HomeMy WebLinkAbout1999-02-23 - AGENDA REPORTS - INSURANCE RENEWAL (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: aul Zaengle
DATE: February 23, 1999
SUBJECT: INSURANCE RENEWAL
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council approve the expenditure of an amount not to exceed $271,554 from account
number 1600-8501 to renew the City's insurance policies, and authorize the City Manager
or designee to execute all documents, subject to City Attorney approval.
BACKGROUND
An extensive bidding process was undertaken over the past few weeks to ensure that the
City received the most coverage at the lowest possible price for its insurance policies for the
upcoming year. Proposals were solicited from the following companies which represent the
majority of insurance companies offering public entity insurance in the State of California.
Insurance Company
Signet Star
TIG Insurance Co.
Genesis Insurance Co.
Lexington Insurance Co.
Royal Indemnity
Reliance Insurance Co.
Westchester Fire Insurance Co.
United Pacific Insurance Co.
Associated International Insurance Co.
Best's Rating
Financial Size
A
IX
A
XI
A++
VII
A++
XII
A
XII
A-
XII
A
Ix
A+
XV
A
VII
The following outlines the three components of the City's insurance, the companies
recommended to provide the policies, and the premiums as compared to last year.
I. Primary General Liability and Automobile Liability: Covers the City's
liability in excess of the self insured retention of $250,000 (to a limit of $15 million).
Company: Royal Indemnity
Premium: $120,510 (increase of 3% from last year's $117,000)
w
II. Commercial Package Policy: Includes buildings, personal property, autos,
valuable records, computers, contractors equipment, tools and boiler and
machinery. An increase in the deductible this year from $1,000 to $2,500 enabled
significant premium savings from the originally quoted rate of $156,000.
Company: Reliance Insurance Company
Premium: $146,008 (decrease of 1.1% from last year's $147,661)
III. Commercial Crime Policy: Includes employee dishonesty, forgery or alteration,
computer fraud, and theft up to $1,000,000 per occurrence.
Company: United Pacific Insurance Company
Premium: $5,036 (no change from last year's premium)
FISCAL IMPACT
The total premium is $271,554, which represents a slight increase of $1,857, or 0.7% more
than last year. However, the 1999/2000 premium still represents significant savings from
the 1997/98 rate of $284,833. In the past year, the City grew in a manner that could have
adversely affected premiums, including the addition of the Sports Complex, the Skatepark,
nine new vehicles, and eighteen new employees. However, while the City's exposure
increased due to growth, premiums have effectively been stabilized. Funds for this
expenditure have been budgeted in account number 1600-8501.
pez:insurcc.doc