R2023-207 Resolution Rescinding Resolution No. 2023-187 Authorizing Property Insurance Coverage for the City of Decatur, Illinois for the Policy Period October 1, 2023 to October 1, 2024

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Financial Management DATE: 10/2/2023 MEMO: TO: Honorable Mayor Moore Wolfe City Council FROM: Scot Wrighton,City Manager Ruby F.James,CFO&City Treasurer Jenifer McCoskey,Risk Management Coordinator SUBJECT: Property,Liability,and Equipment Insurance for the City with Policy Year Starting October 1 SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached resolutions authorizing insurance coverage for property, liability and equipment for the period October, 1,2023 through October 1,2024. BACKGROUND: On September 18, 2023 City Council approved property and liability insurance coverage for the period October 1,2023 through October 1, 2024 through Lloyds London (Ambridge) with an amount not to exceed of $427,103.00 for property and liability insurance. A carrier was not specified for excess property with an amount not to exceed of$250,000.00. To obtain better pricing for property& liability insurance and excess property coverage, the City continued bidding the insurance coverages. Final bids were awarded to Munich RE for liability insurance at a cost of$331,443.00 and to Chubb for property insurance at a cost of $252,361.00. Resolutions to rescind the previous property and liability resolutions approved at the September 18, 2023 Council meeting (Resolution 2023-187 and Resolution 2023-188, respectively) are submitted for approval. Please see the table below for further comparison. Mobile equipment of$2 million in assets is being insured as a separate policy by all carriers this year. Mobile equipment is being defined as any piece of equipment that can be pulled by a truck or trailer such as a wood chipper or lawn mower. An additional resolution has been provided allowing Arthur J. Gallagher Risk Management Services to continue requesting quotes for mobile equipment insurance prior to the October 1, 2023 deadline. Although the amount requested for mobile equipment insurance authorization is $150,000, the cost is expected to be well below that. The exact amount is simply unknown at the time of the packet posting. Coverage Carrier Sept. 18 Oct.2 Proposal Authorization Liability Munich RE $427,103 331,443 Property Chubb $250,000 252,361 Mobile Equipment Unknown(bidding) 150,000 Total authorization $677,103 733,804 Although the total authorization for liability,property and equipment insurance is higher than previously requested, we anticipate the cost of mobile equipment insurance to be significantly less than requested. This is a new line of insurance this year and we do not have any prior history by which to have an accurate estimate of costs. POTENTIAL OBJECTIONS: None anticipated.