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Home My WebLink AboutR-2019-100 City Authorizing the Renewal of the Comprehensive Property & Casualty Insurance Program w/ Preferred Governmental Insurance Trust for the City, Through Risk Management Associates, Inc. RESOLUTION NO. 2019-100 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE RENEWAL OF THE COMPREHENSIVE PROPERTY & CASUALTY INSURANCE PROGRAM WITH PREFERRED GOVERNMENTAL INSURANCE TRUST FOR THE CITY OF DANIA BEACH, FLORIDA, THROUGH RISK MANAGEMENT ASSOCIATES, INC. DB/A PUBLIC RISK INSURANCE AGENCY ("PRIA") OR BROWN & BROWN, WITHOUT COMPETITIVE BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS, SUCH PACKAGE TO INCLUDE COVERAGE FOR PROPERTY AND CASUALTY, CRIME, EMPLOYEE DISHONESTY, GENERAL LIABILITY, AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE, PUBLIC OFFICIALS' LIABILITY, EMPLOYMENT PRACTICES' LIABILITY, CYBER LIABILITY AND WORKERS' COMPENSATION AND IN ADDITION THROUGH PRIA, COVERAGE FOR POLLUTION LIABILITY WITH INDIAN HARBOR INSURANCE COMPANY, DOCK PROPERTY COVERAGE WITH GREAT LAKES REINSURANCE, FP&L EASEMENT LIABILITY INSURANCE WITH EVANSTON INSURANCE COMPANY, STORAGE TANK INSURANCE WITH COMMERCE AND INDUSTRY INSURANCE COMPANY AND NFIP FLOOD PROGRAM POLICIES WITH WRIGHT NATIONAL FLOOD INSURANCE COMPANIES AND HULL COVERAGE FOR A COMBINED ANNUAL PREMIUM AMOUNT OF NINE HUNDRED SIXTY ONE THOUSAND FOUR HUNDRED EIGHTY-THREE DOLLARS ($961,483.00) FOR COVERAGE BEGINNING OCTOBER 1, 2019 THROUGH SEPTEMBER 30, 2020; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach (the "City") currently obtains its Comprehensive Property& Casualty coverage through Public Risk Insurance Advisors ("PRIA"); and WHEREAS, upon Commission approval on September 10, 2019, PRIA will renew the City's existing Package and Workers' Compensation insurance for Preferred Governmental Insurance Trust with 1-year policy beginning October 1, 2019 through September 30, 2020, which is advantageous for coverage,rate, and budget stability; and WHEREAS, it is anticipated that minor changes may occur throughout the fiscal year due to additions and deletions of assets and as a result of the annual Workers' Compensation audit; and WHEREAS, Brown & Brown, d/b/a Public Risk Insurance Agency, continues to be responsive and provide guidance for loss control, claims handling, risk management and liability concerns on major contractual agreements, special events, construction projects, appropriate vendor insurance requirements, and bid specifications; and WHEREAS, Brown & Brown is able to offer renewal of the current Pollution Liability coverage with Indian Harbor Insurance Company at a five percent (5%) increase ($591.00) for Fiscal Year 2019-2020; and WHEREAS, Brown & Brown is able to offer renewal of the current Dock Property Coverage with Great Lakes Reinsurance Company at a decrease in premium of.23% (-$135.00) for Fiscal Year 2019-2020; and WHEREAS, Brown& Brown is able to offer renewal of the current Storage Tank Policy with Commerce and Industry Insurance Company at a flat rate with no increase in premium for Fiscal Year 2019-2020; and WHEREAS, Brown & Brown is able to offer renewal of current Florida Power & Light Company ("FPL") General Liability Coverage with Evanston Insurance Company at one percent (1%) increase ($40.00) for Fiscal Year 2019-2020; and WHEREAS, Brown & Brown is able to offer renewal of flood coverage as required under the National Flood Insurance Program ("NFIP") governed by the Federal Emergency Management Agency ("FEMA") with Wright National Flood Insurance Company including estimated increase of eight percent(8%) or($3,836.00); and WHEREAS, the City Commission waives competitive bidding and further authorizes renewals with Preferred Governmental Insurance Trust, Indian Harbor Insurance Company, Great Lakes Reinsurance Company, Commerce and Industry Insurance Company, Evanston Insurance Company and Wright National Flood Insurance Company for Fiscal Year 2019-2020; and