09-22-1997 - Special
9HE CITY OF ED9EWATER
POST OFFICE BOX 100-EDGEWATER, FLORIDA 32132-0100
Voting Order
Councilman Hays
Councilman Mitchum
Mayor.Hayman
Councilman Hatfield
Councilwoman Martin
September 18, 1997
To All Members of the City Council:
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hereby call a Special Meeting of the City Council for Monday,
September 22, 1997, at 7:00 p.m. in the Community Center for the purpose
of authorizing the Mayor or Vice Mayor to execute the agreements for State
required workers compensation and continu,ation of the City's health
insurance (administrative requirement).
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. CITY CLERK
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Pursuant to Chapter 286, F.S., if an individual decides to appeal any decision made with respect to
any matter considered at a meeting or hearing, that individual will need a record of the proceedings
and will need to insure that a verbatim record of the proceedings is made.
In accordance with the Americans with Disabilities Act, persons needing assistance to participate in
'any of these proceedings should contact City Clerk Susan Wadsworth, 904-424-2407, prior to the
meeting.
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CITY OF EDGEWATER
City Manager's Office
MEMORANDUM
DATE: September 18, 1997
TO: Mayor and City Council
FROM: George E. McMahon, City Manager ,
SUBJECT: Agreements for workers compensation
and health insurance
The City received documents which must be executed by the Mayor and Vice
Mayor to continue the current City health insurance for all employees and these
must be returned to the City's current insurer prior to October 1. This is the same
insurance company the City has had for several years, however, Mass Mutual has
now been purchased by Unicare and Unicare requires new documents to be
signed.
Additionally, the City recently received a workers compensation quotation of
$177,892 from GRIT (Governmental Risk Insurance Trust) which provides a
$32,552 savings from the initial Florida League of Cities offer of $210,444. We
have carefully analyzed this proposal and recommend that the City accept this
most recent proposal from GRIT based on other cities' experience with them and
the substantial savings over the FLOC proposal. You should be aware that Florida
League of Cities, upon learning of Grit's proposal, resubmitted a proposal which
is $28,059 lower than their initial proposal for renewing the City's workers
compensation insurance. However, they still are $4,493 higher than the offer from
GRIT.
GEM:Isk
09%16%97 TUE 12:16 FAX 904 427 7811 JENNINGS INS 10002
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Jennings insurance Agency
109 Magnolia Street; P.O. Box 250
New Smyrna Beach, FL 32170 -0250
New Smyrna: (904) 428 -6448
Daytona - Toll Free: (904) 428 -6603 FAX: (904) 427 -7811
September 16, 1997
Fred Munoz, Director of Finance
City of Edgewater
P. 0. Box 100
Edgewater, FL 32132
Re: GRIT Workers' Compensation Proposal
Dear Fred:
Please consider the following when making your decision
regarding the renewal of your Workers' Compensation policy.
PRICE
Grit's premium is over $4,000 lower than the Florida
League's "revised" renewal quotation. Grit's proposal
includes a 37% deviation AND the stock carrier's discount
which is figured as follows:
Premium from
$5,000 - $100,000 = 10.9% discount
$100,000 - $500,000 = 12.6% discount
All over $500,000 = 14.4% discount
The deviation and discount are applied in advance and are
not subject to any adjustment. GRIT is also willing to
GUARANTEE the deviation for TWO YEARS.
Although $4,000+ may not seem like a lot of money at this
time, please keep in mind that the savings will increase
as the City grows and increases its payroll.
PRICE STABILITY
GRIT proposed their best price the first time. We
understand the League revised their price after they found
out they had competition. The League also changed their
figures last year after they knew we were quoting. How
much would you have paid if we hadn't asked for the
opportunity to quote? And, how much did you overpay in
prior years when the League had no competition? GRIT
reviews all accounts annually and consistently provides
the best possible pricing.
INNOVATION
Prior to last year, your policy was written on a loss
sensitive plan. Last year, we suggested a guaranteed cost
00•'16%9 TUE 12:17 FAX 904 427 7811 JENNINGS INS 4 003
Fred Munoz
City of Edgewater
September 16, 1997
Page 2
plan, proving the savings you would have received over the
past several years. Would the League have offered a
guaranteed cost plaxi without our suggesting it first?
CASH FLOW
GRIT's premium is payable 25% down and 11 monthly
payments, no interest. If you would prefer, they will
accept 20% down and any number of monthly payments up to
11.
FLEXIBILITY
GRIT is able to bend to suit your needs. For instance,
Flagler County, one of our existing GRIT accounts,
requested a specific billing format. GRIT is now
generating a specially designed monthly invoice just for
Flagler County.
COST ALLOCATION
Upon request, GRIT will provide a separate bill and loss
run by department along with the master billing. This
will enable you to better allocate cost and direct loss
control,
EASY CLAIM REPORTING
GRIT'S "First Call" allows you to report claims by phone.
GRIT completes the first report of injury and mails you a
copy, thus saving time and paperwork,
AGGRESSIVE CLAIMS MANAGEMENT
GRIT provides loss reports MONTHLY. Proactive claims
management and investigation helps keep your losses to a
minimum. Reserves are taken down timely, so that your
experience modification doesn't suffer from claims that
should have been reduced or closed.
MANAGED CARE
GRIT provides an extensive managed care network in Volusia
County. In fact, many of GRIT's providers are the same as
those offered by the League. GRIT is willing to add
providers if you have specific requests.
SMOOTH 'TRANSITION
As you may know, the New Smyrna Beach Utilities Commission
has voted to place their Workers' Compensation with GRIT
effective October 1, 3997. A GRIT representative and I
will be meeting with the Utilities Commission on September
25th, and we could easily schedule a meeting with your
claims handling personnel on the same day or another day
at your convenience.
09.16.97 TUE 12:17 FAX 904 427 7811 JEN\INGS INS 400.1
•
Fred Munoz
City of Edgewater
September 16, 1997
Page 3
REINSURANCE
GRIT is fully reinsured with A rated carriers unlike some
funds or trusts that do not carry outside reinsurance.
LOCAL AGENT
GRIT works with independent agencies to give you an extra
measure of service. We are available to answer your
questions, attend meetings on short notice, and act as an
intermediary with the company. Jennings Insurance Agency
has been in the area since 1975. Many of our staff live
in Edgewater, and the agency supports local businesses
whenever possible.
Once again, thank you for allowing us to submit our proposal.
We would appreciate the opportunity to write your Workers'
Compensation effective Octcber 1, 1997.
Sincerely,
Selma Pietrobono
SP /mo
CITY OF EDGEWATER
City Manager's Office
MEMORANDUM
DATE: September 19, 1997
TO: Mayor and City Council
FROM: George E. McMahon, City Manager ° ,
SUBJECT: Agreements for workers compensation
and health insurance
Subsequent to my memo to City Council dated September 18, 1997,
recommending that the City accept the quotation from GRIT for workers
compensation insurance, the Florida League of Cities has submitted a lower
quotation in the amount of $176,773. This is $1,000 less than the GRIT proposal
and we have been very satisfied with the League's service.
Therefore, I am recommending that the Council accept the FLOC proposal as the
lowest cost to the City for the renewal of workers compensation insurance with the
Council authorizing the Mayor or Vice Mayor to execute the required documents
for both this and the health insurance.
GEM:lsk
R ECEIVED
SEP 19 1997
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