11.B.
City Council Meeting - FINAL (AMENDED)
- Meeting Date:
- 08/28/2023
- Co-Submitter:
- Maria Robinson
- From:
- Maria Robinson, Risk Management Director
Information
TITLE:
Consideration and Approval of Contract: FY23/24 Insurance Program Renewal
STAFF RECOMMENDED ACTION:
Accept the renewal premiums for FY 2023-24 submitted by the Arizona Municipal Risk Retention Pool (AMRRP) for General Liability, E&O, SAM, Property, Auto, Marine, Crime, Cyber, Excess, and Worker’s Compensation coverage; AON/Chubb/Travelers for Airport Liability and International Travel; and Industrial Commission of Arizona to fund the Firefighters Presumptive Cancer Claims (statutorily required).
Executive Summary:
All City exposures are currently covered with the aforementioned entities and expenditures last fiscal year totaled $2,317,504. Estimated premiums for this fiscal year will total $2,455,916 (increase of $138,412). This 5.97% increase is the result of an overall increase in the industry, increase in payroll/employee count, increase in population, decrease in the property deductible ($100K to $10K) and the decision to opt for a 3-year aviation policy (vs. 1 year). This estimated premium increase will be offset by a dividend established by the AMRRP declared on April 28, 2023. Staff recommends approval of the renewal offered by the current carriers and AMRRP. Following are estimated premiums for FY 2023-24:
- Liability Insurance and Excess Insurance - $1,267,643
- Workers Compensation Estimate - $934,215
- Aviation and Foreign Travel Insurance - $55,933
- AZ FF Cancer Reimbursement Fund - $198,123
Financial Impact:
No increased financial impact.
Policy Impact:
None
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Effective Governance
Has There Been Previous Council Decision on This:
Yes
Background and History:
In 2020, The City of Flagstaff marketed all lines of primary insurance and apart from Airport, International Travel and Flood coverage, moved all insurance policies to AMRRP. One advantage of pool membership with AMRRP is that most years dividends are issued based on net financial performance of the 77 members in the pool. This year was no different, the pool issued a dividend of $287,119 to the City of Flagstaff.