HomeMy WebLinkAbout1994-06-07; City Council; 12721; Property and Boiler and Machinery Insurancez % a <
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AB#.-- TITLE: DEPT. I
CITY A
DEPT. RM INSURANCE CITY M
PROPERTY, AND BOILER AND MACHINERY MTG.~~LPL
RECOMMENDED ACTION:
Approval of Resolution No. 9 4-1 ~bauthorizing the expenditure of $40,725 for continued
participation in the Public Entity Property Insurance Program.
ITEM EXPLANATION
On October 5, 1993 Council and the Carlsbad Municipal Water District (CMWD) Board
approved the placement of the City's and CMWD's property insurance with the Public Entity
Property Insurance Program, a program developed by the Robert E Driver company for
public agencies. Coverage under this program was purchased through the Public Agency Risk
Sharing Authority of California (PARSAC), the joint powers authority of which the City is a member. This action authorized the pro-rated payment of $26,231 for the period October 1,
1993 to May 15, 1994 based on a quote of $42,376 for the policy period of May 15, to May
15.
The actual premium to renew the property insurance for the period May 15, 1994 through
May 15, 1995 (coverage was bound pending Council and Board action) through PARSAC is
$40,725, 3.9% less than the annual premium quoted last October. This is based on both the
continued relative softness of the property insurance market and the ability of the members of
the Public Entity Property Insurance Program to attract competitive bids as a group.
Staff recommends renewal of the City's and CMWD's property insurance under the Public
Entity Property Insurance Program through PARSAC. Continued coverage under this
program will be evaluated annually with a staff recommendation to Council and the Board
accordingly.
F'ISCAL IMPACT
The property and boiler and machinery insurance premium is $40,725. Sufficient funds are
available in the Insurance Premium Account.
EXHIBITS
1. Resolution No. qq-l'db
2. PubIic Entity Property Insurance Program Property Proposal for City of Carlsbad (as
part of PARSAC)
3. PEPIP Boiler and Machinery Program Proposal for PARSAC (CARLSBAD)
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bayment of the premiums of said renewals.
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e 0 EXHIBIT
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM
PROPERTY PROPOSAL FOR
CITY OF CARSLBAD
(AS PART OF PARSAC)
NAMEDINSURED: Public Entity Property Insurance Program including:
City of Carlsbad
May 15, 1994 to May 15, 1995 POLICY TERM:
INSURANCE
CARRIERS: See Attached Schedule
COVERAGE: All Risk of Direct Physical Loss or Damage excluding Earthquakt
and Flood
Coverage includes:
1. Real Property and Personal Property
2. Rental Income including Bond Revenue Requirements
3. Business Interruption (If Values Declared)
4. ExtraExpense
5. Valuable Papers and Records
7. EDP Equipment, Media and Extra Expense
8. Owned/Leased Vehicles - All Risk and Collision Upset an
Overturn on Declared Vehicles
9. Demolition and Increased Cost of Construction
10. Debris Removal
11. Contingent Liability due to Building Codes
12. Transit
13. Architects’, Engineers’ Fees and Claim Consultant Fees
14. Course of Construction on Premises or within 1,OOO ft.
15. Mobile Equipment, Contractor Type Equipment (If Valut
Declared)
16. Service Interruption from Public and Private Utilities fc
Gas,Electric, Water and Telecommunications (excludir
Power Plant Locations)
17. Tax Interruption (When Reported)
18. Replacement Cost and Agreed Amount
19. 90 Day Notice of Cancellation except 10 days for No
Payment
(r 6. Accounts Receivable
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Cadsbad Proposal
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COVERAGE
C0"uED: 20. Coverage not Confined to Schedule (Except Licensed Vehicle
21. Automatic Coverage - 120 Days
22. Expediting Expense
23. Errors and Omissions
24. Fine Arts
25. Fire Department Service Charges
26. Vacancy Clause - Deleted
27. Joint Loss Agreement with Boiler Carrier(s)
LIMITS: $500,000,000 Loss Limit Per Occurrence ail Coverages excel
as follows:
1. Valuable Papers 25,000,000
2. Accounts Receivable 25,000,000
3. Transit 5,000,000
4. Architects, Enginen and
Claim Consultant Fees 5,000,000
5. Mobile and Contractor type
Equipment 5?~?~
6. Fine Arts (Unscheduled) 1,000,OOo
7. Service Interruption 5,000,000 8. Expediting Expense 500,000
9. Newly Acquired Locations 5,000,000
(Except Earthquake and
Flood must be Reported) I
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I DEDUCTIBLE: $ 5,000 All Other Perils
i- 5,000 Vehicle Collision
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TOTAL INSURED
VALUE: $ 52,876,064
ANNUAL COST See Attached
(Includes premium,
taxes and fees where
applicable and surplus
lines brokerage fees)
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PEPIP BOILER AND MACHINERY PROGRAM
PROPOSAL FUR PARSAC (CARISBAD)
INSURANCE COMPANY: American Manufacturers Mutual Insurance Company
(Kemper Group)
A, Excellent; Class 14
Policyholders' Surplus of
$1,500,000,000 to $2,000,000,000
BEST'S GUIDE RATING:
CALIFORNIA STATUS: Admitted
POLICY TERM:
COVERAGE Comprehensive Coverage including Production
Machines. This coverage follows the All Risk Property
Policy form and covers perils which are normally
excluded.
LIMITS: $ 50,000,000 Combined Limit including
May 15, 1994 to May 15, 1995
Property Damage, Business
Interruption and Extra Expense
$ 1,000,OOO Increased Cost of Construction
$ 100,000 Applies to the following:
.Expediting Expense
*Ammonia Contamination
*Water Damage
Consequential Loss
*Hazardous Substance Clean-up
VALUATION: Repair or Replacement except Actual Loss Sustained fo
all Time Element Coverages
JOINT LOSS AGREEMENT: Included
MAJOR EXCLUSIONS
(but not limited to): Earthquake Resultant Damage
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B&M Proposal
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PROPER'N DAMAGE
DEDUCTIBLES: $ 5,000 All Objects except:
$ 50,000 All objects over 350 H.P. or 2,500
KWKVNAMPS or 10,OOO square
feet
$ 250,000 AU Objects over 750 H.P. or 10,ooC
KW/KvNAMPS or 100,OOO square
feet
TIME ELEMENT
DEDUCTIBLES: 30 Days for Revenue Bonds
24 Hours All Objects except:
5 X 100% Daily Value AU Objects over 750 H.P.
or 10,000 KWKVNAMPS OR 10,000 square feet;
All objects at Waste Water Treatment Facilities,
Utilities and SERRF
See attached worksheet for individual premium and cost
comparison
PREWIUM:
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PARSAC (CARLSBAD)
NEW ANNUAL PREMIUM: $3,173
SHORT RATE
CURIU%NT CANCELLATION
PREMIUM: $ 4,211 PENALTY: $
ANNUAL NET INITIAL
SAVINGS: $ 1,038 SAVINGS: $ 1,038
CANCELLATION CREDIT: $
AMOUNT DUE 05/15/94: $ 3,173
NATURAL EXPIRATION DATE:
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PRO RATA AIIDITIONAL PREMIUM: $
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p- fwa-iofl Amwnt
Property Annual Premium for Participation
in the Public Entity Property
Insurance Program $37,552
Please send remittance, along vith
a copy of this invoice, to below
address no later than June 15, 1994:
PARSAC ii344ColomaRoad
Gold River, CA 95670 Sd8 825
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i Invoice Is Payable In Fdt Upon Rec