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HomeMy WebLinkAbout1987-10-20; City Council; 8339-2; Renewal of property insuranceOF CARLSBAD - AGEN[~ BILL Am* VSZl-^Z. MTG. 10/20/87 DEPT RM TITLE: RENEWAL OF PROPERTY INSURANCE DEPT. H CITY AT CITY MC D*^^ TYV^B) SR^_ oUJ Occa.a. Oo RECOMMENDED ACTION: Approval of Resolution No. 9-?£*J authorizing the renewal of the Property Insurance Coverage in accordance with staff recommendations at a premium deposit of $39,384. ITEM EXPLANATION: The current Property Insurance Policy expired on October 1, 1987. It has been extended pending Council action on the proposed renewal. The Property Policy provides a comprehensive variety of coverages for the City's assets. The coverage has been provided by the Fireman's Fund Insurance Companies. That organization carries a rating of A:XIII in the 1987 Best's Key Rating Guide. The renewal quote has remained in line with the coverage provided because of the stability in the market place for this type of coverage. The premium has actually been reduced by $111.00 as compared to FY 1986/87. FISCAL IMPACT: The recommended renewal proposal contains a premium reduction of $111.00 from the FY 1986/87 cost. Some adjustment increases will take place during the year when the premium calculations for newly added facilities, such as Stagecoach Park, are completed. However, those increases should be very minimal in size. Funds are available in the Insurance Premium Account for payment of the deposit premium. Any additional premium adjustments will be made only when new facilities are added to the policy. EXHIBITS: 1. Resolution No. 2. Letter from Cal Surance Associates dated 9/28/87 1 RESOLUTION NO. 9263 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING RENEWAL 3 OF THE CITY'S PROPERTY INSURANCE COVERAGE 4 WHEREAS, The City has previously maintained Property Insurance 5 Coverage for its assets; and 6 WHEREAS, The City's Insurance Broker has received quotes for the 7 continuation of that coverage; and 8 WHEREAS, Upon evaluation of the quote for Property Insurance, 9 the City desires to renew its insurance. 10 NOW, THEREFORE, BE IT RESOLVED by the City of Council of 11 Carlsbad, California, as follows: 12 i. That the above recitations are true and correct. 13 2. That the renewal of the City's Property Insurance with Fireman's 14 Fund Insurance Companies is hereby approved and the Finance Director 15 is authorized to issue a warrant for the premium of said renewal in the 16 amount of $39,384. 17 /// 18 /// 19 /// 20 /// 21 . /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 20th day of October , 1987, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None CLAUD!LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clferk CAL-SURANCE ASSOCIATES, INC. September 28, 1987 Robert German Risk Manager City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 RE: Property Insurance Firemans Fund Insurance Company Policy #MXX6317720 Renewal Effective: October 1, 1987 Dear Bob: The captioned Property policy for the City of Carlsbad written through Firemans Fund Insurance Company is due to renew on October 1, 1987. As a result of your assistance in updating values, we were able to obtain the following quotation from the Firemans Fund for renewal: $39,384. Last year's premium, for comparison purposes, was $39,495. This quotation is for the following coverages and limits: COVERAGE LIMIT Real & Personal Property - Blanket $26,000,074 Rental Income (City Hall) 72,000 Rental Income (2075 Las Palmas) 354,000 Cost of Inventory, Appraisal & Adjustment 10,000 Valuable Papers 2,130,157 Contractors Equipment Floater 725,639 Electronic Data Processing - Equipment 181,200 - Data & Media 150,000 - Extra Expense 150,000 Automatic Transit Coverage 10,000 All losses are subject to a $5,000 deductible, except Valuable Papers, Electronic Data Processing and Contractors Equipment Floater losses, which are subject to a $1,000 deductible. A Member of the Cal-Surance Group Mailing Address P.O. Box 3459, Torrance, CA 9O51O 279O Skypark Drive, Torrance, CA 9O5O5 (213) 53O-5555 LA. (213) 772-3151 Robert German September 28, 1987 Page two The quote also provides coverage on all vehicles under $10,000 on premises only, excluding collision coverage, subject to a $1,000 deductible. Prior to expiration, please advise of your renewal instructions. Sincerely, v Marie Wright Account Administrator MW:lsr