TO: Mayor Thomas J. Weisner
FROM: Alex G. Alexandrou, Chief Administrative Services Officer
DATE: November 13, 2014
SUBJECT: title
A Resolution Authorizing the Renewal Purchase of Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2014 through December 31, 2015.
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PURPOSE:
To obtain approval of the renewal purchase proposal from broker Wine Sergi, Inc. for Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance from Chubb Insurance Company, Hanover Insurance and Safety National Insurance Company for the period of December 31, 2014 to December 31, 2015.
BACKGROUND:
The City has maintained property/boiler-machinery and excess workers compensation insurance from Chubb and Safety National since 1998 and fine arts coverage from Great American since 2011.
DISCUSSION:
Last year, the City retained the services of insurance and risk management consultant Nugent Consulting Group to issue an RFQ and an RFP to qualified brokers for the City's various lines of insurance coverage. Wine Sergi was selected as the broker for property/boiler-machinery, excess workers compensation, crime and fine arts. Based on the renewal results obtained for 2015 and the best coverage combinations recommended for the City's property/boiler-machinery, excess workers compensation, crime and fine arts insurance requirements, the bid proposals obtained by broker Wine Sergi are recommended and attached hereto. Chubb has proposed an increase of 2.6% over expiring 2014 property premium however they are increasing the blanket building and content values by 2.5% while maintaining the crime coverage premium flat. Hanover is replacing Great American for Fine Arts coverage. Safety National has proposed an increase in premium of 14.75% over expiring 2014 excess workers compensation premium due in large part to claims experience and market conditions. In addition, the self-insured retention is increasing to $675,000.00 from $600,000.00 per claim. Wine Sergi is proposing no increase in their broker fee for 2015.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
That the City Council approve the resolution authorizing the renewal purchase of property/boiler-machinery, excess workers compensation, crime and fine arts insurance through Chubb Insurance, Safety National Insurance and Great American companies as proposed by broker Wine Sergi inclusive of applicable premiums and broker fee of $470,467.00 per the attached premium summary.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Renewal Purchase of Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2014 through December 31, 2015..
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Council has determined it is in the best interests of the citizens of Aurora that the City purchase property/boiler-machinery, excess workers compensation, crime and fine arts insurance for the period of December 31, 2014 through December 31, 2015; and
WHEREAS, the renewal proposal from insurance broker Wine Sergi, Inc., for coverage through Chubb Insurance Company for property/boiler-machinery insurance and crime, Hanover Insurance for fine arts and Safety National Casualty Corporation for excess workers' compensation insurance, a premium summary attached hereto, best meets the City's property, crime, fine arts and excess workers' compensation coverage requirements.
WHEREAS, the 2015 City Budget provides $470,467.00 for this item in account nos. 601-0000-410-40-10, 601-0000-410-40-40; and 601-0000-410-40-70.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that one (1) year of property/boiler-machinery, crime and fine arts, and excess workers compensation insurance be renewed and purchased from Chubb Insurance Company, Hanover Insurance and Safety National Casualty Corporation through insurance broker Wine Sergi, Inc. with a December 31, 2014 effective date of coverage for the total cost of $470,467.00.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
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