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Item P08 P.8 t, BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia Murphy,District 5 The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1 �pw° Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting September 18, 2019 Agenda Item Number: P.8 Agenda Item Summary #5959 BULK ITEM: Yes DEPARTMENT: Risk Management TIME APPROXIMATE: STAFF CONTACT: Maria Slavik(305) 295-3178 N/A AGENDA ITEM WORDING: Approval to accept the proposal from the Florida Municipal Insurance Trust Agreement 4386 to provide General Liability, Vehicle Liability and Vehicle Physical Damage, Public Officials/Employee Practices Liability and Excess Workers' Compensation Insurance coverage. ITEM BACKGROUND: The policy provides insurance coverage for sums which the County may become legally obligated to pay as a result of bodily injury, property damage, or personal injury arising out of its operations. The policy also provides for reimbursement percentage of legal fees incurred in the defense of criminal, civil or ethics proceedings. The Excess Worker's Comp Policy provides coverage consistent with chapter 440, Florida Statutes. The cost of the County's Excess Workers' Compensation coverage may vary slightly when the County's Experience Modification Factor is issued. The effective date of the County's Modification Factor will be 10/1/19 and is a critical element of any Workers' Compensation premium. PREVIOUS RELEVANT BOCC ACTION: Coverage was previously bid in 2018. The BOCC approved the last renewal with FMIT on September 19, 2018. CONTRACT/AGREEMENT CHANGES: Florida League of Cities has proposed to renew the 2019-2020 program for an annual premium of $439,064 . The premium represents a reduction of$32,712 (7.45%). STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of Cities at a cost of$439,064.00 to be paid in quarterly installments for the period of October 1, 2019 to September 30, 2020, and approval for Risk Management to execute all necessary documents. DOCUMENTATION: INTERISK RECOMMENDATION LETTER AND FLOC QUOTE Packet Pg. 2503 P.8 FINANCIAL IMPACT: Effective Date: 10/1/19 Expiration Date: 10/1/20 Total Dollar Value of Contract: $439,064.00 Total Cost to County: $439,064.00 Current Year Portion: $109,766.00 to be paid by 10/1/19 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 If yes, amount: Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: I 09/18/19 503-08502 RISK MGMT INSURANCE $220,245.00 09/18/19 501-07501 WORKERS COMP ADMIN $218,819.00 Total: $439,064.00 REVIEWED BY: Cynthia Hall Completed 08/26/2019 4:43 PM Bob Shillinger Completed 08/26/2019 5:51 PM Budget and Finance Completed 08/27/2019 11:13 AM Kathy Peters Completed 08/28/2019 11:30 AM Board of County Commissioners Pending 09/18/2019 9:00 AM Packet Pg. 2504 P.8.a I NTERISK CORPORATION Consultants 1111 North Westshore Boulevard Suite 208 Risk Management Tampa, FL 33607-4711 Employee Benefits Phone (813)287-1040 Facsimile (813)287-1041 00 August 15,2019 Ms.Maria Slavik,CPM Risk Administrator Monroe County 1 1 11 1214 Street Suite 408 Key West, Florida 33040 U Mr. Mark A. Gongre Safety&Workers Comp Administrator Monroe County 1100 Simonton Street Suite 2m268 IC-ey We.s.t, Florida 33040 Subject: Renewal of Florida Municipal Insurance Trust(FMIT)program ,Maria and Mark: I have reviewed the proposal from the Florida Municipal Insurance Trust(FMIT) for Monroe County's U 2019120 insurance program submitted by the Florida League of Cities. The coverages included in the program are as follows: .- General Liability Cyber Liability Public Officials Liability(the FMIT refers to this coverage as Professional Liability) r Automobile Liability Automobile Physical Damage Excess Workers' Compensation The premium for the 2019119 policy period amounted to$471,776. The FMIT has proposed to renew the program for an annual premium of$439,064. Following is a sidemby-side comparison of the 2018/19 premiums and those being proposed for the 2019/20 program. The premiums reflected for the 2018/19 police year are those at policy inception and do not include any adjustments the County made during the year. Packet Pg. 2505 P.8.a Covers�es 2018/19 Premium 2019/20 Premi ............... 13 61 150114 General Liabilit $ 7 5 $ 9 �i.mn�� .....................i�i�i�i�i��i�i�i�i�i�i�i�i�i�.��i�i�i�i�i�i�i�i�i�i�i�i�i�i�ii,m.iimmm�xwmuuw��,.»n..mrmwnin�..�..w.mnr�...��....�....�..�.�.