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Agenda 09/28/2010 Item #10D Agenda Item NO.1 00 September 28.2010 Page 1 of 5 EXECUTIVE SUMMARY Recommendation to approve the purchase of Liability, Automobile, Workers' Compensation, Flood, Aircraft, and other insurance and related services for FY 2011 in the amount of $1,718,637, a reduction of $100,125. OBJECTIVE: To gain approval from the Board to purchase Liability, Automobile, Workers' Compensation, Flood, Aircraft, and other insurance and related services for FY 2011 in the amount of $1,718,637. CONSIDERATIONS: Pursuant to Florida Statutes 768.28 and 440, the Risk Management Department administers two risk management funds (Fund 516 and Fund 518) to finance its Casualty and Workers' Compensation insurance programs. A complete renewal summary sheet is attached which describes the purpose and cost of each coverage. The various lines of insurance included in this recommendation include sixteen specific lines of insurance coverage. To administer the program the County purchases claims administration services and brokerage services. Generally, the County's deductible (self insured retention) is the first $100,000 per claimant/$200,000 per occurrence with the exception of Workers' Compensation which has a $500,000 per claim deductible. Claims are administered by Johns Eastern Company. To assure sufficient coverage limits, the County purchases excess coverage where necessary, to protect against large losses; to cover a cause of action not limited by a state statutory cap (such as employment practices liability); to provide higher limits required by contract; or to cover a claims bill pursuant to F.S. 768.28. The significant highlights of the FY 11 renewal are as follows. :J Total Premiums and Fixed Costs decreased 5.51% or $100,125 on an annual basis. This savings is due primarily to a reduction in the cost of Excess Workers' Compensation ($40,801) and the All Lines Aggregate Portion of the program ($43,336). o The Excess Workers' Compensation carrier has offered a two year rate guarantee. An extensive review is performed periodically to assure that the County's insurance program is both comprehensive and competitive. A full review was completed in 2009. The property insurance program renews on April " 2011 and is not included in this recommendation. FISCAL IMPACT: Total premiums and fixed costs are $1,718,637, a reduction of $100,125. Funds have been budgeted within Funds 516, Property and Casualty Insurance and Fund 518, Workers' Compensation Insurance for the purchase of coverage as outlined in the executive summary and renewal summary sheet. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. -SRT. Aaenda 118m NO.1 00 September 28,2010 Page 2 of 5 RECOMMENDATION: It is recommended that the Board of Commissioners approves the following: 1) The purchase of coverage as outlined in the Executive Summary and the Casualty Renewal Summary Sheet effective October " 2010. 2) The rejection of Uninsured Motorist Insurance with the exception of scheduled take home vehicles, authorizing the County Manager or designee to execute the necessary rejection forms. 3) Authorize the County Manager or designee to complete the applications or other documents necessary to bind coverage and services effective October 1, 2010. PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Director, Risk Management Department Item Number: Item Summary: Meeting Date: Agenda Item NO.1 OD September 28. 2010 Page 3 of 5 COLLIER COUNTY BOARD OC :;OUNTY :;OMMISSiONERS 10D Recommendation to approve the purchase of liability. Automobile, Workers Compensation, Flood. Aircraft. and other insurance and related services for FY 2011 In the amount of $1,718,637' a reduction of $100.125. (Jeff Walker, Risk Management Director) 9/28/20109:00:00 AM Prepared By Jeffrey A. Walker, CPCU, ARM Administrative Services Division Director Risk Management Date Risk Management 9/10/20102:24:57 PM Approved By Jeffrey A. Walker, CPCU. ARM Administrative Services Division Director - Risk Management Date Risl< Management 9!10f201Q 2:25 PM Approved By Scott R. Teach County Attorney Deputy Count~1 Attorney Date Count}f Attorney 9/13/20106:00 PM Approved By Len Golden Pries> Administrative Services Division Administrator - Administrative Services Date Administrative Services Division 9/15f2010 5:14 PM Approved By OMS C.oordinator County Managers Office Date OffiCE> of Management & Budget 9/16/201(: 10:50 /J..rl/: Approved By Therese Staniey Office 01 Mana~:w.men: "- 5udpet Manager - :)perations; Support - Trans Dats Office o~ Managemen: 8, 8udget 9,'16/20102:02 PM Approved By Leo E. Gens. Jr C;ountj-' Managers Offi:::t: :oumy ManagE:" ::Jate Count] Mannge:-:;, Offic!;; S!18t201f 12:0~. Dft ,'1 0 Lf) ::::'.,--- ='00 N""T " -7CQQ) - ('~ OJ =,-l1l (ii<Ll[L =-@ ~~ - " Q>ru oxn < 'E " " 0 E c: c: '" ~ :; ~ Ul 0.5 c:> >- >-'" 'E~ii " Ul ~ o " " UUc: ~~8: 0>- Ul1. ! z " c ~ " " :;; ti , " >- .!l :. 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