Utility and Infrastructure Board (June 2017 - Present)

CITY OF FREMONT UTILITY AND INFRASTRUCTURE BOARD December 12, 2023 - 4:00 P.M. A meeting of the Utility and Infrastructure Board was held on December 12, 2023 at 4:00 p.m. in the 2nd floor meeting room at 400 East Military, Fremont, Nebraska. The meeting was preceded by publicized notice in the Fremont Tribune and the agenda displayed in the Municipal Building. The meeting was open to the public. A continually current copy of the agenda was available for public inspection at the office of the City Administrator, 400 East Military. The agenda was distributed to the Utility and Infrastructure Board on December 8, 2023 and posted, along with the supporting documents, on the City’s website. A copy of the open meeting law is posted continually for public inspection. ROLL CALL Roll call showed Board Members Bolton, Hiatt, Wilson, Wiese present. Hansen absent. 4 members present, 1 absent. Others in attendance included Angie Olson, Exec. Asst.; Jeff Shanahan, Utility Gen. Mgr.; Troy Schaben, Asst. Utility Gen. Mgr.; Keith Kontor, Water and Wastewater Supt.; Dan Reznicek, Plant Supt.; Kristin Klingsick, Sr. Accountant, Travis Jacott, City Attorney; Justin Zetterman, Dir. Public Works; Chris Gunderson, Dir. IT; and Dean Kavan, Stores Supr. CONSENT AGENDA Moved by Member Bolton and seconded by Member Hiatt to approve items 3 and 4 (Minutes from November 28, 2023 and Accounts Payable through December 12, 2023). Ayes: Wilson, Wiese, Hiatt, Bolton. Motion carried 4-0. REGULAR AGENDA: Consider Certificate of Compliance for the 2023 Maintenance Agreement No. 11 between the Nebraska Department of Transportation and the City of Fremont. Zetterman gave overview. Moved by Member Wilson and Seconded by Member Bolton to recommend City Council approval of resolution authorizing the Mayor to certify and sign the Certificate of Compliance for the 2023 Maintenance Agreement No. 11 between the Nebraska Department of Transportation and the City of Fremont with a reimbursement to the City of $29,610. Ayes: Hiatt, Bolton, Wiese, Wilson. Motion carried 4-0. Consider Airport Sewer Lining Project. Kontor gave overview and answered questions. Moved by Member Hiatt and Seconded by Member Wilson to recommend City Council award bid for airport sewer lining project to Johnson Service Company in the amount of $78,381. Ayes: Wiese, Bolton, Wilson, Hiatt. Motion carried 4-0. Consider Utilities’ General Liability and Excess Liability Insurance 2023-2024. Moved by Member Bolton and Seconded by Member Hiatt to receive general liability and excess liability insurance documents. Ayes: Wilson, Bolton, Wiese, Hiatt. Motion carriers 4-0. Klingsick gave overview and answered questions. Moved by Member Bolton and Seconded by Member Wilson to recommend to City Council approve Resolution 2023-303 for the Department of Utilities’ general and excess liability insurance renewal proposal for December 31, 2023 to December 31, 2024 in the amount of $196,125 including surplus lines taxes. Ayes: Hiatt, Wiese, Wilson, Bolton. Motion carried 4-0. General Manager Updates. Kavan gave warehouse overview and answered questions. ADJOURNMENT Moved by Member Hiatt and Seconded by Member Wilson to adjourn the meeting at 4:20pm. Ayes: Bolton, Hiatt, Wilson, Wiese. Motion carried 4-0. 1  STAFF REPORT TO: Utilities and Infrastructure Board FROM: Jennifer Nabb, Director of Finance DATE: December 12, 2023 SUBJECT: Renew Utilities’ General Liability and Excess Liability Insurance 2023-2024 Recommendation: Approve Resolution 2023-303 for the Department of Utilities’ general and excess liability insurance renewal proposal for December 31, 2023 to December 31, 2024 in the amount of $196,125 including surplus lines taxes. Background: The Utilities’ insurance consultant, Aon Risk Solutions (Aon), negotiated an 18 percent premium increase for a renewal premium of $34,623 for primary general liability with Everest National Insurance Company (Everest). The premium includes $215 for terrorism coverage. This policy provides $1,000,000 per occurrence and $2,000,000 aggregate limit with no deductible. The overall premium increased due to operational payroll increases. In addition, Aon negotiated a renewal premium of $161,502 for excess liability with Associated Electric & Gas Insurance Services Limited (AEGIS). AEGIS is a mutual insurer formed by and serving the electric and natural gas utility industry. AEGIS also is offering a continuity credit to its members with 2023 renewals. Fremont’s credit is $11,202, which is deducted from the renewal premium. The