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Home My WebLink About1980-07-01; City Council; 6266-2; Renewal of city insurance;CITY OF CARLSBAD • .AGENDA..BILL NO. 6266 Supplement No.. 2 : ;T'';:J : ' '-.'. Initial: •:'" ; ;'•.;'-:•''.'" •• • X.:.-V . • •'• ;; • '..'-'• -^V. • ;•. - •'• . -.-'••:'.';'"'":'' vx;Dept.Hd.:,DATE: V : ; : July 1, 1980 : ;--; :" ' : "•'. '•£'£ DEPARTMENT CITY MANAGER ' C. Mgr. Subject: RENEWAL OF, .CITY INSURANCE Statement of the Matter. .;//;V:.;-, "\'; •'";"'/-''• v,: . '-' ".'' -•:', '^-X;-'y^: ••'":-i'"'•••:''-• ''•> X ;'':- " :••""• City insurance is handled by. National: Certified, Iric. .with off ices; V; C , 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 companies have discon- : .'. tinued municipal coverage for , liability insurance. •:/" >^:; ; ;••'•.'.'.--;\ ...,On-June 3d', 1980, the City's General. Liability policy, Water Depart- . ment; Liabi lity Policy, Auto Liabil i ty, and Umbrel la- cover age .-will- •-.- .i ; - ..'.•-. expire. .Costs ":for this coverage is as follows: .. ;J, " v J^r:-'-•>:," ,- General Liability Municipality . v .;'r'.V',; '' : : '.'.','-•";;: ;'•••-;. / ?; . ' :; • ; ' Limit $2,000, 0.00, combined single limit (Liability and: Property Damage) . :/,-'. :;•.. .-.-Deductible $10,000; • '..-'•-;"'.-;; '- -•.-••- :" -.;'. '- /..'' -: • •'/ / :'v'-;.':•:;,. : :- : .... '^-. ~',^'.:^:-•':•-. .-•";. > ; Annual Premium ' ,.''\ $140,'60,0. 00.".,-. : w ; •;%::,. • <- :; , : ' ; :V!;' ••-••: .General Liability - Water Department .'.,•.'•'": •'•' .^v'"'''"^''.C'-^ ••'•.'•: ' ^"': '-v><••.;> : ;; .-":. Limit $2, 000, 00:0 combined ;single limit '• ... : " ;•;'; y ; -.-:", ' " :• •-•''-. ;• .' :x :" .; ;•/'•;: Deductible $1,000 l---::/:-I: •;.:"••'.; •; :: -,:' '..'- •'.';'.'; - -;,."' ; ::. v. V-';:/-;,'.-' •'•'•.•..'':/;. ••';-:.'^.Vv-'!;.' ^^':,'', ....,' v :: Annual Premium" ."• v v : :$33, 544 /*:'.''• :}'"'^ .:••"" :••']'.. • Xv^/--'/\.;--:^V,::-.' .'':;••:"'7-.'V''^ Auto/Liability and Physical Damage :.. r : , ^ •-.' ; = ::. •/ : ,'"•:,' "" 1"".-. •:.- •• V ;- -^f ,: . "..':. Limit $501)0,-0.00 combined single limit ',, ^ : ° : ;- " - ;.3 ! ..•f - .,: .--.Annual /Premium '--•;--';::/ $41,592 ..•-,' '•'•>..•':':•;.- '.,--.''"•"-''• '•";;"'':''.-•'.•!;.:';., '';•.-•• '^. .•"^••'-i..^ ' Umbrella .'"•' '•'.--/•:"'• -\:;-v: :/-:'.-v'"V.i-" : ; • •• '.•••'''''''•'-"" •'••-.-.•''': •'.-'' -"."'''•.' \ : '•'•--.'.'••'. *''.-:v--.' '•i.~-:'---;i-''•,,'-•"''^'' ';•• - This coverage brings -all coverages up, to $5,000,000 'including '";; :: :;. : " automobile "liability and' Errors and Omissions. .:/ ,';-•, >/ ;.; ;: ;?r;V;-;: ''. •/-,", v Annual Premium - ;"-':"•:.'. '$5'0,000 ....-c' : :,:,- \ ': •V''/":-1"'.7^:-.''-"'>"/ /'••/>.-;:-;;.-';:V '"'<.' - -TOTAL . PREMIUM 1980-81 '•";• '•(•; '^^'^ :• .;„' • / •/'.;•:» $265,136 ! x ^'^•'.. .!" •>; ; >'i;-'.•"•. :;.:'." :??^ , Staff is pursuing the possibility of joining with several other/San. Diego cities to .form a Joint Powers Authority Cdnsoftium to, xvrite ;v v . insurance..:. This procedure is complicated arid, the study, is not yet ,-; complete. January 1, '1981 date/is the most probable date for the ' ^ '..consortium to be operational. The City's broker has agreed to a- ::: . .•prp-.rata cancellation. ,!/•:". '•".•.'.'•'.•'• / •• -. - - ' '. •'. .••-•: ' . ; Page 2 July 1, 1980 RENEWAL OF CITY INSURANCE Fiscal Impact . Annual expenditure of $265,136. These funds are included in the 1980-81 budget. Funds are budgeted to pay liability claims that are within the $10,000 Deductible in the amount of $25,000. Exhibit , Letter from National Certified, Inc. dated 6/2/80, Revised Renewal Quotations. . Letter from National Certified, Inc. dated 6/16/80, Loss Settlement. Letter from National Certified, Inc. dated 6/19/80,.Loss Experience. Letter from National Certified, Inc. dated 6/23/80, Pro-Rata Cancellation. Recommendation . . That :Couhcil::approv.e the renewal of the City's present insurance coverage by minute motion and authorize staff to continue the Joint Powers Authority study. Council Action: . . 7-1-80 Council approved staff recommendation.