INCREASES FOR HIGH-RISK INSURANCE > More "Complex and Challenging" for Liability, Aviation, Property + Cyber Security

That's just one of 39 Items on the agenda for the Mesa City Council next week: Heads Up!

Here's the 2-page RESOLUTION Item *5-h

RESOLUTION NO.  ___________   
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESA, MARICOPA COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO OBTAIN INSURANCE FOR THE CITY INCLUDING PROPERTY, LIABILITY, CYBER RISK, AND AVIATION INSURANCE AND AUTHORIZING ADDITIONAL INSURANCE PURCHASES AND RENEWALS.   
WHEREAS, the City obtains insurance for the City of Mesa through the City’s Property and Public Liability Trust Fund (“PPL Trust”) including property, liability, cyber risk, and aviation insurance annually in November of each year; and the City contracts with an experienced, national broker (“City’s Insurance Broker”) to assist and represent the City in procuring and selecting such insurance.    
WHEREAS, these insurance policies for municipalities generally can only be purchased on an annual basis with annual renewals.  
WHEREAS, Council previously authorized (in Resolution No. 11429) obtaining insurance with up to four additional years of renewing the insurance if the renewal rates were within certain parameters stated in the Resolution; and this year’s renewal was not within such parameters so Council action is needed to obtain insurance. 
WHEREAS, obtaining insurance for municipalities has become more complex and challenging in the last several years and obtaining or renewing insurance occurs near the renewal period or at other times of the year when additional policies may be needed; and therefore, Council finds it is appropriate to authorize the City Attorney and City Manager to purchase and renew insurance coverages (including the ability to change carriers, to add additional insurance or excess layers of insurance, to modify coverage amounts, and to modify deductibles as appropriate or as needed) with PPL Trust funds for the benefit of the City as provided in this Resolution.    
 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MESA, COUNTY OF MARICOPA, ARIZONA, AS FOLLOWS:  
Section 1: That the City Manager, or his designee, is authorized to enter into the new insurance agreements for property, liability, cyber risk, and aviation insurance coverages as recommended by the City Attorney’s Office; and that the City Manager and City Attorney are further authorized for the calendar years of 2020 and 2021, through the use of and with the recommendation by the City’s Insurance Broker, to purchase and renew insurance coverages (including the ability to change carriers, to add additional insurance or excess layers of insurance, to modify coverage amounts, and to modify deductibles as appropriate or as needed) with PPL Trust funds for the benefit of the City.  
 Section 2: That the City Manager, or his designee, is authorized for the calendar years of 2022 through 2024 to enter into new annual insurance agreements including insurance for property, liability, cyber risk, and aviation insurance coverages that are recommended by the City Attorney and City’s Insurance Broker if the rates for such insurance coverages do not exceed the previous year’s rates for a specific coverage/policy by more than 5% and/or the premium for such insurance coverages does not exceed
 
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the then-current premium for a specific coverage/policy by more than 5%. 

A renewal that exceeds such an increase may only be renewed upon City Council approval.  

  PASSED AND ADOPTED by the City Council of the City of Mesa, Maricopa County, Arizona, this 16th day of November, 2020. 
       APPROVED:  
       ___________________________________        Mayor 
ATTEST:  
_______________________________ City Clerk 

File #:

20-1149

Type:

Resolution

Status:

Agenda Ready

In control:

City Council

On agenda:

11/16/2020

Title:

Authorizing the City Manager to enter into insurance agreements, as recommended by the City Attorney’s Office, to obtain insurance for the City including insurance for property, liability, cyber risk, and aviation, and authorizing the ability to purchase and renew additional insurance for the City. (Citywide)

Attachments:

1. Resolution