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Home My WebLink AboutR-2000-002 RESOLUTION NO. 2000-002 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA APPROVING A TWO-YEAR PREMIUM GUARANTEE AGREEMENT WITH FLORIDA MUNICIPAL INSURANCE TRUST COVERING CITY'S CURRENT INSURANCE POLICIES FOR GENERAL AND PROFESSIONAL LIABILITY, AUTOMOBILE, PROPERTY AND WORKERS' COMPENSATION; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That that certain Two-Year Premium Guarantee Agreement between the City of Dania Beach and Florida Municipal Insurance Trust, in substantial form as Exhibit "A", attached, is approved and the appropriate City officials are directed to execute it. The City Manager and City Attorney are authorized to make minor revisions to such Agreement as are deemed necessary and proper for the best interests of the City. Section 2. That all resolutions or parts of resolutions in conflict with this resolution are ® repealed to the extent of such conflict. Section 3. That this resolution shall be in force and take effect immediately upon its passage and adoption. PASSED and ADOPTED this 11th day of JAN ARY, 20 f OR-COMMISSIONER ATTEST: ROLL CALL: MAYOR BERTINO --YES VICE-MAYOR MCELYEA- YES SHERYL HAPMAN COMMISSIONER ETLING - YES ACTING CITY CLERK COMMISSIONER CALI - YES COMMISSIONER MIKES- YES APPROVED AS TO FORM AND CORRECTNESS: BY: r' , THOM S J.,ASIAAd, CITY ATTORNEY G:\res2000\res-floridamunicipaltrustage.doc 1/20/2000 1 RESOLUTION NO. 2000 -002 • FLORIDA MUNICIPAL INSURANCE TRUST TWO YEAR PREMIUM GUARANTEE AGREEMENT October 1, 1999 —September 30, 2001 THIS AGREEMENT, made and entered into this I" day of October, 1999 by and between the City of Dania Beach (FMIT 129), (hereinafter referred to as the "Member") and the Florida Municipal Insurance Trust(hereinafter referred to as the"FMIT"). WHEREAS, the FMIT has determined it is in the best interest of the FMIT to offer the Member a Two Year Premium Guarantee Plan, and • WHEREAS, the Member has determined it is in the best interest of the Member to utilize the Two Year Premium Guarantee Plan. NOW, THEREFORE, for and in consideration of the mutual covenants, promises and obligations herein contained which are given to and accepted by each party hereof to the other, the parties to this instrument covenant, stipulate and agree as follows: 1. As used herein, the following words and phrases shall have the following meanings: a. "Coverage Period" means the period as shown on the Declarations of the FMIT Agreement. • b. "Premium Guarantee" means that the annual net premium billed the Member for the coverage period will not be subject to adjustment from exposure audit, change IA IB 8® ® in experience modifications, annual rate review and rate change by the FMIT or to change in approved participation credits. C. "Gross Premium" means the annual gross premium as shown on the Declarations of the FMIT Agreement for the coverage period. d. "Participation Credit" means equity credits, dividends, incentive credits, premium credits, and any other participation credit approved by the FMIT, and is the annual credit shown on the Declarations of the FMIT Agreement for the coverage period. • e. "Net Premium" means the annual net premium as shown on the Declarations of the FMIT Agreement for the coverage period. f. "Experience Modifications" mean the factors used by the FMIT in adjusting base gross premium due to a Member's loss experience for workers' compensation, general liability (including law enforcement and public officials errors and omissions), automobile liability and automobile physical damage. g. "Exposure Audit" means audits conducted by the FMIT to assure exposure information provided by the Member accurately reflects actual exposures assumed by the FMIT, which audits can result in premium adjustments to the • Member under the terms of the Indemnity Agreement. 2 h. "Rates" mean the annual renewal rates approved by the FMIT for the FMIT's property and casualty coverages and used for calculation of the Member's gross premiums. i. "Exposures" mean the basis on which the FMIT rates are applied to develop gross premiums including but not limited to payroll, job classifications, population, law enforcement officers, vehicles, real and personal properties, and other miscellaneous exposures. j. "Indemnity Agreement" means the FMIT's Indemnity Agreement, the Participation Agreement entered into between the FMIT and the member, and any • other agreement, certificate document, or other instrument executed by the Member and the FMIT. 2. Subject to the terms and conditions contained in this Agreement, the Member and the FMIT agree Member's Premium Guarantee during the coverage period shall be the net premium shown on the Declarations of the FMIT Agreement. 