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 $ 550,269.30 (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 $518,963 and expires April 6, 2019.
The current policy provides the following levels of coverage:
- $60,000,000 commercial property coverage
- $199,817,882 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
$200,390,657 (approximately .287% more than the current schedule). The RFP requested coverage of the full value of all City property and options for a $60 million limit for a policy beginning April 6, 2019. Four agents inquired about the RFP; however, only one response was received and that was from the incumbent broker, McGriff.
Following the close of the RFP, City staff met with the broker on February 18, 2019 to review its proposal. Primary areas of negotiation were deductibles and pricing. McGriff was asked to provide various requested revisions to the two options offered, $60,000,000 and $70,000,000 per occurrence limit options.
Best and final offers made by McGriff included a reduction in its pricing by a little over two percent from its initial offering, resulting in an increase of 6.03% over last year. Staff is recommending approval of this offer, as recommended by RWL Group. Their final offer is $550,269.30 with the following levels of coverage:
- $60,000,000...
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