Item - 2015.GM3.23

The Government Management Committee recommends that:

1.  City Council renew the following insurance policies effective June 1, 2015 for a period of twelve months:

2.  City Council delegate authority to the Deputy City Manager and Chief Financial Officer to renew the City's property and casualty insurance program on an annual basis, during the current City Council term (June 1, 2016-2017, June 1, 2017-2018, and June 1, 2018-2019) provided that the terms, conditions, limits, and deductibles are, in the opinion of the Deputy City Manager and Chief Financial Officer, substantially the same as are outlined in this report.

The purpose of this report is to obtain Council authority to renew the City’s property and casualty insurance policies effective June 1, 2015 for a one-year term and to delegate authority to the Deputy City Manager and Chief Financial Officer to renew subsequent annual insurance programs during the 2015 to 2018 term of Council on each of June 1, 2016, 2017, and 2018 provided that the terms, conditions, limits, and deductibles are, in the opinion of the Deputy City Manager and Chief Financial Officer, substantially the same as are recommended in this report.

A complete re-evaluation of the City's property and casualty insurance program was undertaken, including approaching competing insurance companies and seeking various deductible options. The goal was to develop the program and minimize overall insurance premiums. As a result, a savings of $227,507 or 4.3% from 2014 has been negotiated with insurers. This savings was achieved despite the insurance market challenges resulting from increased losses from extreme weather events.