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TO: Mayor Thomas J. Weisner
FROM: Alex Alexandrou, Chief Administrative Services Officer
DATE: November 30, 2015
SUBJECT:
A Resolution Authorizing the Purchase of Property/Boiler Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2015 through December 31, 2016.
PURPOSE:
To obtain approval of the purchase proposal from broker Wine Sergi, Inc. for Property/Boiler Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance from Chubb Insurance Company, Safety National Insurance Company and Travelers Insurance Company for the period of December 31, 2015 through December 31, 2016.
BACKGROUND:
The City has maintained property/boiler-machinery/crime and excess workers compensation insurance from Chubb and Safety National respectively since 1998 and fine arts coverage from Hanover since 2014.
DISCUSSION:
Based on the renewal results obtained for 2016 and the best coverage and cost combinations recommended for the City’s property/boiler-machinery, crime, excess workers compensation and fine arts insurance requirements, the bid proposals obtained by broker Wine Sergi are recommended and attached hereto. Chubb has proposed a 1.8% increase over expiring 2015 program however they are increasing the blanket building and content values by 3.8% and maintaining the deductible at $50,000. Travelers is replacing Hanover for Fine Arts coverage which will be bundled with Employee Dishonesty/Crime coverage where Travelers is recommended in place of Chubb because of the combination of lower annual premium cost and lower required deductible per claim. Safety National has proposed a 1.2% premium increase over expiring 2015 excess workers compensation premium while maintaining the self-insured retention at $675,000 per claim. Wine Sergi is proposing a 1.8% increase in their broker fee for 2016.
IMPACT STATEMENT:
N/A
RECOMMENDATIONS:
That the City Council approve the resolution authorizing the purchase of property/boiler-machinery, excess workers compensation, crime and fine arts insurance through Chubb Insurance, Safety National Insurance and Travelers Insurance companies as proposed by broker Wine Sergi for $476,930.00 inclusive of all applicable premiums, taxes and broker fee per the attached summary.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Renewal Purchase of Property/Boiler-Machinery, Excess Workers Compensation, Crime and Fine Arts Insurance for the Period of December 31, 2015 through December 31, 2016.
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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 the best interest 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, 2015 through December 31, 2016; and
WHEREAS, the renewal proposal from insurance broker Wine Sergi, Inc., for coverage through Chubb Insurance Company for property/boiler-machinery insurance, Travelers Insurance for crime and 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 2016 City Budget provides $476,930.00 for this item in account numbers 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, Travelers Insurance and Safety National Casualty Corporation through insurance broker Wine Sergi, Inc., with a December 31, 2015 effective date of coverage for the cost of $476,930.00.