� Cyber Liabilit Incl. in General Liabilit . w -m'[net. in General Liability Public Officials I iabil �. Liab...n ._ .mm. mmmm _ _ Y ... _ its ... Incl. in General Liabilit Incl. on General Liability Automobile Liabilit 48,199 53,150 .....,x„�„�,.,, ............x,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,mn,,.,�.,,,,,,,, .,.x,.,..xx....�.,.,.,.,�, .,,,,,,,,,,,,,,,,,,,,,.,.,.,.,.,.,.,.,.,,,,,,,,,.,.,.,.,.,.,.,.,.,.,.,.,.,.,...m.m�m1m.m1ww1,11,wx_._. lwu„�w ...............___.xm��,.��,w........www.......wx.. .__.................................................................................................._............mmmm_.................................._.� r ,,,,, „ mobile Physical Damage, .... 7,278 _16,981 ..Aut° ..,.-mm.mx,. rs` Compensation 278,7 8 218,819 orke.x mm...mm ..... ..., ....... .......$4, .,0 ........ w. ._ Total $471,776 $439,064 00 The terms and conditions of FMIT's 2019120 policy will be consistent with those found in the 2018/19 policy with the exception that the Cyber Liability limits will be increased from$1 million to$2 million. This will result in the County's annual premium decreasing by$32,712(7.45%). Despite the fact that the County increased the number of automobiles in their fleet that significantly increased the Vehicle Liability premium. During the year the County added Liability coverage for 78 new vehicles while only eliminating 63e In addition,the County added 78 vehicles for Physical Damage coverage while only eliminating 9. Another contributing factor to the increase was the projected County payroll increasing by nearly$3 U million. This increase not only impacted the Workers' Compensation premium, it also impacted the General Liability premium. It also has to be remembered that the limits for the County's Cyber Liability coverage will increase from$1,000,000 to$2,000,000. While the Cyber Liability premium is included in the General Liability premium and could not be determined,based on discussions with the Florida League the additional premium could be as high as$10,000. Despite the above items,the County will still see a significant reduction in their premiums for the upcoming year. It should be noted that once the State issues the County's Experience Modification for the 10/1/19 to 10/1120 policy term,the County's Excess Workers' Compensation premium may be adjusted up or down depending on the new Mod. It is believed that the proposed FMIT premium for the 2019/20 policy term is attractive and it is recommended that the County renew its General Liability,Cyber Liability,Public Officials Liability, Automobile Liability Automobile Physical Damage and Excess Workers' Compensation coverage for the 0 policy term of 1011/19 to 10/1/20 as being proposed by the FM1T. Please do not hesitate to call if you have any questions or concerns. t/s Cordially, et INTERISK CORPORATION IJ16 Z)df-/4j Sidney G.Webber CPCU,ARM Packet Pg. 2506 P.8.a FLORIDA MUNICIPAL INSURANCE TRUST Proposal for 2019-2020 DEPARTMENTOF INSURANCE SERVIE Monroe County Board of County Commissioners 00 GENERAL LIABILITY COVERAGE Comprehensive General Liability Limits Limit Per Occurrence. $5,000,000 Annual Aggregate: Unlimited Self Insured Retention: $200,000 U LL Public Officials E&0 f Employment Limits Practices Liability Limit Per Occurrence: $5,000.000 Annual Aggregate Unlimited Self Insured Retention $200,000 FIT Advantage:For Members that choose a deductible-Members are only responsible for the deductible if a U judgment or settlement occurs. Legal expenses are outside the deductible and paid solely by the Trust for General Liabili!y. Im Packet Pg. 2507 P.8.a ADDITIONAL BENEFITS: Defense Costs paid in addition to policy limits Premises Operations Products/Completed Operations Contractual Liability(Designated Contracts Only) Owners&Contractors'Protective Liability Personal Injury Liability Host Liquor Liability Incidental Medical Malpractice Liability 00 Watercraft Liability Fire Legal Liability-Maximum$500,000 in any one Trust Year Broad Form Properly Damage-Maximum$500,000 in any one Trust Year Advertising Injury Liability W Skate Facility Liability Employment Practices Liability Free Legal Advise For Employment Related Matters U Employee Benefits Program Administration Liability Extra Contractual Legal Expense -$100,000 Aggregate Limit LL (EEOC,Florida Commission on Human Relations,Ethics) Sewerline Backup and Initial Cleanup Expense-$10,000 per affected property/$200,000 Aggregate Limit Crisis Intervention HR Helpline -Full Legal Support and Online Services Herbicide/Pesticide Spraying Limit is the General Liability limit or$1,000,000 