Fort Walton Beach Council agenda — 09-28-2010 Regular — reading text

13, 572. 92 per month or $162, 875„00 per year; October 1, 2011 through September 30, 2012 $ 13, 98010 per month or $167, 761..25 per year; October 1, 2012 through September 30, 2013 $ 14, 399..51 per month or $ 172, 794..09 per year; Except for the foregoing described changes to the Agreement, the Agreement shall in all other respects remain in full force and effect, unchanged hereby. By execution of this Amendment Customer agrees to be bound by the terms of the Agreement in each and every respect with regard to the changes created in this Amendment as if this Amendment had been fully set forth in the Agreement. There shall be no change in the warranties, representations, liabilities or obligations of SunGard Public Sector under the Agreement by virtue of this Amendment except as expressly set forth herein. Notwithstanding anything to the contrary, this Amendment is subject to the execution of the Software License and Services Agreement for the migration of the Legacy Software. IN WITNESS WHEREOF, the parties hereto have executed this Amendment in manner and form sufficient to bind them on the day and year indicated after their respective execution hereof. CITY OF FORT WALTON BEACH, FL SUNGARD PUBLIC SECTOR INC. Authorized Signature Authorized Signature Christian Coleman VP and Controller, SunGard Public Sector Inc Type or Print Name and Title Type or Print Name and Title 4> Date Date  CITY COUNCIL MEETING September 28, 2010 Consent Agenda Renewal of Insurance Policies Synopsis: Staffrequests Council approval to award Property, Casualty, and Workers' Compensation insurance to Preferred Governmental Insurance Trust (PGIT). Staff also request Council approval to renew current dental plan with a plan year of October Ist —September 30th Agenda Item Number: 897  City of Fort Walton Beach Memorandum Date: September 15, 2010 To: Robert T. Mearns, City Manager From: Sylvia Hanks, Administrative Services Director Subject: Property, Casualty, and Workers' Compensation Insurance Background: The City of Fort Walton Beach maintains a comprehensive insurance program which provides coverage to protect the City from claims arising from property damage, automobile ( liability and physical damage), crime, general liability, flood, workers' compensation and other miscellaneous risk exposures. In September 2005, following the issuance of a Request for Proposal ( RFP), the City awarded its major lines of coverage for property and casualty coverage to Public Risk Insurance Agency ( PRIA) representing Preferred Governmental Insurance Trust ( PGIT) and our workers' compensation coverage to the Florida League of Cities ( FLOC). Both PGIT and FLOC are insurance pools whereby governmental agencies combine their resources by making premium payments to a fund that, in turn, pays claims for covered losses. Both pools purchase re- insurance to protect against catastrophic losses. In September 2009, City Council authorized staff to issue a Request for Proposal ( RFP) to re- market the City' s Insurance programs and to utilize the consulting firm of Corporate Risk Management to assist in this process. As a result, an RFP was issued on May 24, 2010, with proposals due on August 2, 2010. Four (4) proposals were received and summarized as follows: Preferred Governmental Insurance Trust ( PGIT) through their agent Public Risk Insurance Agency submitted a proposal for all lines of coverage. Florida League of Cities ( FLOC) submitted a proposal for all lines of coverage. Lassiter -Ware submitted a proposal for all lines of coverage. Arthur J. Gallagher submitted a proposal for property insurance coverage only. A Summary of the proposals received and the associated premiums is attached. The proposals received from Lassiter -Ware and Arthur J. Gallagher were reviewed and determined to be non- competitive compared to the proposals from PGIT and FLOC. Therefore, they were not further considered in the review process. Discussion: Staff proposes to award all the major lines of coverage to the lowest net proposer, Preferred Governmental Insurance Trust ( PGIT), through their agent Public Risk Insurance Agency. Although the Florida League of Cities ( FLOC) did propose a lower premium for the property coverage, they declined to write only that piece of business. In addition, the coverage proposed in FLOC' s submittal for property coverage is not as comprehensive as the proposal submitted by PGIT. 1. Property Insurance (Including Inland Marine, Data Processing Equipment and Crime) 2009/ 10 Premium $ 295, 262 2010/ 11 Proposed Premium $ 161, 121 Decrease: $ 134, 141 This policy provides coverage for City buildings and contents ( computer hardware & software, mobile & portable radios, heavy equipment, such as payloaders, etc.). The policy also includes coverage for equipment breakdown and crime ( theft of City money). After recently deleting the City' s Wastewater Treatment Plant ( valued at approximately 10. 