premium is subject to a three percent Nebraska surplus lines tax of $4,704. This policy provides $10,000,000 in excess liability insurance. The resulting renewal proposal for the December 31, 2023-2024 coverage period includes a combined premium of $196,125 including surplus lines tax, in comparison to last year’s premium of $175,433. (The comparison does include the surplus lines tax and continuity credit on the excess liability premium.) Staff’s recommendation is to renew the expiring general and excess liability insurance program with Everest and AEGIS in the amount of $196,125. Staff requests that the Utilities and Infrastructure Board recommend to the City of Fremont Mayor and City Council to approve the Department of Utilities general and excess liability insurance renewal for December 31, 2023 to December 31, 2024. Fiscal Impact: Budgeted $196,125 including surplus lines tax. City of Fremont Department of Utilities General Liability and Excess Liability Proposal Policy Term: December 31, 2023 - December 31, 2024 December 11, 2023 Contents Executive Summary ........................................................................................................................................... 3 Exposure Premium blended average Rate Analysis........................................................................................ 5 Acknowledgement and Instruction to Bind ..................................................................................................... 6 Binding Subjectivities ........................................................................................................................................ 6 General Liability Coverage Comparison........................................................................................................... 7 Excess Liability Coverage Comparison ........................................................................................................... 11 Insurer Quotes.................................................................................................................................................. 14 Details of Payment Terms ............................................................................................................................... 14 Appendix .......................................................................................................................................................... 15 Aon Service Team..................................................................................................................................... 16 Compensation for the Value We Deliver ................................................................................................. 17 This insurance document is furnished to you as a matter of information for your convenience. It only summarizes the listed proposed policy(ies) and is not intended to reflect all the terms and conditions or exclusions of such proposed policy(ies). Moreover, the information contained in this document reflects proposed coverage as of the effective date(s) of the proposed policy(ies) and does not include subsequent changes. This document is not an insurance policy and does not amend, alter or extend the coverage afforded by the listed proposed policy(ies). The insurance afforded by the listed proposed policy(ies) is subject to all the terms, exclusions and conditions of such policy(ies). The services and placements outlined in this proposal will be provided in accordance with the terms of the notices and policies set forth in our Compensation Agreement or Engagement Letter. Proprietary & Confidential 2 Executive Summary Aon Global Power is pleased to present our formal renewal proposal to City of Fremont Department of Utilities for the 2023 – 2024 Primary and Excess Liability program through the Everest & AEGIS alliance, effective December 31st. We are very pleased with the results. The City’s annual premium is now $196,125 vs. $175,433; a 12% YoY premium increase of $20,692 (4% rate decrease). The premium increase is due to the 16% YoY increased operational payroll exposures: 3.175M vs 2.73M expiring. PRIMARY Everest uses the City’s electric and gas operational payroll as the general liability rating basis. Everest’s renewal premium is up 18% (1% rate increase) 35k vs 29k. All policy terms and conditions are per expiring. Everest has new two mandatory forms coming out in 2024. These will be part of the City’s 2024 – 2025 GL renewal. Copies of the new forms are within the Insurer Quotes section of the proposal. o Form ECG 21 901 – PFAS Exclusion