HomeMy WebLinkAbout15. 13-194
APRIL 23, 2013 13-194 RESOLUTION
(CARRIED ___7-0__ LOST _______ LAID OVER _______ WITHDRAWN_____)
PURPOSE: APPROVE AGREEMENT WITH LEAGUE OF WISCONSIN
MUNICIPALITIES MUTUAL INSURANCE (LWMMI) FOR AUTO
PHYSICAL DAMAGE INSURANCE
INITATED BY: CITY ADMINISTRATION
WHEREAS, the City of Oshkosh currently participates in the Local Government
Property Insurance Fund (LGPIF) for property and auto physical damage coverage; and
WHEREAS, the City is able to obtain more favorable rates and terms for auto
physical damage coverage through the League of Wisconsin Municipalities Mutual
Insurance (LWMMI).
NOW, THEREFORE, BE IT RESOLVED by the Common Council for the City of
Oshkosh that the proper city officials are hereby authorized and directed to give
appropriate notice to the Local Government Property Insurance Fund (LGPIF) to
remove auto physical damage coverage from the City’s policy and to take all necessary
actions to complete the same.
BE IT FURTHER RESOLVED that the proper city officials are hereby authorized
and directed to enter into an appropriate agreement with the League of Wisconsin
Municipalities Mutual Insurance (LWMMI) for auto physical damage coverage and to
take all necessary actions to implement the same. Money for this purpose is hereby
appropriated from:
Acct. No. 100-0120-6485-00000 General Fund - Insurance
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ON THE WATER
PO Box 1130, 215 Church Ave.
Oshkosh WI 54902 -1130
TO: Mayor and Common Council
FROM: Paul Greeninger, Safety & Risk Management Officer
CC: Mark Rohloff, City Manager
John Fitzpatrick, Assistant City Manager /Director of Administrative Services
Sue Brinkman, Human Resource Manager
DATE: April 18, 2013
RE: City of Oshkosh Auto Physical Damage Insurance
BACKGROUND
The Local Government Property Insurance Fund (LGPIF) currently provides property and auto physical damage
coverage, among others, to the City of Oshkosh. The renewal rate for 2013 reflected a 9% increase. The City's
current insurance broker, Tim Nickels from Willis of Wisconsin, heard of this increase, and advised the City that he
may be able to obtain more favorable rates. A quote from the League of Wisconsin Municipalities Mutual Insurance
(LWMMI) was obtained, and the rates precipitated further analysis.
ANALYSIS
The original quote was for nearly identical coverage, and in some areas, better than coverage currently in force
(see attached). The major difference was the LGPIF coverage has 3 deductibles that are aggregate, while the
initial quote form LWMMI has a flat deductible, with no aggregate. Dennis Tweedale from LWMMI was contacted to
see if he could provide a deductible structure that mimicked the current LGPIF structure. LWMMI was able to
provide that to the City, plus eliminate 1 set of deductibles.
The City will continue to use LGPIF for its remaining property needs. The attached resolution directs staff to notify
LGPIF that we are changing our coverage effective 511113.
FISCAL IMPACT
The LWMMI quote is approximate, due to the need for larger vehicles (Fire Trucks and Ambulances) to be
appraised to reflect accurate replacement cost. The rate quotes came in as follows:
LWMMI - $69,138
LGPIF - $123,013
This $50,000+ savings will enable us to absorb the increase in LGPIF rates for the remaining property coverage.
RECOMMENDATION
Based on the favorable rates and better coverage, it is recommended that the City of Oshkosh switch the Auto
Physical Damage coverage to LWMMI.
Respectfully Submitted, Approved:
Paul Greeninger, Safe & Risk Management Officer Mark Rohloff, City Manager
Major Differences Between Respective Plans
AUTOMOBILE PHYSICAL
State of Wisconsin
League of Wisconsin Municipalities
DAMAGE COVERAGE
Local Government Property Insurance Fund
Mutual Insurance (LWMMI)
1. Automobile Physical Damage
(other than Buses)
Comprehensive
Yes
Yes
Collision
Yes
Yes
Deductible
$5,000 aggregate, with maximum 3 deductibles annually,
$5,000 aggregate, with maximum 3 deductibles
then $500 for each subsequent occurrence. Annual
annually, then $500 for each subsequent
deductibles apply to Comprehensive and Collision
occurrence. Annual deductibles apply to
separately. i.e. 6 deductibles
Comprehensive and Collision combined.
2. Coverage for vehicles
No
Yes
impounded by Police
Department
3. Coverage for autos left in your
Yes
Yes
care, custody or control
4. Coverage for Temporary
Yes, with $10,000 limit
Yes, with no limit
Transportation Expense
5. Coverage for Commandeered
No
Yes, with $500,000 limit
Vehicle
6. TOTAL ANNUAL AUTO
$123,013
$69,138
PHYSICAL DAMAGE
PREMIUM