Title
Consider and take action on a resolution authorizing the purchase of windstorm and hail property insurance from McGriff, Siebels & Williams of Texas, Inc. in an amount not to exceed $518,963 (Director of Human Resources & Civil Service)
Background
Approval of this item will authorize the City Manager to purchase windstorm and hail insurance for the City’s property. The City’s current policy was purchased through McGriff, Siebels & Williams (McGriff) for $441,001 and expires April 6, 2018.
The current policy provides the following levels of coverage:
- $60,000,000 commercial property coverage
- $197,550,782 scheduled property
- 1% named storm deductible, capped at $100,000, with a $25,000 deductible for all other windstorm damages
- storm surge coverage up to $10,000,000
In compliance with State bidding law, the City issued a Request for Proposal (RFP) through the City’s Consultant, RWL Group. The property schedule was again updated to reflect all city property at a value of $199,817,882 (less than 1% more than the current schedule).
The RFP requested coverage of the full value of all City property and options for a $50 million and a $60 million limit for a policy beginning April 6, 2018. Initial proposals were received from USI Southwest and the incumbent, McGriff. City staff met with both firms on February 22, 2018 to review their proposals. After meeting with each broker separately, the brokers were asked to provide the various requested revisions to only the $60,000,000 per occurrence limit option. Given the City’s loss history from Hurricane Harvey it was felt the current $60,000,00 per occurrence limit was the correct limit of coverage.
Best and final offers were received on February 28, 2018 and evaluated by the City’s consultant and staff. City staff is recommending the proposal from McGriff for approval. The cost of the policy is $518,963 and would provide the following levels of coverage:
- $60,000,000 commercial property coverage...
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