o Form ECG 04 1009 – Exclusion Professional Liability EXCESS AEGIS advised its members in late 2022 that in 2023 they would continue seeking rate increases in the 10-15% range from all members and higher for those with loss activity. AEGIS’ renewal premium is up 11% (5% rate decrease): 157k vs 142k expiring. There are a handful of new terms and conditions for your review. And an option to reduce the premium by 4k. AEGIS introduced their form changes in 2023. Most impactful include changes to the Failure to Supply Language. Also, they are now sub-limiting PFAS Liability with a separate 5M aggregate. The underwriter presented an option for the City’s review: 4k reduction of the annual premium to accept an absolute PFAS liability exclusion. PFAS Defines the term “PFAS LIABILITY” as BODILY INJURY, PROPERTY DAMAGE and PERSONAL INJURY which arises out of the actual or alleged presence or use of PFAS or PFAS containing materials or substances. Defines the term “PFAS” as perfluoroalkyl and polyfluoroalkyl substances, including: • perfluorooctanoic acid (PFOA); • perfluorooctane sulfonate (PFOS); • perfluorononanoic acid (PFNA); • hexafluoropropylene oxide dimer acid (HFPO-DA, commonly known as GenX Chemicals); • perfluorohexane sulfonic acid (PFHxS); • perfluorobutane sulfonic acid (PFBS); • fluorinated polymers, including fluoropolymers, perfluoropolyethers and side-chain- fluorinated polymers, such as chloro-perfluoro-polyether carboxylate (ClPFPECA), polytetrafluoroethylene (PTFE), and fluorinated ethylene-propylene (FEP); and • associated homologues, isomers, salts, esters, alcohols, acids, precursors, daughters, derivatives, or by-products of the substances listed in (a) through (g) above. Proprietary & Confidential 3 Failure To Supply 2 new FTS forms were added. The first is blanket for regulated utilities (not specifically scheduled) and the second is for the non-regulated. The latter specifically schedules Costco and the Redevelopment Agreement. • Restricts Failure to Supply coverage to Bodily Injury and Property Damage. Removes Personal Injury coverage under Failure to Supply • Restricts coverage for Failure to Supply claims to REGULATED UTILITY class only – this removes coverage for a non-regulated power generator, transmission line operator, co-operative and others  provides blanket coverage where regulated (not specifically scheduled) • Restricts coverage for Failure to Supply claims to power generation supplied for liability arising out of the written contract or agreement  provides coverage specifically for Costco (not regulated) as per the Redevelopment Agreement • Reduces required percentage of supply from 110% to 100% • Excludes coverage for losses that arise from a NATURAL HAZARD • However, provides $1M sublimit for defense costs related to FAILURE TO SUPPLY LIABILITY claims for all members, and this would include claims related to NATURAL HAZARD events. Note, AEGIS may consider a higher sublimit for an additional charge. Defines the term REGULATED UTILITY as: The term “REGULATED UTILITY”, as used in the Exclusion, means an INSURED: (1) who provides energy producing fuel, including natural gas or propane; electricity; steam; water; or telecommunication service to end-users for consumption; and (2) who owns the means to distribute or deliver the energy producing fuel, including natural gas or propane; electricity; steam; water; or telecommunication service; and (3) whose rates are subject to approval, rejection, or modification by one or more governmental entities. Defines the term NATURAL Hazard as: The term “NATURAL HAZARD”, as used in this Exclusion, means a natural event, including those involving avalanche, coastal flooding, cold, drought, earthquake, hail, heat, hurricane, ice storm, landslide, lightning, riverine flooding, wind, tornado, tsunami, volcanic activity, wildfire, and winter weather. Joint Venture Definition There is a new definition for Joint Venture. The new definition expands the definition to clarify that LLC’s or other formally organized corporations are not considered JV’s. JOINT VENTURE: The term "JOINT VENTURE" means any for-profit relationship for a common purpose in which the participants have a community of interest and right to share in the control of the manner of performance and where the participants have joint and several liability. SUBSIDIARIES, as well as other formally organized corporations and limited liability entities, are not JOINT VENTURES. City of Fremont does not purchase Excess EPL; however here is the change to the EPL form Employment Practices Liability Endorsement