Title
RESOLUTION AUTHORIZING A ONE-YEAR EXTENSION OF THE CITY’S PROPERTY INSURANCE CONTRACT WITH AFFILIATED FM INSURANCE COMPANY FOR PROPERTY INSURANCE AT THE COST NOT TO EXCEED $170,000 TO BE PAID TO MARSH & McLENNAN AGENCY LLC, AGENT FOR AFFILIATED FM INSURANCE COMPANY.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into a one-year extension of the city’s contract for property insurance with Affiliated FM Insurance Company from February 16, 2016, through February 16, 2017, insuring city-owned structures, miscellaneous equipment and business personal property, and certain Duluth economic development authority (DEDA) and Duluth airport authority (DAA) property at the initial cost of not to exceed $163,906 payable to Marsh & McLennan Agency LLC, agent for Affiliated FM Insurance Company, payable from the following accounts: Self Insurance Fund 610, Dept./Agency 036 (Insurance Account ), Cost Center 1651 (Insurance-General City) $83,014, Cost Center 1652 (Insurance - Water & Gas) $8,062, Cost Center 11653 (Insurance - Sewer) $2,573, Cost Center 1654 (Insurance - Stormwater) $1,747, Cost Center 1656 (Insurance - DEDA) $21,016, and Cost Center 1659 (Insurance -DAA) $47,494, Obj. 5360 (Insurance).
FURTHER RESOLVED, the proper city officials are authorized to purchase additional insurance coverage in the amount of not to exceed an additional $6,093 during the contract period at the cost of 51 cents per thousand dollars of insured value plus required state and engineering fees to cover new property acquisitions or increased insured values, the cost of which shall be allocated to the appropriate Cost Center.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes a one-year extension, from February 16, 2016 through February 16, 2017, of the city’s contract with Affiliated FM Insurance Company for property insurance in the amount of $163,906 to be paid to Marsh & McLennan Agency LLC, agent for Affiliated FM Insurance Company. DEDA and DAA will reimburse the city for their portion of the cost. City officials are also authorized to purchase additional insurance as necessary at a cost of 51 cents per thousand dollars of insured value plus required state and engineering fees
The premium cost has decreased from 54 cents per thousand dollars of insured value to 51 cents per thousand dollars of insured value from 2015 to 2016. This will be the final extension for this contract and the city of Duluth will put out a request for proposals for property insurance coverage for fiscal year 2017.