HomeMy WebLinkAbout14 - Property Insurance RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item 14
February 24, 2004
To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
From: Human Resources, Lauren F. Farley, Risk Manager, 949 - 644 -3300
Ifarley@cfty.newport-beach.ca.us
Subj: Property Insurance Renewal
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Issue
Does the City Council authorize the expenditure of $586,674 for the property
insurance renewal?
Recommendation
The City Council approves the renewal of the entire property insurance coverage
• program outlined in Attachment A for a total premium of $586,674.
Background
The property insurance market has stabilized since the FY02 /03 renewals when
increases were as high as 125% across the state of California in the public
sector. To maximize its market position for property insurance renewals, the city
placed this insurance renewal on a March 1" renewal date. The City's property
renewal is approximately a 12 % decrease in premium rates from the previous
policy year.
Renewal Quotation
The City purchases property insurance for all its real and personal property
assets (Attachment B — Schedule of Properties) consisting of All Risk, Boiler and
Machinery, Earthquake, Flood and Watercraft coverage. Our broker, Mark
Zahoryin of Brown & Brown, selects the markets that have municipal property
experience, depth of coverage and competitive annual premiums.
The two year premium comparison for the city's real and personal properties for
All Risk, Boiler and Machinery, Difference in Conditions (Earthquake and Flood),
Watercraft and Earthquake & Flood for the Newport and Balboa piers is listed in
• Attachment B.
Page 2
Funding Availability:
Funds which cover the recommended expenditure are in the Internal Services
Budget — Insurance Reserve Fund, # 6020 -8721 and the FY 03/04 budgeted
figure is $824,952. The expenditure being recommended encumbers 71 % of this
budgeted amount.
Prepared by: r Subm'
Lauren F. Farley, Risk Manager Diana Axley, HR Direct
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