Item 4BAGENDA ITEM # 4B
JUNE 23, 2008
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Approve early renewal, effective July 1, 2008, of the following City
insurance with the Public Risk Insurance Agency (PRIA):
Automobile
Property
Liability
Crime/Dishonesty
Environmental
SUBMITTED BY: George Foster, Human Resource Manager ~~
DATE: June 23, 2008
BACKGROUND: In June 2007 the City bid out it's non-benefit insurance per RFP 07-
03 to be effective October 1, 2007. Although 8 bid packages were
requested and sent out, only 2 proposals (FLC & PRIA) were
received for all major lines of insurance.
Based upon market conditions, our current insurance carrier (PRIA)
is offering a reduction to our current premiums for the remainder of
this fiscal year if we commit to renew the above insurance policies
effective July 2008 through September 2009 instead of renewing for
October 2008 through September 2009. See attached chart for
insurance coverage and renewal premiums.
Although some of our insurance premiums have increased for the
FY08/09 policy year, this action will result in an overall $11,179
credit for our FY07/08 policy year for the period of July 2007 thru
September 2008 and a reduction in other FY08/09 premiums of
$46,767 for a total reduction of $57,946 to be credited on next fiscal
years invoice.
BUDGET: The above insurance renewal rates will be included within the
FY08/09 budget. Although budgeted funds will be sufficient to pay
the above premiums, additional funds may be required during the
year for claim deductibles.
RECOMMENDATION: Approve renewal of the City's insurance, effective July 1, 2008
through September 30, 2009, with PRIA as indicated above and in
the attached chart.
ATTACHMENT: Table of insurance.
.REVIEWED BY CITY MANAGER:
_._---
AGENDA ITEM # 4B
JUNE 23, 2008
RENEWAL -JULY 1, 2008
The City is being requested to cancel, effective June 30, 2008, the below insurance coverages and
immediately renew for the period of July 1, 2008 through September 1, 2009 in order to obtain an
overall reduced premium for the remainder of this policy year and "lock in" the rates for the next
policy year (10/01/08 thru 09/30/09).
Type
10/01/06
10/01/07
10/01/07
Adjusted
10!01/08
Renewal 10/01/07
Adjusted
vrs
10/O1/OS
Automobile 75 025 73 428 70,186 66,799 -4.83%
Pro a 230,369 211,173 203,236 164,525 -19.05%
Liabilit
General 43,904 39,513 39,513 43,483 +10.05%
Police 24 998 26,100 26,100 27,416 +5.04%
Public Officials 10,532 24 291 24,291 13,015 +5.04%
Em to ent Practices 10,059 In Above In Above 12,500 +5.04%
Crime/Dishonest 1,211 1,211 1,211 1,211 0.0%
Sub Totals 396,098 375 716 364,537 328,949
Year to Year Chan a -20,382 -11,179 46,767 35,588
Year to Year Chan e - 5.15% -2.98% -12.45% -9.76%
New 10/01/08 thru 09/30/09 remium far above olicies 317,770
Credit from 2007 to be a lied to FY 08/09 renewal 11 179
Premium reduction for FY 08/09 vs FY 07/08 ad'usted remium 46, 767
Total 10/01/08 reduction to FY 08/09 remium 57,946
RENEWAL -OCTOBER 1, 2008
The following policies will be considered for renewal at the normal time (September 2008) upon
receipt of updated experience data from our insurance company.
Type 10/01/06 10/01/07 10/01/07
Adjusted 10/01/08
Renewal 10/01/07
10/01/08
Workers Com ensation 286,345 213,680 N/A TBD
Fiduci 4,520 3,743 N/A TBD
Police Statuto 1,046 1,178 N/A TBD
Environmental ote 30,377 17,386 17,386 17,386
Sub Totals 291 911 218,601 ----- _____
Year to Year Chan a -73,310 ----- _____
Year to Year Chan a _25.11% ----- _____
Note: i uiu iiu~ wait be year two of a three year premium ($52,158 paid in 2007) with average
annual being reduced to $17,386 or a 42.77% per year reduction.