HomeMy WebLinkAbout1986-04-05; City Council; 8575; Automobile physical damage insuranceOF CARLSBAD — AGEN BILL
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AUIOMOB1LL PHYSICAL DAMAGE INSURANCE
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CITY ATTY
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RECOMMENDED ACTION:
Approve Resolution No.authorizing the purchase of physical
damage insurance on the City automotive fleet at an 'annual premium of $10,620.
ITEM EXPLANATION
The City currently insures all City vehicles costing $10,000 or more. for
comprehensive and collision damage both on the road and on City premises for
current cash values. Current insurance which is provided by Fireman's Fund
Insurance Company expires on April 16, 1986.
Since this insurance was renewed last year for an annual premium of $11,4-25, the
number of Vehicles has increased from 21 to 4-4-.. In addition, insurance rates
have increased substantially. The current carrier, Fireman's Fund has provided
the only available renewal quotation, and to duplicate the current program which
carries a deductible of $1,000 the annual quoted premium is $37,620.
The City's experience with respect to collision loses has been extremely good,
and, during the last four years accidents have been restricted to minimal damage
within the City's insurance deductible. As a result of this good experience and
the significant premium increase, staff is recommending that the City purchase
only .physical damage insurance and delete collision coverage. The effect of
this change is that the City will pay for all repairs to our vehicles if we are
liable. The major exposure faced by the City under this plan would be damage,
destruction by fire or vandalism of a number of vehicles parked at the same
location.
Deleting collision coverage from the renewal program would result in a savings
of $27,000. Comprehensive coverage subject to a $1,000 deductible has been
quoted at $10,620. Staff is recommending acceptance of this quotation which
offers protection against any major catastrophy.
FISCAL IMPACT
Funds are available in the Insurance Budget Account No. 001-19-10-2971 to cover
this expense.
EXHIBITS
1. Resolution No.& \
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RESOLUTION NO. 8481
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING PURCHASE OF
AUTOMOBILE PHYSICAL DAMAGE INSURANCE.
WHEREAS, the City's Insurance Broker has received
quotations for automobile physical damage insurance; and
WHEREAS, upon evaluation of"the quotations received, the
City desires to renew for loss or damage to the City's automotive
fleet.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
Carlsbad, California, as follows:
1. That the above recitation's are true and correct. * -
2. That the Finance Director is hereby authorized to
issue a.warrant for the purchase of the City's automobile physical
damage insurance in an amount not exceeding $10,620.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 8th day of £?rj4 ,1986, by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT:" None
MARY H. JESTER, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ , 'City CTJerk
(SEAL)