2M) from the property schedule, the total value of City property covered is 37, 142, 701. The City' s property coverage has a $ 25, 000 per occurrence deductible. The continuing decrease in the City' s property insurance is mainly due to the stabilizing of the re- insurance market since the 2004 and 2005 hurricanes that affected the State of Florida. 2. General/Public Officials, Law Enforcement and Employment Practices Liability 2009/ 10 Premium $ 809714 2010/ 11 Proposed Premium $ 81, 400 Increase: $ 686 The general liability coverage protects the City from third party suits alleging personal injury or property damage. The premium for this coverage is, in part, based on the net operating expenditures of the City. The coverage has a $ 25, 000 per occurrence deductible. The public official' s liability coverage protects City employees, board members, and elected officials against lawsuits alleging malfeasance while conducting City business. Law enforcement coverage protects against claims arising from the scope of operations at the Police Department ( e. g. excessive use of force, unlawful arrests etc.). Employment Practices coverage protects against claims such as wrongful termination, discrimination, etc.. 3. Auto Liability /Physical Damage 2009/ 10 Premium $ 49, 428 2010/ 11 Proposed Premium $ 42, 181 Decrease: $ 71247 This coverage protects the City against claims resulting from personal injury or physical damage to other autos and damage to city -owned vehicles. The physical damage coverage has a sliding scale deductible based on the value of the item. The auto liability coverage has a $ 25, 000 per occurrence deductible. 2  Staff proposes to renew coverage with the PGIT as follows: Workers' Compensation 2009/ 10 Premium $ 289, 593 2010/ 11 Proposed Premium $ 260, 914 Decrease: $ 28, 679 This policy provides for medical and wage loss payments for those City employees who sustain a job related injury. This coverage is on a guaranteed cost basis and therefore claims are not subject to a deductible. The following summarizes the total recommended premiums for property, casualty and workers compensation coverage for the 2010/ 11 as compared to the current 2009/ 10 claim year: 2009/ 10 Premium 2010/ 11 Premium Total: $ 714, 997 $ 5455616 Miscellaneous Policies The following are miscellaneous coverages which are separate from the above: Flood Insurance 2009/ 10 Premium $ 431257 2010/ 11 Estimated Premium $ 47, 583 Increase: $ 41326 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. As some of the flood policies renew during the year, the above estimated premium is our best estimate as to what the total amount of the flood insurance renewals will be next fiscal year. We recommend renewal of these policies through Fisher -Brown Inc. who is the incumbent provider,. 2. Petroleum / Environmental Liability 2009/ 10 Premium $ 155284 2010/ 11 Proposed Premium $ 10, 001 Decrease: $ 5, 283 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 placement of coverage with Indian Harbor Insurance Company written through Public Risk Insurance Agency. Petroleum / Pollution Liability coverage has a $ 25, 000 per occurrence deductible. 3 3. Fiduciary Liability 2009/ 10 Premium $ 14, 028 2010/ 11 Estimated Premium $ 14, 729 Increase: $ 701 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 by Travelers Insurance Company through Fisher -Brown, Inc. 4. Public Official Bonds 2009/ 10 Premium $ 504 2010/ 11 Proposed Premium $ 504 Increase: $ 0 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 2009/ 10 Premium $ 25834 2010/ 11 Proposed Premium $ 2, 834 Increase: $ 0 Florida Statutes require the City to purchase additional insurance coverage for Police Officers and Firefighters. The provider is Chubb ( Federal Insurance Company) who, after a rate solicitation in 2009, submitted a 3 -year rate guarantee which is recommended for renewal. The above miscellaneous policies total $