TO: Mayor and Commissioners
FROM: Laura Thezine, Acting Finance Director
Edward DeMicco, Risk Manager
THROUGH: Neal de Jesus, Interim City Manager
DATE: September 17, 2019
Title
FLORIDA MUNICIPAL INSURANCE TRUST (FMIT) FOR RENEWAL OF PROPERTY INSURANCE POLICY
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Recommended Action:
Recommendation
Staff is requesting approval for renewal of Property, Excess Liability and Excess Workers' Compensation Insurance from the Florida Municipal Trust Fund (FMIT) for $1,256,865 for the coverage period 10/1/2019 through 9/30/2020.
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Background:
The City of Delray Beach's (City) broker, Relation, received price proposals for Property, Excess Liability, and Excess Workers' Compensation insurance for the City for the coverage period from 10/1/2019 through 9/30/2020. Based upon the various quote options, the Broker and City Staff concur that the most cost effective and service driven program is the FMIT option for all insurance lines. This years' proposal quotation is for $1,256,865, which represents an increase of $118,254 (10.4%) from last year’s approved premium. This increase is due largely as a result of the effects of increased severe weather conditions and other natural perils that occurred in the State over the last year. Another factor is that the Total Insured Value for City properties increased as well. A Return of Investment that FMIT provides to members of the pool is through their Synergy Program. The City receives disaster recovery assistance in coordination with the City's Emergency Team during emergency weather related situations such as hurricanes, floods and other perils at no additional cost to the City. Staff has budgeted $1,256,865 for Fiscal Year 2020 of which $40,829 was a budget transfer from project reserve due to the premium increase. Therefore, staff is requesting the City Commission to approve the renewal purchase of Property, Excess Liability and Excess Workers' Compensation Insurance from the Florida Municipal Trust Fund (FMIT)...
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