CITY COMMISSION AGENDA ITEM

Department:	Risk Mangement		Commission Meeting Date:  July 11, 2017
Staff Contact:	Gary Cooper
Recommendations/Options/Action Requested:
Authorize staff to bind coverage for Property Insurance with Hartford and Arch Insurance Companies for $169,981 and the Emergency Service Organization Package Insurance for $65,618 for the insurance period of July 1, 2017 through July 1, 2018, for a combined total of $235,599.
Executive Summary:		Background The City maintains a $350 million property limit policy insuring 205 property locations, along with $50 million of flood and $50 million of earthquake coverage, with the Hartford Insurance Companies and AJ Gallagher brokerage. The City also maintains an Emergency Service Organization Package policy including liability and physical damage on Fire and EMT operations and equipment with the Arch Insurance Company through Mc Neil & Company wholesaler and AJ Gallagher brokerage.  Renewal Process The City’s broker advised that we renew with the Hartford and Arch Insurance Companies.  The market for public entity property coverage revolves around seven carriers.    The Hartford is a carrier for this coverage offering the lowest rates.  Arch provides competitive coverage and competitive rates for our fire operations and equipment policy which also renews at the same time.    The expiring premium for the 7/1/2016 to 7/1/2017 property policy is $165,289.  The property policy renewal premium for the 7/1/2017 to 7/1/2018 policy period is $169,981, an increase of 2.7%.  The expiring premium for the 7/1/2016 to 7/1/2017 Emergency Service Organization Package policy is $61,299.  The renewal premium for the 7/1/2017 to 7/1/2018 policy is $65,618, an increase of 6.5%.   The total expiring premium for both policies is $226,588.  Both policies will renew at $235,599 for an overall increase of 3.8%.  The premium increase is due to new fire equipment purchased during the expiring policy period as well as a slight increase in city property values.   Recommended Action Staff recommends renewing coverage for the 2017 to 2018 policy period with the Hartford and Arch Insurance Companies for the Property Policy at $169,981 and for the Emergency Service Organization Package policy at $65,618.  The total for both policies is $235,599.
Strategic Plan Critical Success Factor		Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The fiscal impact to the City is $235,599; a net 3.8% increase.  This item was in the 2017 Risk Management budget.
Attachments:		None.

Reviewed By: (for CMO use only)

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