HomeMy WebLinkAbout1989-11-07; City Council; 10330; Renewal of property insuranceCIT~OF CARLSBAD - AGENDA-BILL
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MTG 11/7/aq
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TITLE:RENEWAL OF PROPERTY INSURANCE
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RECOMMENDED ACTION:
Approval of Resolution No.&('3&@ authorizing the renewal of Property
Insurance Coverage in accordance with staff recommendations at a premium
deposit of $38,350.82.
ITEM EXPLANATION
The current Property Insurance Policy expired on October 1, 1989. New
coverage has been bound pending Council action on the proposed renewal.
The Property Insurance Policy provides a comprehensive variety of coverages
for the City's assets. A list of those coverages is set forth in
Exhibit 2. One significant change in this year's proposal is the expansion
of coverage to include vehicles valued at less than $20,000. In prior
years, only vehicles valued at $10,000 or less were covered under the
Property Insurance Policy. This change effectively reduces the expense
required for such coverage under the Auto Physical Damage Policy.
The recommended renewal quotation is the lowest of the two proposals which
were received. Although the amount of coverage has been increased, the
premium has actually been reduced from that of the prior year.
Previous coverage was provided by Fireman's Fund Insurance Companies. The
recommended renewal proposal is from that same organization. They carry a
rating of ArXIII in the 1989 Best's Key Rating Guide.
FISCAL IMPACT
The recommended renewal proposal is $944.18 less than the alternative
option and $2,976.18 less than the premium paid for the prior year.
Funds are available in the insurance premium account for the payment of the
deposit premium.
EXHIBITS
1. Resolution No.
2. Property Insurance Quotations and Coverages
1 RESOLUTION NO. 89-380
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
continuation of that coverage; and
8 WHEREAS, Upon evaluation of the quote for Property Insurance, the
9 City desires to renew its insurance.
10 NOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad,
11 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 Fund Insurance Companies is hereby approved and the Finance
Director is authorized to issue a warrant for the deposit premium of said
renewal in the amount of $38,350.82.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 7th day of November . 1939,
by the following vote, to wit:
AYES' Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
CLAUDTA. OMIS
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk]
EXHIBIT NO. 2
PROPERTY PROPOSALS
Coverages outlined in schedules attached.
OPTION I
Fireman's Fund (ArXIII)
Annual Premium:
* CIGA:
$37,971.60
379.22
$38,350.82
OPTION II
National Onion Fire (A+:XV)
(American International Group)
Annual Premium;
* CIGA:
$38,906
389
$39,295
Surcharge for participation in the California Insurance Guarantee Fund.
9-29-89/DG:sf
EXHIBIT NO. 2
CITY OF CARLSBAD
PROPERTY COVERAGES
10-1-89/90
$30,343,500 Real & Personal Property - Blanket *
75/000 Rental Income - City Hall
375,000 Rental Income - 2075 Las Palmas
10,000 Cost of Inventory, Appraisal and Adjustment
2,250,000 Valuable Papers & Records - Blanket
517,410 Scheduled Equipment - Actual Cash Value
190,000 Electronic Data Processing Equipment
150,000 Electronic Data Processing Data & Media
150,000 Electronic Data Processing Extra Expense
10,000 Electronic Data Processing Equipment in Transit
1,500,000 Vehicles Valued under $20,000 - Actual Cash Value
Blanket Real & Personal Property
-Agreed Amount, Replacement Cost, $5,000 Deductible
Valuable Papers, Data Processing, Vehicles and Scheduled Equipment
- $1,000 Deductible
"Includes 5% value increase
08-29-89/lsr