TITLE
Recommendation to authorize City Manager to purchase excess municipal liability insurance for the period of July 1, 2006 through July 1, 2007, through Driver-Alliant Insurance Services, for a total premium not to exceed $850,000;
Authorize City Manager to purchase airport liability insurance for the period of July 1, 2006 through June 30, 2007, through Driver-Alliant Insurance Services, for a total premium of $205,188; and
Authorize City Manager to purchase aircraft liability and hull insurance for police helicopters for the period of July 1, 2006 through
June 30, 2007, through Driver-Alliant Insurance Services, for a total premium of $153,184. (Citywide)
DISCUSSION
The City annually purchases excess municipal liability, airport liability, and aircraft
liability and hull insurance to cover catastrophic exposures arising from general
City operations. This coverage is obtained through the City's broker of record,
D river-All ia n t I n s urance Services.
This year's policy for excess municipal liability insurance provides coverage limits
of $20 million in excess of the City's $3 million self-insured retention. The renewal
premium is an amount not to exceed $850,000. The rate is comparable to last
year. Coverage for war risks or terrorist acts is excluded from this policy.
The City maintains limits of $100 million in airport liability coverage and $50 million
in coverage for liability resulting from terrorists' acts. The renewal premium is
$205,188, which is a decrease of 11 percent over last year's premium. The policy
includes extended coverage for international terrorist acts under the Terrorism Risk
Insurance Act (TRIA).
The City maintains limits of $50 million in aircraft liability and hull insurance, subject
to a 2.5 percent deductible for the Police Department's two Eurocopter EC-I30
helicopters. The ,renewal premium is $153,184, which is a decrease of 17 percent
over last year's premium. This policy excludes war risk coverage.
This matter was reviewed by Assistant City Attorney Michael Mais and Budget
Management Officer David Wodynski on June 9, 2006.
TIMING CONSIDERATIONS
City Council action is requested on June 20,2006, to allow the City to bind insurance
coverage by the July 1, 2006 policy renewal date.
FISCAL IMPACT
The total cost of all three renewal premiums will not exceed $1,208,372 for the
period of July 1, 2006 through July 1, 2007. Sufficient funding has been budgeted
in the Insurance Fund (IS 390) and in the Department of Human Resources (HR)
budget for insurance renewals.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN BOYLAN |
APPROVED: |
DIRECTOR OF HUMAN RESOURCES |
|
|
|
|
GERALD R. MILLER |
|
CITY MANAGER |