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Home My WebLink About1991-10-22; City Council; 11401; Renewal of Property and Boiler and Machinery InsuranceMACHINERY INSURANCE Approval of Resolution No.91 -3c18 authorizing the expenditure of $68,950 for the renewal of property and boiler and machinery insurance coverages in accordance with staff recommendations. ITEM EXPLANATION The current policies expired on October 1, 1991. New coverage was bound pending Council action on the proposed renewals. The Property Insurance Policy provides a variety of coverages for the City’s assets. An itemized list of those coverages is set forth in the attached exhibit. The Boiler and Machinery Insurance Policy provides coverage for major electrical equipment, boilers, mechanical equipment and other similar types of equipment utilized by the City. The recommended quotation for property insurance coverage is $62,443. That is $2,558 higher than that of the prior year. However, coverage levels have been increased and expanded. Other companies declined to provide quotations for coverage because they felt that they could not compete with the pricing provided by Zurich. The recommended quotation for the Boiler and Machinery coverage is $6,507. That represents an increase of $158 from the prior year. The recommended renewal quotations are for the provision of coverage by Zurich Insurance. They have a rating of AXV in the 1991 Best’s Key Rating Guide. FISCAL IMPACT 1. 2. Resolution No. 91 c 348 Property and Boiler Machine Quotations and Coverages 8 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 I.7 18 19 20 21 22 23 24 25 26 27 28 W e RESOLUTION NO. 9 1 - 3 4 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE RENEWAL OF THE CITY’S PROPERTY AND BOILER AND MACHINERY INSURANCE COVERAGES WHEREAS, the City has previously maintained both property and boiler and machinery insurance coverages for its assets; and WHEREAS, the City’s insurance broker has received quotations for the continuation of that coverage; and WHEREAS, upon evaluation of the quotation for both property and boiler and machinery insurance, the City desires to renew its insurance coverages with Zurich Insurance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the renewal of the City’s property insurance with Zurich Insurance is hereby approved and the Financial Management Director is authorized to issue a warrant in the amount of $68,950 for the payment of the premiums of said renewals. I 1 2 3 4 5 6 7 8 9 10 11 12 w )I PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd vote, to wit: day of October 1991, by the following AYES: NOES: None ABSENT: None Council Members Lewis, Kulchin, Larson, Stanton and N: ATTEST 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I I- w w EXHIBIT 2 I' O I 7 4 3 I 4 9 3 3 d 3 a I I 1 PROPERTY & AUTO PHYSICAL DAMAGE RVSURANCE PROPOSU FOR CITY OF CARLSBm PRESENTED TO: MR. ROBERT J. GERMAN 4 RISK MANAGER RENEWAL PERIOD OCTOBER 1,1991/92 PRESENTED BY: BONNIE M. RANDALL, CPCU, AU VICE PRESIDENT I SEPTEMBER 30,1991 TrRkr611 1 CAL-SURANCE ASSOCIATE b) YU-21 4 w w u I 1 1 1 4 I I 1 1 I I 1 1 1 B NAMEDINSURED CITY OF CARLSBAD, CARLSBAD PARKING AUTHORITY, CARLSBAD BUILDING AUTHORITY, AND CARLSBAD HOUSING AND REDEVELOPMENT COMMISSION, CONSISTING OF CARLSBAD REDEVELOPMENT AGENCY AND CARLSBAD HOUSIN I AUTHORITY BHIsr5112 CAL-SURANCE ASSOCIATE 1 9-30-91 1- w w I' 1. I I I I 1,000,000 Extra Expense - Bla d& et Limit 1 4 I I 1 1 1 I I I 1 CITY OF CmSBAD SuMlMARY OF PROPERTYUMTS OCTOBER I, 1991192 $33,843,500 522,000 10,000 Real & Personal Property - Blanket Limit Rental Income - Per Schedule Attached Cost of Inventory, Ap raisal and Adjustment $2,250,000 Valuable Papers & Records - Blanket 517,400 Scheduled Equipment - Actual Cash Value 167,000" Electronic Data Processing Equipment 600,000** Eledronic Data Processing Data & Media 150,000 Electronic