HomeMy WebLinkAboutCity of Tamarac Resolution R-2000-001September 29, 1999
Temp. Reso. #8817
Revision #1, November 10, 1999
Revision #2, January 4, 2000
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CITY OF TAMARAC, FLORIDA
RESOLUTON NO. R-2000- O/
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA, AUTHORIZING THE
APPROPRIATE CITY OFFICIALS TO EXECUTE AN
AGREEMENT BETWEEN THE CITY OF TAMARAC AND
FLORIDA MUNICIPAL INSURANCE TRUST (FMIT) FOR
PROPERTY AND LIABILITY INSURANCE FOR A PERIOD
OF TWO YEARS; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the City solicited proposals from property and liability insurance
carriers, including the current carrier, The Florida League of Cities Florida Municipal
Insurance Trust (herein after referred to as FMIT); and
WHEREAS, proposals were received and reviewed from FMIT, Risk
Management Associates, and Gallagher -Bassett; and
WHEREAS, after evaluation, it was determined that FMIT provided the most
comprehensive and responsive property and liability coverage; and
WHEREAS, FMIT offered the city a two-year insurance premium with a 4%
increase the second year; and
WHEREAS, The City of Tamarac anticipates that its Workers' Compensation
premium will rise in the future due to payroll exposure and possible adverse loss
experience; and
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September 29, 1999
Temp. Reso. #8817
Revision #1, November 10, 1999
Revision #2, January 4, 2000
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WHEREAS, the increased City of Tamarac payroll exposure will cause the
insurance premium to increase for October 1, 2000 and it is in the best interest of the
City to enter into a two-year agreement with FMIT; and
WHEREAS, the City was able to negotiate no premium increase for the second
year commencing October 1, 2000 (as shown in Exhibit B attached); and
WHEREAS, it is the recommendation of the City Manager and the Risk Manager
to enter into a two-year agreement with Florida Municipal Insurance Trust as provider of
property and liability insurance; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be
in the best interests of the City of Tamarac to provide for the execution of an agreement
between the City of Tamarac and FMIT.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION 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: The appropriate City officials are hereby authorized to
execute a two-year Agreement (attached hereto as Exhibit "A") with Florida Municipal
Insurance Trust as provider of property and liability insurance for full-time employees
effective October 1, 1999.
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September 29, 1999
Temp. Reso. #8817
Revision #1, November 10, 1999
Revision #2, January 4, 2000
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SECTION 3: Funding for property and liability insurance premiums in the
amount of $427,993 for FY 2000 will be paid for out of the City Insurance Services
Fund.
SECTION 4: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 5: 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 6: This Resolution shall become effective immediately upon its
passage and adoption.
PASSED, ADOPTED AND APPROVED this /1 r day of , 2000.
JOE SCHREIBER
MAYOR
Nw
iMA_• f•TD,c�.
IHEREBY CERTIFY that I
have approved this
MI HELL S. R)
CITY ATTORNEY,
REWWOF C:OMMtSSION
MAYOR _ SCHREIBER
DIST t;
COMM. PORTNER
DIST 2:
yLm MISHKIN
DIST 3:
COMM. SULTANOF
DIST 4:
COMM. ROBERTS
EXHIBIT A
FLORIDA MUNICIPAL INSURANCE TRUST
TWO YEAR PREMIUM GUARANTEE AGREEMENT
October 1, 1999 — September 30, 2001
THIS AGREEMENT, made and entered into this 1" day of October, 1999 by and
between the City of Tamarac (FMIT 584), (hereinafter referred to as the "Member") and the
Florida Municipal Insurance Trust (hereinafter referred to as the "FMIT").
WHEREAS, the FMIT has determined it is in the best interest of the FMIT to offer the
Member a Two Year Premium Guarantee Plan, and
WHEREAS, the Member has determined it is in the best interest of the Member to utilize
the Two Year Premium Guarantee Plan.
NOW, THEREFORE, for and in consideration of the mutual covenants, promises and
obligations herein contained which are given to and accepted by each party hereof to the other,
the parties to this instrument covenant, stipulate and agree as follows:
1. As used herein, the following words and phrases shall have the following meanings:
a. "Coverage Period" means the period as shown on the Declarations of the FMIT
Agreement.
0 b. Premium Guarantee means that the annual net premium billed the Member for
the coverage period will not be subject to adjustment from exposure audit, change
in experience modifications, annual rate review and rate change by the FMIT or to
change in approved participation credits.
