HomeMy WebLinkAbout~Master - Approving Property Insurance Renewal for FY 2020/21 RESOLUTION NO.20-305
RESOLUTION APPROVING PROPERTY INSURANCE RENEWAL FOR FY 2020/21
FOR THE CITY OF AMES,IOWA
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,Willis has obtained quotes for property insurance coverage for FY 2020/21;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.In FY 2018/19 this coverage was moved to Starr Tech.
2. The "Municipal" component, which covers all other City property has been underwritten by
Chubb Insurance Group since 2012.
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,and the broker arranges for flood insurance for properties susceptible to flood damage(CyRide,WPC,
and Furman Aquatic Center); and,
WHEREAS, in 2012, the City Council authorized staff to procure insurance using the technique of
Maximum Foreseeable Loss(MFL);and,
WHEREAS,the municipal and flood coverage in the renewal proposal comes from Chubb(municipal
property)and RSUI Group(flood insurance);and,
WHEREAS, the account rate for Chubb increased significantly compared to FY 2019/20, due to the
commercial property market hardening because of numerous catastrophic events worldwide, and the flood
insurance quote also increased because of recent flooding in the Midwest.
WHEREAS,the FY 2020/21"Power"Facilities Renewal rate was quoted at$482,855 and the FY 2020/21
"Municipal"Facilities Renewal rate was quoted at$245,282.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City ofAmes,Iowa,that the renewal
for the Property insurance program coverage at the combined quoted premium of$728,137 for FY 2020/21, is
hereby approved.
ADOPTED THIS 9'day of June,2020.
Diane R.Voss,City Clerk John A.Haila,Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen,Betcher,Corrieri,Gartin,Junck,Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 9 day of June,2020.