Item Q2 �S Q.�
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County of Monroe
�y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS
County �a� Mayor Heather Carruthers,District 3
�1 `ll Mayor Pro Tem Michelle Coldiron,District 2
The Florida.Keys ��` �)-.���`� � Craig Cates,District 1
David Rice,District 4
w � Sylvia J.Murphy,District 5
County Commission Meeting
September 16, 2020
Agenda Item Number: Q.2
Agenda Item Summary #7229
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik (305) 295-3178
N/A
AGENDA ITEM WORDING: Approval of proposal from Florida League of Cities to renew the
2020-2021 liability insurance and excess workers' compensation insurance program for an annual
premium of$453,145. The premium represents an increase of$14,080 (3.2%).
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.
A portion of the premium increase is due to the County increasing the number of their vehicles from
508-532. Another contributing factor is the increase in payroll from $77,187,449 to $80,324,345.
Some premium relief was reflected in the portion of the premium attributable to the workers'
compensation excess insurance, because the County's Experience Modification Factor decreased
from 1.21 to 1.14. The Experience Modification Factor is an indicator of the organization's
historical Worker's Compensation premium. The Experience Modification Factor has reduced
significantly over the past seven years.
PREVIOUS RELEVANT BOCC ACTION: Coverage was previously bid in 2018. The BOCC
approved the last renewal with FMIT on September 18, 2019.
CONTRACT/AGREEMENT CHANGES:
Renewal. Annual premium increase of$14,080 (3.2%).
STAFF RECOMMENDATION: Approval to accept insurance proposal from Florida League of
Cities at a cost of$453,145.00 to be paid in quarterly installments for the period of October 1, 2020
to September 30, 2021, and approval for Risk Management to execute all necessary documents.
DOCUMENTATION:
Packet Pg. 3074
Q.2
Interisk Recommendation Letter
FMIT 0386 20-21 Renewal Proposal
FINANCIAL IMPACT:
Effective Date: 10/1/2020
Expiration Date: 10/1/2021
Total Dollar Value of Contract: $453,145.00
Total Cost to County: $453,145.00
Current Year Portion: $439,065.00
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 If yes, amount:
Grant: N/A
County Match: No
Insurance Required: N/A
Additional Details:
hoc
09/16/20 503-08502 RISK MGMT INSURANCE $236,692.00
09/16/20 501-07501 WORKERS COMP ADMIN $216,453.00
Total: $453,145.00
REVIEWED BY:
Maria Slavik Completed 08/24/2020 7:56 AM
Cynthia Hall Completed 08/24/2020 1:14 PM
Bob Shillinger Completed 08/24/2020 2:09 PM
Purchasing Completed 08/24/2020 2:11 PM
Budget and Finance Completed 08/24/2020 2:12 PM
Kathy Peters Completed 08/24/2020 2:28 PM
Board of County Commissioners Pending 09/16/2020 9:00 AM
Packet Pg. 3075
Q2.a
InteriskCorporation Risk Mgt.&Employee Benefits
Consultants
1101 Red Maple Circle N.E.,St. Petersburg, Florida 33703-6318 — telephone: 813-287-1040
www.interisk.net
August 12,2020
Ms.Maria Slavik,CPM
Risk Administrator
Monroe County
1111 121h Street
Suite 408 _
Key West,Florida 33040
Mr. MarkA. Gongre
Safety&Workers Comp Administrator
Monroe County
1100 Simonton Street U-
Suite 2-268 W
Key West, Florida 33040
Subject: Renewal of Florida Municipal Insurance Trust(FMIT)program
c
Maria and Mark:
I have reviewed the proposal from the Florida Municipal Insurance Trust(FMIT) for Monroe County's 0
2020/21 insurance program submitted by the Florida League of Cities. The coverages included in the
program are as follows:
An
➢ General Liability
➢ Cyber Liability
➢ Public Officials Liability(the FMIT refers to this coverage as Professional Liability) r-
➢ Automobile Liability E
➢ Automobile Physical Damage
➢ Excess Workers' Compensation
e(
The premium for the 2019/20 policy period amounted to$439,065. The FMIT has proposed to renew the
program for an annual premium of$453,145. Following is a side-by-side comparison of the 2019/20
premiums and those being proposed for the 2020/21 program. The premiums reflected for the 2019/20
police year are those at policy inception and do not include any adjustments the County may have made
during the year.
Packet Pg. 3076
Q2.a
Coverages 2019/20 Premium 2020/21 Premium
General Liability $150,114 $155,641
C ber Liability Incl.in General Liability Incl.in General Liability
Public Officials Liability Incl.in General Liability Incl.in General Liability
Automobile Liability 53,150 57,702
Automobile Physical Damage 16,982 23,349
Workers' Compensation 218,819 216,453
Total $439,065 $453,145
While there will be some minor changes to the terms and conditions of FMIT's 2020/21 policy,it has been
confirmed that none of the changes will materially impact the coverages being provided. It has been
confirmed that the 2020/21 coverages will not include any COVID-19 or Communicable Disease exclusions
or limitations. _
This will result in the County's annual premium increase by$14,080(3.2%). The majority of this increase
is due to the County increasing the number of their vehicles from 508 to 532. Another contributing factor in
the higher premium is that the County is increasing its payroll from$77,187,449 to$80,324,345. Some
premium relief was achived because the County's Experience Modification Factor will be decreasing from
1.21 to 1.14. An Experience Modification Factor is an indicator of the organization's historical Workers'
Compensation experience and is a critical factor insurers use to determine an organizations Workers'
Compensation premium. Over the past several years the County's Experience Modification Factor has
reduced significantly. This has assisted in lowering the Workers' Compensation premium and the overall
cost of the County's self-insured Workers' Compensation program.
c
It is believed that the proposed FMIT premium for the 2020/21 policy term is attractive and it is
recommended that the County renew its General Liability, Cyber Liability,Public Officials Liability,
m
Automobile Liability Automobile Physical Damage and Excess Workers' Compensation coverage for the
policy term of 10/1/20 to 10/1/21 as being proposed by the FMIT. E
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Please do not hesitate to call if you have any questions or concerns.
c�
Cordially,
INTERISK CORPORATION
Sidney G.Webber
CPCU,ARM
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Q.2.b
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ICIPAL
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C'i e r,t,`r t fit-Communities 'v'v" Cc,,f Harr'te...
RENEWAL QUOTE FOR 2020-2021
Monroe County Board of County Commissioners
FMIT 0386
Coverage Self Insured Retention Limit Premium
CJ
General/Professional Liability $200,000 $5,000,000 $155,641
Automobile Liability $200,000 $5,000,000 $57,702
0.
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CL
Automobile Physical Damage Per Schedule $23,349
Workers' Compensation $500,000 Total Payroll
Experience Modification 1.14 10/1/20 $80,324,345 $216,453
cv
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TOTAL FMIT PREMIUM $453,145
`Includes: Drug Free Credit: Yes
Safety Credit: Yes
Note: 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.
Packet Pg. 3078