HomeMy WebLinkAbout~Master - Renewal of casualty - liability insurance RESOLUTION NO.02-372
RESOLUTION APPROVING RENEWAL OF CASUALTY-
LIABILITY INSURANCE COVERAGES
FOR THE CITY OF AMES
WHEREAS,the policy for the City's liability insurance coverages expires on July 1,2002; and,
WHEREAS,the current carrier is Employer's Mutual Casualty(EMC Insurance);and,
WHEREAS,EMC provides general liability,automobile liability,transit(bus),public officials(includes
employment practices),law enforcement activities,employee dishonesty,employee benefits administration,and
excess liability; and,
WHEREAS, staff working with Holmes-Murphy and Associates informally sought out additional
companies to provide liability coverages after the September 11 events; and,
WHEREAS,it became very clear that additional options would not be available to the City at similar terms
and conditions(fully insured with deductibles)of coverages; and,
WHEREAS,the focus of staff s attention remained with EMC in order for the City to try and obtain the
most advantageous renewal possible; and,
WHEREAS,the proposed renewal represents a 18.5%increase over the adopted FY 02-03 budget;and,
WHEREAS,a large part of the increase in the pricing for the transit coverage comes from the addition of
new vehicles to the fleet; and,
WHEREAS, staff is currently working with EMC to develop an agreeable method of charging for this
coverage rather than a flat charge per year; and,
WHEREAS,the only change to the terms ofthe EMC proposal concerns the automobile and transit liability
coverages which puts a$5,000 property damage deductible on these coverages; and,
WHEREAS, while staff does not believe this is warranted, EMC would not even quote without this
provision; and,
WHEREAS, in terms of liability, the City does not see this as having a major impact on the risk
management reserve fund as total losses for property damage claims rarely total over$7,000 per year.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa, that the renewal
from Employer's Mutual Casualty for liability insurance coverage in the amount of$396,623 is hereby approved.
ADOPTED THIS 251h day of June,2002.
Diane R. Voss,City Clerk Ted Tedesco,Mayor
Introduced by: Cross
Seconded by: Goodhue
Voting aye: Cross, Goodhue,Quirmbach,Vegge,Wirth
Voting nay: None Absent: Hoffman
Resolution declared adopted and signed by the Mayor this 25"'day of June,2002.