HomeMy WebLinkAboutA001 - Council Action Form dated June 10, 2025ITEM #:15
DATE:06-10-25
DEPT:HR
SUBJECT:RENEWAL OF ICAP MEMBERSHIP TO PROCURE CASUALTY AND
LIABILITY INSURANCE COVERAGES
COUNCIL ACTION FORM
BACKGROUND:
The City's annual membership in the Iowa Community Assurances Pool (ICAP) expires on
June 30, 2025. The City has been a member of ICAP since July 1, 2004, and secures its
casualty and liability coverages through this membership. ICAP provides similar
protection to approximately 300 cities, 70 counties, 50 fair boards, and over 250 other public
entities. ICAP is a member-owned and funded group insurance pool for Iowa public entities.
The following City coverages are provided by ICAP: General (Third Party) Liability, Vehicle
and Transit Bus Liability, Bookmobile Physical Damage, Public Officials Wrongful Acts, Police
Professional Liability, Cyber Breach/Liability.
Membership in the ICAP pool is a long-term commitment based on the fundamentals of rate
stability, availability of coverages meeting the City's needs, and the quality of services
(underwriting, loss control, and claims handling). Below is a summary table of current fees
from ICAP's for these same services for FY 2025/26.
Type of Coverage and Coverage
Amount
FY 2024/25
Current
FY 2025/26
Proposed
General Liability ($2,000,000)$252,838 $251,244.15
Bond, incl. fee 4,683 0 - Moved to Travelers Ins.
Automobile ($2,000,000)258,342 271,259.38
Public Officials ($2,000,000)66,918 70,265.56
Law Enforcement ($2,000,000)
Cyber
45,976
0
48,275.59
15,964.38
Bookmobile Damage ($261,300)1,232 1,232.04
Excess Liability ($13,000,000)171,843 180,435.40
Total Invoice Cost $801,832 $838,675.52
The FY 2025/26 Total Cost of $838,675.52 is an increase of 4.6% from the Total Invoice
Cost for FY 2024/25. At the time the FY 2025/26 Budget was prepared, staff was
anticipating 10-15% increases in liability premiums. Additionally, funding was included
anticipating the opening of the Fitch Family Indoor Aquatic Center, which is not yet
reflected in this coverage quote. The FY 2025/26 Budget includes funding in the amount
of $1,026,822 for liability coverage, which is sufficient to cover the proposed cost of
coverage with ICAP.
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ALTERNATIVES:
1. Accept the renewal of the City's membership in the Iowa Communities Assurance Pool
(ICAP), with the cost not to exceed $838,675.52 for the coverages indicated above.
2. Direct staff to seek other alternatives for casualty and liability insurance.
CITY MANAGER'S RECOMMENDED ACTION:
The City's membership in ICAP continues to result in receiving excellent casualty and
liability coverages and associated services at a competitive price. Therefore, it is the
recommendation of the City Manager that the City Council adopt Alternative No. 1, as
described above.
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