It broadens the term DEFINITION to include additional protected classes: marital status, sex, sexual orientation, gender identity, genetic information, veteran status. A formal definition of CLAIMANT is added and there were multiple clerical changes made throughout the form. Proprietary & Confidential 4 Notably item (F) removes reference to the insurability of punitive damages. AEGIS confirmed punitive damage awards will remain insurable where allowed by law based on the standard policy form. This term was removed to prevent lawsuits or claims that punitive damages should be insurable based on where AEGIS is domiciled. Within this proposal you will find our detailed premium and coverage analysis’ as well as the insurer’s quotes and binding subjectivities. After your review we are available to discuss anything contained within in more detail. On behalf of all of us here at Aon, we want to thank you for your business and continued trust in us to service your insurance and risk transfer needs. Exposure Premium blended average Rate Analysis City of Fremont Department of Utilities YOY Exposure Premium Rate Analysis 12/31/2022 - 12/31/2023 - YOY YOY 12/31/2023 12/31/2024 $ % Rating Basis (Operational payroll): $2,731,296 $3,175,924 $444,628 16% 1M General Liability Premium $29,154 $34,408 $5,254 18% TRIA Premium $186 $215 $29 16% GL Deposit Premium Due Everest $29,340 $34,623 $5,283 18% Blended Average Rate per 1k Operational $10.74 $10.90 $0.16 1% Payroll 10M Excess Liability Premium $149,000 $164,000 $15,000 10% TRIA Premium $4,000 $4,000 $0 0% Continuity Credit -$11,162 -$11,202 -$40 0% Total Due AEGIS $141,838 $156,798 $14,960 11% Blended Average Rate per 1k Operational $52 $49 -$3 -5% Payroll 3% Surplus Lines Tax $4,255 $4,704 $449 11% Total Amount Due Excess $146,093 $161,502 $15,409 11% Blended Average Rate per 1k Operational $53 $51 -$3 -5% Payroll TOTAL DUE: $175,433 $196,125 $20,692 12% Blended Average Rate per 1k Operational $64 $62 -$2 -4% Payroll Total Limits $11,000,000 $11,000,000 $0 0% Rate per 1M Limit $15,948 $17,830 $1,881 12% Proprietary & Confidential 5 Acknowledgement and Instruction to Bind We hereby acknowledge receipt and review of the information presented in the Renewal Proposal (“Proposal”) dated 12/11/2023 for General Liability and Excess Liability and provided in the Compensation for the Value We Deliver disclosure. We hereby instruct Aon Risk Services Central, Inc. (“Aon”; “Commercial Risk Solutions”) to bind the insurance program(s) selected by Us and understand that Our instruction to bind constitutes an acceptance of the terms and conditions and payments described in this Renewal Proposal. Aon offers Data and Analytics tools that provide You access to reports and analytics including those related to insurers’ capabilities, benchmarking and program design. To receive and access Aon’s Data and Analytics tools and information over the course of the service period herein, Aon assesses a Data and Analytics charge, separate from any premiums due and calculated based on an amount of $500 calculated per policy up to a maximum annually of $20,000 where legally permitted to do so. This fee is fully earned upon invoicing. Aon’s Data and Analytics tools contain no recommendations, suggestions or advice about the suitability of an insurer’s produc ts or services for You or Your organization’s needs, and does not take into account individual circumstances. Before acting on the information contained within these tools, You should evaluate Your individual needs and/or those of Your organization and assess Your objectives and situation, and if necessary, seek appropriate advice, including from Your Aon broker. You acknowledge that the Data and Analytics charge is not a requirement of nor is it a condition to receiving Aon’s brokerage services or to the purchase of insurance policies and is in addition to any other compensation earned by Aon hereunder. Date: ____________________ On behalf of City of Fremont Department of Utilities: ______________________________________ Binding Subjectivities - Executed EPL rejection form Proprietary & Confidential 6 General Liability Coverage Comparison City of Fremont Department of Utilities General Liability Coverage Comparison Carrier Everest National Everest National Policy Term: 12/31/2022 - 12/31/2023 12/31/2023 - 12/31/2024 Rating Basis: Operational Payroll $2,731,296 $3,175,924 Composite Rate:(per 1,000 of GL operational $10.674 $10.834 payroll) Deposit Premium: $29,340 $34,623 Minimum Premium: N/A N/A Minimum Earned Premium: N/A N/A Payable: Agency Bill - Lump Sum Agency