RES 77185 - Laserfiche WebLink

COOPER P, O. 8ox 10~0 · McKENZIE 78 Mission D~e · MURPHY Pleasanton0 California 94566 Area (415) 846-4423 July 5, 1977 City of Pleasanton P.O. Box 520 Pleasanton, Ca 94566 Attn: Jim Walker Subj: City of Pleasanton - Insurance Renewals - 1977 Dear Jim: Effective 7/1/77, we have placed renewals for co~,ercial insurance providing protection for the City of Pleasanton. Because of the current limited market for insurance carriers willing to write Municipal insurance, the majority of our time was spent in indivi- dual negotiation with the carriers rather than on a broad based insurance bid situation. At this time, practically no Municipal insurance is being placed on a public bid basis. The few carriers providing the coverage would rather negotiate individually on the coverages and premiums. The two policies being renewed at this time were the Special Multi- Peril insurance program and the $5,000,000.00 Commercial Umbrella Liability policy. The Special Multi-Peril policy provides All Pro- perty, Crime and Basic Liability coverages. The Umbrella policy provides all Liability in excess of the basic program. Exhibit I is a breakdown of coverages and premiums for the basic Special Multi- Peril insurance program. Three years ago when this program was last renewed, the estimated annual premium was $38,940.00. The anniver- sary billing, plus audit, in 1976 was'S75,058.00. As you can see, the new revised estimated annual premium is $172,300.00. The reasons for the increase are as ~ollows: The 1976 anniversary billing was an anniversary on a three year policy. Therefore, rates for the various coverages had not been amended since 1974. We have. encountered two substantial rate increases in the Liability coverages since that time. Liability rates for Municipal exposures are up generally 80% to 100%. (1)