HomeMy WebLinkAbout1980-06-03; City Council; 6266; Renewal of city insurance'.'•'•"-.. .-'•'•..•"' -."'i; '..-:." •'.'',. '••'.:' •'. CITY jOF 'CARLSBAD: •''•.•-/;,":.• ' '
-:'''' '• .:."-:. ' *:' •...• "• " '•'•"-..•'..' :':/v' '' •" •' ' '•'••-.•'•••'.••''':''•!•' '• .
AGENDA: BILL, NO., U> £ & 6 ^' i • Dept. Head
DATE :i' ; .'•.•'•••': June : 3, 1980' ::' 'V "; City At ty..y Mgr-.
.DEPARTMENT':-; '"• '[•• •':• " .'CITY MANAGER.- ^ ..'. ' '" -,; "v ./•. V; '>' ,-. •• ' . : . :; .
-vRENEWAL 'OF CITY' INSURANCE/'
Stateinent. bf^:the; Matter .;
:;'•'•''•. : ' '• '. ''..•.• .V",'" '••"';•'•,"•;•- ••;'•••' :.;;'/:' -\ ••J<', \.'.';'',,-X-.'<
•':.City .insurance , is handled by National Certified,' Inc. with
";; ,of f ices, in Whittier. and Carlsbad. They have been our broker
;''• for the'past, six years.. Attempts by staff to obtain additional
,',;, quotes, have been unsuccessful. For the most, part, insurance '
:;:. jcompanies-have discontinued municipal-'coverage -for. liability \
' . ^insurance. ; .:.'„-.""'••" •'/.: "'. ,. ";• .. • •"•'' -;•'.,• :-'.-.;•-.' ..' •• -. ^ •'.''•'--; .•'-' ':•-, •'. ,.•••;-•. ••.'•.'•.'''
; . On .June 30, 1980, the City's General Liability policy, Water '
• ,. .-Department..Liability Policy,. :Auto Liability, and' Umbrella coverage
.will ..expire. Costs for'this coverage is as follows:
General Liability Municipality '
Limit $2, 00:0, 000: combined single limit (Liability and Property Damage)
-Deductible .$25/000 .;.-••/
.... Annual Premium ': 1-31, 909-. 00 ' : •
;''.Ggn.era-l Liability --Water Department
.Limit .$2 / 000, 000- combined single limit
''•v, Deductible $1,000. '• , . . -
. ' Annual" Premium ' ' $ 33, 544
•Aujo -Liability and Physical Damage
Limit ,$500yOOO combined single limit
^Annual Premium , ;. $ 41,592
• -.' _ '., •••":. ' - -••'-.*.... -f> *• • : _ _ •_ .'•_-.
Umbrella ';" .-.:•' ''•''.-""*" '; --.;•."•
This coverage brings all coverages up to, $5, 000 , 000
"including automobile liability and Errors and Ommissions. : • -..';'
Annual Premium . „ $ 50,000 . •'•• •• ' .' '. •-" :
", "TOTAL -PREMIUM I98"p-8i . :, :; $-257,045 . ; ' .^
Staff is 'pursuing the possibility of joining with several other.
San Diego cities to form a Joint .. Ppwers Authority Consortium
to write insurance." This procedure -is complicated and the .study .,
is .not yet complete. In the event the City joins the consortium,
, a short rate - cancellation would have to be -paid which could amount
to thousands of dollars, for .example: . . '••' • •. '
"•September 1, 1980 .' $ ; 73, 710. 00' . ; • / ' • ;/ . ' . •'.-••
, Jariuary ,1, 1981 , $166,500.00. . ., ':
' •'.'•' •••. • ' •'•'•. ( "• - ' . ' " •' ''':'• : .'.' ''
The January 1,, 1981; date' is the .most probable date for the consortium
to 'be operational. - ' . . - . ;. ; • . '_ , ,'. ...... .;..
Page 2
June 3, 1980
,r
RENEWAL OF CITY INSURANCE
Fiscal, Impact-
Annual expenditure of $257,045. These funds are included in
the 1980-81 budget.
Exhibit
Letter from National Certified, Inc. dated 5-29-80
Recommendation
That Council approve the renewal of the City's present insurance
coverage by minute motion and authorize staff to continue the
Joint Powers Authority study.
Council- Action:
6-3-80 Council ^continued the matter to the next regular, meeting to allow
staff time to evaluate the recent proposals from the broker as to
alternative "deductibles. -
National Certified, Inc.
