Action Requested:
Title
Communication from the City Manager and the Human Resource Director with a Request to Authorize the City Manager to Renew PROPERTY AND CONTENTS AND AUTO CATASTROPHIC COVERAGE INSURANCE with MESIROW INSURANCE SERVICES INC., for a Cost of $120,228.01.
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Background: The City of Peoria owns property and vehicles with a combined value of over $212,343,222 some of which are based on restoration to Historical Standards. This is an increase of property values of 3.12%. The Purchasing Division, in conjunction with Risk Management bid this coverage in 2011. The Alliant Public Entity Property Insurance Program (PEPIP) Program through Mesirow Insurance Services was determined to be the most comprehensive, cost effective coverage. In 2014 Mesirow reevaluated the current market and determined that no other carrier was providing municipal clients the comprehensive coverage that Alliant was for the price.
Financial Impact: Estimated annual cost of $120,228.01 which represents a 0.3% increase from the expiring the premium of $119,881.26. The cost is broken out into the following: $115,228.01 for the property and auto catastrophic coverage through the Alliant PEPIP program and a $5000 broker fee. Mesirow has held their fee level for 4 years.
NEIGHBORHOOD CONCERNS: N/A
Impact if Approved: The City of Peoria would have coverage on all City owned property on a blanket basis for up to $175,000,000 to include over the road coverage for vehicles.
Impact if Denied: The City of Peoria would operate with no coverage with the possibility of any one claim significantly depleting our reserves.
Alternatives: N/A
EEO Certification Number: Mesirow Insurance Services 02562-140930.
Which Critical Success Factor from the Conprehensive plan does this recommendation implement?
1. HAVE AN EFFICIENT government
Department: HR