HomeMy WebLinkAbout~Master - Renewal of municipal and electric property insurance coverages RESOLUTION NO. 17-396
RESOLUTION APPROVING RENEWAL OF PROPERTY INSURANCE COVERAGES
FOR FY 2017/18
FOR THE CITY OF AMES
WHEREAS, The City contracts with Willis of Greater Kansas, Inc., to provide property
insurance brokerage services for the City's property insurance program; and,
WHEREAS, in March, the City Council approved an extension of the property brokerage
services agreement with Willis through June 2018, and Willis has obtained quotes for property
insurance coverage for FY 2017/18 and it is now being presented for City Council approval; and,
WHEREAS, the City's property insurance program is split into two main components: 1) the
"Power" component, which covers Resource Recovery, the Power Plant, and assets related to the
electrical infrastructure; this component has been underwritten by Associated Electric and Gas
Insurance Services (AEGIS) since 2012; and, 2) the "Municipal"component, which covers all other
City property. This component has been underwritten by Chubb Insurance Group since 2012; and,
WHEREAS, splitting the City's insurance coverage into two major components allows for
an optimization of terms and pricing to fit each insurer's specialty, rather than placing all City
property under a one-size-fits-all program; in addition, the broker arranges for flood insurance for
properties susceptible to flood damage; and,
WHEREAS, as with prior years through Willis, the coverage in the renewal proposal comes
from AEGIS, Chubb, and RSUI (flood insurance), and the account rates for both AEGIS and Chubb
declined slightly compared to FY 2016/17; and,
WHEREAS, the rate for coverage on the Power properties has declined slightly, offsetting
an increase in the valuation of the power assets; overall, the premium for the Power portion of the
property program has decreased; and,
WHEREAS, of note for the Municipal property renewal, the valuation has increased
significantly, primarily due to the addition of the new Water Treatment Plant to the City's list of
covered properties; and,
WHEREAS, in addition to the $656,735, the annual brokerage fee for Willis is $45,000, for
a total property program expense of$701,735; and,
WHEREAS, the FY 2017/18 budget includes $726,909 for the property program premiums
and fees.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the renewal for the property insurance program coverage at the combined quoted premium of
$656,735 for FY 2017/18 is hereby approved.
ADOPTED THIS 27" day of June, 2017.
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Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Beatty-Hansen
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 27' day of June, 2017.