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HomeMy WebLinkAbout1985-09-24; City Council; 8339; Renewal of property insuranceQLU gera.Q- zo1 J o oo CimOF CARLSBAD - AGENDAS ILL AR# J^.S'? MTG. P/24/8s' DEPT. RM TITLE: RENEWAL OF PROPERTY INSURANCE x 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. ._&/*?/.__"._ . '..'',' 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1.6 17 18 19 20 21 22 23 24 25 26 27 28 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)