Bill - Lump Sum LIMITS OF LIABILITY: General Aggregate: $2,000,000 $2,000,000 Products Completed Operations Aggregate: $2,000,000 $2,000,000 Each Occurrence - Bodily Injury & Property $1,000,000 $1,000,000 Damage: Personal & Advertising Injury Liability Limit: $1,000,000 $1,000,000 Failure to Supply Aggregate Limit: $1,000,000 $1,000,000 Damage to Rented Premises - Any One $1,000,000 $1,000,000 Premises: Medical Expense Limit - Any One Person: $10,000 $10,000 Employee Benefits Liability Per Claim: N/A N/A Employee Benefits Liability Aggregate: N/A N/A Time Element Pollution Per Occurrence: subject to the per occurrence limit subject to the per occurrence limit Time Element Pollution Aggregate: subject to the general aggregate subject to the general aggregate limit limit DEDUCTIBLES: General Liability: NIL NIL Employee Benefits Liability: N/A N/A Time Element Limited Pollution Liability NIL NIL GENERAL LIABILITY COVERAGE: ISO Form CG 00 01 04-13 edition ISO Form CG 00 01 04-13 edition Nebraska Governmental Immunity Y Y Endorsement Additional Insured - Blanket Basis Y Y (as required in a written agreement) Blanket Waiver of Subrogation - Scheduled Y Y Person or Organization where required by (GL enhancement form) (GL enhancement form) contract Broad Form Named Insured Y > 50% ownership except for JVs, Y > 50% ownership except for JVs, LLCs, LLPs LLCs, LLPs (GL enhancement form) (GL enhancement form) Business Continuity N N Composite Rated Y - subject to annual audit Y - subject to annual audit Contractual Liability – Railroads Y Y Contractual Liability (excluding breach of Y Y contract) Coverage For Injury to Leased Workers N N Coverage Territory United States, its possessions, United States, its possessions, territories, Canada & Puerto Rico territories, Canada & Puerto Rico Proprietary & Confidential 7  GENERAL LIABILITY COVERAGE: ISO Form CG 00 01 04-13 edition ISO Form CG 00 01 04-13 edition Employees as Insured - includes Leased Y Y Workers and Volunteers Fellow Employee Exclusion Deleted Y Y Host Liquor Liability Y Y In Rem N N Incidental Medical Malpractice Y Y Increased Supplementary Limits - in addition Y - increased Bails Bonds $1,000 Y - increased Bails Bonds $1,000 to limits and Loss Of Earnings $500 per and Loss Of Earnings $500 per day day (GL enhancement form) (GL enhancement form) Knowledge of Occurrence Y Y Liberalization Clause N N Modified Definition of Bodily Injury to include Y Y Mental Anguish Modified Definition of Coverage Territory - Y Y coverage applies anywhere for suits brought back to the United States, its possessions, territories, Canada & Puerto Rico Modified Definition of Personal and N N Advertising Injury - includes third party discrimination and humiliation Modified Expected or Intended Injury Y Y Exclusion - does not apply to bodily injury or property damage resulting from the use of reasonable force to protect persons or property Limited Contractual Liability Coverage for Y Y Personal and Advertising Injury Newly Acquired or Formed Entity – Y - 180 days Y - 180 days Automatic coverage > 50% ownership except for JVs, > 50% ownership except for JVs, LLCs, LLPs LLCs, LLPs Non-Owned Aircraft Y - liability assumed under insured Y - liability assumed under insured contract contract Non-Owned Watercraft Y - less than 50 feet Y - less than 50 feet (GL enhancement form) (GL enhancement form) Notice of Cancellation Y - 90 days Y - 90 days Notice of Cancellation to Third Parties Y - 30 days Y - 30 days Notice of Occurrence Y Y (GL enhancement form) (GL enhancement form) Premises Medical Expense Coverage - no Y Y fault coverage Primary and Noncontributory Y Y Property Damage to Alienated Premises N N Exclusion Deleted Pro-Rata Cancellation, rating downgrade N N Separation of Insureds Y Y Terrorism Y Y Proprietary & Confidential 8  GENERAL LIABILITY COVERAGE: ISO Form CG 00 01 04-13 edition ISO Form CG 00 01 04-13 edition Time Element Limited Pollution Liability Y - subject to the per Y - subject to the per occurrence/general aggregate occurrence/general aggregate limits limits Discovery Period: 30 days Discovery Period: 30 days Notification Period: 90 days Notification Period: 90 days Unintentional Errors & Omissions (Failure to Y Y Disclose Hazards) (GL enhancement form) (GL enhancement form) STANDARD COVERAGE A BI/PD EXCLUSIONS: Aircraft, Auto, Watercraft Y - see carve backs above Y - see carve backs above Contractual Liability Y - breach of contract Y - breach of contract Damage to Impaired Property Y Y Damage to Property Y Y Damage to Your Product Y Y Damage to Your Work Y Y Electronic Data Y Y