R2018-117 Authorizing Property and Liability Insurance Coverage for the City for the Policy Period Oct. 1, 2018 - Oct. 1, 2019

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LETTER to the DECATUR CITY COUNCIL Financial Management Department #2018-11 DATE: August 27, 2018 TO: Honorable Mayor Moore Wolfe City Council FROM: Billy Tyus, Interim City Manager Gregg D. Zientara, City Treasurer& Director of Finance SUBJECT: Resolution Authorizing Insurance Coverage for Property, Liability and Workers Compensation for the City of Decatur, Illinois for the Policy Period October 1, 2018 to October 1, 2019 SUMMARY RECOMMENDATION City Administration recommends City Council approval of the attached resolution authorizing insurance coverage for property, liability and workers compensation for the period October 1, 2018 through October 1, 2019. BACKGROUND The Risk Management program of the City of Decatur includes a series of self insured and excess coverage policies securing the property, liability and workers compensation risks of the organization. The City has long maintained a self-insured coverage position with excess insurance coverage further securing risk at levels deemed to be affordable and appropriate protecting the City from risk. The City has an insurance broker and advisory arrangement with Arthur J. Gallagher Risk Management Services, through their Decatur office. Under this arrangement, Arthur J. Gallagher provides broker services including the shopping for insurance offerings and pricing, advisory services including evaluation and recommendation of coverage levels and insurance products, advisory services in all risk management matters, and loss mitigation services. This specific arrangement has been in place since 2014, and further includes a broker / advisor relationship with AJ Gallagher and its predecessors approaching 25+years. The City's insurance program includes: Property insurance—coverage limit of$1,000,000 per occurrence with a$150,000 SIR or deductible, Liability insurance—coverage limit of$10,000,000 per occurrence with a$150,000 SIR or deductible, Workers Compensation insurance—coverage limit of$50,000,000 with a$500,000 SIR or deductible. The City insurance program prepared by City Risk Management and recommended herewith for City Council authorization to proceed forward to bind coverage for the insurance period commencing October 1, 2018 and ending October 1, 2019, includes coverage limits and SIR deductibles the same as the expiring coverage.