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HomeMy WebLinkAboutres075-05MEMORANDUM TO: Mayor and Council FKOM: Peggy Carlson, Risk Manager. THRU: Paul Menter, Finance Director DATE: September 15, 2005 Resolution # :~ ~ , Acceptance of 2006 Property/Casualty Insurance Policy Renewal Premium Quote SUMMARY: This resolution authorizes the City Manager to execute the acceptance of CIRSA's premium quote for the 2006 renewal of the City's property/casualty insurance Coverage (Attachment A). I recommend that Council approve the resolution PREVIOUS COUNCIL ACTION: None. DISCUSSION: The p~oposed CIRSA coverage for 2006 includes property coverage (including auto damage), liability coverage (including general liability, auto liability, law enforcement liability and public officials errors and omissions liability), and crime coverage which insures the City for theft of money, employee dishonesty, etc. FINANCIAL IMPLICATIONS: Staffrequestedthat CIRSA proyide the 2006 quote based on the same deductibles per claim that were in place in 2005. The deductibles are $10,000 for liability claims, $5,000 for attto liability (damage to-third party vehicle), $10,000 for auto physical liability (damage to a City vehicle) and $10,000 for property damage. The 2005 premium for this coverage was $293,657. The quote for 2006 is $305,948. The increased premium has been built into the 2006 budget. Insurance premiums have increased in the last few years in general, particularly in the areas of public officials and police liability. The City's premiums have increased due to increased property loss and liability exposures, increased operating expenses and some significant claims in 2003 that still affect the premium. RECOMMENDATION: I recommend that the City Council authorize the City Manager to execute the acceptance of CIRSA's 2006 insurance premium quote in the amount of $305,948. ALTERNATIVES: A decision to withdraw from CIRSA would require the City to look for another insurance carder. In the current insurance market, there are very few,.if any carders who are willing to insure municipalities. The other option would be to self- P4 insure for ali losses. PROPOSED MOTION: "I move to approve Resolution # ~'5 authorizing the City Manager to execute the Acceptance of the premium quote for the City of Aspen's 2006 CIRSA property/casualty insurance." CITY MANAGERCOMMENTS: ~.~-x,c~ ~ ~ Attachment: - A - 2004 Property/Casualty Preliminary Contribution Quote RESOLUTION NO. (SERIES OF 2005) P5 A RESOLUTION OF THE CITY COUNCIL OF ASPEN, COLORADO, APPROVING THE RENEWAL OF THE CIRSA PROPERTY/CASUALTY INSURANCE POLICY FOR THE CITY OF ASPEN FOR 2006, AND AUTHORIZING THE CITY MANGER TO EXECUTE THE ACCEPTANCE OF THE PREMIUM QUOTE ON BEHALF OF THE CITY OF ASPEN 5VHEREAS, there has been submitted to the City Council the Premium Quote for 2006 CIRSA Property/Casualty Insurance Policy for the City of Aspen, Colorado, a copy of which is annexed hereto and part hereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section One That the City Council of the City of Aspen hereby approves the CIRSA Premium Quote for 2006 Property/Casualty Insurance Policy for the City of Aspen, Colorado, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said Acceptance of Premium Quote on behalf of the City of : Aspen. Dated: Helen Kalin Klandemd, Mayor I, Kathryn S. Koch, duty appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of the that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held ,2005. Kathryn S. Koch P6 < © © © © © © © © © .< .<i Acceptance of Preliminary Property/Casualty Quotation Attachment C MUST BE RECEIVED AT THE CIRSA OFFICE ON OR BEFORE FRIDAY, SEPTEMBER 30, 2005 Complete, sign, and return this form if your entity has decided to accept CIRSA's Preliminary Property/Casualty Quotation for 2006. ACCEPTANCE OF PRELIMINARY PROPERTY/CASUALTY QUOTATION This is to notify CIRSA that the City of Aspen accepts the following preliminary quotation for property/casualty coverage for 2006 (check and fill in as applicable): The City of Aspen accepts the preliminary 2006 quotation ors ~'~g~2) q .t/,~ with the same deductibles as 2005 (listed below): $ 10,000 $ 5,000 $ 10,000 $ 10,000 Liabihty Deductible* Auto Liability Deductible Property Deductible Auto Physical Damage Deductible __ The City of Aspen accepts the prelim/nary 2006 quotation of $ with new deductibles of: $ Liability Deductible* Auto Liability Deductible Property Deductible Auto Physical Damage Deductible *A $500 deductible quotation is offered to members, if requested, for properO~, auto physical damage, attto liability and general llability. I-Iowever~ pollce professlonal and ffublic officials errors and omissions deductibles cannot go below $1,000. AUTOMOBILE MEDICAL PAYIVlENTS, PREMISES MEDICAL PAYMENTS AND UN1NSUKED/UNDERINSURED MOTORIST OPTIONAL COVERAGE Based upon the selections made in your 2006 Property/Casualty Renewal Application, the City of Aspen has elected: Not to participate in Automobile Medical Payments Coverage, and Not to participate in Premises Medical Payment Coverage, and To participate in UninsuredJUnderinsured Motorist Coverage. If this is incorrect, or you wish to change your selection at this time, please contact your underwriting representative at (800) 228-7136 or (303) 757-5475. ** Indicates the selection is a change from your entity's selection in 2005. P7 Acceptance of Preliminary Property/Casualty Quotation Page 2 Attachment C (continued) LOSS CONTROL STANDARDS AUDIT SCORE CREDIT Please indicate below how you would like to utilize your 2006 Loss Control Standards Audit Score Credit, if applicable: __ Apply the credit towards our 2006 Property/Casualty contribution. __ Apply the credit towards our 2006 Workers' Compensation contribution. .. Deposit the credit in our Loss Control Credit Account on January 1, 2006. Send us a check for the amount of the credit (after January I, 2006). LOSS CONTROL CREDIT ACCOUNT Please indicate below how you would like to utilize your Loss Control Credit Account Balance, if applicable: __. Apply $ contribution. __ Apply $ Compensation contribution. _ . Keep the full mount in our Loss Control Credit Account and do not reduce our contribution. of the credit towards our 2006 Property/Casualty of the credit towards our 2006 Workers' Please indicate below how you wouldlike to utilize your 2006 Pursuit and Emergency Vehicle Operations Credit, if applicable: X __ Apply the credit towards our 2006 Property/Casualty contribution. __ Apply the credit towards our 2006 Workers' Compensation contribution. __ Deposit the credit in our Loss Control Credit Account on January 1, 2006. __ Send us a check for the amount of the credit (after January 1, 2006). PURSUIT AND EMERGENCY VEHICLE OPERATIONS CREDIT Acceptance of Preliminary Property~Casualty Quotation Page 3 Attachment C (continued) ?9 THIS IS NOT A BILL. AN iNVOICE WILL BE SENT ON JANUARY 1, 2006. The undersigned is authorized to accept this preliminary quotation on behalf of ~e City of Aspen. }Ve accept this preliminary quotation for January J, 2006 to January 1, 200Z We understand our final invoice may increase/decrease depending upon the number of CIRSA Property/Casualty members for 2006, actual ~xcess insurance premiums, and any changes made to our 2006 renewal application. Signature: Title: Date: PlO