CITY COMMISSION AGENDA ITEM

Department:	Risk Management		Commission Meeting Date:  July 10, 2018
Staff Contact:	Casey Toomay
Recommendations/Options/Action Requested:
Authorize staff to bind coverage for the insurance period of July 1, 2018, through July 1, 2019, as follows: Property Insurance with Hartford Fire Insurance Company for $193,811, Fiduciary Liability Insurance with Axis Insurance Companies for $3,802, and the Emergency Service Organization Package Insurance with Arch Insurance Company for $70,191.
Executive Summary:		The City maintains a number of lines of insurance coverage, three of which have a renewal date of July 1.  · Property Insurance.  The City maintains a $380 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.  · Fiduciary Liability.  The City maintains a $1 million fiduciary limit policy with the AXIS Insurance Company through AJ Gallagher brokerage. · Emergency Service Organization Package.  The City maintains this policy, which includes 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.  The City’s broker advised that we renew with our existing carriers.  The market for public entity property coverage revolves around seven carriers.    The Hartford is a carrier for this coverage offering the lowest rates.  Similarly, the broker recommended renewing Arch as they provide competitive coverage and competitive rates for our fire operations and equipment policy.    The property policy renewal premium for the 7/1/2018 to 7/1/2019 policy period is $193,811, an increase of 5.4% over the prior period.  However, the value of our property increased 2.7%, or approximately $10.2M.  As a result, the net rate change is 2.6%.  The fiduciary liability policy renewal premium for the 7/1/2018 to 7/1/2019 policy period is $3,802, an increase of 2.5% over the prior period.  The renewal premium for the Emergency Service Organization Package policy for the 7/1/2018 to 7/1/2019 policy is $70,191, an increase of 6.3%.  The premium increase is due in part to adding lines of coverage for 24-hour accidental death & dismemberment and cyber liability.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The total fiscal impact to the City is $267,804; a net 5.6% increase.  These increases were anticipated and included in the 2018 Risk Management budget.
Attachments:		none

Reviewed By: (for CMO use only)

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