Finance Committee Agenda and Packet 2020 04 21

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City Council Finance Committee Meeting Minutes 02/18/20 Page 2 of 6 PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. INSURANCE RENEWAL FOR 2020 Finance Committee Member Chris Leh disclosed to Committee Members and staff that his firm represents Pinnacol Assurance for internal employee matters. Members discussed that since the Pinnacol Assurance material being presented relates to Worker's Compensation, there is no conflict of interest. Deputy City Manager Megan Davis presented the 2020 insurance renewal premium information to the Finance Committee. Deputy Manager Davis stated that twelve insurance companies declined to respond due to the City's large property losses sustained in 2018 and 2019 from hail, and others were not considered due to higher deductibles and pricing. Manager Davis stated that Traveler's quote for 2020 represented a 12.27% increase over 2019, but was the only insurance carrier to offer all lines of coverage. In addition to the increased premium, certain policy coverages and deductibles were also changed. The City's hail and wind coverage increased from a 1 deductible to a 3% deductible, and the City's cyber and social engineering coverage was increased from $100K to $500K. Manager Davis stated that the City's Worker's Compensation coverage would be continued for 2020 with Pinnacol Assurance. Ms. Davis stated that the actual premiums did increase 10% overall, but that the City is $16,497 under budget for 2020. City Manager Balser and Deputy City Manager Davis stated that efforts continue to identify ways to mitigate increasing premiums and higher deductibles, which could be significant and costly. City Manager Balser stated that staff is reviewing replacement property values, options for covers/carports to protect some assets, and even self-insurance and deductible buy -down options. Finance Committee Member Lipton suggested investigating whether lower premiums could be attained through retention discounts (the City encumbering reserves), versus increasing deductibles. Finance Committee Member Leh asked about the packaging of lines of insurance versus individual line pricing, and if the same information is provided to all potential companies. Manager Balser stated the City's broker provides all the same information to companies, and that only some companies will provide individual line quotes. 3