TO: Mayor and Commissioners
FROM: Jack Warner, Chief Financial Officer
Edward DeMicco, Risk Manager
THROUGH: Donald B. Cooper, City Manager
DATE: September 20, 2016
Title
RESOLUTION NO. 41-16: (BEST INTEREST ACQUISITIONS) WITH FLORIDA MUNICIPAL INSURANCE TRUST (FMIT) FOR RENEWAL OF INSURANCE POLICY
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Recommended Action:
Recommendation
Motion to Adopt Resolution No. 41-16; requesting approval, by four-fifths vote, for purchase of Property, Excess Liability and Excess Workers' Compensation Insurance from the Florida Municipal Trust Fund (FMIT) for $1,039,319 for the coverage period 10/1/2016 through 9/30/2017 in accordance with Code of Ordinance Section 36.02(c)(11) Best Interest Acquisitions.
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Background:
The City's Broker, Ascension, received price proposals for Property, Excess Liability and Excess Workers' Compensation Insurance for coverage period 10/1/2016 through 9/30/2017. Based on the various quote options, the Broker and Staff concur the most cost effective and service driven program is the FMIT option for all insurance lines. This years' proposal quotation is for $1,039,319, which represents a net savings of $146,327 or a 12.5% decrease from last year's premium. Other Return of Investments that the FMIT provides is a "Return of Premium" benefit to members of the pool. This year the City will enjoy a $119,966 return of premium. Also, through FMIT's Synergy Program, the City receives disaster recovery assistance in coordination with the City's Emergency Management Director during emergency weather related situations such as hurricanes, floods and other perils at no additional cost to the City. Staff has budgeted $1,203,906 for Fiscal Year 2017. Therefore, staff is requesting the City Commission make the factual finding based on the forgoing information to adopt a Resolution stating it is in the City's best interest to not require a competitive selection in accordance with Code of Ordinance Section 36.02(c)(11), "Best Interest Acquisitions".
City Attorney Review:
Approved as to legal form and sufficiency.
Finance Department Review:
Finance Department recommends approval.
Funding Source:
Funding is available from General Liability Account 551-1575-591-45.11, Package Policy Premium Account 551-1575-591-45.31 and Excess Workers' Compensation Premium Account 551-1575-591-45.32.
Timing of Request:
Renewal due on 10/1/2016.