Fort Walton Beach Council agenda — 09-11-12 regular — reading text

City Council of Fort Walton Beach ADMINISTRATIVE SERVICES MEMORANDUM To: Michael D. Beedie, City Manager From: Sylvia Hanks, Administrative Services Director Date: September 11, 2012 Subject: FY 2012 -13 Insurance Renewals coverage is on a guaranteed cost basis and therefore claims are not subject to a deductible. 2. 2 The following summarizes the total recommended premiums for property, casualty and workers compensation coverage for the 2010/ 11 as compared to 2009/ 10 and 2010/ 11 to 2011/ 12 claim years: 2009/ 10 Premium 2010/ 11 Premium 2011/ 12 Premium 2012/ 2013 Premium 714, 997 $ 559, 453 $ 620, 974 $ 679, 179 Miscellaneous Policies The following are miscellaneous coverage policies which are separate from the above: Flood Insurance The City' s property insurance policy requires purchase of coverage from NFIP for facilities in a flood zone. As well, FEMA will not reimburse the City for flood damage expenses above the policy limits unless the City has flood insurance coverage. We recommend renewal of these policies through Fisher -Brown Inc. who is the incumbent provider. 2. Petroleum / Environmental Liability This coverage protects the City against liability claims made as a result of leakage from our various underground fuel storage tanks and pollution liability. We recommend continuance of coverage with Indian Harbor Insurance Company written through Public Risk Insurance Agency. Petroleum / Pollution Liability coverage has a $ 25, 000 per occurrence deductible. Fiduciary Liability This coverage is written to protect the Board of Trustees of the City' s various pension plans from claims alleging irregularities in their fiduciary responsibilities. The amount of coverage is $ 2, 000, 000. This policy renews mid year and we estimate a 5% premium increase. The current policy is written through Fisher - Brown, Inc. 4. Public Official Bonds  City Council of Fort Walton Beach ADMINISTRATIVE SERVICES MEMORANDUM To: Michael D. Beedie, City Manager From: Sylvia Hanks, Administrative Services Director Date: September 11, 2012 Subject: FY 2012 -13 Insurance Renewals Florida Statutes require that the City purchase Fiduciary Bonds for our Finance Director and City Clerk. Placement of this coverage is recommended to Fisher - Brown, Inc. who is the incumbent provider. The coverage is written by Hartford Insurance Group. 5. Statutory Accidental Death and Dismemberment for Police and Firefighters Florida Statutes require the City to purchase additional insurance coverage for Police Officers and Firefighters. The provider is Chubb ( Federal Insurance Company) which is recommended for renewal. 3. FINANCIAL INFORMATION: 3. 1 If approved, sufficient funding is available in the proposed 2012/ 13 budget. 4. RECOMMENDATION: 4. 1 Staff respectfully recommends City Council authorization for the City Manager to execute insurance policies with the insurers or agents as recommended in the total amount of $679, 179 for FY 2012 -13. ATTACHMENTS: FY 2012 -13 Insurance Premium Comparison FWB ( XLS) SIGNATURE BLOCK: Sylvia Hanks Completed 08/ 31/ 2012 1: 53 PM Carole Jones Completed 08/ 31/ 2012 1: 59 PM City Manager Completed 09/ 05/ 2012 8: 00 AM City Council Pending  ii :2:2 FRIA P[,' 1H. IC T21SEC L'vSt; RAEAi• If AC;kx Y:Y NN Ilan'Ilan' ss inin uresa,uresa, a mm Preferred dV c Buildings & Contents 37, 610, 532 25, 000 165, 084 37, 610, 532 25,000 193, 503 Proprty Equipment Breakdown 37,610, 532 25, 000 37, 610, 532 Exposure N 3 1, 000, 000 25, 000 1, 000, 000 DifferenceDifference 0. 0 C Flood Earthquake 43, 362, 343 Appraised Values Blank 209, 632 TRIA Statutory Windstorm 5% / min $ 35k 5%/ min $ 35k Accounts Receivable 500, 000 25,000 500,000 25, 000 Additional Expense 500,000 25,000 500, 000 25, 000 Business Income 100, 000 25, 000 100, 000 25,000 E &O 250, 000 25, 000 250, 000 25,000 u) a Demolition & ICC 500,000 25, 000 500, 000 25, 000 Inland Marine MarineMarine Communications Equipment 277, 403 25,000 17, 511 277, 403 25, 000 21, 305 4,4, 734, 4, 734,734, 384 384384 4,4, 734,734, 33 COCO CO Mobile Equipment 2, 175, 582 25, 000 2, 175, 582 25, 000 ExposureExposure Exposure EDP 629, 069 25, 000 629, 069 25, 000 DifferenceDifference Difference 0.0. 0 0. 00 333 Emergency Services Portable Equip 325,292 25, 000 325, 292 25, 000 CC Fine Arts 636, 018 25, 000 636, 018 25, 000 PremiumPremium 3,3, 77 yy Other Inland Marine 258,220 25,000 258, 220 25, 000 DifferenceDifference 21. 6 Rented Borrowed Leased E ui ment 182, 800 25,000 182, 800 25, 000 Valuable Papers 250, 000 25, 000 250, 000 25, 000 Watercraft 1 Other - Please Specify Sub -Total 182, 585 Sub -Total 214,808 CwhWEIRRIZ 1. Preferred 250, 000 1, 000 1, 445 250, 000 1, 000 1, 445 Employee Dishonesty TDD 10, 000