Employers Liability Y Y Expected or Intended Injury Y Y Liquor Liability Y - carve back for host liquor Y - carve back for host liquor Personal and Advertising Injury Y - see coverage B - PI/AI Y - see coverage B - PI/AI Pollution Y - carveback for hostile fire, Time Y - carveback for hostile fire, Time Element Pollution Element Pollution Product Recall Y Y Recording and Distribution or Material In Y Y Violation of Law Transportation of Mobile Equipment Y Y War Y Y WC and Similar Laws Y Y STANDARD COVERAGE B AI/PI EXCLUSIONS: Breach of Contract Y Y Contractual Liability Y - carve back for insured Y - carve back for insured contracts contracts Criminal Acts Y Y Electronic Chatrooms Y Y Infringement of Copyright, Patent, Y Y Trademark or Trade Secret Insureds in the Media Internet Business Y Y Knowing Violation of Rights of Another Y Y Material Published Prior to Policy Period Y Y Material Published with Knowledge of Falsity Y Y Pollution Y Y Quality or Performance of Goods Y Y Recording and Distribution or Material In Y Y Violation of Law Unauthorized Use of Another's Name or Y Y Product War Y Y Wrong Description of Prices Y Y Proprietary & Confidential 9  NOTABLE EXCLUSIONS: Access or Disclosure of Confidential or Y - with carve back for limited Y - with carve back for limited Personal Information bodily injury bodily injury Asbestos Y Y Designated Ongoing Operations Y- Electric and Gas Utility Y- Electric and Gas Utility Endorsement Operations Operations Employment Practices Y Y Engineers, Architects or Surveyors Y Y Professional Liability Failure to Supply Y - with carve back for sudden Y - with carve back for sudden and and accidental injury to tangible accidental injury to tangible property property Fungi/Bacteria Y Y Known, Continuous, Progressive Injury or Y Y Damage Lead Y Y Nuclear Energy Y Y Radioactive Matter Y Y Silica Y Y Unmanned Aircraft Y Y Proprietary & Confidential 10 Excess Liability Coverage Comparison City of Fremont Department of Utilities Excess Liability Coverage Comparison Carrier AEGIS AEGIS Policy Term 12/31/2022 - 12/31/2023 12/31/2023 - 12/31/2024 Annual Premium $149,000 $164,000 TRIA Premium $4,000 $4,000 Continuity Credit -$11,162 -$11,202 TOTAL DUE: $141,838 $156,798 Payable Agency Bill - Lump Sum Agency Bill - Lump Sum Premium Due Date to Insurer 20 days from inception 20 days from inception Minimum Earned Premium N/A N/A Policy Retro Date 11/12/1986 11/12/1986 Policy Form: AEGIS Policy Form 8100 (02/2022) AEGIS Policy Form 8100 (02/2022) POLICY LIMITS: AEGIS AEGIS Each Occurrence* $10,000,000 $10,000,000 General Aggregate $20,000,000 $20,000,000 Joint Venture Each Occurrence: Per Limit of percentage of interest calculation percentage of interest calculation Liability Section I.(B)(9)* Combined Products Liability and Completed $10,000,000 $10,000,000 Operations Liability Aggregate* Failure to Supply Liability Aggregate* $10,000,000 $10,000,000 Designated Services Professional Liability N/A - optional coverage N/A - optional coverage Aggregate Medical Malpractice Injury Each Occurrence* $10,000,000 $10,000,000 Wildfire Liability Aggregate* $10,000,000 $10,000,000 Pollution Liability Aggregate $10,000,000 $10,000,000 Employment Practices Liability Aggregate* N/A - optional coverage N/A - optional coverage PFAS Liability Aggregate N/A $5,000,000 or option to exclude for 4k premium credit *Subject to the $20,000,000 General Aggregate UNDERLYING SCHEDULE OF LIMITS: AEGIS AEGIS A: Insured or Uninsured - Any One Occurrence General Liability $1,000,000 $1,000,000 General Liability - Water Utility Operations only $5,000,000 $5,000,000 Pollution Liability $1,000,000 $1,000,000 Automobile Liability $5,000,000 $5,000,000 Employer’s Liability $1,000,000 $1,000,000 B: Any one occurrence not covered by $1,000,000 $1,000,000 underlying insurance Proprietary & Confidential 11 AEGIS ENDORSEMENT DESCRIPTION: ENDORSEMENT NUMBER: ENDORSEMENT NUMBER: Coverage Amendment Endorsement 4 1 ("attributable to the electric, gas, water or sewage operations of the Fremont Nebraska Department of Utilities serving the City of Fremont, the City of Cedar Bluffs and surrounding areas") Employment Practices Liability Endorsement 1 2 (coverage not purchased) Employment Practices Liability Exclusion 2 3 Definition (J) and Exclusion (D) Amended - N/A 4 NEW Failure to Supply • Restricts FTS coverage to Bodily Injury and Property Damage. Removes PERSONAL INJURY coverage under Failure to Supply • Reduces required percentage of supply from 110% to 100% • Restricts coverage for Failure to Supply claims to REGULATED UTILITY class only – this