HomeMy WebLinkAbout2021/01/26-Attachments-M&C 21-0070City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/26/21 M&C FILE NUMBER: M&C 21-0070
LOG NAME: 14FY2021 COMMERCIAL INSURANCE
SUBJECT
(ALL) Authorize Purchase from Hub International Rigg, Broker of Record, of the City's Multiple -Layered Property Insurance, Boiler and Machinery
and Commercial Liability Insurance Policies in an Amount Not to Exceed $3,990,688.00 and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Risk Management Fund in the amount of
$500,000.00, from available funds, for the purpose of purchasing Commercial Property, reducing fund balance by the same amount; and
2. Authorize the purchase of the City's Multiple -Layered Property Insurance, Boiler and Machinery and Commercial Liability Insurance Policies
from Hub International, Broker of Record, in an amount not to exceed the budgeted amount of $3,990,688.00 in accordance with the Broker
Agreement with Hub International Rigg, City Secretary Contract No. 47080.
DISCUSSION:
On June 16, 2015, the City Council approved (Mayor and Council Communication (M&C) C-27333) designating Hub International Rigg as the
City's broker of record (Broker). The Broker is authorized to provide consulting and brokerage services associated with the placement and
administration of the following insurance policies: property, boiler and machinery, liability insurance and other casualty policies as needed.
The commercial insurance renewal for Fiscal Year 2021 has a total estimated cost of $3,990,688.00, which is an increase in the estimated annual
amount of $757,201.00 across all policies. The increases are a result of unprecedented rate increases in the property insurance market, a more
complete inventory and appraisal of City properties resulting increases in the total insured value.
Property insurance: The City's all-risk commercial property insurance is provided through a layered structure, involving multiple insurers employing
a reinsurance quota share approach, which is a form of cost sharing. The multiple layer structure provides a $500,000,000.00 coverage limit with a
$250,000.00 deductible. The Fiscal Year 2021 premium cost is $2,833,709.00.
Commercial general liability insurance: The City's commercial liability insurance policies will become due prior to the end of FY2021 at an
estimated cost of $1,156,979.00.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds
will be available in the current operating budget, as appropriated, of the Risk Financing Fund. Prior to any expenditure being incurred, the Risk
Management Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Nathan Gregory 7783
Additional Information Contact: Mark Barta 7790