HomeMy WebLinkAbout1985-03-12; City Council; 8085; Renewal automobile InsuranceA
CITYW CARLSBAD — AGENDA0LL
MTG-t 3/12/85
PFPT RM
TITLE:
RENEWAL OF AUTOMOBILE
PHYSICAL DAMANGE INSURANCE
DEPT.
CITY ATTY.
CITY MGR.
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RECOMMENDED ACTION:
Approve Resolution' No.authorizing the ourchase of physical damage
insurance on the City automotive fleet at an annual premium not to exceed
.$11,425.'
ITEM EXPLANATION ' •
The City partially self-insures for damage to City vehicles. Vehicles costing
$10,000 or more are insured for both comprehensive and collision damage both on
the road and on City premises for current cash values.
The City purchases comprehensive physical damage coverage on vehicles costing
undert $10,000, while they are on City premises. Damage to these vehicles
occu'ring while on the road can more economically be "assumed under the City's
self-insurance program. This cov.erage is required to protect against a possible
catastrophic loss involving a number of vehicles parked at the same City
location. , -.
Current policies providing this protection expire on March 16, 1985.
Present Coverage -
, Carrier
Twin City
Twin City
Vehicles under $10,000
Vehicles over $10,000
Deductible
$250
$500
TOTAL
Premium
$1,160
$3,840
$5,000
Recommended Renewal Effective March 16,-1985
Carrier
Vehicles under $10,000 Fireman's Fund
Vehicles over $10,000 Fireman's Fund
Deductible
$1,000
$1,000
Premium
$ 1,425
$10,000
TOTAL $11,425
The substantial increase in premium costs is indicitive of the current crisis in
insurance markets. No company would quote at a deductible below $1,000, and
increasing the deductible to $5,000 would result" in a savings of only $2,608.
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Alternative Quotations
An alternative quotation has been received from Planet Insurance at a premium
$669 higher than the Fireman's Fund. A further quotation is anticipated from
Harbor Insurance Company which will be submitted to Council if and when it is
received. The City broker could locate no .additional markets which were
prepared to quote on this renewal. _
FISCAL IMPACT . .
Funds are available in the General insurance account to pay this premium.
EXHIBITS . '
Resolution No.
RESOLUTION NO. 7928
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WHEREAS-, the City's Insurance Broker has received
quotations for automobile physical damage insurance; and5
WHEREAS, upon evaluation of the quotations received, the6
_ City desires to renew for loss or damage to the City's automotive
fleet .
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NOW, THEREFORE, BE IT RESOLVED by the City Council of
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING PURCHASE OF
AUTOMOBILE PHYSICAL DAMAGE INSURANCE.
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Manager is hereby authorized to execute
a Purchase Order for the purchase of the City's automobile physical
damage insurance in an amount not exceeding $11,425.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 12th day of March ,1985, by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Chick and Pettine
NOES: None .
ABSENT: Council Member Kulchin
ATTEST:
MARY H. CASLER, Mayor
AL/THA L.J^AUT-ETNKRANZ", City Clerk
R. KUNDTZ, Deputy City Clerk
(SEAL)