HomeMy WebLinkAbout1993-10-05; City Council; 12422; Property and Boiler and Machinery Insurance*
a 9 0 lx a.
.. z 0 F 0 4 1 0 z 3 0 0
v ur GAnLaDnlJ - nucw DILL - { -J <?--
DEPT. AB# ’” ”’
MTG. 1015193 INSURANCE CITY A
CITY N DEPT. RM
n PROPERTY, AND BOILER AND MACHINERY
RECOMMENDED ACTION:
85 Approval of Resolution No. 4 3 -’ authorizing (1) the combination of City properties with CM’C
properties for insurance purposes; and (2) the expenditure of $26,231 for property, and boiler ai
machinery insurance for City and CMWD properties in accordance with staff recommendations.
ITEM EXPLANATION
The Property Insurance Policy provides a variety of coverages for the City’s assets. The Boiler i
Machinery Insurance Policy provides coverage for major electrical equipment, boilers, mechanic;
equipment and other similar types of equipment utilized by the City. An itemized list of these c
is included in Exhibit 2.
The current City insurance policies, through insurance broker Cal-Surance, expire October 1, 1‘
coverage was bound pending Council action). Coverage for the CMWD through the California
Municipal Insurance Authority (CMIA), the joint powers authority of which the City is a memb
expires Jan 1, 1994. By canceling the CMWD’s current coverage and combining CMWD proper
City properties for insurance purposes, the type of coverage and the effective dates of coverage
be the same. This would enhance administrative efficiency and ensure consistency in coverage.
result, quotes from CMIA and Cal-Surance for coverage for both the City and CMWD properti
solicited.
CMIA submitted a quote of $42,376 for both CMWD and City properties. This quote is 31% le
the premiums paid last year and reflects both the soft state of the property insurance market ar
ability of a joint powers authority to obtain a lower rate for its members. Since the policy peric
from May 15 to May 15, the pro-rated premium is $26,231 for the period October 1, 1993 to M
1994. The property insurance is provided through the Public Entity Property Insurance Progran
developed by the Robert E Driver company for public agencies. The program provides covera8
to or greater than that of existing policies in effect and is backed by insurance carriers with a r%
A-:XI or better in the Best’s Key Rating Guide. There are currently 21 public agencies in Cali
participating in the program which includes cities, joint powers authorities and special districts.
Boiler and Machinery insurance is provided by the Pacific Indemnity company with a rating of
A+ +:XW in the Best’s Key Rating Guide.
Cal-Surance submitted a quote of $49,501 for City properties alone. The broker was not able
a quote on CMWD properties in time for this report.
The recommended quote is $26,231 for the provision of property, and boiler and machinery in5
for both the City and CMWD, through CMIA for the period October 1, 1993 to May 15, 1994
Cancellation of the current CMWD insurance coverage will result in a refund of $1,906. To ac
monetary savings of insurance through CMIA, as well as consistency in coverage and administr
efficiency in managing the insurance of both City and CMWD properties, requires that the Co
authorize the combination of City and CMWD properties for insurance purposes and the rene
property insiirance in accordance with Staff recommendations.
e .?
PAGE 2 OF BB # 12; c16%
FISCAL XMPACT
The recommended quote is $26,231. A refund of $1,906 for cancellation of existing CMWD cob
reduces the impact to $24,325. Sufficient funds are available in the Insurance Premium Accoun
EXHIBITS
I. Resolution NO. e-28 3
2. Property, and Boiler and Machinery Quotations and Coverage
A
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
U - RESOLUTION NO. 9 3 - 2 8 3
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING THE COMBINATION OF CITY
PROPERTIES WITH CMWD PROPERTIES FOR
INSURANCE PURPOSES, AND THE RENEWAL OF
PROPERTY INSURANCE FOR CITY PROPERTIES
WHEREAS, the City and the CMWD have previously maintained property
iind boiler and machinery insurance for assets; and
WHEREAS, the City desires to combine City and CMWD properties for
.nsurance purposes; and
WHEREAS, the City has received quotations for the continuation of
coverage from Cal-Surance and the California Municipal Insurance Authority; and
WHEREAS, upon evaluation of the quotations for both property and boiler
md machinery insurance, the City desires to renew its insurance through the California
Municipal Insurance Authority.
