HomeMy WebLinkAboutNB1- Rick Management CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: BARBARA DILLON Subject: PROPERTY INSURANCE
RENEWAL
Dept: RISK MANAGEMENT
Date: MAY 23, 1996
Synopsis of Previous Council Action:
On May 22, 1996, the Ways and Means Committee recommended approval of a renewal with
Rollins Hudig Hall/Aon Risk Services, Inc., for City property insurance and instructed staff to
proceed with a reevaluation of the insurable values to determine any potential savings.
Recommended Motion:
That the Mayor and Common Council approve a renewal with Rollins Hudig Hall/Aon Risk
Services, Inc., in the not-to-exceed amount of $332,209.78 for City property insurance, and
authorize payment of said premium, and that the City's budget be adjusted accordingly.
Signature
Contact person: Barbara Dillon Phone:
Supporting data attached: Yes Ward:
FUNDING REQUIREMENTS: Amount: $137,209 78
Source: (Acct. No.)_629-453-5161
(Acct. Description)
Finance-
I Z I
Council Notes:
Agenda Item No. l��
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
The contract with Rollins Hudig Hall/Aon Risk Services, Inc., is currently in the fifth year of
a five-year agreement, scheduled to expire at the end of April 1997, at which time Risk
Management staff will then seek new Requests for Proposals. Risk Management negotiated the
property insurance renewal premium with Rollins Hudig Hall to be effective May 1, 1996
through April 30, 1997, in the amount of $332,209.78. However, at the May 22, 1996 Ways
and Means Committee meeting, staff was instructed to reevaluate the insurable values and
possibly reduce any values not worth insuring. At this time, staff has determined that some
property can be eliminated from the insurable values (see attachment 1).
The property insurance premium payment for May 1, 1995 through April 30, 1996, was
provided for in the City's adopted Fiscal Years 1994-95 and 1995-96 budgets and was paid in
monthly installments at an interest rate of 4.98%. Now it has been agreed upon that the
property insurance premium for May 1, 1996 through April 30, 1997, will be paid in total by
May 31, 1996, prior to the adoption of the City's budget for Fiscal Year 1996-97.
Staff is seeking approval of a renewal with Rollins Hudig Hall for the property insurance
premium at the not-to-exceed amount of$332,209.78, authorization to pay said premium, and
an adjustment to the City's fiscal year 1995-96 budget. The total premium will be adjusted and
reduced by $16,359 based on the final determination of insurable values (see attachment 2).
However, the insurance policy was scheduled to expire on April 30, 1996, with a 30-day
extension granted. For this reason it is recommended that the motion be approved with the
understanding that the premium will actually be lower than $332,209.78.
Based upon the foregoing, staff recommends adoption of the form motion.
Attachments
r,DD Attac
hment 1
titit _ �H�
C I T Y O F
an bernardino
O F F I C E O F T H E C I T Y A D M I N I S T R A T O R
R I S K M A N A G E M E N T D I V I S I O N
May 23, 1996
Rollins Hudig Hall
621 East Carnegie Drive
Suite 260
San Bernardino, California 92408
Attention: Mr. Ken Staley
Dear Ken:
Pursuant to our meeting of May 22, 1996, the following properties
should be removed or reduced from the City's property list
insurable values for 1996-97:
Property Prior Insurable Corrected
Value Value
Building office
599 N. E Street $1,884,219 -0-
Theater/Office/
Mercantile 368, 362 -0-
Drill Tower 35,755 -0-
Search & Rescue 216, 592 -0-
Ceramics Shop
Perris Hill Park 67, 971 -0-
Garden Paper
101 South IIG11 151, 777 -0-
Garden Paper
Office 74 , 561 -0-
3 0 0 N O R T H D S T R E E T S A N 8 E R N•A R D I N O ,
C A L I F O R N I A 9 2 4 1 8 - 0 0 0 1 ( 9 0 9 ) 3 . 4 - 5 3 0 •
Sturges Auditorium 1, 736, 257 -0-
Sturges Auditorium
-Gazebo 14, 673 -0-
Yachini School
101 North "I" 552, 805 -0-
Additionally, the following property should have been removed
from the City's 1995-96 insurable values:
Old police
headquarters $2, 662, 531 -0-
Please recalculate the City's insurance premium based upon these
corrected values. Pending approval by the Mayor and Common
Council, a City check will be issued for the total amount of
$332,209.78, less the credit adjustment resulting from the
corrected values.
If you have any questions, please call me or Fred Wilson. Thank
you for your cooperation.
Sincerely,
Barbara Dillon
Acting Director of Risk Management
BD/mf
Attachment 2
AmvAon Risk Services
May 23, 1996
Barbara Dillon, Acting Director of Risk Management
City of San Bernardino
300 No. "D" Street
San Bernardino, Ca. 9241$-0001
Pe: Property Insurance Value Adjustments
Dear Barbara:
Thant`you for your faxed letter dated May 23, 1996 outlining the changes to value on the City's
property inventory. The total value of your adjustment is $3,177,927. In addition to these adjustments,
I found other reductions possible on your automobile schedule. These adjustments are possible since
the vehicles are insured at "actual cash value" rather than replacement cost. Accordingly, with the
adjustments in your letter and the aLliustruents on the auto inventory,the total reduction in value for
the city is $7,745,077.
Asa result of this $7,745,077 reduction,the City is entitled to a premium adjustment. The premium —
reduction for this value reduction will be approximately $16,359. Accordingly,your net premium will
bd reduodd from $33?,308.75 to Y31 ,gC0.7s. Thiv, rcduotioM will be realized by an endorsement to
the current policy. This endorsement normally takes approximately 30 days to be issued. Accordingly,
vur invoice for this returned premium will not be issued until the endorsement is received.
It is hoped this detail is helpfid and will answer any questions the Council may have. Please advise
ohould you require additional inforitiatiatt or asgistance. —
Sincerely,
l:anndn B. StaI e, -
Senior Vice President
Aors Inc. Of C..re'tf,n:t: L:.::r;zr:a.lerti:e • Fr.rn:er�j t�ol�ire!Ht `!i.i;6;'S&ia&,,n
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