HomeMy WebLinkAbout1984-09-18; City Council; 6818-1; Renewal of InsuranceCIT)HF CARLSBAD - AGENDJfcLL. .•^•^v . . • . , • ^^^B .
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TITLE:PROPERTY-AND EXCESS
LIABILITY : INSURANCE , -\. •: '
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RECOMMENDED ACTION:
Adopt Resolution No.
'liability insurance.
ITEM EXPLANATION;
authorizing .'the renewal of ,, property and, excess' " '
Policies providing property insurance and = excess liability 'insurance for the
.City have an .anniversary date of October 1, 1984. Staff is recommending that
both policies be renewed to provide coverage for the year ending October t,' ' ' ' ' " ' ''
property Insurance; •'/.:••' ;>.--••.'.• ;, "• . -"-;'. ', ... •-'' •' '"'•- /.^ ;: -•"./•"' "-, ; ;;.,;._ , • '••->;;.'
The City purchases "all risk" insurance protection through Firemans Fund ; ,:Insurance Conpany on all City buildings and equipment, including, special .'["
coverage for rental income, valuable papers, mobile equipment and data
processing equipment. Based on current replacement costs, the annual renewal
premium for this program is $12,192 compared to last year's premium of $10,811.'
Although renewal with Farmers Fund reflects a 9% rate increase, .this increase is
well below average in the current insurance market.
Liability insurance; . - •;.'-•' : ,f; ; ; ' ;
The City carries $20 million in liability insurance. The City self-insures the
first $50-, 000. Twin City Fire. Insurance Company provides the next $950,000, in
coverage. First State Insurance Company provides the next $ 19. million in
coverage. The policy .with First .State Insurance is' due for renewal on October1
1, 1984. When this, policy was negotiated In 1983,; staff was able to obtain a
renewal commitment, :for the year ending October 1, 1 985 at a I premium of $12,760
'compared to last year's premium of $11 ,600, an increase of 10%. Duplication of
this rate; would- be impossible in todays tight insurance market. : ,;
* ~ - '*•'' •- " . i * ' • ' ' -- ' . • ' ;''-'••' . • '
FISCAL IMPACT; '" : ; ; .-"• ' ' - •; ;" .' ' ••' '
The cost of the premiums for. property and, excess liability insiarance total
•$:24, 952. Funds are available in the Insurance Funds to cover this expense. . -
EXHIBITS; " • ' ' ."';•'-" '.'.'."• ,'"". ••' V . ''-'•'".' •''" " "•'•'''''.•'.''" "'" [ '• ' '••-^•" '"•'..'-•'.•
•. 1. .;• Resolution No. ' ' '
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RESOLUTION NO. 7751
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING RENEWAL OF THE
CITY'S PROPERTY AND EXCESS LIABILITY INSURANCE.
WHEREAS, the City's insurance broker has received quotes for property and
excess liability 'insurance; and
WHEREAS, upon evaluation of the quotes for property and excess liability
insurance, the City desires to renew its insurance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the City Manager is hereby authorized to enter into an agreement
for renewal of the City's property and excess liability insurance with Fireman's
Fund Insurance Company and First State Insurance Company.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the
18th day of September , 1984, by the following vote, to wit:
AYES: Council Members Casler, Lewis, Chick and Prescott . .
NOES: None .
ABSENT: Council Member Kulchin
MARY H. CSLER, Mayor
ATTEST:
A.
ALETHA L. RAUTENKRANZ, City ClerkT
(SEAL)