Exh 8DSD
NOVEMBER 13, 2000
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
ITEM: Renewal of City Insurance (excluding Employee Benefits)
SUBMITTED BY: George Foster, Human Resource Manager
DATE: November 8, 2000
BACKGROUND: Effective October 1, 1999, the City awarded it's non-benefit insurance
based upon a bid prepazed by Waters Risk Management Consultants and
receipt of from 1 to 7 bid proposals being received for each of the
insurances bid. We have now received the first renewal rates for the City's
insurance as follows:
Twe 10/01/99 1 /0 Ol/00 °L
RMA Automobile, Property
General Liability &
Crime/Dishonesty 105,138 108,777 3.46
RMA Pub Off& Emp Liab 11,447 17,171 50.00
RMA Environmental 5,134. 7,315 42.48
FMIT Workers' Comp 143,627 171,365 19.31
FMIT Fiduciary 3,127 3,279 4.86
LB Bryan Police Statutory 624 624 0.00
Totals: 269,097 308,494 14.64
FUNDING: As insurance renewal rates aze not received until late September, an
estimate is included within the budget with an estimate of $306,037
included within the FY2000/2001 budget.. A budget modification will be
submitted, if required, during FY2000/2001 for the additional $2,457.
ATTACHMENT: Explanation of increases.
RECOMMENDATION: Approve continuation of insurance as indicated above..
CITY MANAGER:
8D
NOVEMBER 13, 2000
EXPLANATION OF INCREASES
Risk Management Associates (RMA)
- Underwriters are now required to experience rate each risk; therefore, prior years' losses will
affect current year premiums.
- All insurance carvers asked for a minimum of a 10% rate increase.
- This is the first increase to the Public Officials and Employee's liability insurance within the
past three yeazs.
- Anew public officials policy was initiated which provides coverage at the administrative
hearing level for employment practices claims. This coverage was added due to a majority of
public etltities requesting it.
- Additional quotes for public officials and employees liability insurance was requested with the
quoted premium being over $3,000 higher with a required retention of $10,000 for
employment related claims and a $5,000 retention for all others. The current policy carries a
$2,500 retention.
- Pollution (Environmental) previously provided by United Capitol was replaced by Gulf
Underwriters, who purchased United Capitol. Premium is now based on the number of water
plants and wastewater plants and not capacityonly (previous method).
Florida League of Cities, Florida Municipal Insurance Trust (EMIT)
- The current Workers' Compensation premium does not currently provide credit for the City's
Safety program (+2%) or credit for the City's Drug Free Workplace program (+5%). The
premium credit (+2%) for having a written and enforced safety program was repealed effective
July 1, 2000 and is no longer available. The credit for a Drug Free Workplace policy should be
credited to the City's premium within the next 30 to 60 days.
- Workers' Compensation is experience rated utilizing the last 3 years of claim experience.