TO: Mayor and Commissioners
FROM: Jack Warner, Chief Financial Officer
Edward DeMicco, Risk Manager
THROUGH: Donald B. Cooper, City Manager
DATE: June 7, 2016
Title
RATIFICATION OF CITY MANAGER DECISION FOR EMERGENCY PURCHASE OF LIABILITY INSURANCE
Body
Recommended Action:
Recommendation
Motion to Ratify the City Manager's emergency acquisition in the amount of $27,500.00 to Landmark American Insurance Company.
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Background:
The City has two liability insurance policies that renew annually the first week of June as follows:
• Railroad Crossing Liability ($20,000)
• Railroad Crossing Excess Liability ($7,500)
Coverage is placed through the City's property and casualty insurance broker, Employers Mutal Inc. d/b/a Ascension Benefits and Insurance Solutions. For this renewal, the broker solicited quotes for each policy from five insurance companies known to write these specialized coverages. The lowest priced carrier for both policies was Landmark American Insurance Company. Although the broker began the solicitation process in April, due to industry practice, quotes were received after the submission deadline for the Commission meeting on May 17, 2016 for approval prior to policy expiration on June 5, 2016. In order to maintain coverage, City Manager approved the insurance policy renewals as an emergency purchase under Code Section 36.02(C)(5) (see attached Memo dated May 17, 2016).
This item is requesting Commission ratification of the emergency acquisition in compliance with the Code of Ordinances, Chapter 36, Section 36.02(C)(5), "Emergency Acquisitions".
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
The Finance Department recommends approval.
Funding Source:
Funding is available from account #551-1575-591-45.90.
Timing of Request:
Urgent