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Agenda Item: 13(d) |
Prepared By: Angela Johenning |
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Business: Consent Agenda Item |
Department: Executive |
Subject:
Title
Award of Contract to Public Risk Insurance Agency (PRIA) in the Amount of $1,424,444 for Property, Casualty, and Excess Worker’s Compensation Insurance Coverage - Angela Johenning, Purchasing & Risk Manager
Body
BACKGROUND:
At the October 2, 2023 City Council meeting, Council directed staff to renew the existing, twelve- month policy with Public Risk Insurance Agency (PRIA), but to go out to bid the following year with the goal of driving down the premium through competition. The last time this policy was put out to bid was in 2014.
On June 2, 2024, City staff published a Request for Proposal for our property, casualty and excess worker’s compensation insurance coverage. This solicitation was broadcast to 437 firms via Demandstar. Eight firms downloaded the plans, and one firm submitted a proposal. The firm submitting the proposal was Public Risk Insurance Agency (PRIA). PRIA is the retail agent for our current insurance company, Preferred Governmental Insurance Trust.
The resulting policy premium for FY 25 would be $1,424,444. This is a 21% decrease or $383,864 over the expiring policy premium of $1,808,308. Further, this is a decrease of 33% or $710,522 on what we were budgeting for FY 25 Property & Casualty insurance premiums.
The proposal was submitted in a way that affords the City to select coverage options under the Property and Equipment Category and the Automobile Physical Damage Category. This is demonstrated in Exhibit A which is attached.
City staff recommends Option 1 under the Property and Equipment Breakdown category. This decreases our Named Wind Storm deductible to 5%. Last year we increased this deductible to 7.5% in order to bring the premium down. City staff feel that it is in the city’s best interest to reduce this deductible.
City staff further recommends Option 2 under the Automobile Physical Damage category. This affords us comprehensive and collision coverage on all of our scheduled vehicles. Our current policy only has comprehensive and collision coverage on vehicles with a value above $100,000.
All other categories of coverage will remain unchanged.
FUNDING SOURCE / FISCAL IMPACT: Funding for Property & Casualty coverage is budgeted in the FY 25 City Budget.
RECOMMENDATION: Authorize the City Manager to execute a contract with Public Risk Insurance Agency (PRIA) in the amount of $1,424,444 for Property, Casualty, and Excess Worker’s Compensation Insurance Coverage.
POTENTIAL MOTION: “I move to Authorize the City Manager to execute a contract to Public Risk Insurance Agency (PRIA) in the amount of $1,424,444 for Property, Casualty, and Excess Worker’s Compensation Insurance Coverage.”