Exh 9CAGENDr\ ITEM #9C
SEPTEMBER 8, 2003
CITY OF ATLANTIC BEACI-I
CITY COMMISSIONER MEETING
STAFF REPORT
iTF,M: Approve renewal of City Insurance (excluding Employee Benefits) as
indicated below.
SUBMiTTF,D RY: George Foster, Human Resource Manager
DATE: September 2, 2002
I3ACKCROUND: 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, 2003 have been
received and are indicated below:
Twe 10/01/01 10/01/02 10/01/03
Automobile 48,654 60,603 70,924 + 17,03
Property 41,163 77,574 103,742 + 33.73
General Liability 46,601 48,233 54,338 + 12.66
Crime/Dishonest 810 790 1,006 +27,34
Pub Off & Emp Liab 25,434 29,965 18,865 - 37.04
Environmental 28,093 28,930 31,823 + 037
Workers' Comp 179,981 256,096 256,287 + 0.07
Fiduciary 3,520 4,005 3,935 + 1.75
Police Statutory 810 948 948 0.00
Totals: 375,066 507,144 541,868
+ 34,724 + 6.85%
ISSUF,S: Several reasons for the increases are that City property is in a coastal area,
insurance company investment returns are down, overall property values
were increased, and insured vehicles increased from 70 to 75.
TUNDiNG: As insurance renewal rates are not normally received until September, an
estimate was included within the proposed 2003/2004 budget that is
sufficient to cover the above increases. Although these funds are 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 October 1, 2003, as
indicated above.
CITY MANAGF,R: