HomeMy WebLinkAboutAgenda Statement 1976/07/20 Item 11CITY OF CHULA VISTA ITEM N0. 11
COUNCIL AGENDA STATEMENT
FOR MEETING OF: 7/20/76
ITEM TITLE: Resolution#8261Accepting Bids and Awarding the Contract for Fire
and Allied Insurance for the City
SUBMITTED BY Director of Fi Hance L~*`"'
ITEM EXPLANATION:
The following four bids were received on the 15th of July, 1976, for fire insurance
covering all City buildings and contents. All bids are fora three-year term with
annual premium payments.
Plan I Plan II Plan III
Company Broker or Agent $1,000 Ded. $5,000 Ded. $10,000 Ded.
Hartford Fire Cheverton-Bach/Bayle,
Insurance Co. Martin & Fay $12,253 $11,678 $11,414
Fireman's Fund Underwriters Insurance
Insurance Co. Agency of America $15,392 $14,641 $14,078
Industrial Indemnity Wilson Insurance
Company Agency $19,118 $18,120 $17,370
Chubb Insurance/I.N.A. Creaser, Price Ins.
Atlas Assurance Co. Agency, Inc. $22,243 $20,993 $20,243
Our Risk Management Consultant suggested that we use the all-risk form with incremental
deductibles when bidding our fire insurance and that we also ask for an alternate quo-
tation for Extra Expense Coverage. This coverage reimburses the City for all of the
EXHIBITS ATTACHED (Continued)
Agreement Resolution X Ordinance Plat Other
Environmental Document: Attached Submitted on
STAFF RECOMMENDATION:
Accept bids and award the contract for the City's Fire Insurance to Hartford
Fire Insurance Company.
BOARD/ COMMISSION RECOMMENDATION:
N/a
COUNCIL ACTION
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Form A-113 (Rev 5-75)
Item No. 11
extra expenses of continuing to provide service in the event of a temporary loss
of facilities.
It is interesting to note that the annual premium three years ago was $6,383 based
on total City value of $7,422,223. The current low bid of $12.253. is based on the
present City value of $72,496,050. This is an increase in value of $5,730,827.
This increase is due principally to an average increase of 25% in replacement costs
over the last three years and the addition of our animal shelter and new library
facilities.
Considering the fact that we have a much broader form of coverage in the all risk
form and have experienced a substantial increase in valuations, I think the compet-
itive bidding process has produced a very good bid. I would recommend that we
award the contract for three years to Hartford Fire Insurance Company for Plan I
with a $1,000 deductible provision; and that we also add the extra expense coverage
at a cost of $184 per year, making a total annual premium of $12,437.
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Com an
Hartford Fire Insurance Co.
Fireman's Fund Insurance Company
Industrial Indemnity Company
Chubb Insurance/I.N.A. Atlas
Assurance Company
FIRE INSURANCE BID SUMMA RY
Broker or Agent Plan I* Plan II* Plan III* Alternat
Cheverton-Bach/Bayly, Martin $12,253 $11,678 $11,414 A-184
& Fay B-368
Underwriters Insurance Agency of 15,392 14,641 14,078 A -0-
America B -0-
Wilson Insurance Agency, Inc. 19,118 18,120 17,370 A-550
B-2,200
Creaser, Price Insurance Agency, 22,243 20,993 20,243 A-234
Inc. B-468
* Plan I - All Risk Coverage with a $1,000 Deductible Provision.
plan II - All Risk Coverage with a $5,000 Deductible Provision.
clan III - All Risk Coverage with a $10>000 Deductible Provision.