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Home My WebLink About1996-06-04; City Council; 13672; PROPERTY AND BOILER MACHINERY INSURANCE4- Z 0 E a d 0 Z 3 0 0 WY OF CARLSBAD - AGWA BILL I AB # '"6~ ' % TITLE: PROPERTY, AND BOILER AND MACHINERY MTG. 6/4/96 DEPT. RM RECOMMENDED ACTION: DEPT. CITY I INSURANCE CITY m q&-/'3ez Approval of Resolution No. authorizing the expenditure of $43,094 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 department size. The premium to renew the property insurance for the period May 15, 1996 through May 15, 1997 (coverage was bound pending Council and Board action) is $43,094, an increase of 5 %% over the premium paid last year. This is based on an increase in the values of the City's vehicles. 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 $43,094. Sufficient hnds are available in the Insurance Premium Account. EXHIBITS 1. Resolution No. ?h-- /9@ 2. 3. Public Entity Property Insurance Program Summary of Coverage and Limits Public Entity Property Insurance Program Boiler and Machinery Program I I 1 2 3 4 5 6 7 8 g 10 'I. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 RESOLUTION NO. 9 6 - 19 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORM& AUTHORIZMG 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 WIEREAS, upon evaluation of the quotations for both property and boilei and machinery insurance, the City desires to renew its insurance through the Public Agenq 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 $43,094 for the payment of the premiums of said renewals. 1 I I I I d ? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 e 0 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 4th day of JUNE 1996, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Hall NOES: None ABSENT: Council Member Finnila ATTEST: L. ALETHA L. RAUT i LAlllL 0 0 PUBLlC ENTlTY PROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY PROPOSAL PROGRAM DESCRIPTION NAMED INSURED: Public Entity Property Insurance Program including: See Attached May 15,1996 to May 15,1997 POLICY TERM: INSURANCE COMPANIES : See Attached COVERAGE: All Risk of Direct Physical Loss or Damage excluding Earthquake. Flood covered only if indicated under “Optional Coverages” portion of attached Summary. Coverage includes: 1. Real Property and Personal Property 2. Rental Income including Bond Revenue Requirements 3. Business Interruption (Where applicable) 4. Extra Expense 5. Valuable Papers and Records 6. Accounts Receivable 7. 8. - -* EDP Equipment, Media and Extra Expense OwnedLeased Vehicles - All Risk on Premises only (Collision, Upset and Overturn on Declared Vehicles provided only ? indicated under “Optional coverages“ portion of attached Summary 9. Demolition and Increased Cost of Construction IO. 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 1,000 ft. 15. Mobile Equipment, Contractor Type Equipment 16. Service Interruption from Public and Private Utilities 17. Tax Interruption ((When Reported) 18. Replacement Cost and Agreed Amount 19. 90 Day Notice of Cancellation except 10 days for Non-Payment 20. Coverage not Confined to Schedule (Except Earthquake, Flood and Licensed Vehicles) 21. Automatic Coverage - report newly acquired locations within 120 Days 22. Expediting Expense 23. Errors and Omissions 24. Fine Arts 411 8/96 h:\uLfw\word\renl96\proar.doc I a 0 I 1 PEPlP96197 Program Summary Page - 2 - [ ' COVERAGE CONTINUED: 25. Fire Department Service Charges ! 26. 27. 28. 29. Transmission Lines on Premises 30. Vacancy Clause - Deleted (see sub-limits below) Joint Loss Agreement with Boiler Carrier(s) Leasehold Interest Endorsement (limited to one year) All extensions of coverage per manuscript policy form LIMITS: $500,000,000 Loss Limit Per Occurrence subject to a maximum limit c $250,000,000 per location on all coverages except as follows: SU BLIMITS: x 2. Valuable Papers and Records 10,000,000 3. Accounts Receivable 10,000,000 4. Transit 5,000,000 5. Architects, Engineers and Claim Consultant Fees 2,750,000 6. Mobile and Contractor type Equipment 5,000,000 8. Service Interruption 5,000,000 9. Expediting Expense 500,000 10 Newly Acquired Locations 5,000,000 1 1. Vacancy Clause 5,000,000 within 90 days 12. Errors and Omissions 5,000,000 13. Replacement Power Extra Expense at Utility Locations 2,500,000 14. Demolition and Increased Cost of Construction 50,000,000 1. Extra Expense 5,000,000 per location 7. Fine Arts (Unscheduled) 1,000,000 2,500,000 after 90 days DEDUCTIBLW TOTAL INSURED VALUES! ANNUAL COST See Attached Summary ANNUAL COST (Includes premium, taxes and fees where applicable and surplus lines brokerage fees) 411 8/96 h:\uWword\renl96\proar.doc EXHlB 0 0 t PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER AND MACHINERY PROGRAM PROGRAM DESCRlPTlONlSUMMARY OF COVERAGE INSURANCE COMPANY: Lumbermens Mutual Casualty 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 RATING TERM: May 15, 1996 to May 15,1997 (Policy expires May 15, 1998) Comprehensive Coverage including Production Machine! and Public Utility Equipment. Definition of "Objects" to include Digestors, constructed by cement with metal lids. This coverage follows the All Risk Property Policy form and covers perils which are normally excluded. COVERAGE: LIMITS: $ 50,000,000 Combined Limit including Property Damage, Business Interruption (including Bond Revenuc Payments) and Extra Expense. Business Interruption only applies to those locations where such values have been reported. $ 1,000,000 Demolition and Increase in Loss for Covered Property and Business Interruption - Extra Expense $ 1,000,000 Expediting Expense $ 5,000,000 Errors and Omissions * $ 100,000 Applies to each of the following: .Ammonia Contamination .Water Damage 'Hazardous Substance Clean-up Consequential Loss (to Refrigerated or Frozen Goods in Storage) $ 2,000,000 Electronic Data processing Equipment (currently only applies to the City of Santa Barbara) Apnl29, 1996 h \u\rlw\word\boilernl~~r~des doc e e f PEPlP B&M 96/97 Program Program Description Page - 2 - VALUATION: Repair or Replacement except Actual Loss Sustained fc all Time Element Coverages .Joint Loss Agreement with Property Companies .Omnibus location wording ENDORSEMENTS: MAJOR EXCLUSIONS (including but not limited to): .Earthquake Resultant Damage -Nuclear Hazard .War and Military Action .Freeze and Wind PROPERTY DAMAGE DEDUCTIBLES: $ 2,500 All Insured Objects except: $ 5,000 All Objects over 200 H.P. or 1,000 KW/KVA/AMPS or Boilers over 5,Ot square feet heating surface $ 50,000 All Objects over 350 H.P. or 2,500 KW/KVA/AMPS or Boilers over 10,000 square feet heating surface $ 250,000 All Objects over 750 H.P. or 10,000 KW/KVA/AMPS or Boilers over 75,000 square feet heating surface $ 375,000 All Objects over 25,000 H.P., or 25,000 KW/KVA/AMPS, or Boilers over 250,000 square feet heating surface COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE DEDUCTIBLES: 30 Days for Revenue Bonds 24 Hours All Objects except: 5 X 100% Daily Value All Objects over 750 H.P. or 10,000 KW/KVA/AMPS or 10,000 square feet heating surface; 5 X 100% Daily Value All Objects at Waste Water Treatment Facilities, Utilities and SERRF Apnl29,1996 hMrhv\word\boilerbenl96brogdes doc