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CONSIDERATION AND AWARDING OF BID NO. 1213-17 FOR THE PURCHASE OF BUILDINGS AND CONTENTS INSURANCE AND BUDGET APPROPRIATION.
ACTION NEEDED: Motion to accept or reject all bids meeting specifications; and, if accepted, award the bid in the amount of $109,350 to Affiliated FM as the lowest and best bidder meeting specifications and appropriate $5,350 from the Risk Management Fund Balance (043-0000-253.20-00) to Self Insurance/Liability & Property (043-3004-415.44-03).
ACTION TAKEN: ____________________________________
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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 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 $98,591. The blanket amount requested in the current bid increased from $85,562,993 to $90,303,993 in the current year. This increase was due to the addition of several properties. We requested quotes that are based on a $5,000 deductible, $10,000 deductible and a $50,000 deductible.
The Oklahoma City area was hit with several weather disasters these past few years including a couple of tornadoes, a severe hailstorm, and a flood. 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 (see attachment). Bids were opened on September 6, 2012. One agent, Arthur J. Gallagher ...
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