HomeMy WebLinkAboutCity of Tamarac Resolution R-94-1861
Temp. Reso. #6832
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-94-186
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TAMARAC, FLORIDA,
AUTHORIZING THE PLACEMENT OF THE
LIABILITY INSURANCE PROGRAM WITH MT.
AIRY INSURANCE COMPANY AT AN ANNUAL
PREMIUM OF $119,560.00 AND THE
WORKERS' COMPENSATION INSURANCE
WITH MIDWEST EMPLOYERS CASUALTY
COMPANY AT A RATE OF .335% OF PAYROLL
AND AN ESTIMATED ANNUAL PREMIUM OF
$27,165.00; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY; AND
PROVING FnR AN FFFFCTIVF DATE_,,,,
WHEREAS, the City Council of the City of Tamarac, Florida deems it to be in the
best interests of the citizens and residents of the City of Tamarac to approve the
placement of the liability insurance program with Mt. Airy Insurance Company at an
annual premium of $119,560.00 and the workers' compensation insurance with Midwest
Employers Casualty Company at a rate of .335% of payroll and an estimated annual
premium of $27,165.00.
WHEREAS, Sphere Drake Insurance Company, the City's present liability and
workers' compensation insurer, is not covered by the Florida Guaranty Fund and is rated
B++ by Best's, which the City's Risk Manager and insurance broker consider
substandard.
WHEREAS, Mt. Airy Insurance Company has an A rating by Best's, Midwest
Employers Casualty Co. has an A- rating by Best's and both companies are covered for
insolvency by the Florida Guaranty Fund.
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WHEREAS, the Mt. Airy Insurance Company proposal was lower in cost than the
Sphere Drake proposal, the liability limits are being increased from $1,000,000.00 to
$2,000,000.00 at an additional premium of $35,686.00 while staying within budget.
WHEREAS, the deductibles on the liability coverages are lower on the Mt. Airy
proposal ($25,000.00 per occurrence for Public Officials Liability, $100,000.00 Auto and
General Liability) than the Sphere Drake policy ($100,000.00 per occurrence plus a
corridor or annual aggregate deductible of $100,000.00).
WHEREAS, the reimbursement of legal expenses reduce the Automobile and
General Liability policy limit on the Sphere Drake policy, but not on the Mt. Airy policy.
WHEREAS, the $100,000.00 per occurrence and $100,000.00 corridor deductibles
on the Sphere Drake workers' compensation coverage is lower than the Midwest
Employers deductible of $350,000.00 per occurrence.
WHEREAS, Sphere Drake's policy provides full coverage on workers'
compensation legal expenses once the deductibles are satisfied while Midwest
Employers coverage for legal expenses is prorated based on the policy deductible
WHEREAS, Sphere Drake covers claims for mental injury and mental anguish
related to employment practices (hiring, firing, promoting, etc), while Mt. Airy excludes
that portion of claims by employees or employment applicants.
WHEREAS, Sphere Drake covers legal expenses subject to policy deductibles for
lawsuits that do not ask for monetary damages while non monetary lawsuits are not
covered by Mt. Airy.
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WHEREAS, the advantages of the Mt. Airy/Midwest Employers proposal outweigh
the advantages of the Sphere Drake proposal.
WHEREAS, the Risk Manager recommends approval to place the liability
insurance program with Mt. Airy Insurance Company and the workers' compensation
insurance with Midwest Employers Casualty Company.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and confirmed as
being true and correct and are hereby made a specific part of this resolution.
SECTION 2: That the appropriate City Officials are hereby authorized to place the liability
insurance program with Mt. Airy Insurance Company and the workers' compensation
insurance with Midwest Employers Casualty Company.
SECTION 3: All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of such conflict.
SECTION 4: If any clause, section, other part or application of this Resolution is held by
any court of competent jurisdiction to be unconstitutional or invalid, in part or application,
it shall not affect the validity of the remaining portions or applications of this Resolution.
SECTION 5: This Resolution shall become effective immediately upon its passage and
adoption.
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PASSED, ADOPTED AND APPROVED this #day of �1994.
ATTEST:
CAROL A. EVANS, CMC
CITY CLERK
I HEREBY CERTIFY that I have
approved this Resolution as
CITY ATTORN
u
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Temp. Reso. #6832
NORMAN ABRAMOWITZ,
MAYOR
RECORD OF COUNCIL VOTE
MAYOR ABRAMOWITZ
DIST. 9: V / M KATZ
DIST. 2: C / M MISHKIN
DIST. 3: C / ILAI SCHR OER
f)IST. 4: C / IN Iti ACHEK r