HomeMy WebLinkAbout12/14/1987 Item PS105 - Property and Caualty Insurance Coverage
Date: April 18, 2024
Subject: Risk Management file
While researching records a physical copy of the 08/15/1984 Item PS105 – Property and
Casualty Insurance Coverage” Council Agenda Report was discovered. As these files are
archived on microfilm/fiche and not easily retrievable, the file has been maintained here
digitally. However, the referenced attachments were not in the discovered physical file.
Kevin Christian
Deputy City Clerk
City Administration
City Clerk's Office
990 Palm Street, San Luis Obispo, CA 93401-3218
E kchristi@slocity.org
T 805.781.7104
slocity.org
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city of san'Luis omspo
A C?� I S P E C I AL REPORT
FROM: - Pam Voges;
SUBJECT:
Property and Casualty Insurance Coverage
CAD RECOMMENDATION:
Award broker services to Kindler & Iaucci.
BACKGROUND:
MEETING DATE:
- 8/15/84
-ITEM NUMBER.
PS105
R E C E R V E D
DEC 14 1987
on July S. 1984, informal requests for proposals were requested by insurance
brokers for quotes to provide insurance broker services for property and
casualty insurance of all city property and buildings. 1hree responses were
received, two submittals from carpanies that have worked with the city on other
insurance needs without any adverse problems; a third being unable to submit at
this time.
Pursuant to the city's adopted Purchasing Manual a Submmmittee (Dave Ion,
Geoff Grote and myself) reviewed the proposals.. Proposal No. 1 was from Evans
Brokerage ConTpany' the city's current- insurance carrier,, and Proposal No. 2
submitted by Kindier & Laucci,' the city's insurance carrier through its Joint
Powers Agreement for liability,' property and worker's compensation. Kindler &
Laucci was invited for an on-site inspection of city property and requested to
further define actual scope of insurance coverage.
After review the Subcommittee unan.1musly reomnends award of broker services
to Kindler &.Iaucci based on the following service levels and qualifications:
1) submittal of detailed analysis offers to provide broader
coverage (see Exhibit A);
2) can provide 100% coverage rather than the current 90% co-insurance;
3) offers blanket coverage for a higher level of protection with a lower
deductible;
4) provides higher level of support;
5) costs would remain relatively the same. Scme increase may occur;
however, the level of service will more accurately reflect the
city's needs.
All
MHRZM�
city O� San L iS OBISPO
C.AwOw SPECIALREPORT
Property and Casualty Insurance Coverage
Page 2
ALTERNATIVES:
1. Award to Kindler & Laucci.
2. Award to.Evans Insurance.
3. Authorize staff to prepare bid proposals for actual insurance needs.
PROS AND CONS:
1. Award to Kindler & Laucci should result in receiving broader insurance
coverage for a minimal increase in insurance costs.
2. Award to Evans Insurance would provide same basic coverage as currently
exists Specific insurance needs i.e..,- lower deductible costs,' earthquake
and flood insurance, and bonding requirements should be reevaluated.
3. Preparation of bids for actual insurance needs could be prepared although
coverage may not be as complete as limited expertise of insurance require -
meats is available at staff level.
CITIZEN "PARTICIPATICK:
Other cities, insurance ccmpanies and PTI were contacted prior to
recommendatim to request broker services.
Iv-kreafwa
Currently the city pays approximately $16.429 per year (includes property and
buildirgs,bailer and machinery, theft and official bonds). This rate is
approximately 6.7 cents and includes a $25,000 deductible. Additional
insurance needs resulting in a higher premium have been identified and included
i.e., earthquake.' flood, blanket all peril coverage.' lower ' deductiblee This
coverage is desired regardless of which broker is accepted. The Kindler
Laucci premium rate is estimated at .07 cents which includes the lower
deductible ($1000) and blanket coverage provisions ($5,000.,000).
A 12 1/2% to.15% commission is built into the premium. Based on the city's
current premium, this represents approximately $2,400 per year ($16"000 x 15%
$21400). A minimal commission for services as outlined in Kindler & Lauccils
proposal would ld also be charged (figures available indicate a $1,'500 charge for
$12,000 premium)
city 0� san OBISPO
A
6007maC.AsOn SPEC IAL REPORT
Property and Casualty Insurance Coverage
Page 3
City Attorney.' Asst. Administrative Officer.- Finance Director and City Clerk
I LID-16ne'i I i In I U12 2 M-24
Award broker services contract to Kindler & Lauoclo.
Broker Agreement
Submittals
RFP -
PV: skt,
Dave Ion, Systems Developimbnt Mkiager
Dated:
. e It? Le Y
Pa uf A. Ianspe3!y, Aahjnistfa'tjv6 Offider