INTEROFFICE MEMORANDUM

HUMAN RESOURCES DEPARTMENT

 

TO:                 Mayor and Commission

 

FROM:           Richard D. Sala, City Manager

 

BY:                  Ernest King, Director Human Resources/Risk

 

DATE:            September 13, 2007

 

RE:                 Florida League of Cities Insurance Contract Renewal – FY 07/08

General/Professional Liability, Automobile Liability/Physical

Damage, Property and Workers’ Compensation

 

The City has been insured with the Florida League of Cities (FLC), under the umbrella of Florida Mutual Insurance Trust, for general liabilities, workers’ compensation, property damage and automobile accidents since 1995.  Florida League of Cities recently submitted a proposal with a rate decrease of $97,423 for the fiscal year 2007/2008. This proposal will decrease the premium cost from $930,219 to $833,796 for FY 2007/2008.  The proposed cost is included in the City’s 2007/2008 proposed budget.

 

The majority of the proposed rate decrease is associated with property insurance due to the mild hurricane season during 2006. The municipal property insurance market in the State of Florida is slowly recovering form the devastating impacts of hurricane Wilma and prior hurricanes. However, the increase in property value and cost of construction over the last couple of years are requiring municipality to have their buildings/property appraised to ensure their current coverage limits are adequate. Therefore, we may also be evaluating the values of City owned properties next year.

 

Automobile liability/physical damage rates also decreased although not as significant as property.

 

General/Professional Liability and Worker’s Compensation increased modestly after a decrease last year. 

 

Following is a comparison between the current and proposed rates indicating a total decrease of approximately $97, 423:

 

 

General/

Professional Liability

Automobile Liability/

Physical Damage

 

 

Property

 

Worker’s

Compensation

 

 

Total

Current

$123,518

$70,412

$429,931

$306,358

$930,219

Proposed

$131,876

$59,837

$327,482

$314,601

$833,796

Difference

$8,358

($10,575)

($102,449)

$8,243

($97,423)

 

 

 

RECOMMENDATION

 

The City Administration recommends Commission’s consideration and approval of the attached resolution authorizing the City Manager to enter into an acceptable agreement by and between the City and the Florida Leagues of Cities for the City’s general liability, automobile, property and workers’ compensation insurance coverage for fiscal year 2007/2008, providing for a premium of not more than $833,796.

 

RESOLUTION NO. _________________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA AUTHORIZING AND DIRECTING THE CITY MANAGER TO ENTER INTO AN ACCEPTABLE AGREEMENT BY AND BETWEEN THE CITY AND THE FLORIDA LEAGUES OF CITIES FOR THE CITY’S GENERAL LIABILITY, AUTOMOBILE, PROPERTY AND WORKERS’ COMPENSATION INSURANCE COVERAGE FOR FISCAL YEAR 2007/2008, PROVIDING FOR A PREMIUM OF NOT MORE THAN $833,796 AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF NORTH LAUDERDALE, FLORIDA:

 

Section 1:        That the City Manager is hereby authorized and directed to enter into an acceptable agreement by and between the City of North Lauderdale and the Florida League of Cities for the City’s General Liability, Automobile, Property, and Worker’s Compensation Insurance coverage for Fiscal Year 2007/2008 at a premium not to exceed $833,796 which is equates to a decrease of $97,423 under the current City of North Lauderdale’s annual premium rate as indicated in the table below:

 

 

General/

Professional Liability

Automobile Liability/

Physical Damage

 

 

Property

 

Worker’s

Compensation

 

 

Total

Current

$123,518

$70,412

$429,931

$306,358

$930,219

Proposed

$131,876

$59,837

$327,482

$314,601

$833,796

Difference

$8,358

($10,575)

($102,449)

$8,243

($97,423)

 

Section 2:        That this Resolution shall take effect immediately upon adoption.

 

PASSED and ADOPTED by the City Council of the City of North Lauderdale, Florida 13th day of September, 2007.

 

APPROVED AS TO FORM:

 

__________________________________

CITY ATTORNEY SAMUEL S. GOREN

                                                                        ____________________________________

                                                                        MAYOR JACK BRADY

                                   

                                    ____________________________________

                                                                        VICE MAYOR RICH MOYLE

ATTEST:

____________________________________

DEPUTY CLERK PATRICIA VANCHERI