removes coverage for a non-regulated power generator, transmission line operator, co-operative and others • Excludes coverage for losses that arise from a NATURAL HAZARD • However, provides $1M sublimit for defense costs related to FAILURE TO SUPPLY LIABILITY claims for all members, and this would include claims related to NATURAL HAZARD events. Note, AEGIS may consider a higher sublimit for an additional charge. Definition (J) and Exclusion (D) Amended (Power N/A TBD Generation Supplied to MEMBER) • Restricts FTS coverage to Bodily Injury and Property Damage. Removes PERSONAL INJURY coverage under Failure to Supply • Reduces required percentage of supply from 110% to 100% • Restricts coverage for Failure to Supply claims to power generation supplied to MEMBER for liability arising out of the contracts provides coverage specifically for Costco (not regulated) as per the Redevelopment Contract • Excludes coverage for losses that arise from a NATURAL HAZARD • However, provides $1M sublimit for defense costs related to FAILURE TO SUPPLY LIABILITY claims for all members, and this would include claims related to NATURAL HAZARD events. Note, AEGIS may consider a higher sublimit for an additional charge. Proprietary & Confidential 12 AEGIS ENDORSEMENT DESCRIPTION: ENDORSEMENT NUMBER: ENDORSEMENT NUMBER: Definition (N) Joint Venture Amendment N/A 5 NEW Joint Venture Definition The new definition expands the definition to clarify that LLC’s or other formally organized corporations are not considered JV’s. JOINT VENTURE: The term "JOINT VENTURE" means any for-profit relationship for a common purpose in which the participants have a community of interest and right to share in the control of the manner of performance and where the participants have joint and several liability. SUBSIDIARIES, as well as other formally organized corporations and limited liability entities, are not JOINT VENTURES. Joint Entity Prorated Limit of Liability N/A 6 NEW Limits coverage to the member’s interest in the entity PFAS Liability Endorsement (Limited Coverage) N/A 7 NEW $5,000,000 Aggregated Sublimit or option to exclude Methyl Tertiary-Butyl Ether and Lead Exclusion 5 8 Nebraska Governmental Immunity Endorsement 6 9 Additional Insureds - Blanket Basis (Certificate 8 10 Holders) Exclusion - Captive Insurance Operations 3 11 NEW Previously titled Insurance Coverage Operations Exclusion Primary Insurance Endorsement (Amended 7 12 Condition (H) Other Insurance) Condition (Q) Cancellation Endorsement 9 13 Amends Notice of Cancellation (90 days for Non-Renewal, 10 days for Non- Payment, 30 days for Third Parties required by written contract) Business Continuity Endorsement 10 14 Member with Voting Rights Endorsement 11 15 Terrorism Limits Endorsement 12 16 Proprietary & Confidential 13 Insurer Quotes General Liability – Everest New Mandatory Forms next renewal Outstanding – N/A (12/31/2024) o Form ECG 04 1009 – Exclusion Professional Liability City of Fremont ECG041009 Quote 2023 - Rev.pd Specimen.pdf o Form ECG 21 901 – PFAS Exclusion ECG21901 Specimen.pdf Excess Liability - AEGIS New Mandatory Forms Outstanding - Confirmed o Form 8200 (07/2011) Definition (J) o Add Definition (J) and Exclusion (D) and Exclusion (D) Amended (Failure Amended (Failure to Supply to Supply Liability) Liability), (Power Generation Supplied to MEMBER) form 8200 Aegis quote.pdf (07/2011) for Costco. Failure To Supply Specimen Endorsem Failure To Supply o Form 8200 (07/2011 – PFAS Liability Specimen Endorsem Endorsement (Limited Coverage) $5M (see quote for specimen form) o Form 8460 (01/2023) Definition (N) Joint Venture Amendment DEFINITION (N) JOINT VENTURE AM o Form 8200 (07/2011) Joint Entity (Prorated Limit of Liability) JOINT ENTITY (Prorated Limit).pdf Details of Payment Terms • Agency Bill, Lump Sum Proprietary & Confidential 14 Appendix Compensation for the Value We Deliver Proprietary & Confidential 15 Aon Service Team Harold Kavan Account Executive Tel: 515.306.4426 Email: harold.kavan@aon.com Joshua McCall Account Specialist Tel: 847 442 0070 Email: joshua.mccall@aon.com Kerri Leahy Vice President, Senior Casualty Specialist - Global Power Practice Aon Global Power Tel: 857.301.4501 Email: kerri.leahy@aon.com Aon 53 State Street, 22nd Floor Boston, MA 02109 Karen Kolodziej Associate Broker Aon Global Power Tel: 401.553.6643 Email: karen.kolodziej@aon.com Proprietary & Confidential 16 Compensation for the Value We Deliver Aon is an insurance broker and, when serving as your retail insurance broker, in addition to or in lieu of compensation you may pay, Aon may earn