HomeMy WebLinkAbout1985-09-24; City Council; 8339; Renewal of property insuranceQLU
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CimOF CARLSBAD - AGENDAS ILL
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DEPT. RM
TITLE:
RENEWAL OF PROPERTY INSURANCE
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DEPT. Hffytjf-
PITY ATTYW/T
CITY MGR."^g<-
RECOMMENDED ACTION:
, authorizing the City Manager to renew theCouncil adopt Resolution No.
City's property insurance. .r ,
,JTEM EXPLANATION; > ,
The City purchases "all risk" insurance, excluding Earthquake and Flood, on all
City buildings and equipment' at a limit of $12,454,445 from Fireman's Fund. In
addition, the policy includes Data Processing coverage in the amount of $130,400
on equipment, $150,000 on media and $150,t)00 on extra expenses. All losses are
subject to a $5,000 deductible except for the Data Processing losses* which have
a $1,000 deductible. The premium for the property insurance last year was
$12,192. On October 1, the current policy will expire, and the City broker, Cal
Surance, has encountered serious difficulties in marketing the renewal of this
program since few companies will consider insuring any municipal risks.
Fireman's Fund has indicated they will renew1 the current program subject to an
upward adjustment in the premium. No firm quotation has been received, but
indications are" there will be 50% increase in premium costs, bringing the cost
to approximately $18,000.
Following a survey of all companies, the City broker is also working with
Hartford Insurance, Cigna (INA) and Industrial Indemnity Insurance, but he is
doubtful as to whether any competitive quotations will be forthcoming. A
concern with respect to any change in carriers would be the provision of
physical damage coverage on'the City's automobile fleet. Jhis is ^currently
provided by Fireman's Fund under a separate policy, but the company would not
' cpntinue the coverage without the support of the general "property program. The
City broker can find no other carriers who would write this coverage currently.
In view of the. delay in obtaining final figures from the carriers involved, it
is to the advantage of the City to continue to negotiate the renewal right .up to
the renewal date of October 1. It is accordingly recommended- that the City
Manager be given authority to renew at the best premium and terms available at
that date. " "' • • - . ' : ;.
FISCAL IMPACT: , ; ; '; . •" , ;".'"
Funds are -available in the Insurance budget account number 01-19-10-2971 to ."
cover this expense. . • . . \
EXHIBITS; . ... • ' "::; . ; :. :
Resolution No. ._&/*?/.__"._ . '..'','
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RESOLUTION NO. 8191
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING RENEWAL OF THE
CITY'S PROPERTY INSURANCE.
WHEREAS, the City's insurance broker is obtaining quotations for property
insurance; and .
WHEREAS, because of current conditions in the insurance market, all
quotations may not be available until immediately prior to the renewal date;
and
WHEREAS, upon evaluation of the quotations for property 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 insurance in accordance with the best terms
available prior to the renewal date.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the
24tii_ day of September _» 1985, by the following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: None
MARY H. CASLER, Mayor
ATTEST:
LTHA L. 8AOTB4KRANZ,<:eity Clerk
R. KUNDTZ, Deputy
(SEAL)