3. The Member agrees that it will assist the FMIT by timely providing the FMIT with updated information projecting the FMIT's exposure for the October 1, 1999 fiscal year and with any other exposure information the FMIT in good faith believes might have a material impact on the exposures to be assumed by the FMIT over the coverage period. • 3 4. The FMIT agrees that coverage provided herein will not be canceled or non-renewed by the FMIT during the coverage period except for non-payment of premium by the Member. 5. The member agrees that coverage accepted herein will not be canceled or non-renewed by the Member during the coverage period. J 6. If, during the coverage period, the member cancels or non-renews the coverage or if coverage is canceled by the FMIT for non-payment of premium, the member shall be liable for liquidated damages for breach of this Agreement, calculated at ten percent (10%) of the net premium unearned by the FMIT for the coverage period, plus any ® additional premium that, but for this Agreement, would otherwise have been due and owing the FMIT as a result of exposure audits under the Indemnity Agreement. This provision for liquidated damages is agreed upon between the parties due to the inability of computing the loss of value to the FMIT of the unexpired portion of the Member's coverage period under this Agreement. 7. In the event the Member fails to pay monies due and owing hereunder, the FMIT shall be entitled to recover from the Member all costs and expenses incurred by the FMIT in collecting any such monies, including reasonable attorney's fees, costs, prejudgment interest, and any other reasonable and related expenses of collection. 0 4 8. In the event of conflict, the provisions of this Agreement shall prevail over any provisions contained in the Indemnity Agreement. Provisions of the Indemnity Agreement not in conflict with the provisions of this Agreement shall remain in full force and effect. Cl Y.OF D A BEAC Y: ohn e o, Mayor Attest: By: Sheryl Chapman Mic t , Acting City Clerk Cit Mana (SEAL) Signe day of 2000. G�� Approved As To Form And Correctness: By: /--I' ' � AA4111 Thomas A�Sbr , Cit Attorney FLORIDA MUNICIPAL INSURANCE TRUST Date Authorized Representative Title Witness 5 AGENDA REQUEST FORM CITY OF DANIA REACH AGENDA ITEM NO. 1. DATE OF COMMISSION MEETING: 11 JANUARY 2000 2. DESCRIPTION OF AGENDA ITEM: FLORIDA MUNICIPAL INSURANCE TRUST TWO YEAR PREMIUM AGREEMENT 3. COMMISSION ACTION BEING REQUESTED: Adopt Resolution or Ordinance X Expenditure X Award Bid/RFP ❑ Presentation ❑ General approval of item ❑ Continued from meeting ❑ Other(please explain) ❑ 4. SUMMARY EXPLANATION & BACKGROUND: IN LIEU OF SIGNIFICANTLY INCREASING OUR GENERAL LIABILITY PREMIUM, THE FLORIDA MUNICIPAL INSURANCE TRUST (FMIT) REQUESTS THAT WE SIGN A TWO YEAR PREMIUM GUARANTEE AGREEMENT FOR ALL CURRENT POLICIES WHICH INCLUDE GENERAL AND PROFESSIONAL LIABILITY, AUTOMOBILE, PROPERTY AND WORKERS' COMPENSATION. THIS AGREEMENT GUARANTEES THAT OUR PREMIUM WILL REMAIN THE SAME AS LAST YEAR THROUGH 30 SEPTEMBER 2001. IN RETURN, THE PREMIUM GUARANTEE MEANS THAT THE ANNUAL PREMIUM DURING THIS PERIOD WILL NOT BE SUBJECT TO ADJUSTMENTS FROM EXPOSURE AUDIT, CHANGE IN EXPERIENCE MODIFICATIONS, ANNUAL RATE REVIEW AND RATE CHANGE OR TO CHANGE IN PARTICIPATION CREDITS. DURING THE PERIOD OF THIS AGREEMENT, THE CITY CAN ADD VEHICLES, REAL AND PERSONAL PROPERTY, AND STAFF AT NO ADDITIONAL CHARGE. GENERAL LIABILITY PREMIUMS ARE BASED ON EXPERIENCE RATINGS OVER THE PAST THREE YEARS. OUR CLAIMS EXPERIENCE DURING THE PAST THREE YEARS WOULD NORMALLY INCREASE OUR GENERAL LIABILITY PREMIUM MORE THAN $50,000. FLORIDA LEAGUE OF CITIES UNDERWRITING MANAGER, BYRON BEARD, INDICATES THAT AS LONG AS WE DO NOT INCUR ADDITIONAL LARGE CLAIMS OUR EXPERIENCE RATING SHOULD IMPROVE BY THE END OF THE TERM OF THIS AGREEMENT. 5. ATTACHED EXHIBITS AND ADDITIONAL BACKUP MATERIALS (PLEASE LIST): (1) FMIT TWO YEAR PREMIUM GUARANTEE AGREEMENT 6. FOR PURCHASING REQUESTS ONLY: Dept:—Various_Amount: $452,732 Fund: GENERAL: X WATER: X SEWER: X STORMWATER: X Account name: Various insurance accounts in all funds General Liability/Property & Casualty $260,625 Workers' Compensation $192,107 Total $452,732 Finance Director Approval:'-" 4 Date: .01 7. REVIEWED AND APPROVED FOR ADDITION ON AGENDA: Sub i ed by Date Depart tttor Date -/7 6Lt, City M *r\ Date r