INSURANCE AGENTS & BROKERS
..;•.- '-SINCE" 1919 . • ..'. •
13026 E. PHILADELPHIA ST.
WHITTIER, CAL 90608 P.O. BOX 1 89
,. (213)698-0691 (213)723-1386
(ORANGE COUNTY) (714)523-7225
7682 EL CAMINO REAL, SUITE 101
CARLSBAD, CAL. 92008
(714)436-2231 (714) 744-4550
-May 29, i 1980
City of Carlsbad (
1200 Elm; Avenue <
Carlsbad; ,CA. 92008 ,
Attention: Mr. William Baldwin ; '
v Assistant City Manager
,Re: Municipality Liability / ;
-Dear Bill:., s ;>:'..'-.:: ' '/'- . •-••'• •; "'.- :' '. •'"-' '
: As per your request, we have again negoitated with our, markets with respects
to reducing the City's liability premium. Please be advised that we were success-
fullin getting a new quote on the primary coverage, which reduces -your premium
;by $29,249.00, which would have the $25,000 deductible on defense. :,•-.'••'
•If you would like to delete the deductible, and have first dollar coverage on defense
the reduction in premium would be $16,120.00, instead of the $29219.00 figure
shown'above.- •.•'.;. ;,:; '•' .-'''•;•''..••." ." '- '•-••„• ' ••"'."'• ' ':., •'•-" " • • ''• • - ' .' '•
,Ajso, Bill, we checked with at least six markets regarding the City's Insurance,
and I would just like to let you know that we were told by all; markets that we
have an excellent quote for; you.
The revised quote for the City, excluding Workers' Compensation is $213,916.00
with $25,000 deductible on defense, or $257,045.00 with" no deductible on defense.
Also, for your information, following on Page 2 is a breadown on General Liability
losses, excluding auto losses and workers' compensatibn losses. '
• < * •• , » • >«,>,•„.„.« ' - * •> • ,' , , • ,' *
' ', * '' *' 4 * , "V ' ' t 4 1 ' f ' ' ! ' ' ' * '• '""''" i * • ' ' ' "' y •'>
-" '/^"""-'.A'"",* \* ''"?"'" ,/*''*'* v ""*'.'" "•' % Page,2'-, \.\, '" l; ^'"'/!',/ y '' '- --' '^/!'"" * T '- ,/"
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Vr '/', ^ ;>",'. ^-" 'GENERAL LIABILITY LOSS EXPEFMENCE: .- '*.;"7 C ^
''5™^ t^ l'!-*1').^ ill j. "* -* -i1^^!*^ ' "i1! '•l-'t-k'j
"1 r- *,, St."* «-** *\. 1'b.f*1 I" ? "* ^ h ' /', '"i'-" "'1 ^
„''* YEAR:
I976',
• '' , *.
;I977,
Vl978.
V "'* \ ^1979 /;,'';'"^r '".'•- v
; /'.^ " ' "Y'rvY^' v"-^\'*
/Bj' M * '• '''*'**>';'*' * ' " ^ f> t *" ' * " **""t;,., 1980,
-*- PREMIUMS PAID: ,-
,' " s, - »/ , - ^~ ' -
;- $82,064.00, -\ ^ '
',."'.*' o - - ,--." -
127,983.00 ' *
,,156,117.00 „ j
/ *, 234,048.'00 „ ' -4
"'''"*' ^," v' " \^',' /'
^'' < * > *< '" * ' " r ^* "*,'
'/!" ',202,'324.00 t,, , > " ^ "'N'
INCURRED LOSSES; '
$49,939.00 .-
- f. •
113,701'. 00 .
492,870.00
9.00 .-> - ' ,23/°f .'
f. • h ' ' \
'. 00 . J « , '
52,243.00 [as of 5/1/80] " r
" / left to- go
-Renewal of 7/1 780 .'
; 7*r ••« '* „: Total Four;Years' Premiums:, f /-'$606,2I2;00 ;,'• ,"£ ''••', - '«//; * '»" ,' *" '*
t/'\'.'""',,*''1 \«^4'l/-i''rf;-Total\FouirJyears'.Losses V'', , ;,,'a $708,J53.00j" , ;,'.' X -4'- ;_"/," '"" %,-
""V'^^^C^'^Pi^^5-'^^-' '••'•' '!V:^>y^Vr- ^J18*1'..,'''*'^* "''"-•':«"'•?';"': -\*/f 1},;'-''."'*:'
''j,'»V ^ Best regard s^4" J?'/>*„•:'' ,' ^J* -/'". r-' '< •- \^-/,--ji.- *'''"- \~ ',«'j', ) >,. " i1/,':-*\t^ '* ^^' %'< ' '
'-• Jim Davis ' ' , *,
- JD:hc :\X« v.