NOW, THEREFORE, be it resolved by the City Council of the City of
Zarlsbad, California, as follows:
n.
2.
That the above recitations are true and correct.
That the renewal of City property insurance with CMWD property
I I
..nsurance through the California Municipal Insurance Authority is hereby approved and the
Financial Management Director is authorized to issue a warrant in the amount of $26,231
.or the payment of the premiums of said renewals. y
I
I
I
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
20
w w
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 5th
vote, to wit:
day of @X*BER 1993, by the following
AYES: Council Members Lewis, Stanton, Kulchin, Finnila
NOES: None
DSENT: Council Member Nygaard
ATTEST
a&&- A. + ALETHA L. RAUTENKRANZ, City Clerk
I
I
I
I
I
1
I
I
I
1
1
I
1
I
!\
Public Entity
Property Insurance Program
Property Proposal for City of Carlsbad and
Carlsbad Municipal Water District
Presented By:
ROBERT F. DlRNER ASSOCIATES
Ralph S. Hurst
Vice President
>!)IO I~IRCII \IKf I-! Si IIF ?<I) \f\\POKTRE-lCIt C ILIFOK\I\ ~~~O~I-J~II~~
1-I-/i-ih11_7-/ F\Y,714i7FhJ7I;
w 0
PLBLIC ENTXTY PROPERTY mSURANCE mOGmM
PROPEXTI? PROFOSAL FOR CITY OF CARISBAD kryD CAItISBAD MW?4lCIPAL WATER DISmCT
(AS PARI' OF CALFORNIA MZXVICIP~ IhrGURANCE AUTEIORI'I'Y)
"MED INSIIRFD: Public &thy Piupwty lnsumce Program including:
City of Carlsbad and Carlslxid Municipal Water Diarict
moiwsm
EFFJETWE l)AT&t 0ctobc.r 1, 1093 lo May 15, I994 (FWgram runs May 15 to May 15)
NSZrKMCE
CAHRTXW: See Attached Stsucturc
COVERAGE: AI1 Risk of Direct Physical Loss or Damage W Fktrthquake
and Flood
Coverage includes:
