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Home My WebLink About1995-07-11; City Council; 13234; Property and Boiler and Machinery Insurance. # PROPERTY, AND BOILER AND MACHINERY INSURANCE Approval of Resolution No. 9 5 H i 4Sauthorizing the expenditure of $40,840 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 F. Driver Company for public agencies. Coverage under this program is purchased through the Public Agency Risk Sharing Authority of California (PARSAC), the joint powers authority of which the City is a member, and the cost is allocated to departments based on claims experience and departmen The initial premium quoted to renew the property insurance for the period May 15, 1995 through May 15, 1996 (coverage was bound pending Council and Board action) was $45,218, an increase of $4,493 or 11% more than the premium paid last year. This was based on an increase in the premium quoted to PARSAC for the entire joint powers authority membership, as well as the claim filed in 1994 for property damage to Holiday House. However, following negotiations, the premium was reduced to $40,840, only $115 more than last year’s premium. Staff recommends renewal of the 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. FISCAL, IMPACT The property and boiler and machinery insurance premium is $40,840. Sufficient funds are available in the Insurance Premium Account. Resolution No. 4 5 e I9 5 Public Entity Property Insurance Program Summary of Coverage and Limits Public Entity Property Insurance Program Boiler and Machinery Program 2. 3. 1 i 1 2 3 4 5 6 7 8 9 lo I' 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e RESOLUTIONNO. 95-195 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNL4, AUTHORIZING THE RENEWAL OF PROPERTY INSURANCE WHEREAS, the City has previously maintained property and boiler and machinery insurance for assets; and WHEREAS, the City has received quotations for the continuation of coverage from the Public Agency Risk Sharing Authority of California; and WHEREAS, upon evaluation of the quotations for both property and boil and machinery insurance, the City desires to renew its insurance through the Public Age] Risk Sharing Authority of California. 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 property insurance through the Public Agency Risk Sharing Authority of California is hereby approved and the Financial Management Director is authorized to issue a warrant in the amount of $40,840 for the payment of thc premiums of said renewals. 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 e 0 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Ci Council of the City of Carlsbad on the 1 1 t h day of JULY vote, to wit: 1995, by the following AYES: NOES: None AMENT: Council Member Nygaard Council Members Lewis, Kulchin, Finnila, Hall ATTEST: ALETHA L. RAUT&KRA”KRAN, City Cler I rxriiuiL L 0 0 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) PROGRAM SUMMARY OF COWRAGES AND LIMITS NAMED INSURED: Public Entity Property Insurance Program including: See Attached May 15, 1995 to May 15, 1996 POLICY TERM: INSURANCE COMPANIES: See Attached Schedule COVERAGE: All Risk of Direct Physical Loss or Damage excluding Earthquake Flood covered only if indicated under "Optional Coverages" portioi of attached Summary. Coverage includes: 1. Real Property and Personal Property 2. Rental Income including Bond Revenue Requirements 3. Business Interruption (If Values Declared) 4. Extra Expense 5. Valuable Papers and Records 6. Accounts Receivable 7. EDP Equipment, Media and Extra Expense 8. Owned/Leased Vehicles - All Risk on Premises 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 Value: Declared) 16. Service Interruption from Public and Private Utilities foi Gas,Electric, Water and Telecommunications (excluding Power Plant Locations) 17. Tax Interruption (When Reported) 18. Replacement Cost and Agreed Amount 19. 