HomeMy WebLinkAbout1998 04 13 Consent Item B
ICOMMISSION AGENDA
Il~EM B
REGULAR
CONSENT XX
INFORMATIONAL
April 13, 1998
Meeting
MGR Rvv1DEPT ~
Authorization
REQUEST: The Finatlce Department requests City Commission approval and acceptance to
continue the coverage for General Liability, Personal Property and Workmen's' Compo Insurance
through the Florida League of Cities for the next two years with an annual premium of$261,927.
PURPOSE: The purpose of this Board item is to obtain City Commission approval and
acceptance of the General Liability, Personal Property and Workmen's' Compo Insurance from
the Florida League of Cities for the next two year at an annual premium of$261,927.
CONSIDERATIONS:
A. To continue insurance coverage of City property and protection for employees
injured on the job.
B. The Florida League of Cities has handled the insurance for the City the last 15
years and has met or beat all previous quotes on premiums.
C. The premiums for the next two years will be lower than the premiums for the
current year. No increase in premiums.
ISSUE ANALYSIS (if applicable):
A. Issue is whether to continue our insurance coverage through the Florida League of
Cities, or
B. Begin the process of bid proposals and to obtain a new provider.
C. The League is proposing to reduce the amount of our annual premiums $4,998
from $266,925 to $261,927 and to guarantee the reduced cost of$261,927 for two
years in order to maintain our business.
FUNDING:
A. Insurance premiums are included in the annual budget each year.
1. General Fund Accounts #1310-54510
#1360-54510
2. Premiums are paid at the beginning of each quarter.
RECOMMENDATION:
1. Recommended that the City Commission approve the continuation of General
Liability, Personal Property and Workmen's; Compo insurance through the Florida
League of Cities for the next two years.
2. Recommended Funding is the General Fund and the Water & Sewer Utility for
their allocated portion.
IMPLEMENTATION SCHEDULE:
Premiums to be effective October 1, 1998.
ATTACHMENTS:
Letter from Florida League of Cities dated March 27, 1998.
COMMISSION ACT][ON:
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Florida League of Cities, Inc.
Public Risk Services
P.O. Box 530065
Orlando, FL 32853-0065
~
* FlORIDA I.fA6UE Of cmES
(407) 425-9142
(800) 445-6248
Suncom 344-0720
Fax (407) 425-9378
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March 27, 1998
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Mr. 1. P. Petrencsik
Purchasing Agent
City of Winter Springs
1126 East S.R. 434
Winter Springs, Florida 32708
Re: 1998/99 FMIT Renewal
Property and! Casualty Insurance
Dear Mr. Petrencsik:
Per our discussion, the following briefly outlines what I am prepared to offer the City of
Winter Springs on our Two Year Premium Guarantee Program for your 10/1/98 property
and casualty renewal This program allows you to exactly budget the premium for the
next two fiscal year:; with no premium adjustments. In these renewal calculations, we
have used the 1996/97 audited exposures, updated loss runs from 12/31/97 to promulgate
the general liability, automobile liability and automobile physical damage experience
modifications and will stand by the 10/1/97 workers' compensation experience
modification as promulgated by the NCCI.
Annual
Covera2e Deductible Limit Premium
GeneralJProfessional *$25,000 Stoploss $2,000,000 $56,607
Liability
Automobile Liability *$25,000 Stoploss $2,000,000 $29,372
Automobile Physical Varies Per ACV Per Schedule Inclusive Above
Damage Schedule
Property/Crime Varies Per ACV IRC Per $27,741
Schedule Schedule
Workers' None Statutory $148,207
Compensation
Total Net Annual
Premium $261.927
Florida Municipal Insurance Trust
Mr. 1. P. Petrencsik
City of Winter Springs
March 27, 1998
Page 2
· The Deductible Stoploss amount is fixed at $116,049 and applies for each policy
year. This means that if the City has any combination of paid losses within their
deductible totaling $116,049, the coverage will revert to first dollar coverage for the
applicable year.
What I have outlined for you represents the current risk financing programs as expiring
and I would suggest that we get together to explore other risk alternatives that may be of
interest to the City "fWinter Springs. I can be readily available to meet with you at your
convemence.
We value your participation in the Florida Municipal Insurance Trust and as always it is a
pleasure being of service to you and the City of Winter Springs.
Sincerely,
~~ ..>-c;;/~
Bradley S. Clark
Director
c: Byron Beard, Underwriting Manager
John Ligon, Marketing Representative
Margaret Gtioss, Rating Manager