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2017-150-3255 - Insurance PGIT Renewal 2017-2018RESOLUTION NO. 2017-150-3255 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO RENEW THE CITY'S WORKERS' COMPENSATION, GENERAL LIABILITY, PROPERTY AND CASUALTY, AND AUTOMOBILE INSURANCE WITH PREFERRED GOVERNMENTAL INSURANCE TRUST (PGIT) FOR FISCAL YEAR 2017-2018; AUTHORIZING THE CITY MANAGER TO ISSUE PURCHASE ORDERS IN THE AMOUNT OF TWO MILLION THIRTY-THREE THOUSAND SIX HUNDRED SIX DOLLARS AND THIRTY CENTS ($2,033,606.30), FOR THIS PURPOSE; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City's Workers' Compensation, General Liability, Property and Casualty and Automobile Insurance policy is up for renewal on October 1, 2017, and WHEREAS, the City of Miami Gardens engaged an agent of record/insurance broker to provide professional services related to the City's Risk, Liability, and other related programs, and WHEREAS, the Firm selected was tasked with providing a viable and very competitive carrier for our Property, Automobile, Liability and Worker's Compensation program, and WHEREAS, the broker solicited quotes from PGIT and other carriers, and WHEREAS, insurance renewal options were provided and analyzed by Human Resources/Risk Management staff, and WHEREAS, PGIT provided the City the least expensive and most comprehensive renewal proposal for Two Million Thirty-Three Thousand Six Hundred Six Dollars and Thirty Cents ($2,033,606.30), for fiscal year 2017-2018, and WHEREAS, PGIT'S renewal proposal includes a Drug-Free Workplace and Safety Program credits (included in General Liability premium), and WHEREAS, City Staff recommends the City Council authorize the City Manager to renew the existing policy with PGIT for fiscal year 2017-2018, as proposed, and WHEREAS, Staff also recommends the City Council authorize the City Manager to issue purchase orders for this purpose, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA AS FOLLOWS: Section 1: ADOPTION OF REPRESENTATIONS: The foregoing Whereas paragraphs are hereby ratified and confirmed as being true, and the same are hereby made a specific part of this Resolution. Section 2: AUTHORIZATION: The City Council of the City of Miami Gardens hereby authorizes the City Manager to renew the City's Workers' Compensation, General Liability, Property and Casualty, and Automobile Insurance with Preferred Governmental Insurance Trust (PGIT) for fiscal year 2017-2018. The City Council further authorizes the City Manager to issue purchase orders in the amount of Two Million Thirty-Three Thousand Six Hundred Six Dollars and Thirty Cents ($2,033,606.30), for this purpose. Section 3: EFFECTIVE DATE: This Resolution shall take effect immediately upon its final passage. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS AT ITS REGULAR MEETING HELD ON OCTOBER 11, 2017. OLIVER GILBERT, III, MAYOR RESOLUTION NO. 2017-150-3255 ATTEST: RONETTA TAYLOR^MC, CITY CLERK PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY SPONSORED BY: CAMERON D. BENSON, CITY MANAGER Moved by: Seconded by: ^ VOTE: Mayor Oliver Gilbert, III (Yes) (No) Vice Mayor Erhabor Ighodaro, Ph.D. (Yes) (No) Councilwoman Lisa C. Davis (Yes) (No) Councilman Rodney Harris (Yes) (No) Councilwoman Lillie Q. Odom (Yes) (No) Councilwoman Felicia Robinson (Yes) (No) Councilman David Williams Jr (Yes) (No) RESOLUTION NO. 2017-150-3255 18605 NW 27th Avenue Miami Gardens, Florida 33056 ADD ON ITEM City of Miami Gardens Agenda Cover Memo Council Meeting Date: October 11, 2017 Item Type: (Enter X in box) Resolution Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: General Fund Advertising Requirement: (Enter X in box) Yes No Contract/P.O. Required: Yes No RFP/RFQ/Bid #: NA X Sponsor Name: Cameron D. Benson, City Manager Department: Human Resources Short Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING A RENEWAL OF THE AGREEMENT WITH THE PREFERRED GOVERNMENTAL INSURANCE TRUST (PGIT) FOR WORKERS’ COMPENSATION, GENERAL LIABILITY, PROPERTY/CASUALTY AND AUTOMOBILE INSURANCE FOR FISCAL YEAR 2017/2018; AUTHORIZING THE CITY MANAGER TO ISSUE PURCHASE ORDERS, IN AN AMOUNT NOT TO EXCEED TWO MILLION THIRTY THREE THOUSAND, SIX HUNDRED ND SIX DOLLARS AND 33 CENTS ($2,033,606.33), FOR THIS PURPOSE; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary: Background The City engaged an agent of record/insurance broker to provide professional services related to the City’s Risk, Liability, and other related programs. The Firm selected was tasked with providing a viable and very competitive carrier for our Property, Automobile, Liability and Worker’s Compensation program. The broker mentioned two factors causing an increase in premiums; (1) the City experienced a claim in excess of $1 million and (2) a twenty-five (25%) percent increase in the workers’ compensation Experience 18605 NW 27th Avenue Miami Gardens, Florida 33056 Modification Factor (EMF). The City understands these two factors will result in increased insurance premiums overall. Insurance renewal options were provided and analyzed by Human Resources/Risk Management staff. Analysis During the 2016/2017 policy period, the existing carrier charged a total premium of $1,912.00 The City expected an increase in premiums due to the factors mentioned above. The broker solicited quotes from the existing carrier and other carriers. The quotes from carriers were analyzed by staff. The City’s Workers’ Compensation, General Liability, Property and Casualty and Automobile Insurance policy is up for renewal 10/01/2017. PGIT’S renewal proposal includes a Drug-Free Workplace and Safety Program credits (included in General Liability premium). Fiscal Impact The City has the appropriate amount budgeted among all funds in the FY 2018 budget. Proposed Action: The City’s Workers’ Compensation, General Liability, Property and Casualty and Automobile Insurance coverage is up for renewal effective 10/01/2017. PGIT has provided the City the most inexpensive and comprehensive renewal proposal for $2,033,606.30 for fiscal year 2017/2018. Staff recommends the City Council accept the renewal as proposed. Attachment: Attachment 1 - Premium Summary for 2017-2018 and Renewal Quote for 2017-2018