Item C36
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 18, 2006
Division: Emplovee Services
Bulk Item: Yes -X- No
Department: Risk Management
Staff Contact Person: Maria L. Slavik
AGENDA ITEM WORDING: Approval to accept proposal from The Florida Municipal Insurance
Trust Agreement #386 at an premium of$322,209.00 to be paid in quarter installments of$80,552.
ITEM BACKGROUND: See Attached Memo
PREVIOUS REVELANT BOCC ACTION: Awarded bid to Florida League of Cities, Inc. for 2004-
2005 at an annual premium of $255,510.
CONTRACT/AGREEMENT CHANGES: : The total increase is $28,451.This represents a 9.69%
increase over the 2005/2006 premium.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $322,209
BUDGETED: Yes X No
COST TO COUNTY: $322.209
REVENUE PRODUCING: Yes
No-X AMOUNTPERMONTH_ Year
APPROVED BY: County Atty X OMB/Purchasing L
Risk Management X
DOCUMENT ATION:
Included -X- To Follow_
Not Required _
DISPOSITION:
AGENDA ITEM #
Revised 2/27/01
OKYv~rY ~o~~~~E
(305) 294-4641
Office of the Employee Services Division Director
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 268
Key West, FL 33040
(305) 292-4458 - Phone
(305) 292-4564 - Fax
TO:
(~'- .--..-.
BOARD OF COUNTY COMMISSIONERS
Mayor Charles "Sonny" McCoy, District 3
Mayor Pro Tern Dixie M. Spehar, District 1
George Neugent, District 2
Mario Di Gennaro, District 4
Glenn Patton, District 5
Board of County Commissioners ~
FROM:
Teresa E. Aguiar,
Employee Services Dir c
DATE:
October 3,2006
SUBJ:
Renewal of Excess General and Vehic1e Liability Insurance
This item requests approval to accept renewal with insurance carrier - Florida Municipal Insurance Trust
to provide Excess General Liability coverage and Vehic1e Liability coverage at a premium of
$322,209.00 yr to be paid in four quarterly payments.
Excess General Liability:
Vehic1e Liability:
The premium has increased 9.69%.
$199,465 premium
$122,744 premium
The policy renewal period is October 1, 2006 through September 30, 2007. Due to the Agent (Florida
League of Cities) being in the process of implementing a new computer system, the renewal notification
and exact premiums were not available to the County until September 26th. The League has agreed to
continue the coverages until formal approval from the BOCC can be obtained. It is staff's
recommendation to renew both coverages as proposed for the renewal period October 1, 2006 to
September 30,2007.
I NTERISK
CORPORA TION
Consultants
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813)287-1040
Facsimile (813) 287-1041
Risk Management
Employee Benefits
October 2, 2006
Ms. Maria Slavik
Risk Management Specialist
Monroe County
502 Whitehead St.
Key West, Florida 33040
Subject: Renewal of Excess General and Vehicle Liability Insurance:
Dear Maria:
The County's Excess General and Vehicle Liability insurance expired on September 30, 2006 and the
Florida League's proposal for the 2006/07 policy was not received by the County until September 26,2006.
Over the past several months, the League has been implementing a new computer system that delayed the
mailings of the renewal notifications to all of its members, While the exact premiums were not available
until September 26th, the League had assured the County that minimal increases in the rates used for the
General and Vehicle Liability insurance could be expected,
Following displays a side-by-side comparison of the premiums paid for the 2005/06 policy year and the
ones that will apply for the 2006/07 policy year, In addition, the payrolls and the number of vehicles for
each year are also displayed, One of the primary factors used by the League in developing its General
Liability premium is payroll and one of the primary factors used to develop its Vehicle Liability premium is
the number of vehicles.
Policy Year General Liability Vehicle Liability Total
2005/06 $188,185 $105,573 $293,758
2006/07 199,465 122,744 322,209
Increase $11,280 $17,171 $28,451
% ofIncrease 5.99% 16.26% 9.69%
Policy Year Estimated PaYroll Number of Vehicles
2005106 $40,002,556 339
2006107 39,067,893 . 402
Increase/(Decrease) $(934,663 ) 63
~ of Increase/(Decrease) (2,34~) 18.58~
With the payrolls being reporting to the League for the two policy years (2005106 and 2006107) remaining
relatively stable, an increase in the General Liability premiums of less than six percent (6~) is viewed as
being extremely favorable, It should be noted however, that the County recently received competitive bids
on its Excess Workers' Compensation insurance and the projected payrolls for the 2006107 policy year used
during that process were in excess of$78 million. It is unknown why the projected payrolls used in the
Workers' Compensation remarketing process was so much higher than the ones reported to the League for
the Liability renewal, however, if the payrolls used in the Workers' Compensation process are more
accurate, the County can anticipate a significant additional audit premium when the actual payrolls are
reported to the League sometime in the later part of 2007, It would not be surprising if the additional audit
premium will be equal to or greater than the premium currently being charged ($199,465).
While the Vehicle Liability premium increased over sixteen percent (16~), the County increased the size
of its vehicle fleet by over eighteen percent (18~). This means that more than the entire increase of
premium is attributable to the increase of the County's fleet. It is therefore believed that the renewal
premium for the County's Vehicle Liability insurance is also extremely attractive,
The delay in receiving the Florida League's renewal premium did not allow Risk Management to obtain the
Board's approval prior to the 2005106 policy expiring. The League has agreed to continue the coverages
until formal approval from the Board can be obtained at it's regularly schedule October meeting.
As always, please do not hesitate to call if you have any questions,
Cordially,
INTERISK CORPORA nON
~S /:)
\. /1
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Sidney G. Webber
CPCU, ARM
Cc: Teresa Aguiar