ITEM TITLE:
Approval of Renewal of the City's Property and Casualty Insurance Program for the 2017-2018 Insurance Year Effective July 1, 2016 in the Amount of $616,381
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $616,380
Unencumbered Balance: $616,380
Funding Source: pro-rated among departments and funds.
RECOMMENDATION:
Approve the insurance program offered by AML/JIA for the twelve months beginning 7/1/2017, and forego the offered three-year agreements.
SUMMARY STATEMENT:
The attached 2017-2018 Insurance Proposal contains competing quotes from both APEI and AML/JIA. Premium history is summarized by category in the attached Insurance Premium History.
Brokerage services for the coming year are embedded in a three-year renewal approved during 2015. Annual brokerage fees of $30,000 are unchanged.
On the advice of the City’s broker, staff recommends foregoing the respective three-year agreements, as it may provide a disincentive for future competitive pricing.
Staff had budgeted a 7.5% increase in premiums for the 2017 City Budget. As the insurance renewal takes effect on July 1, 2017, this budged increase corresponds exactly with the 15% annual increase reflected in the premium summary. How these costs are ultimately allocated among funds and departments may entail a budget revision, but overall costs are fully budgeted.
The following items are contained in the 85-page proposal:
Premium Summary pg. 4
APEI Quote pg. 6
AML/JIA Quote pg. 19
Marine Quote pg. 38
Boiler & Machinery pg. 43
Crime pg. 56
Schools Quote pg. 58