aggregate per fund year,whichever is the lesser amount. Bert Harris Act/Inverse Condemnation-$300,000 Limit Per Occurrence/Aggregate. Limit includes Defense Costs. Deductible is$5,000 or the policy deductible,whichever is greater, Cyber Coverages including Privacy,Network Security and Data Breach. Fraudulent Instructions and Electronic Crime. $2,000,000 Annual Aggregate, Claims Made. Cyber Risk Management Tools Web Site. U SIR Services include Risk Control and Defense Costs and Awards or Settlements for Liability,if applicable The providers of the TPA service are subject to approval by the Florida League of Cities,Inc, The Self Insured Retention amount is inclusive of the Limit of LiabiIIty for General Liability and Automobile Liability. Refer to form FMIT SE SIR GL for General Liability Coverage and FMIT SE SIR AL for Automobile Liability Coverage, 2 Packet Pg. 2508 P.8.a AUTOMOBILE COVERAGE Limits Comprehensive Automobile Liability $5,000,000 Self Insured Retention $200,000 Automobile Physical Damage Comprehensive Coverage $1„000 Deductible Collision Coverage $1,000 Deductible 00 Note:"Vehicles with$0 value on schedule provided were not Included In the quote for APD:' Coverage Includes -" �w Hired&Non-Owned Liability z Rental Reimbursement-scheduled vehicles D Lease Differential-scheduled vehicles Limited Replacement Cost-owned private passenger vehicles,SUVs,Pickup Trucks U Members Personal Effects ILL FMIT Advantage:For Members that choose a deductible-Members are only responsible for the deductible if a judgment or settlement occurs. Legal expenses are outside the deductible and paid solely by the Trust for Automobile Liability, SIR Services include Risk Control and Defense Costs and Awards or Settlements for Liability,if applicable The providers of the TPA service are subject to approval by the Florida League of Cities,Inc. The Self Insured Retention amount is Inclusive of the Limit of Liability for General Liability and Automobile Liability. Refer to form FM1T SE SIR GL for General Liability Coverage and FMIT SE SIR AL for Automobile Liability U Coverage. C Packet Pg. 2509 P.8.a WORKERS'COMPENSATION PAYROLLS Limit Workers'Compensation Statutory Employers Liability $1,000,000/$1,000,0001$1„000,000 CODE DESCRIPTION PAYROLL 5191 OFFICE MACHINE OR APPLIANCE INSTALLATION 1,176,158 5509 STREET OR ROAD MAINTENANCE 1,072,296 7370 TAXICAB DRIVERS 347,471 7403 AIRCRAFT OR HELICOPTER OPERATION 1.743,319 00 7425 AIRCRAFT OR HELICOPTER OPERATION: NOC-HELICOI 1,198,432 7704 FIREFIGHTERS 7,374,648 7720 POLICE OFFICERS 24,285,792 8380 AUTOMOBILE SERVICE OR REPAIR 852,274 8810 CLERICAL 29,120,266 8820 ATTORNEY-ALL EMPLOYEES 1,691,006 8824 RETIREMENT LIVING CENTERS:, HEALTH CARE EMPLOY 237,454 8835 PHYSICIAN-HOSPITAL 238,799 8864 NURSING HOME:PROFESSIONAL EMPLOYEES 116,533 9015 BUILDINGS-OPERATION BY OWNER 1.553,433 U 9102 PARK NOC 649,621 9403 GARBAGE,ASHES OR REFUSE 244,859 9410 MUNICIPAL,TOWNSHIP,COUNTY EMPLOYEES NOC 5.285,088 TOTAL PAYROLL $77,187,449 Self Insured Retention $500,000 Experience Modification Factor: 10/1/2019 1.21 Safety Credit Yes Drug Free Credit: Yes U The Workers'Compensation premium is subject to ad�iustment when the October 1,2019 experience modification is recetved Payroks and Premiium are subject.to Final Audit 4i SIR Sereces include Risk Control and Defense Costs and Awards or Settlements for Liability„if applicabte. The providers of the TPA service are subject to approval by the Florida League of Cities,Inc. E 4 Packet Pg. 2510 P.8.a PREMIUM SUMMARY Coverage Line Annual Premium General Liability Coverage $53,,533 Public Officials E&O/Employment Practices Liability $"581 Automobile Coverage $70,,131 Workers'Compensation Coverage $218,,819 00 Total EMIT Premium $439„064 Nate°Coverage summaries provided herein are intended as an outline of coverage only and are necessarily brief, in the event of loss,all terms,conditions,and exclusions of actual Agreement and/or Policies will apply. U Please Read the followinci Important Notes The premiums quoted above are priced according to the coverage lines presented. Any change or deletion of coverages may result in re-pricing of remaining coverage tines. U r!5 Packet Pg. 2511 P.8.a INTEREST FREE INSTALLMENT PLAN First Installment Second Installment Third Installment Fourth Installment 25%minimum due 25%minimum due 25%minimum due 25%minimum due October 1,2019 January 1 2020 April 1,2020 July 1,2020 00 Payment will be forwarded to the Florida League of Cities in Tallahassee U U r!5 Packet Pg. 2512