Data Processing Extra Expense I 10,000 Electronic Data Processing Equipment in Transit 1,500,000 Vehicles Valued under $20,000 - Actual Cash Value Blanket Real & Personal Property -A eed Amount, Replacement Cost, $5,000 Deductible Equipment $1,000 Deductible Va Y uable Papers, Data Processing, Vehicles & Scheduled *Was $19O,OOO Last Year **Was $150,000 Last Year BR Isr 511 3 CAL-SURANCE ASSOCIATE 940-91 c W e I. I c z I I I 3 a d 0 I I 1 I 8 1 BUILDINGS AND PERSONAL PROPERTY COVERED LOCATIONS: PER SCHEDULE LIMIT OF INSURANCE: $33,843,500 BLANKET LIMIT "ALL RISK" OF DIRECT PHYSICAL LOSS OR DAMAGE SUBJECT TO STANDARD EXCLUSIONS, THE MOST SIGNIFICANT EXCLUSIONS BEING EARTHQUAKE, LANDSLIDE AND FLOOD COVERED LOSSES: DEDUCTIBLE: $5,000 CO-INSURANCE CLAUSE: 90% (SUSPENDED BY AGREED VAL-UE CLAUSE) LOSS SETTLEMENT BASIS: REPLACEMENT COST VEHICLES VALUED AT UNDER $20,000 AT SCHEDULED LOCATIONS: $1,500,000 $1,000 DEDUCTIBLE ACTUAL CASH VALUE PROPERTY AT UNSPECIFIED LOCATIONS: $50,000 $5,000 DEDUCTIBLE 1 PROPERTY IN "SIT: $10,000 BR Isr 611 4 CAL-SURANCE ASSOCIAn B.30-Qt I W tB I I I I I I a I LOSS OF RENTS COVERED LOCATIONS: PER SCHEDULE LIMIT OF INSURANCE: $522,000 COVERED LOSSES: "ALL RISK" OF DIRECT PHYSICAL LOSS OR DAMAGE SUBJECT TO STANDARD EXCLUSIONS, THE MOST S1G"ICANT EXCLUSIONS BEING EARTHQUAKE, LANDSLIDE AND FLOOD DEDUCTIBLE: $5,000 1 CO-INSURANCE CLAUSE: 125% OF ACTUAL RENTS LOSS SETTLEMENT BASIS: COVERS ACTUAL LOSS OF RENTS SUSTAINED DUE TO A FIRE OR OTHER INSURED LOSS I VALUABLZ PAPERS I LIMIT OF INSURANCE: $2,250,000 SCHEDULED MOBILE EQUIPMENT 1 I I I I 1 d LIMIT OF INSURANCE: $517,410 (SEE SCHEDULE) DEDUCTIBLE: $1,000 EMPLOYEES TOOLS: $5,000 DEDUCTIBLE: $1,000 LEASED, LOAMED OR RENTED EQUIPMENT: $100,000 RRJsr 611 6 CAL-SURANCE ASSOCIATE 9-30.*1 I w tB 0 I I I I I 1 4 1 II I I I I I II I EXTRA EXPENSE COVERED LOCATIONS: BLANKET LIMIT LIMIT OF INSURANCE: $1,000,000 COVERED LOSSES: "ALL RISK" OF DIRECT PHYSICAL LOSS OR DAMAGE SUBJECT TO STANDARD EXCLUSIONS, THE MOST SIGNIFICANT EXCLUSIONS BEING EARTHQUAKE, LANDSLIDE AND FLOOD DEDUCTIBLE: $5,000 LOSS SETTLE,MENT BASIS: COVERS ACTUAL LOSS OF EARNINGS SUSTAINED DUE TO A FIRE OR OTHER i INSURED LOSS 40% FIRST 30 DAYS 80% FIRST 60 DAYS 100% OVER 90 DAYS FR Isr 511 6 CAL-SURANCE ASSOCIATE Q.30-9I 1 w w t 1 I I I I B ELECTRONIC DATA PROCESSING HARDWARE $167,000 DEDUCTIBLE: $5,000 $600,000 somm DEDUCTIBLE: $5,000 EXTRA EXPENSE $150,000 I DEDUCTIBLE: $5,000 I TRANSIT $10,000 DEDUCTIBLE: $5,000 II I I I I I I 1 CAL-SURANCE ASSOCIATE! BRJdr 611 7 1 9-30 F1 111 W - I 1 1 I I I I I 1 I 1 1 I I 1 1 BOILER AND MAC-RY COMPREHENSIVE FORM PROPERTY DAMAGE LIMIT: $20,000,000 EXPEDITING EXPENSE 35,000 WATER DAMAGE 35,000 AMMONIA CONTAMINATION 35,000 HAZARDOUS SUBSTANCE 35,000 DEMOLITION/INCREASED COST OF CONSTRUCTION 35,000 INCLUDING PRODUCTION MACHINES AND COMPUTER RECOVERY BASIS - REPAIR OR REPLACEMENT I CONTROLS OF OBJECTS INSURED BUSINESS INTERRUPTION AND EXTRA EXPENSE ($450,000 ANNUAL VALUE) -EXCLUDING ORDINARY PAYROLL -24 HOURS DEDUCTIBLE -INCLUDES PUBLIC UTILITY OBJECTS WITHIN ONE MILS OF CITY 1 PREMISES BR isr 611 8 CAL-SURANCE ASSOCIATE! 9 30-91 I" e I IT I 1 I I 1 f 1 1 1 I ! ! I 1 I AUTO PHYSICAL DAMAGE COMPREHENSNE: COVERAGE FOR OWNED VEHICLES VALUED AT COST NEW $20,000 OR MORE COMPREHENSIVE: 1 DEDUCTIBLE: $1,000 HIRED AUTO PHYSICAL DAMAGE: $20,000 MAXIMUM WAIVER OF SUBROGATION: OCEANSIDE AND VISTA VALUA'MON: ACTUAL CASH VALUE CB RADIO, MOBILE RADIO COVERAGE $500 DEDUCTIBLE NEED SCHEDULE OF VEHICLES WITH THIS EQUIPMENT AND VALUE OF EACH UNIT. INCLUDES COVERAGE FOR SDG&E VEHICLES: 1991 BUICK LE SABRE #0183 1991 FORD TAURUS #7896 BRIsr.5119 CAL-SURANCE ASSOCIATEE i 9-30-0 1 LC *. HZ-'d a- 5 .. hm 5a mu E:u aouu rlw- LC ha) -rl ucrn -a Ha c4 E:a a) sa u am 5m E: om w lorn -4 hm rl a 3arl ~m $4 1 H Nrl nurtz s .z u IiId 5 .a ox ha@ ka-e, 0 ma, u N .. N m: -4 ZJJ k !-I R o E: I -2gs: 223m