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Item Coversheet Page 1 of 2 <br /> Risk Management <br /> 2015-014 <br /> DATE: 8/26/2015 <br /> TO: Honorable Mayor Moore Wolfe and City Council <br /> FROM: Tim Gleason,City Manager <br /> Gregg Zientara,Director of Financial Management <br /> Scott Clark,Risk Manager <br /> SUBJECT: CITY PROPERTY,LIABILITY AND WORKERS COMPENSATION <br /> INSURANCE <br /> SUMMARY RECOMMENDATION: Staff recommends that City Council approve the purchase of excess insurance <br /> ftom AIX Hanover,Liberty Mutual and Travelers Indemnity for the period October 1,2015 through September 30,2016. <br /> BACKGROUND: <br /> On March 17, 2014, Council awarded a contract to A. J. Gallagher for the marketing of excess insurance, selection of <br /> professional claims administrations, loss prevention services and loss reporting for the period October 1, 2014 through <br /> September 30, 2019. The A. J. Gallagher team includes individuals from their Itasca, Illinois office as well as the A. J. <br /> Gallagher Decatur office. <br /> A.J.Gallagher secured quotations for the policy year October 2015 thru September 2016 from insurance companies that are <br /> willing to provide excess insurance coverage for the City and this year's quotes are competitive and represent the insurance <br /> market place far public entities. <br /> The City's current program of self insured retention(similar to deductible)and insurance includes liability to limits of <br /> $10,000,000 with a$150,000 self insured retention(SIR),property insurance for full replacement value for real property, <br /> high valued vehicles and equipment to limits of$213,191,000 with a$150,000 SIR on real property and a$75,000 SIR on <br /> replacement value on high valued vehicles and equipment,and statutory warkers compensation limits with a$500,000 SIR <br /> RECOMMENDED AWARD:The quotations received for liability and property insurance include the same limits of <br /> insurance and SIR as the City's current program.The current worker's compensation insurer offered the same limits of <br />� SIR's of$500,000 and an optional SIR of$750,000.The premium savings that would be from selecting higher self-insured <br /> retentions does not offset the higher risk the City would be taking on the workers compensation claims.The <br /> recommendation is for the current SIR of$500,000 offered by Liberty Mutual,the current carrier.l'he recommended <br /> companies offer the best combination of insurance with the self-insured retentions remaining the same and is a 4.6% <br /> reduction in cost over the 2014-2015 policy year. <br /> POTENTIAL OBJECTIONS: None known <br /> INPUT FROM OTHER SOURCES:None <br /> BUDGET/TIME IMPLICATIONS: <br /> Excess insurance and professional services are budgeted in the Self-insurance fund for this purchase. <br /> STAFF REFERENCE: For questions or comments regarding this item,contact Risk Manager Scott Clark at 424-2803 or <br /> Finance Director Gregg Zientara at 424-2702.Both will be present at the City Council Meeting of September 8,2015 to <br /> address any Council concerns. <br /> ATTACHMENTS: <br /> Description Type <br /> o Resoultion Rcsc�(uti��n I_,�ttcr <br /> o Authorization to Bind E3actcup[��(atcrial <br /> o Summarv Insurance I3<zi;kup tt-latarial <br /> REVIEWERS: <br /> Department Reviewer Action Date <br /> http://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=210 9/4/2015 <br />