Report Prepared by: Maggie Fuentes, Human Resources Technician II
Title
SUBJECT: Approval of the Property, Boiler and Machinery Insurance Renewal Through Alliant Property Insurance Program in the Amount of $411,998.08 for Program Year 2020/2021
REPORT IN BRIEF
Consider approving the renewal of the City's policy through Alliant Property Insurance Program (APIP) at 22.38% premium increase, amounting to $411,998.08 for program year 2020/2021.
RECOMMENDATION
City Council - Adopt a motion ratifying the renewal of the property and boiler and machinery insurance through the Alliant Property Insurance Program (APIP), administered by Alliant Insurance Services for the period of July 1, 2020 through June 30, 2021; and authorizing the City Manager or the Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer to staff for further study; or,
3. Take no action.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2020-2021 Adopted Budget.
DISCUSSION
The City of Merced joined the Public Entity Property Insurance Program (PEPIP), a group purchasing program, as authorized by the City Council in 1993. The PEPIP program changed its name to Alliant Property Insurance Program (APIP) after having merged with two other large Alliant Insurance purchasing pools. APIP now insures nearly 9,000 members with a total insurance value of $450 billion. The advantage of being a member of a purchasing group is that we are able to capitalize on lower premium rates based on the volume and value (per hundred dollars) of insured property.
The challenging market conditions that began in 2018 have worsened through the first half of 2020 and are expected to remain very difficult through the remainder of the year. The market has recently become even more challenging due to the Coronavirus pandemic. The City of Merced has experienced an increase ...
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