WHEREAS, the City Commission further authorizes the City Manager to make adjustments to the premiums as necessary due to required changes in coverage resulting from additions or deletions of equipment, results of the annual Workers' Compensation audit, or other insurance requirements necessary to protect the City and its assets; NOW, THEREFORE,BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH,FLORIDA: Section 1. That the City Commission approves the renewal of the City's Comprehensive Insurance Package through Preferred Governmental Insurance Trust, such 2 RESOLUTION#2019-100 package to include coverage for Workers' Compensation, Property and Casualty, Crime, Employee Dishonesty, General Liability, Automobile Liability and Physical Damage, Public Officials' Liability, Employment Practices' Liability, Cyber Liability and renewal of Pollution Liability with Indian Harbor Insurance Company, renewal of Dock Property Coverage with Great Lakes Reinsurance Company, renewal of Storage Tank Coverage with Commerce & Industry Insurance Company, renewal of FPL General Liability with Evanston Insurance Company, and renewal of NFIP Flood coverage with Wright National Flood Insurance, and Hull Coverage for the period October 1, 2019 through September 30, 2020 in a total combined estimated premium amount of Nine Hundred Sixty One Thousand Four Hundred Eighty-Three Dollars ($961,483.00) allowing for premium adjustments to be made by the City Manager as necessary to properly protect the City and its assets. Section 2. That the cost of the Comprehensive Property & Casualty Insurance coverage, which anticipates an annual adjustment needed for coverage due to changes in City's risk exposures such as audited payrolls, vehicles, equipment, and real property inventory, is planned, appropriated and has been made available through appropriate allocations to various City Funds in the proposed Fiscal Year 2019- 2020 budget. Section 3. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on September 10, 2019. ATTEST: XF mnan THOMAS SCHNEIDER, CMC ORI LE LEN CITY CLERK MAYOR Is APPROVED AS TO ORM AND CO S: k) �- - THO AS J AN RO CIT AT RN 3 RESOLUTION#2019-100 PREMIUM AND COVERAGE COMPARISON UPRIA PUBLIC RISK INSURANCE ADVISORS 2018/2019 201912020 Mummafian es.in Fat osureCMMMM t)r��dr✓ Ct'V��tAG� � :.� �� ..r � ,� ry a� .. ,�, r ��;.: n. ��w,,�,., � r �� d� �° M. Property: Preferred Govt'I Ins Trust Implemented Property Appraisal Blanket Buildings&Contents $ 45,618,956 $ 2,500 $ 350,606 $ 50,674,133 $ 2,500 $ 389,177 Proparty Equipment Breakdown $ 45,618,956 $ 2,500 $ 50,000,000 $ 2,500 Exposure $" 5,055,177 Excess Flood $ 3,000,000 $ 2,500 $ 3,000,000 $ 2,500 Difference 11.08% Named Windstorm 5%/$15,000 minimum 5%/$15,00D minimum Accounts Receivable $ 250,000 $ 2,500 $ 250,000 $ 2,500 Premium $ 38,571 Additional Expense $ 500,000 $ 2,500 $ 1,000,000 $ 2,500 Difference 11.00% Business Income $ 250,000 $ 2,500 $ 500,000 $ 2,500 Errors&Omissions $ 250,000 $ 2,500 $ 250,000 $ 2,500 Demolition&Increased Cost of Construction $ 1,000,000 $ 2,500 $ 1,000,000 $ 2,500 Inland Marine(Equipment): Inland Marine(Equipment) Communications Equipment Included in Blanket $ 2,500 $ 10,453 Included in Blanket $ 2,500 $ 9,417 $ 1,796,171 $ 1,796,171 Mobile Equipment $ 1,004,462 $ 2,500 $ 1,004,462 $ 2,500 Exposure $ - Electronic Data Processing Included in Blanket $ 2,500 Included in Blanket $ 2,500 Difference 0.00% Emergency Services Portable Equip Included in Blanket $ 2,500 Included in Blanket $ 2,500 Fine Arts Included in Blanket $ 2,500 Included in Blanket $ 2,500 Premium $ (1,036) Other Inland Marine Included in Blanket $ 2,500 Included in Blanket $ 2,500 Difference -9.91% Rented Borrowed Leased Equipment $ 50,000 $ 2,500 $ 50,000 $ 2,500 Valuable Papers Included in Blanket $ 2,500 Included in Blanket $ 2,500 Watercraft $ 89,026 $ 2,500 $ 89,026 $ 2,500 Blanket Unscheduled Inland Marine $ 652,683 $ 2,500 $ 652,683 $ 2,500 Sub-Total $ 361,069 Sub-Total 1 $ 398,694 $ 37,535 