HomeMy WebLinkAbout~Master - Property Insurance Renewal for FY2022/23 RESOLUTION NO. 22-296
RESOLUTION APPROVING PROPERTY INSURANCE RENEWAL FOR FY 2022/23
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 2022/23;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, the municipal and flood coverage in the renewal proposal comes from Chubb
(municipal property) and RSUI Group (flood insurance); and,
WHEREAS, the proposed rates for Chubb and RSUI have increased compared to FY
2021/22 and this due to the commercial property market hardening because of an increasing number
of catastrophic events worldwide and the rising cost of construction materials; and,
WHEREAS, for the FY 2018/19 program, City staff instructed Willis to market our power
facility renewal and this resulted in a significant savings for the City; and,
WHEREAS, although the total value covered power facilities has increased,the purchased
coverage remains fixed at$200,000,000,and for the FY 2022/23 renewal,a slight rate increase was
quoted; and,
WHEREAS,the FY 2022/23 "Power"Facilities Renewal rate was quoted at$608,295 and
the FY 2020/21 "Municipal" Facilities Renewal rate was quoted at $321,547.
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
$929,842 for FY 2022/23, is hereby approved.
ADOPTED THIS 14`' day of June, 2022.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Beatty-Hansen
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Rollins
Voting nay: None Absent: Junck
Resolution declared adopted and signed by the Mayor this 14t'day of June, 2022.