1. Weal Property and Personal Pmperty
2, RcntaI Inmine inclirding Bmd Revenue Reqathmctlts
3. Business Interniption (If Values Dwlamd)
4. Bxm Elcpense
5. Valuablc Papn atid Records
6. Accounts Receivable
7. EDP Eq\lJpmenr, Medii and Bxm Expense
8. Own&/Lertscb Vehicles - All Risk and Collision Upat and
9. bnalition and hcmacd Cost of Corlstnlcifm
10. Dcbfis Removal
1 1. Cuitlingeut Liability due to Building codes
12, Transit
13. Architects', Engineers' Fees and Claim Consultant Fces
14. Course of Cotsstruction on Prcmiscs or wicliin 1,0[)8 ft.
15. Mobile Equipment, Contractor Type Eytiiptnent (Xf Values
hlancd)
16, Service Intemption from Public and Prhk Utilities for Gas, Electric, Water and Telmmnlunications (excluding Power Phil
LAXitiOtlR)
Ovcflum on Declared Vehicles
17. Tax Intemption (When kprzcd)
18. Rcplactmm Cost and Agreed Amount
19.90 Day Notice of Cancellation exccpt 10 day9 for Nnn-Payment
2u. Coverage not Confined lo Schedulc (Except Vehicles}
22. Automatic Covcrage - 120 D;cys
23. Expediting Expense
24. Errors ana Otniasions
W 0
CQVWGE 25. Fine Arts CONTINUFJL3r 26. HE Department Servim Charges
28. Joint Loss Agiwmcnt with Boiler Cari-ierCs)
$2SO,OOO,CKx) Loss Limit Per Wurram a11 Covemger exccpt
€Is romws:
27. Vacancy ChISe - lhlated
LTMlTS:
1. Valuable Papem 2s ,000,~
2. Accounts RGceivablc 25,000,rn)
3. Transit 5,m,m
Claim Coiisultant Fees S,ocK),o(>o
6. Fine Arts (klnschcdulcd) ~.W"000
8. Bxpccliting Bxpense SOO,(#M
4. Architects, Engineers and
S. Mobile and Contractor type
Equipment (If V~~IGS mlared) 5 ,uCx),o(lU
7. Servlcc Interruption 5,000,W
9. Barthqulllre AvHilablc
10. PId AvailabIe
Coverage is not confined to lucation xcbcdulc on lift:
(Except Barthquake and Flood Mufit Re. Reported)
UN:DZI'CTIBL;F,: !$ 5,W All Other Pcrils (Includes Vehiclcsj
TOTAL NWWRED
VAJdWIk s 47,925,484
ABfit'AT- COST: $ 38,165 * & ** (Includars premiwm,
tax@ and fem where
applicable and surplus
lines brokerage fees)
PRO-UTA
SIIOKT TERM PZ2-W. $ 23,624 (OCTOBER 1, I993 TO
MAY 15, 19949 *Includes Vehicle Collision Remiurn of $1 1,305 on Declared
Vehicles totalling $2,261,071 In value per schedule submitted can
9/2 1/93.
**Includes Contractors J3pipm.t
e w 1
II
PEPIP CARRIERS
ALLRISKPRIMARYAND I EXCESS PROPERTY
1 I. S5.000.000 PRUMARY/ALL RSK EXCLUDING EARTHOUAKEMLOOD
POLICY COMPANY m BEST RATING CA. STATUS
RLI Ins. co. SFCOO8585 A; M Admitted LexingtonIns. Co. 868 5931 A++; XV Non-Admitted
I
I
I
I
1
1
I
II. %5.OO0.000 EXCESS OF $5.000.000 /ALL RISK EXCLUDING E ARTHOUAKE/F'LOO D
Industrial Indemnity JA912-5662 A-; XV Admitted
Royal Indemnity RHD 400353 A-; XI Admitted
m. $15.000.000 EXCESS 0 F $1O.OOO.OOO/ ALL RISK EXCLUD ING EARTHOUAKE/FLOO D
Twin City Ins. KG 0000256 A+; XV Admitted
Home Ins. @o SPXF 82178 A-; XI AQlitted
Admitted AuianzIns. co. FC5023241 A+; WI
IV. $w.oO0.oO0 EXCESS 0 F $25.OOO.OOO/Au RISK EXCLUDING EARTHOU ~/FLoo D
Fireman's Fund XER2381820 A, XIV Admitted
Agricultural CPP7947282 A, XI Admitted
Navigators %BO80471 A, w Admitted
