AUTHORIZATION TO RENEW FY 2016/17 PROPERTY, LIABILITY AND WORKERS' COMPENSATION INSURANCE
Staff Contact: Jim Brown, Director, Human Resources and Risk Management
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize staff to purchase property, liability and workers' compensation insurance and/or self-insurance for FY 2016-17 in an amount not to exceed $1,415,607. .body
Background
City of Glendale Ordinance, Chapter 2, Administration, Article 5. Financial Affairs, Division 5. Risk Management Trust Fund, Section 2-207 Insurance provides that "The city risk manager, acting for the city manager, is authorized to enter into, on behalf of the city, any appropriate commercial insurance, alternative risk financing and surety bonding contracts to provide such risk insurance as determined to be in the best interests of the city". Our Risk Manager has been working with Alliant Insurance, our broker, who has been placing insurance for cities for over 25 years. Their insurance placements include all lines of coverage placed through a proprietary group purchase program for public entities across the United States. Placement is underwritten and priced on a group basis without sharing the risks of the entire group.
Analysis
Alliant obtained quotations for property including auto physical damage, cyber/privacy coverage, pollution coverage, crime, excess liability, airport liability, fiduciary liability and a special liability policy for Glendale Regional Public Safety Training Center (GRPSTC). The quotes are based upon the same terms and conditions but with some deductible changes and some enhanced coverage. The not-to-exceed cost to purchase the insurance for FY 2016-17 is $1,415,607. The expiring premium was $1,277,995. Attached is the Renewal Projections spreadsheet that lists each type of coverage, the expiring costs and the estimated renewal costs. Also included is the renewal marketing report detailing ...
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