HomeMy WebLinkAbout~Master - Property Insurance Policy RESOLUTION NO. 12-358
RESOLUTION APPROVING PROPERTY INSURANCE POLICY
FOR THE CITY OF AMES,IOWA
WHEREAS, the insurance policy for the City's property(building and contents) coverage
expires on June 30, 2012, and FM Global has provided this coverage to the City since 2005; and,
WHEREAS, this is not the usual renewal of an existing policy, as its proposal was
accompanied by a warning letter from FM Global that it would not offer us a renewal beyond the
2012/13 policy year unless major capital improvements were made at the Power Plant; and,
WHEREAS, this warning stemmed from ongoing disagreements between their loss control
engineers and our Electric Production management concerning prioritizing capital improvements for
what they considered critical to loss prevention; and,
WHEREAS,because the City faced the prospect of non-renewal by the incumbent,which is
the only large commercial property insurer that sells insurance on a direct basis,staff advised the City
Council that it would be advisable to conduct an RFQ/RFP process to select an insurance broker;and,
WHEREAS,on April 10,2012,the Council approved an agreement with Willis of Illinois for
these broker services; and,
WHEREAS,between May 16 and the June 19 Council Work Session,the Risk Manager and
Willis were actively engaged in negotiations of the pricing and terms and conditions of the quotes
represented(by Options A, B, C, and D); and,
WHEREAS, the Council may want to accept one of Options B, C, or D according to its
comfort with the level of risk the City would assume; and,
WHEREAS, Option C offers lower deductibles than Option B should a disaster occur.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Ames,Iowa,that
Option C (with Aegis Power, Chubb Muni) for the City's Property Insurance Coverage with a
premium cost of$601,089.00 is hereby approved.
ADOPTED THIS 26'day of June, 2012.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Larson
Seconded by: Orazem
Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 261}i day of June, 2012.