1 EssexIns. co. LAC 9535 A; VI Non-Admitted
V. $50.000.000 EXCESS OF sSO.OOO.OOO/ALL RISK EXCLUDING EARTHOU AKElFLOO D
Industrial Indemnity N 960 8011 A-; XV Admitted
VI. $100.000- OF SlOO.OOO.OOO/ALL RISK EXCLUDlNG EARTHOU AKElFLOOD I
1
I
1
1
1
Royal Indemnity RHD400355 A-; XI Admitted
Industrid Indemnity Nx 9608011 A-; XV Admitted
Travelen 7XJ'PFF-225" 13- 1-93 A-; XV Admi#ed
VII. SO.OOO.OOO EXCESS 0 F $2OO.OOO.OOO/ALL RISK EXCLUDING EARTHOUAKElFWO D
Travelem 7xTpFF-22sT6143-93 A-; XV AdmittCd
0 w I
I
I CURRENT PARTICIPANTS
I
I
PUBLIC E"Y PROPERTY INSURANCE PROGRAM
NAMED INSUREDS:
Bay Cities Joint Powers Insurance Authority
(includes Cities of: Albany, Emeryville, Hayward,
Monte Sereno, Pleasanton, Piedmont, Redwood City,
Union City and South San Francisco Redevelopment Agency)
City of Burbank
City of Cathedral City
Community Development Commission
city Of COrOM
City of Costa Mesa
City of El Segundo
City of Fontana
City of Fresno
City of Garden Grove
City of Glendale
Wine Ranch Water District
City or Long Beach
City of Modesto
City of Pasadena
City of San Mate0
City sf San Buenaventura
w a 1
1
I
I
I
1
I
I
I
1
PEmP Program - Page 2 -
I City of Santa Ana
City of Smta Barbara
City of Simi Valley
City of Torrance
1
SROR'I'-TERM PREMIUM:
(OCTOBER 1,1993 TO
MAY IS, 1994) $ 2,W7
e2
e Fe T+P .q 1
*.a plm c IC:
1- l,,F VI@
b &$ KAJ 0 t-. -. +ppI b* .= m 0 n c) P- 'Mu i-
ri)' O gla! rr
5 .L *a c. 9)
X lki f 4
wer. 71G3kSg ecr
flcP* . y 5~~:s TZ \'" I; *(. y,, ?E v1c4
I- 6 i*vl B a 1yt.e ??g ? 4E
y PS f
0 w v- L
c
C X
U. Y a U c1 a
la N HmWV
1(
2
0 a IC1 t'
n cr "9 E.
,.
Eii lfi E&74& L% ]E
2;Q f 2 2. lg
a4 ?! h:
news
IF
2: w. a .a -H 0 p f' Irn
c* c a
a+ i
?3@ 'C
rr *' 0
(0
dr, +5
-@Po ."$@=LC7 Orr v rr
% EF: ii '1
: 9b 1'
I h) Y 5%: ig
bI 8 (5 F ** 3
8
!!%E 3¶
K.. cr 1+ iG
12 r.
4 ..
0 OI WLC IC 0
j h,
I 9 W t3 .-.a Q
PI
.I
maor-+* mafi 1vgglJ$
U-4lDW e,?: 0; "S B*c E rn% fl R *, 2 VLa
19Memms *E ,! ??' w vlrgoo
N m 1m u9 e (11- 0 /m z ! 3; 5
4vI F
0% G vc u- IP~c)rrlDWO
:I F:
9
w<:- MU SrPOO
4 al.r %iz
QG g ,@
mw " $a NQI N a '4
! i
6+ *I 4 101 03 e
e w\ -4 0 Ln iQ
*$ m
." Y IQ
mo No I$ w* *c
OW -4F 16
r-4
--w -gr)
10 r((P Ru3 ?to, rho
M 1 & a
1s VI 9." 2:
P 0
Y m (J 12 ; Y ;L 8 ag
% 3 m mg W 0 OI \c, 2 . 2 c
VI rg #.I
a w
9
**
COMPmm-oY-co~. TERMS -
!1,000AllW% er yv ehiclea 5,000 Emer snc Vehiclee $1,000 All Vehietee Vehicle Deductiblee:
Deductible is per Occurrence Deductible ig per Vehicle
Vehicle Cover e for
$20,000: Fd Comprehensive & Collision while parked at covered locationr Iocations.
Hired Vehiciee (if any ) mud Eweraga Provided be reported to carrier 26,000 Limit 1,000 Deductible
Mobile Equipment: $5,000 Deductible $1,000 Deductible
Comparison of Premium Ctany at Renewal: $2,149 Increase $2,806 Daeraaae
(Cam hed with Boiler 8t (7.1% increme) (6.6% decrease)
Machinery )
Fire, Theft & Collieion while parked at covered
Vehicles Value 3 Uuder
Hired Auta Phyaical Damageg:
Vlipd 3Pb IU/P.Wdl
tSC;6Gt7TL 53:A:5 E6/fZ/EB 2QC