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HomeMy WebLinkAbout~Master - Renewal of contract for FY 2014/15 property insurance RESOLUTION NO. 14-333 RESOLUTION APPROVING RENEWAL OF CONTRACT FOR 2014/15 PROPERTY INSURANCE FOR THE CITY OF AMES,IOWA WHEREAS, in July 1, 2012, the City entered into a three-year program for property insurance, and the 2014/15 renewal will be the last year of this program; and, WHEREAS, the City's coverage runs from July I to June 30, and in 2012, City Council approved major changes to the City's property insurance program; and, WHEREAS, the first major change in 2012 was splitting the program into one covering power and another covering all other municipal property; and, WHEREAS, the "power" insurance covers the power plant and related power generation assets,as well as the Resource Recovery Plant,and this coverage is provided by Associated Electric and Gas Insurance Services (AEGIS); and, WHEREAS, The non-power City facilities or"Municipal" are covered by Chubb Insurance Group; and, WHEREAS, the split insurance program has permitted more coverage specialization, flexibility, and pricing advantages in the marketplace; and, WHEREAS, AEGIS specializes in power generation utilities and Chubb has a special insurance policy designed for municipalities; and, WHEREAS, the second major change was the City's approach financing the property risk, either through insurance or self-insurance; and, WHEREAS, the 2014/15 Budget set aside $768,200 for the City's property insurance program; and, WHEREAS,in addition to the$725,765 expense for property insurance noted above,the City will also pay$45,000 for brokerage fees and$2,000 for the National Flood Insurance program;and, WHEREAS,due to these other costs,the program will exceed the budget by$4,565 for FY 2014/15. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the proposed insurance renewal quotes obtained by our broker,Willis,for the"Muni"buildings from Chubb Group,for the"Power"facilities from AEGIS,and for the Excess Flood insurance from RSUI are hereby approved. ADOPTED THIS 1 O'h day of June, 2014. CAI� 0 cf• C000, Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Goodman Seconded by: Corrieri Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 10"`day of June, 2014.