C. "Gross Premium" means the annual gross premium as shown on the Declarations
of the FMIT Agreement for the coverage period.
d. "Participation Credit" means equity credits, dividends, incentive credits, premium
credits, and any other participation credit approved by the FMIT, and is the
annual credit shown on the Declarations of the FMIT Agreement for the coverage
period.
e. "Net Premium" means the annual net premium as shown on the Declarations of
the FMIT Agreement for the coverage period.
f. "Experience Modifications" mean the factors used by the FMIT in adjusting base
gross premium due to a Member's loss experience for workers' compensation,
general liability (including law enforcement and public officials errors and
omissions), automobile liability and automobile physical damage.
g. "Exposure Audit" means audits conducted by the FMIT to assure exposure
information provided by the Member accurately reflects actual exposures
assumed by the FMIT, which audits can result in premium adjustments to the
0 Member under the terms of the indemnity Agreement.
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h. "Rates" mean the annual renewal rates approved by the FMIT for the FMIT's
property and casualty coverages and used for calculation of the Member's gross
premiums.
i. "Exposures" mean the basis on which the FMIT rates are applied to develop gross
premiums including but not limited to payroll, job classifications, population, law
enforcement officers, vehicles, real and personal properties, and other
miscellaneous exposures.
j. "Indemnity Agreement" means the FMIT's Indemnity Agreement, the
Participation Agreement entered into between the FMIT and the member, and any
other agreement, certificate document, or other instrument executed by the
Member and the FMIT.
2. Subject to the terms and conditions contained in this Agreement, the Member and the
FMIT agree Member's Premium Guarantee during the coverage period shall be the net
premium shown on the Declarations of the FMIT Agreement.
3. The Member agrees that it will assist the FMIT by timely providing the FMIT with
updated information projecting the FMIT's exposure for the October 1, 1999 fiscal year
and with any other exposure information the FMIT in good faith believes might have a
material impact on the exposures to be assumed by the FMIT over the coverage period.
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4. The FMIT agrees that coverage provided herein will not be canceled or non -renewed by
the FMIT during the coverage period except for non-payment of premium by the
Member..
5. The member agrees that coverage accepted herein will not be canceled or non -renewed
by the Member during the coverage period.
6. If, during the coverage period, the member cancels or non -renews the coverage or if
coverage is canceled by the FMIT for non-payment of premium, the member shall be
liable for liquidated damages for breach of this Agreement,- calculated at ten percent
(10%) of the net premium unearned by the FMIT for the coverage period, plus any
additional premium that, but for this Agreement, would otherwise have been due and
owing the FMIT as a result of exposure audits under the Indemnity Agreement. This
provision for liquidated damages is agreed upon between the parties due to the inability
of computing the loss of value to the FMIT of the unexpired portion of the Member's
coverage period under this Agreement.
7. In the event the Member fails to pay monies due and owing hereunder, the FMIT shall be
entitled to recover from the Member all costs and expenses incurred by the FMIT in
collecting any such monies, including reasonable attorney's fees, costs, prejudgment
interest, and any other reasonable and related expenses of collection.
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0 8. In the event of conflict, the provisions of this Agreement shall prevail over an
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provisions contained in the Indemnity Agreement. Provisions of the Indemnity
Agreement not in conflict with the provisions of this Agreement shall remain in full force
and effect.
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IN WITNESS WHEREOF, the parties have made and executed this Agreement on the
respective dates under each signature. CITY OF TAMARAC, through it Mayor, and
FLORIDA MUNICIPAL INSURNCE TRUST, signing by and through,
duly authorized to execute same.
ATTES
Carol 'Gold, Ci lerk
Date: / %2 / &-.)
ATTEST:
Corporate Secretary
Type name of Corporate Secretary
CITY OF TAMAR.AC
By:
Joe, Schreiber, Mayor
Date: 7 - G-d
Jeff ler, ity Manager
Date: (--j i — a-�
FLORIDA MUNICIPAL
INSURANCE TRUST
LIM
Byron Beard, Underwriting
Manager
Type/Print Name of Underwriting Manager
Date:
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EXHIBIT B
14D
I. DESIGNATED MEMBER:
Address:
FLORIDA LEAGUE OF CITIES
SPONSORED INSURANCE PROGRAMS
DECLARATIONS
City of Tamarac
7525 N.W. 88"' Avenue
Tamarac, FL 33321-2401
II. COVERAGE PERIOD
From October 1, 1999 to September 30, 2001 12:00 Midnight Standard Time at the address of the
Designated Member.
111. AGREEMENT NUMBER
Florida Municipal Insurance Trust (FMIT) FMIT # 584
I* IV. ESTIMATED ANNUAL PREMIUM
Normal Participation Net
Premium Credit Premium
Florida Municipal Insurance Trust (FMIT) $604,462 $193,928 $410,534
12/22/99
Signature of Authorized Representative
. SIP DEC (10199)
Date
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