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Agenda 09/08/2015 Item #16E 79/8/2015 16.E.7. EXECUTIVE SUMMARY Recommendation to approve the purchase of Liability, Automobile, Workers' Compensation, Aircraft, Airport and other insurance coverage for FY 2016 in the annual amount of $944,837, a reduction of $23,245. OBJECTIVE: To protect the County against financial loss from casualty related claims and lawsuits through the implementation of a cost effective, best value Casualty Insurance program. CONSIDERATIONS: Pursuant to Florida Statutes Section 768.28 and Chapter 440, the Risk Management Division administers two risk management funds (Fund 516 and Fund 518) to finance its Property, Casualty and Workers' Compensation risk financing programs. Generally, the County's deductible (self insured retention) is $300,000 per occurrence with the exception of Workers' Compensation, which has a $500,000 per claim deductible. Claims are administered by Johns Eastern Company. Insurance and Risk Management Services (IRMS) is the County's contracted broker of record for coverage other than aircraft and airports. Gallagher Aviation (formerly NationAir) is the specialty broker for aircraft and airport coverage. The County purchases excess coverage to protect against catastrophic losses; to cover a cause of action not limited by a state statutory tort cap (such as employment practices liability); to comply with contractual requirements, including grants; or in the event that a claims bill is enacted pursuant to chapter 768.28, Fla. Statutes. A full marketing of the program occurs every three years. The program was last fully marketed for the FY 2015 renewal effective October 1, 2014. For the FY 16 renewal, a Renewal Summary Sheet is attached which illustrates the pricing of each carrier by line of coverage and the purpose/basis for each coverage. The significant highlights of the FY 2016 renewal are as follows. ❑ Total premiums decreased 2.4% or $23,245 on an annual basis. ❑ The only premium increase occurred in the cost of Excess Workers' Compensation due solely to higher ratable payroll. The rate per $100 of payroll remained unchanged. ❑ Premium for the remaining coverage lines were either unchanged or reduced. ❑ The property insurance program renews on April 1, 2016 and is not included in this recommendation. ❑ Flood insurance is not included in this submittal and will be presented separately. All carriers hold a Best's financial rating of "A, Superior" or higher. FISCAL IMPACT: Total premiums are $944,837 which reflects a reduction in cost of 2.4% or $23,245. Sufficient funds have been budgeted within Fund 516, Property and Casualty Insurance and Fund 518, Workers' Compensation Insurance to purchase coverage as outlined in the Executive Summary and Renewal Summary Sheet. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this item. Packet Page -1788- 9/8/2015 16.E.7. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires majority vote for approval. — CMG RECOMMENDATION: It is recommended that the Board approves the following: 1) The purchase of coverage as outlined in the Executive Summary and the Recommendations Sheet effective October 1, 2015. 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, 2015. PREPARED BY: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management Division Attachments: Renewal Summary Sheet Packet Page -1789- 9/8/2015 16.E.7. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.7. Item Summary: Recommendation to approve the purchase of Liability, Automobile, Workers Compensation, Aircraft, Airport and other insurance coverage for FY 2016 in the annual amount of $944,837, a reduction of $23,245. Meeting Date: 9/8/2015 Prepared By Name: WalkerJefl' Title: Division Director - Risk Management, Administrative Services Department 8/13/2015 1:57:42 PM Submitted by Title: Division Director - Risk Management, Administrative Services Department Name: WalkerJeff 8/13/2015 1:57:43 PM Approved By Name: GreeneColleen Title: Assistant County Attorney, CAO General Services Date: 8/18/2015 10:43:21 AM Name: PriceLen Title: Department Head - Administrative Svc, Administrative Services Department Date: 8/21/2015 4:27:27 PM Name: KlatzkowJeff Title: County Attorney, Date: 8/21/2015 4:34:58 PM Name: IsacksonMark Title: Division Director - Corp Fin & Mgmt Svc, Office of Management & Budget Packet Page -1790- Date: 8/24/2015 11:42:12 AM 9/8/2015 16.E.7. Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 8/24/2015 12:47:47 PM Packet Page -1791- E C L � d � > C E 0 = 7 L6 U U c QL d r O LL U 9/8/2015 16.E.7 d L L N d _ 7-. 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