HomeMy WebLinkAbout2000-02-22 - AGENDA REPORTS - LIABILITY INS RENEWAL (2)C�I1'Si7�Y�`.�V:T�1►;�:IY V1
AGENDA REPORT
CONSENT CALENDAR
City Manager Approval: Z Ak!�
Item to be presented by: Ken Striplin
DATE: February 22, 2000
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DEPARTMENT: City Manager
RECOMMENDED ACTION
City Council approve the expenditure of an amount not -to -exceed $294,165 from Account
No. 1600-8501 to renew the City's General Liability and Property insurance policies,
and authorize the City Manager or designee to execute all documents related thereto,
subject to City Attorney approval.
BACKGROUND
In order to protect the City's assets, commercial insurance coverage is procured. Each
year the City evaluates and renews its insurance policies to ensure there is adequate
and cost efficient coverage. To make certain we are receiving the highest amount of
coverage for the lowest possible price, the City goes through an extensive bidding
process. In March of each year, the City renews its General Liability and Property
insurance policies for the proceeding 12 months.
Proposals were solicited from the following companies, which represents the majority
of insurance companies offering General Liability and Property insurance coverage in
the State of California:
Insurance Company
• Insurance Company of the West
• Reliance Insurance Company
• Royal Indemnity Insurance Company
• Travelers/Gulf
• Hartford Steam Boiler
• Genesis
• Pacific Insurance Company Ltd.
Based on the proposals received, Royal Indemnity Insurance Company offered the
broadest policy and best price for general and automobile liability coverage. Reliance
VS00 �Nll E D Agenda ltes
City Liability Insurance Renewal
February 22, 2000
Page 2
Insurance Company was selected for the commercial package policy, which includes
property, equipment, personal property, autos, computers, etc., because of the broad
policy form and the fact that they have held their premiums constant. And, Pacific
Insurance Company was selected to provide our commercial crime policy, which covers
all City employees. All three companies provided insurance coverage for the City last
year.
FISCAL IMPACT
In comparing the cost of policies over last year, insurance premiums are increasing
approximately 1.8 percent or $5,230. The total annual premium cost for 1999-2000 was
$288,935, and the new total annual premium for 2000-2001 is $294,165. The major
causes for the increase in premiums include the addition of new vehicles, employees,
population, and growth of the City overall. Funds for this expenditure have been
budgeted in Account No. 1600-8501.
ALTERNATIVE ACTION
Other action as identified by the City Council.
ATTACHMENT
Attachment A
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CCAGENDA\2_22_00\ NSRENEW.DOC
Attachment,4&*e ?/G,�6�fa&e# /um Jig"
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Cedar Ave • License #{0367601
COLA PO Box 2659, Lancaster CA 93539-2659
(805) 942-8441 •
FAX (805) 942-6093
City of Santa Clarita
23920 W. Valencia Blvd.
Santa Clarita, CA 91355
L
February 9, 2000
EFFECTIVE DATE I POLICY INFORMATI ON I PREMIUM
03-01-00 1 Royal Indemnity Company
TO Renewal of Policy No. RHJ090057
03-01-01 Primary General Liability and Automobile Liability $ 125,000.00
$15 Million Limit - Excess over S.I.R. of $250,000
(Includes $15 Million Excess Transit Coverage)
03-01-00 1 Reliance Insurance Company
TO Renewal of Policy No. PP8572264
03-01-01 Commercial Package Policy 164,129.00
(Includes Buildings, Personal Property, Autos,
Valuable Papers/Records, Computers, Contractors
Equipment, Tools and Boiler & Machinery)
03-01-00 United Pacific Insurance Company
TO Renewal of Policy No. U2868839
03-01-01 Commercial Crime Policy 5,036.00
Total Renewal Premium $ 294,165.00
TO
LIFE. HEALTH . DISABILITY. AUTO. HOMEOWNERS. BUSINESS PACKAGE. WORKERS COMPENSATION . BONDS . ALL OTHER FORMS OF INS.