Item I5M
C ounty of f Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor George Neugent, District 2
The Florida. Ke Se
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Mayor Pro Tern David Rice, District 4
Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
October 18, 2017
Agenda Item Number: I.5
Agenda Item Summary #3327
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295 -3178
N/A
AGENDA ITEM WORDING: Approval to accept and purchase insurance renewal offered by The
Florida Municipal Insurance Trust (FMIT) Agreement #386 to provide General Liability, Vehicle
Liability and Damage and Public Officials/Employee Practices Liability and Excess Workers'
Compensation insurance coverage.
ITEM BACKGROUND: The proposed renewed FMIT insurance policy provides coverage for
sums that the County may become legally obligated to pay because of bodily injury, property
damage, or personal injury arising out of its operations. The policy also provides a reimbursement
percentage of legal fees incurred in the defense of criminal, civil or ethics proceedings. The Excess
Worker's Compensation (WC) Policy provides coverage consistent with and as required by Chapter
440, Florida Statutes. The cost of the County's Excess WC coverage may vary when the County's
Experience Modification Factor (EMF) is issued. EMF is used to make an adjustment based upon an
employer's history of managing WC claims. One of the major components insurers use in
determining WC premiums is the organization's EMF. The effective adjustment date of the County's
EMF will be 10/1/17 and is a critical element of any WC premium. The County's EMF is 1.39.
Risk Management requests approval to pay any premium increase that results from the County's
EMF increase, if any. If the County's EMF decreases, it will result in the County's Excess WC
premiums being less than the amount proposed by the Florida League of Cities. This will be the final
permissible renewal of these coverages per the County Purchasing Policy, Chapter 10. The County's
risk consultant's recommendation letter is attached to this AIS as backup.
PREVIOUS RELEVANT BOCC ACTION: 2014 - These insurance policy coverages were
initially procured through a bid solicitation and approved by the BOCC. 2015 and 2016 - The BOCC
approved renewals of these coverages.
CONTRACT /AGREEMENT CHANGES:
FMIT has proposed to renew the 2017 -2018 program for an annual premium of $673,133.00. FMIT
proposed a premium increase of $18.817 (2.87 %). A major portion of this increase is attributable to
recent rate increases to Workers' Compensation rates as a result of the Florida Supreme Court ruling
a portion of the State's Workers' Compensation Statutes (FS 440) unconstitional. This resulted in
Worker's Compensation rates increasing approximately 14 %. FMIT elected not to fully implement
increase.
STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of
Cities at a cost of $673,133.00 to be paid in quarterly installments for the period of October 1, 2017
to September 30, 2018, and approval to pay any premium increase that results from the County's
EMF increase, if any, and approval of the Risk Administrator to execute any necessary related
documents.
DOCUMENTATION:
Interisk Recommendation Letter and FMIT Quote for 2017 -2018
FINANCIAL IMPACT:
Effective Date: 10/10/17
Expiration Date: 9/30/18
Total Dollar Value of Contract: $673,133.00
Total Cost to County: $673,133.00
Current Year Portion: $654,316.00
Budgeted: Yes
Source of Funds: Internal Service Fund/Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: No
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details:
If yes, amount:
09/20/17 503 -08502 - RISK MGMT INSURANCE $673,133.00
REVIEWED BY:
Maria Slavik
Completed
09/05/2017 12:02 PM
Chris Ambrosio
Completed
09/05/2017 12:50 PM
Bob Shillinger
Completed
09/05/2017 1:24 PM
Budget and Finance
Completed
09/05/2017 3:24 PM
Kathy Peters
Completed
09/05/2017 4:16 PM
Board of County Commissioners
Completed
09/20/2017 9:00 AM
Board of County Commissioners
Pending
09/27/2017 4:00 PM
11
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U17TIT"IM FTH-WIM
1111 North I� stshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
Per your reques� I have reviewed the proposal from the Florida Municipal Insurance Trust (FMIT) for
Monroe County's 2017/18 insurance program submitted by the Florida League of Cities. The coverages
included in the program are as follows:
> General Liability
> Public Officials Liability (the FMIT refers to this coverage as Professional Liability)
> Automobile Liability
> Automobile Physical Damage
> Excess Workers' Compensation
The premium for the 2016117 policy period amounted to $654,316. This amount includes an additionm
71'r I
90-0, WIND
Please do not hesitate to call if you have any questions or concerns.
INTERISK CORPORATION
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Sidney G. Webber
CPCP, ARM
2016/17 Premium
J. in General Liabili
Incl. in General Liabili
Automobile Liabili
Workers' Co n ensation
Please do not hesitate to call if you have any questions or concerns.
INTERISK CORPORATION
"'216 Z2//D
Sidney G. Webber
CPCP, ARM
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Co mer=
DgduSMDlp, f SIR
umil
Pr
GenerallProfesslonal Liability
$200,000
$5,000,B00
$195,316
Automobile a ill
$200,000
$5,000,000
$71,231
Automobile Physical Damage
Per Schedule
$5,751
Workers' en
$500,000
a l Payroll
Experience gilt i n
1.39 10/1/17
$71,573,231
$397,835
GRAND TOTAL PREMIUM
$673,133
'Includes: Drug Free Credit: Yes
Safety it: Yes