compensation which relates in whole or in part to your insurance placement. For policy level commissions, Aon endeavors to receive compensation using standard commission rates by line of business that we seek to achieve with insurers in advance of individual policy placements. We believe this creates a fairer marketplace among insurers and allows our insurers to focus on the client’s needs and risk history, not on commission rate negotiation. In turn, because insurers will be evaluated on their capabilities, clients will be able to more easily compare quotes. Aon’s standard commission rates differ by line of business and, when placed in the U.S. market, are up to the following commission rates: Aviation, 17.5%; Casualty, 18.5%; Cyber, 17.5%; Energy, 20%; Entertainment, 20%; Environmental, 18%; Marine 20%; Med Mal/ Healthcare, 17.5%; Professional/ E&O,17.5%; Property, 18%; Product Recall, 20%; Financial Lines, 18%; Healthcare, 20%; Surety, 35%; Terrorism, 25%; Trade Credit, 17.5%; and Workers Compensation, 15%. Where an Aon broker is placing a policy in the London or Bermuda market, Aon endeavors to earn 20% on those lines of business. Where Aon has created a facility with proprietary terms and conditions negotiated, the Aon standard commission rates range from 20% – 22.5%. Some lines of business are not conducive to standardization because they are subject to state filing regulations, state-specific rates and/or industry-specific rates. The standard commission rates we achieve do not include program business (e.g., franchises, sponsored groups) or large deductible programs. In addition, Aon provides certain administrative and other related placement services to markets. Compensation of up to 7.5% for these services may take the form of a national additional commission (NAC) or a subscription market brokerage (SMB). Collecting these commissions will not change the premium quoted. Compensation paid to Aon may vary based upon a number of factors, including the insurance contract and the insurer you select, the volume of business and/or profitability of business we place with each insurer. Therefore, Aon may be considered to have an incentive to place insurance coverages with a particular insurance company. We strive for transparency with each Client and the final decision regarding coverage and market options is the Client’s decision. If you are interested in receiving Aon’s standard commission grid and/or a Commission Disclosure Report identifying the individual commission rates on your placements or compensation expected to be received based in whole or in part on any alternative quotes, ask your Account Executive or write us at aon.us.broking@aon.com. Proprietary & Confidential 17 About Aon plc (NYSE: AON) exists to shape decisions for the better—to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. © Aon plc 2022. All rights reserved. The information contained herein, and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources, we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. www.aon.com  RESOLUTION NO. 2023-303 A Resolution of the City Council of the City of Fremont, Nebraska, authorizing the Department of Utilities’ through AON Risk Solutions (AON) the purchase of primary general liability with Everest National Insurance Company (Everest) and excess liability insurance with Associated Electric & Gas Insurance Services Limited (AEGIS) for December 31st, 2023 to December 31st, 2024 not to exceed $196,125 including surplus lines taxes. WHEREAS, Department of Utilities’ Liability insurance renewal proposal for December 31st, 2023 to December 31st, 2024 not to exceed $196,125 including surplus lines taxes; and, WHEREAS, it is recommended that the policies be renewed with Everest in the amount of $34,623 and AEGIS in the amount of $161,502. WHEREAS, The renewal proposals from Everest and the Associated Electric & Gas Insurance Services Limited (AEGIS) are similar to the prior year; and, WHEREAS, The renewal results in an approximately twelve percent average rate increase including surplus lines taxes NOW, THEREFORE BE IT RESOLVED, that the Mayor and City Council authorize the Primary General Liability policy with Everest at a cost of $34,623 and the Excess Liability policy with AEGIS at a cost of $161,502 with an effective date of December 31, 2023 and to authorize the Mayor to sign required documents. not to exceed $196,125 including surplus lines taxes. PASSED AND APPROVED THIS 12th DAY OF DECEMBER, 2023. ______________________________ Joey Spellerberg, Mayor ATTEST: _________________________ Tyler Ficken, City Clerk