040786-Special Session MINUTES
City Commission, Sanford, Florida
April 7,
19 86
l
The City Commission of the City of Sanford, Florida, met in Special Session in
the City Manager's Conference Room in the City Hall in the City of Sanford, Florida, at
12:00 o'clock P. M. on April 7, 1986.
Present: Mayor-Commissioner Bettye D. Smith
Commissioner~John Y. Mercer
Commissioner Milton E. Smith
Commissioner David T. Farr ~
Commissioner Bob Thomas
City Attorney William L. Colbert
City Manager Frank A. Faison
City Clerk H. N. Tamm, Jr.
The meeting was called to order by the Chairman.
The Chairman announced that this meeting had been called to receive from Ted Slyer
of Siver and Associates recommendations for the City's insurance coverages, deductibles, and
consider insurance proposals from Karns Insurance and Florida Municipal Self Insurers Fund,
and to receive the annual Audit of the City.
Mr. Slyer explained his organization reviewed two proposals submitted by the
Travelers through Karns Insurance Agency of Sanford and the Florida League through Adjustco
in Maitland, including property, non-auto liability and auto liability. In terms of cost
and coverages afforded, the Florida League program is superior to that proposed by The
Travelers Ins. Co., providing much more non-au'lo liability protection and its overall price
for the package, as compared, is $146,915 less than The Travelers. It is important that the
City understand that the liability portion of the Florida League program is a group
insurance arrangement which includes as participants only Florida governments. Though the
League program has been in existence for seven years without incident, there is the
possibility that participants could be directly or indirectly assessed additional monies if
the program were to exhaust its resources and become insolvent. The limits of maximum
responsibility for each participant under this circumstance does not seem to be clearly
defined. The COST-COVERAGE COMPARISON TRAVELERS VS. FLORIDA LEAGUE as follows:
OOVERAGE
PI~DPERr~- BUTT.T~I.I~ &
Named Perif"('$1,000 Deductible)
~1 ~sk ($1,~ ~c~ble)
Contractors Equif~uent
Fine Arts - Library
Ccmputer
$500,O00 Limit
Premises
Products
Contra ctua 1
Underground Property
Riot - Civil C~,,.otion
Personal Injury
Owners Protective
EMP- Professional
Watercraft
~Sanford Airport
Fire Legal Liabilty
Owned Vehicles
Non-Owned Vehicles
Hired Vehicles
PIP ($10,000)
$ 23,002
13,046
/ 7,334
Incl.
'Incl.
108,549
133,902
Incl.
Incl.
Incl.
Incl.
$285,833
Pre~
$ 44,419:
Incl.
3,245
Incl.
IncL
33,984
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
Incl.
57,261'
Incl.
Incl.
Incl.
Incl.
$138.918
400
MINUTES
City Commission, Sanford, Florida
April 7 ,
19 86
SANF25
(1)
The Travelers property proposal can be accepted without the
liability - premium would increase to $42,409 from the package
premium of $36,048 noted above. In effect, the City can place
the property with the Travelers and the liability with the
Florida League.
On recommendation of the City Manager, Commissioner Farr moved to accept the
proposal for insurance coverage of Property, Contractors Floater, Inland Marine, Glass,
General Liability and Automobile Liability from Florida League at annual premium of
$138,918. Seconded by Commissioner Thomas and carried by the vote of the Commission as
follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
Mr. Siver submitted two reports as follows:
Risk Management - Execitive overview.
Risk Management - Executive overview Summary of Recommendations.
Mr. Sivers made specific referrence to recommendations as follows:
Review entire Workers' Compensation Self-Insured program for stop loss
insurane and outside claims agent.
Reconsider self-insurance of damage of City owned vehicles and perils of
single occurance loss.
Rethink the City's philosophy of soverign immunity.
The City Manager submitted MEMORANDUMS as follows:
ME MO RAN DU M
March 11, 1986
TO: City Manager
FROM:
Director of Administrative Services
SUBJECT: Public Official Liability Insurance
I am pleased to inform you that t~e City has retained Public Official
Liability coverage with National Casualty effective March 16, 1986,
thus assuring the City uninterrupted coverage in this area.
The policy limits are $1,000,000 each occurence/$1,000,000 annual
aggregate, $7,500 deductible each loss including loss adjustment
expense. The annual premium is $5,706 - a $6,000 reduction from
current year premium cost.
MEMORANDUM April 4, 1986
TO: City Manager
FROM:
Director of Administrative Services
SUBJECT: 1985-1986 Public Officials Liability Policy
As you know, we have successfully secured Public Officials Liability
insurance coverage through National Casualty Insurance Company,
effective March 16, 1986.
The purpose of this memo is to address an available option under the
old policy with Vanguard, which expired March 16, 1986. Pursuant to
the terms of the "Option to Extend Claims Reporting Period" of the
policy, the City may extend the insurance covered by the policy up to
36 months past the March 16, 1986, expiration date.
As the City has experienced an unusally "active" year in this area, I
strongly recommend "opting" for the maximum 36 month extension of this
coverage. Cost for this extended coverage is 150 percent of the full
annual premium, or $20,772.
If you and the City Commission approve, please complete the attached
agreement and send to Unimark Special Risks, Inc. Note that the
"clock is running"; we have only 30 days from policy expiration date
(March 16) to respond.
MINUTES
City Commission, Sanford, Florida
April 7,
401
If you wish further information regarding this matter, please let me
know.
On recommendation of the City Manager, Commissioner Smith moved to approve the
Vanguard Ins. Co., Public Officials Liability Policy extension for a period of three years
Seconded by Commissioner Farr and carried by the vote of the
at a cost of $20,772.
Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
Commissioner Thomas moved to authorize the transfer from unappropriated funds in
the amount of $15,617± to provide for said insurance. Seconded by Commissioner Farr and
carried by the vote of the Commission as follows:
Commissioner Mercer
Commissioner Smith
Commissioner Farr
Commissioner Thomas
Mayor Smith
Yea
Yea
Yea
Yea
Yea
Harold Hartsock and Rick Mann, Hartsock & Hartsock, C.P.A., submitted the annual
Audit for the fiscal year ended September 30, 1985, and explained the schedules therein.
The Commission accepted said Audit.
There being no further business, the meeting was adjourned.
ATTEST:
· ' ~ MAY O R
19 86