90 Day Notice of Cancellation except 10 days for Non- Payment 0 0 Program Summary PEPIP 95/96 Page - 2 - COVERAGE CONTINUED: 20. Coverage not Confiied to Schedule (Except Licensed Vehicles Earthquake and Flood, if Coverage provided) Automatic Coverage - 120 Days 21. 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 and Machinery Insurana Company 28. Leasehold Interest Endorsement 29. Transmission and Distribution Lines Excluded Off Premise! $500,000,000 Loss Limit Per Occurrence/$250,000,000 pe Location all Coverages except as follows: LIMITS: 1. Valuable Papers 10,000,000 2. Accounts Receivable 10,000,Ooo 3. Transit 5,000,000 4. Architects, Engineers and Claim Consultant Fees 2,750,000 5. Mobile and Contractor type Equipment 5,000,000 6. Fine Arts (Unscheduled) 1,000,000 7. Service Interruption 5,000,000 8. Expediting Expense 500,000 9. Newly Acquired Locations 5,000,000 10. Vacancy Clause after 90 Days 2,500,000 11. Errors and Omissions 5,000,000 12. Demolition and Increased Cost of Construction 50,000,000 DEDUCTIBLE/ TOTAL INSURED VALUES/ ANNUAL COST: See Attached (Cost includes premium, taxes and fees where applicable, CIGA charges, and surplus lines brokerage fees) Exh i bi i 0 0 INGURAlt‘GE fiXMbIARY mLIc ENTITY PRBrnIRTY INSURrnCE PRBGW (P,EPIU) pSOlL&I€ AND MACHINERY PROGRAM NAMED IMWRED: City gf Carisbad sneinlw at Pubiic Agency Risk Sharing Aurhority of California (PARSAC) INSURANC‘R COMPANY: Lmberrnenrr Muhd Casualty Company (Keqer Groap) VOLlCY NWMHER; 3XL134901-00 POLICY ‘1XLIM: My 15, 1995 to May 15, 1996 LMTS $ SO,(B8,MO Combined )knit including Property Lsamagc, Buulness Interruption (including Bond Revenue Raymcnl.p) and Extra Expense. Btasitiess Interruption only applies to those locations where such vdues haw rcpcrrtd. SUB-I,IMITS: b$ 1 ,Ci,OOO increased Cost of Constmctioa $ I@U,of,D PLpplie6 to the follawh~g: *Ammia Coetminatlnn @Water Damage @Hazardom Subtame Clean-alp *Consequential Loss (io Rcfrigcrated or Frozen Goods in Storage) COVERAGE Comprehensive Covemge inclurlrii$ Pr~i~duc~iun Mndliaim md Public Utility Equipmmt. D~finitioii of “Objccts” to lndude Digeators, constructed by cement with metal lids. This covcrapc fdlowx the All Risk P~opcr!y Policy him r~d wwth pu ila wlG& iue rwrndly cxcludcd. m I. 0 a PEPIP B&M Program 9S/96 Carl staid Tnxtiaa txx Su rnms ry Page - 2 - VALUATION: Repair or Replacement except Actual Loss Sustained for all Time Rlernent Cnverages JOINT LOSS AGREEMENT: Iticludd COVXRKD LOCATIONS: All locations owned, operaled or conlrolled by lhe Named Insured within the City of Carlsbad MAJOR EXCLWSIBNS (bat not limited tho): Earthquakc Resultant Damage YKBlplFRTY DrnklGE DEDUCTIBLE& $ 2,500 All Insurd Objects except: $ 5,000 All Objects over 288 HJ’, or 1,000 $ 50,Ol;sU All Objects over 390 W.P. or HW/MVA/AMPS or Bnilorfi over 5,000 square leet kdthg surface 2,50QKW/RVNAMPS or 10.800 square kt heating surface $ 250,OQQ All Objccts ovcr 750 1I.P. or 10,000 KWKVAIAMPS or 100,080 square feet heating surface $ 375,QN.l A11 Objects over 25,000 H.P., or 25,000 KWIKVAIAMPS, or Boilccrs over 250,000 square feet heating surface COMBINED HIIIJSIFITF,SG INTEmWION AND EXTRA EXPENSE DEDU C’I’II’BLES ; 30 Days €or Revenue Bonds 24 Hcww AI1 Objects except: 5 X 100% Daily Value All Objjcets qvcr X0 H.P. or 10,OQQ KWKVAIAMPS ur 10,000 squm feet; All Objects at Wask Watm Twitmmt Facilities, Utilities and SEW - _-