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CONSIDERATION AND AWARDING OF BID NO. 1314-13 FOR THE PURCHASE OF BUILDINGS AND CONTENTS INSURANCE.
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BACKGROUND: The City of Norman self-insures against most risks (i.e., workers compensation, vehicle/equipment damage, employee health benefits, tort claims, etc.) but historically has purchased insurance to cover casualty losses to City buildings and contents. This insurance is purchased in a blanket amount but is limited to agreed-upon values of independent buildings and contents, and is subject to a deductible. It is important to note that contents include electronic data processing equipment.
The City of Norman has bid out its buildings and contents insurance through the competitive bid process. This year invitations to bid were extended to nine vendors. Last year's premium for this insurance was $109,350. The blanket amount requested in the current bid increased from $90,303,993 to $95,841,860 in the current year. This increase was due to the addition of several properties. We requested quotes that are based on a $10,000 deductible, $20,000 deductible and a $50,000 deductible.
The Oklahoma City area was hit with several weather disasters these past few years including the large tornado that struck Moore in May 2013. In addition, this region of the country has experienced several severe natural disasters. Insurance payouts on these disasters reached in the billions.
DISCUSSION: Bids were mailed to nine different brokers/agents. Bids were opened on September 5, 2013. One agent, Arthur J. Gallagher Risk Management Services (Arthur J. Gallagher), submitted a bid from two different carrie...
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