Tyne of Coverage Non-Renewed Florida Municipal Insurance Trust WORKERS'COMPENSATION/EMPLOYERS LIABILITY LIABIILTY AUTOMOBILE PROPERTY,ALLIED LINES,CRIME,BOND Name and Mailing Address of Member: Agreement Number CITY OF OPA-LOCKA FMIT 0435 780 FISHERMAN STREET,4th FLOOR OPA-LOCKA,FL 33054 ,. Non-Renewal will take effect on: 12:01 A.M.(Standard Time Date:October 1,2013 Coverages being non-renewed shown here: WORKERS'COMPENSATION/EMPLOYERS LIABILITY LIABIILTY AUTOMOBILE PROPERTY,ALLIED LINES,CRIME,BOND Reason for non-Renewal: Does not meet underwriting requirements. Non-Renewal:You are hereby notified on accordance with the terms and conditions of the above— mentioned agreement that coverage will cease the hour and date above. June 11,2013 Marketing Representative Date of Notice I st m in r-- N ig m I vi 1 er N 0 N ,H 0 LA CO CI LA 0 ,I W I cn I ,us. CO .i. ,i [„; , A... CO N 0 ,00 Ns H H N -..... 4* 1 81 ..41 '-', H H ,N N N I I I , 1 : : I I t- ;70-i—' I I-- 1 ,- - ...,, ul I--1 61-7 , 1 H al 0 1 M ! E! , jr9, :71 !M 17 i 3! ' !‘13-1 Oil r4 I ui 1 rrc N 0 ! OJE I 030 N M H IN! AI N N IN 0 N . 1 1 I I t I I i L_.._4_ ._, . . , , j 0 0 N I ,„ 111 ' 11 8 PI c,==,11 1 . 51 i 1 L I I 51 ,4 0 . . 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Sponsored by: City Manager Resolution No. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, TO AUTHORIZE THE CITY MANAGER TO ACCEPT THE MIAMI-DADE COUNTY HOUSING AND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)AWARD, IN THE AMOUNT OF TWO HUNDRED TWO THOUSAND DOLLARS ($202,000.00); PROVIDING FOR INCORPORATION OF RECITALS; PROVIDING FOR AN EFFECTIVE DATE WHEREAS,Miami-Dade County Public Housing and Community Development("PHCD") amended FY 2013-14 Action Plans by reprogramming Community Development Block Grant ("CDBG")funds; and WHEREAS,$202,000.00 of the reprogrammed funds has been awarded to the City of Opa- locka for Lift Station 8 Rehabilitation project, and WHEREAS,rehabilitation of Lift Station 8 will facilitate the City's compliance with Miami- Dade County wastewater regulations, and the additional funds will relieve this project's current existing funding gap; and WHEREAS,The City Commission of the City of Opa-locka desires that the City Manager accept and execute the necessary agreement for the CDBG award. NOW,THEREFORE,BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA,FLORIDA: Section I. The recitals to the preamble herein are incorporated by reference. Resolution No Section 2. The City Commission of the City of Opa-locka hereby authorizes and directs the City Manager to execute the necessary agreement, in acceptance of the Miami-Dade County Housing and Community Development Block Grant(CDBG)award,in the amount of Two Hundred Two Thousand Dollars ($202,000.00), and any additional funds awarded by PCHD for the rehabilitation project of Lift Station 8. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this day of ,2013. MYRA TAYLOR MAYOR Attest to: Joanna Flores City Clerk Appr• ed as to fi an gal suffici- I 1f 411 ,1 . i oseph S. Geller REENSPOON MARDER PA City Attorney Resolution No Moved by: Seconded by: Commission Vote: Commissioner Holmes: Commissioner Johnson: Commissioner Santiago: Vice-Mayor Kelley: Mayor Taylor: Ya 11181406 vl