TO: Mayor and Commissioners
FROM: Laura Thezine, Acting Finance Director
Edward DeMicco, Risk Manager
THROUGH: Neal de Jesus, Interim City Manager
DATE: May 16, 2017
Title
RAILROAD CROSSING LIABILITY RENEWAL POLICY
Body
Recommended Action:
Recommendation
Requesting prior approval of FY17 spending limit greater than $25,000 with Employers Mutual Inc. d/b/a Ascension Benefits and Insurance Solutions and motion to approve renewal of Railroad Crossing Liability and Railroad Crossing Excess Liability policies in a not to exceed amount of $28,000.
Body
Background:
Under the contractual agreement between the City and the Florida East Coast Railroad, the City is required to place liability and excess liability insurance.
The City has two liability insurance policies that renew annually in early June.
· Railroad Crossing Liability ($20,000)
· Railroad Crossing Excess Liability ($8,000)
Coverage is placed through the City’s property and casualty insurance broker, Employers Mutual Inc. d/b/a Ascension Benefits and Insurance Solutions. For this renewal, the broker solicited quotes on each policy from four insurance companies known to write these specialized coverages. Each renewal was then awarded to the lowest priced carrier. The carriers’ arrangements with the insurance broker require payment to the broker who then makes payment to the carrier as is customary. As of April 20, 2017, the total amount due is $28,000.
By approving the recommended motion, the Commission is recognizing that multiple small and unpredictable purchase decisions that are likely to occur over the course of the year will total over $25,000. This amount of spending requires prior Commission approval under City Code section 36.03(B), "Multiple acquisitions from vendor exceeding $25,000 in any Fiscal Year".
City Attorney Review:
Approved as to form and legal suffciency.
Finance Department Review:
The Finance Department recommends approval.
Funding Source:
Funding is available fro...
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