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<br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3113 Fax <br />(305) 947-2150 Building Department <br />(305) 947-5107 Fax <br /> <br />City Commission <br />Norman S. Edelcup, Mayor <br />Lewis J. Thaler. Vice Mayor <br />Roslyn Brezin, Commissioner <br />Gerry Goodman, Commissioner <br />George "Bud" Scholl, Commissioner <br /> <br />A. John SzerIag, City Manager <br />Hans Ottinot, City Attorney <br />Jane A. Hines, City Clerk <br /> <br />MEMORANDUM <br /> <br />TO: The Honorable City Commission <br /> <br />VIA: A. John SzerIag, City Manager <br /> <br />FROM: Douglas Haag, Assistant City Manager-Finance <br /> <br />DATE: June 19,2008 <br /> <br />RE: Renewal of Property, Casualty and Auto Insurance Policies <br /> <br />RECOMMENDA nON: <br />Approve the attached resolution to renew the City's Property, Casualty and, Auto insurance with the <br />Preferred Government Insurance Trust (PGIT) for the revised policy period of July I, 2008 - September <br />30,2009. <br /> <br />BACKGROUND: <br />The City currently has Commercial Insurance Package (Property, Casualty, Auto) and Workers <br />Compensation insurance through the Preferred Governmental Insurance Trust (PGIT) which is a premier <br />insurance organization for public entities and is a non-assessable Trust approved by the Florida State <br />Legislature. PGIT recently submitted a proposal to the City for a 15 month package policy which allows <br />the City to take advantage of a recent reduction in property insurance rates. This means we can lock in <br />the lower rates now thru September 30, 2009 regardless of what might happen during this hurricane <br />season. The overall premium for this 15 month policy is $582,924 while the premium for the current 12 <br />month policy is $589,545. The net result is a savings to the City of approximately $154,000. <br /> <br />Once the PGIT proposal was submitted by Brown & Brown Insurance, we immediately requested a <br />proposal from the Florida Municipal Insurance Trust (FMIT). The total cost of a comparable 15 month <br />policy from FMIT is $530,978, a difference of about $52,000. The majority of this difference ($44,000) <br />is attributable to the difference in the property insurance premium. However, there are some significant <br />coverage gaps in the FMIT proposal. First, FMIT, thru its reinsurers, is only able to provide $10 million <br />in property coverage for windstorm/hail damage. This is $17 million short of our total property value of <br />$27 million. Second, the windstorm/hail deductible for FMIT is subject to a $100,000 minimum <br />deductible (vs. $20,000 for PGIT) for all property located within Y2 mile of the ocean. One partial loss <br />would quickly erase the $44,000 premium difference. These are not acceptable risks that the City should <br />take on for a premium difference of only $44,000. <br /> <br /> <br />\:SM \~ <br /> <br />Finance Department <br /> <br /> <br /> <br />Commission I\teeting Date: <br /> <br />l DtJ <br />~- 19-o"l <br /> <br />Funding a,"a;lable: <br />