Item 4EAGENDA ITEM 4E
SEPTEMBER 27, 2004
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
~"' STAFF REPORT
ITEM: Approve renewal of City Insurance (excluding Employee Benefits) as
indicated below.
SUBMITTED BY: George Foster, Human Resource Manager ~~
DATE: September 21, 2004
BACKGROUND: The City previously hired a consultant, Waters Risk Management, to bid
,~ non-benefit insurance to be effective October 1, 2002. Only 2 proposals
were received for each major line of insurance with the exception of 3
proposals received for Law Enforcement Statutory Benefits and Boiler /
,• Machinery Coverage. Renewal rates for October 1, 2004 have been
received and are indicated below:
~,,, Tvpe 10/01/02 10/01/03 10/01/04
Automobile 60,603 70,924 73,319 + 3.38
Property 77,574 102,878 111,997 + 8.86
Liability
Gen 48,233 54,638 38,486 + 16.19
Police / / / / /Included in above / / / / / 24,998
~. Crime/Dishonesty 790 1,006 1,191 + 18.39
Pub Off & Emp Liab 29,965 18,865 19,559 + 3.68
Environmental 28,930 31,823 28,930 - 9.09
Workers' Comp 256,096 249,589 278,745 + 11.68
Fiduciary 4,005 3,935 4,242 + 7.80
Police Statutory 948 948 948 + 0.00
Totals: 507,144 534,606 582,415
+132,087 +27,462 +47,809 + 8.94
+ 35.22% + 5.42% + 8.94%
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ISSUES: Most of the increase is the result of "normal" insurance premium
adjustments; however, several specific reasons for the increases are that the
~.. replacement value of City property was increased, value of mobile
equipment increased, 3 vehicles were added, two Workers' Compensation
cases have large reserves, and litigation has increased.
FUNDING: As insurance renewal rates are not normally received until September, an
estimate was included within the FY05 budget that is sufficient to cover the
"' above increases. Although these funds are sufficient to pay the above
premiums, additional funds maybe required during the year for claim
deductibles.
RECOMMENDATION: Approve renewal of the City's insurance, effective October 1, 2004, as
indicated above.
CITY MANAGER: