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File #:
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09-0195
Version:
1
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Name:
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AON - Property Coverage 03/16/09
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Type:
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Resolution
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Status:
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Adopted
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On agenda:
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3/24/2009
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Final action:
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3/24/2009
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Enactment date:
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3/24/2009
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Enactment #:
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2009-74
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Title:
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A Resolution of the City of Coral Gables authorizing the City Manager, or Designee, to negotiate and execute a contract with AON Risk Services, Inc. of Florida for property coverage for three (3) years with two (2) additional two (2) year renewal options, with the first year premium and service fee not to exceed $1,128,187 for the period of May 1, 2009 to May 1, 2010. (Recommended through Competitive Selection) (Funding Source: Insurance Fund)
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Title
A Resolution of the City of Coral Gables authorizing the City Manager, or Designee, to negotiate and execute a contract with AON Risk Services, Inc. of Florida for property coverage for three (3) years with two (2) additional two (2) year renewal options, with the first year premium and service fee not to exceed $1,128,187 for the period of May 1, 2009 to May 1, 2010. (Recommended through Competitive Selection) (Funding Source: Insurance Fund)
Body
The City entered into a three year contract with a three year renewal option that began on May 1st, 2003 for Risk Management and Insurance Brokerage Services with Arthur J. Gallagher Risk Management Services, Inc. and AON Risk Services, Inc. of Florida after an RFP process. In October of 2008, the City advertised RFP 2008.10.31 - Risk Management & Insurance Brokerage Services for the Property and Casualty Lines of Insurance Coverage. This bid was protested and a decision was made to start the process over and in January of 2009, the City advertised RFP 2009.01.05 - Risk Management & Insurance Brokerage Services for the Property and Casualty Lines of Insurance Coverage. This RFP created a controlled platform for the City to obtain competitive bids on insurance broker service fees and competitive quotations on insurance policies (net of commissions) through a market assignment process.
The end result of this process is the Insurance Advisory Committee making a recommendation to name AON Risk Services, Inc. of Florida as the Property Insurance Broker. The following is a breakdown of the policy premiums and broker fee represented by this resolution:
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Description of the Insurance Policy or Fee |
Premiums/Fees for the May 1, 2009 to May 1, 2010 |
% Difference |
Premiums/Fees for the May 1, 2008 to May 1, 2009 |
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Primary Property Policy |
$1,001,623 |
+12.7% |
$888,804 |
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Excess Property Policy |
$ 66,564 |
-5.5% |
$ 70,199 |
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Insurance Brokerage Fees |
$ 60,000 |
-20.0% |
$ 75,000 |
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Total Premiums and Fees |
$1,128,187 |
+9.1% |
$1,034,003 |
The total premium/fee increase year over year is 9.1% ($109,184), mainly reflective of a 12.7% premium increase ($112,819) in the primary property premium. It is noted that the premium for next most competitive bid was over $700,000 higher.
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