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Lake City Council approves PGIT as property and casualty insurer in 3-2 vote
Summary
The Lake City Council voted 3-2 on Sept. 29 to approve Resolution 2025-141 selecting Preferred Governmental Insurance Trust (PGIT) as the city's property and casualty insurer effective Oct. 1, after a presentation from broker Gallagher and debate over whether long-term incumbent FMIT would match PGIT's price.
The Lake City Council on Sept. 29 voted 3-2 to approve Resolution 2025-141, selecting Preferred Governmental Insurance Trust (PGIT) as the city's property and casualty insurance carrier starting Oct. 1, 2025. The resolution authorizes the city manager to direct payment of premiums and take steps to finalize the policy.
Council members debated a competitive presentation from broker Gallagher, which solicited quotes from three carriers and reported hard-dollar premium reductions of roughly $440,000 to $625,000 compared with the expiring policy. Justin Terry of Gallagher told the council the review produced three full proposals and that PGIT appeared to be the lowest-cost option with slightly stronger coverage in the firm's analysis.
The discussion centered on two competing considerations: cost savings from a competitive procurement and the value of institutional knowledge from the long-standing incumbent, FMIT, which has insured the city for more than 20 years. Council member Carter urged caution, saying the city should weigh "institutional knowledge" and past service. Council member Jernigan and others argued the competitive process and demonstrated savings justified considering a change.
A key development cited during the meeting was an email from Tom Connolly of the Florida League of Cities stating that FMIT would match the PGIT pricing. Council members noted they had not yet received fully itemized written numbers reflecting that match. In response to concerns about process and transparency, city staff said Gallagher had presented quotes as received and that all supporting documents had been posted in the meeting packet.
City Manager Rosenthal told the council staff had checked for an option to extend the expiring coverage and was told no extension was available. Rosenthal acknowledged the timing put the council in a rushed position two days before the premium deadline and said the city would learn from the process. "We don't think that'll ever happen again," Rosenthal said.
Before the vote, Councilmember (speaker 8) moved to approve Resolution 2025-141 (PGIT); Councilmember Jernigan seconded. The clerk called the roll: Council member Harris—Yes; Council member Jernigan—Yes; Council member Young—Yes; Council member Carter—Nay; Mayor Walker—No. The motion passed, 3-2.
The resolution text read aloud by City Attorney Martin authorizes the city manager to finalize the insurance policy and to direct premium payments; staff noted that Gallagher had secured two-year rate locks to provide some pricing certainty. Council members requested that, going forward, major contract procurements be brought to the council with more lead time so members can review competitive details and avoid last-minute votes.
The council concluded the special meeting after the vote. The city packet and Gallagher's full executive summaries and line-by-line comparisons remain the primary documents for detailed coverage differences and pricing breakdowns referenced during the meeting.
