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.. WATERS RISK MANAGEMENT 6580 64TH AVENUE NORTH. PINELLAS PARK, FLORIDA 33781-5218 . TELEPHONE (727) 546-5644. FAX (727) 546-2712 Independent Risk Management and Employee Benefits Management Consulting Only - No Sales Allan Paul Waters, CPCU,CLU,ARM,AIC Member. Societ~' of Risk Mana~em('nt Consultants .I. Hayden Knowlton, CPCU,ARM,AIC :\lember. Soci('t~, of Risk :\lana~eml'nl Consultants June 16, 2008 To: Mr. Doug Haag, Assistant City Manager, City of Sunny Isles Beach From: Al Waters CPCU, CLU, ARM, AIC Re: Sunny Isles Beach Insurance Proposals The City of Sunny Isles Beach's property/casualty insurance renews October I, 2008 through Brown & Brown Insurance in the Preferred Governmental Insurance Trust (PGIT). This year PGIT offered the City the opportunity to renew its insurance early, effective July I, in a favorably priced 15 month package policy through September 30,2009. The City agreed this would be an attractive offer, and it also solicited a proposal from the Florida Municipal Insurance Trust (FMIT) as competition. The competition was not subject to a formal Request for Proposals process. Brown & Brown/PGIT did not include workers compensation insurance in their proposal. FMIT included it. You said workers comp was not to have been a part of the competition. You asked us to review the proposals other than workers compensation and give our comments. We reviewed only those coverages proposed in the documents we were provided. ALL OR NONE PRICING The pricing of the Sunny Isles Beach insurance account by PGIT and FMIT is based on the City's acceptance of the entire proposal of either proposer. PGIT's proposal states "Deletion of any coverage presented, Package and/or Workers Compensa- tion will result in re-pricing of account." As mentioned, PGIT did not include workers compen- sation in its proposal. FMIT states "This is a package quote. If any of the lines of coverage are not accepted, the other line pricing will change or coverage offerings on the remaining lines could be withdrawn alto- gether. Property is not offered on a stand-alone basis." Accordingly, neither proposal includes the opportunity to "mix and match" the best premi- ums/coverage from one proposal with the best premiums/coverage from the other proposal. The overall premiums for the basic coverages are about $52,000 apart: PROPOSER OVERALL PREMIUM Preferred Governmental Insurance Trust (PGIT) $582,924 Florida Municipal Insurance Trust (FMIT) $530,978