10.40% Crime: Preferred Govt'I Ins Trust Employee Dishonesty $ 250,000 $ 1,000 $ 1,346 $ 600,000 $ 1,000 $ 1,346 Theft,Disappearance&Destruction In/Out $ 250,000 $ 1,000 $ 600,000 $ 1,000 Computer Fraud including Funds Transfer $ 250,000 $ 1,000 $ 600,000 $ 1,000 Forgery/Alterations $ 250,000 $ 1,000 $ 600,000 $ 1,000 Sub-Total $ 1,346 Sub-Total $ 1,346 $ 0.00% General Liability: Payroll Preferred Govt'I Ins Trust $7,942375 ' $8,140 931 General Liability $ 1,000,000 $ $ 146,677 $ 1,000,000 $ $ 151,156 Exposure $ 198,556 Employee Benefits $ 1,000,000 $ - Included $ 1,000,000 $ Included Difference 2.50% Deadly Weapon $ 1,000,000 $ Included Premium $ 4,479 Difference 3.D5% Sub-Total $ 146,677 Sub-Total $ 151,156 $ 4,479 3.05% Automobile: Preferred Govt'I Ins Trust Vehicles Auto Liability $ 1,000,000 $ $ 45.002 $ 1,000,000 $ $ 53,164 84 97 Uninsured Motorist Rejected $ Rejected $ Exposure 13 Collision Symbol 2,8 $ 1,000 $ 23,536 Symbol 10: AV over $ 1,000 $ 27,374 Difference 15.48% $100,000;ACV other Hired Physical Damage $ 35,000 $ 1,000 $ 35,000 $ 1,000 Premium $ 12,000 Medical Payments None None Difference 17.51% Sub-Total $ 68,638 Sub-Total $ 80,538 This proposal is intended to give a brief overview.Higher limits may be available.Please refer to coverage forms for complete details regarding definition of terms,exclusions and limitations. As of 8-26-19 PREMIUM AND COVERAGE COMPARISON Covered Pa Cit of Dania BeachUPRIA Effective Date: 10/1/2019 PUBLIC RISK INSURANCE ADVISORS 201812019 r r ENNHMnges in Exposures LINE OF COVERAGE LIMIT7 DEDUCTIBLE ANNUAL LIMIT DEDUCTIBLE ANNUAL PREMIUM PREMIUM 2018/2019 2019/2020 Public Officials: Payroll Preferred Govt'I Ins Trust $7,942,375 $8,140,931 Public Officials Liability $ 1,000,000 $ 10,000 $ 72,283 $ 1,000,000 $ 10,000 $ 79,671 Exposure $ 198,556 Employment Practices Liability $ 1,000,000 $ 10,000 Included $ 1,000,000 $ 10,000 Included Difference 2.50% Cyber/Privacy Liability $ 2,000,000 $ 10,000 Included $ 2,000,000 $ 10,000 Included Premium $ 7,388 Sub-Total $ 72,283 Sub-Total $ 79,671 Difference 10.22% Workers'Compensation: Payroll Preferred Govt'I Ins Trust 18/19 Payroll: $7,636,899 19/20 Payroll: $8,140,931 $7,942,375 $8,140.931 Experience Mod: .77 Experience Mod: .82 Exposure $ 198,556 Difference 2.50% MOD Difference -0.05 Workers'Compensation Statuto $ $ 129,089 Statutory 1 $ $ 120,13E -5.68% Employers Liability $lm/$lm/$1m $ Included $lm/$lm/$1m 1 $ Included Premium $ (8,951) Sub-Total $ 129,089 Sub-Total $ 120,138 Difference -6.93% Pollution: Indian Harbor Pollution $1,000,000/$2,000,000 $ 10,000 $ 11,250 $1,000,000/$2,00Q000 $ 10,000 $ 11,813 TRIA $ 563 $ 591 Premium $ 591 Sub-Total 1 $ 11,813 Sub-Total $ 12,404 Difference 5.00% Dock Property: Great Lakes Reinsurance Docks $ 2,750,000 $27,500/$275,000 $ 58,781 $ 2,750,DD0 $27,500/$275,000 $ 58,781 Certificate Fee $ 35 Certificate Fee $ 35 Inspection Fee $ 175 Inspection Fee $ - Policy Fee $ 35 Policy Fee $ 75 Premium $ (135) Sub-Total $ 59,026 Sub-Total $ 58,891 Difference F -0.230/ Storage Tank: Commerce&Industry Storage Tank Liability $1,000,000/$4,000,000 $ 5,000 $ 1,803 $1,000,000/$4,000,000 $ 5,000 $ 1,803 TRIA Included $ 17 Included $ 17 Premium $ - Sub-Total $ 1,620 Sub-Total $ 1,820 Difference 0.00% FP&L General Liability: Evanston Insurance Company Each Occurrence $ 3,000,000 $ 1,000 $ 3,800 $ 3,000,000 $ 1,000 $ 3,800 General Aggregate $ 3,000,000 $ 3,000,000 TRIA $ 150 $ 150 Policy Fee $ 35 Policy Fee $ 75 Premium $ 40 Sub-Total $ 3,985 Sub-Total $ 4,025 Difference I 1.DD% NFIP Flood Current Premiums @ 8/21/19 $ 47,169 Estimate $ 51,005 $ 3,836 8% Hull Coverage Effective 311812019-311812020 $ 1,723 Est for 311812020-311812021(10%increase) $ 1,895 $ 172 10% TOTAL PREMIUM $ 904,528 $. 961,483 Overall $ 5$,955 Difference 6.30% This proposal is intended to give a brief overview.Higher limits may be available.Please refer to coverage forms for complete details regarding definition of terms,exclusions and limitations. As of 8-26-19