HomeMy WebLinkAbout1999-06-01; City Council; 15236; Property And Boiler And Machinery Insurance, Cl=’ OF CARLSBAD - AGENF-T BILL
AB#-!f$ii TITLE: PROPERTY, AND BOILER AND MACHINERY
MTG. 6/l 199 INSURANCE
DEPT. RM
RECOMMENDED ACTION:
Approval of Resolution No. qf’2°0authorizing the expenditure of $35,551 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. 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, 1999 through
May 15,200O (coverage was bound pending Council and Board action) is $35,551,
an increase of approximately $19,300 over the premium paid last year. This is
predominantly due to an overall increase in vehicle values.
Staff recommends renewal of the property insurance under the Public Entity
Property Insurance Program. 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 $35,551. Sufficient
funds are available in the Insurance Premium Account.
EXHIBITS
1. Resolution No. q?7200
2. Public Entity Property Insurance Program Summary of Coverage and Limits
3. Public Entity Property Insurance Program Boiler and Machinery Program
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RESOLUTION NO. 99-200
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA,
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; and
WHEREAS, upon evaluation of the quotations for both property and
boiler and machinery insurance, the City desires to renew its insurance through
the Robert F. Driver Company.
NOW, THEREFORE, be it resolved by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the renewal of property insurance through the Robert F.
Driver Company is hereby approved and the Finance Director is authorized to
issue a warrant in the amount of $35,551 for the payment of the premiums of said
renewals.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the
City Council of the City of Carlsbad on the I st day of June 1999, by the
following vote, to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard, Kulchin
NOES: None.
ABSENT: None.
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk)
A6 Cover Sheet & Prop & Boiler Renewal 99
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PUBLIC ENTITY PROPERTY
INSURANCE PROGRAM (PEPIP)
PROPERTY PROGRAM
NAMED INSURED
ATTACHMENT
MEMBER : City of Carlsbad
1200 Carlsbad Village Dr.
Carlsbad, CA 92008
NAMED INSURED:
City of Carlsbad including:
Carlsbad Building Authority Carlsbad Parking Authority Carlsbad Housing and Redevelopment Commission, consisting of: Carlsbad Housing Authority Carlsbad Municipal Water District and Carlsbad Redevelopment Agency
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EXHIBIT 3
PUBLIC ENTITY PROPERTY JNSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL FOR
CITY OF CARLSBAB
POLICY TERM:
INSURANCE CARRIER:
BEST’S GUIDE RATING:
CALIFORNIA STATUS:
COVERAGE:
LIMITS:
May 151999 to May 15,200O
CNA Insurance Company
A, Excellent; Financial Size Category 15;
Greater than $2,000,000,000
Admitted
Comprehensive Coverage including Production
Machinery, Public Utility Equipment, Digestors,
Business Interruption, Extra Expense and Bond
Revenue Payments, Loss Adjustment Agreement,
Defense Gutside Limits, Errors in Description,
Earthquake Resultant Damage, Ammonia
Contamination, Water Damage, Hazardous Substance
Clean-up, Expediting Expense, Consequential Damage
% 50,000,OOO Combined Limit - Property Damage &
Business Interruption/Extra Expense
(including Bond Revenue Interest
Payments for locations where the
income is reported)
SUBLIMI’iS:
EXPEDITING EXPENSE !§ 5,000,ooo
HAZARDOUS SUBSTANCE % 1,ooo,ooo
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL FOR
CITY OF CARLSBAD
SUBLIMITS: (continued)
AMMONIACONTAMINATION
WATERDAMAGE
ERRORS& OMISSIONS
BLJILDINGORDMANCECOVERAGES
SERVICEINTERRUPTION
EARTHQUAKERESULTANT DAMAGE
LOCATIONS:
NEWLY ACQUIRED LOCATIONS:
VALUATION:
NOTICE OF CANCELLATION:
EXCLUSIONS:
$ 5,000,000
$ 5,000,000
$ 5.000,000
$ 1 .ooo.ooo
$ 1 ,ooo,ooo
$ 2,000,OOO each incident
$ 2,000,OOO each member
$ 2,000,OOO aggregate
Omnibus Location Wording
Must be reported to carrier within 365 Days
Repair or Replacement except Actual Loss sustained for all Time Element coverages
60 days except 10 days for non-payment of premium
. Nuclear Hazard
l War and Military Action
l Fire or explosion outside the object that occurs at the same time as the accident
l Water (fire extinguishing)
l Lightening (fire extinguishing)
. Flood
. Testing
l Lack of power, light, heat, steam or refrigeration
l A delay in or intemption of any business activity
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL FOR
CITY OF CAIUSBAD
EXCLUSIONS: (continued)
OBJECTS EXCLUDED:
PROPERTY DAMAGE DEDUCTIBLES:
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Explosion, except for steam or centrifugal
explosion Freeze or Wind Explosion of gas or unconsumed fuel from furnace
of the boiler
Electronic Date Recognition Clause (Y2K)
Bonus and penalties of a Power Sales Agreement Exclusion
Insulating or refractory material Non metallic vessel unless meets ASME standards Catalyst Buried vessel or piping Furnace, oven, stove, incinerator, pot kiln Structure, cabinet or compartment containing the object Vehicle, aircraft, self-propelled equipment or floating vessel
Elevator escalator, crane, hoist, ladle or bucket,
power shovel, dragline, escalator scale or conveyor but not excluding any boiler, fired vessel, unfired vessel normally subject to vacuum or internal pressure other than the weight of contents Object manufactured by you for sale
Machine or apparatus used for research, diagnosis,
medication, surgical, therapeutic, dental or
pathological purposes
EDP media (except for Santa Barbara)
Felt, wire screen, die, extrusion plate and swing hammer
$375,000 All objects over 25,000 HP, 25,000 KW/KVA/AMPS, or Boilers
over 250,000 square heating surface
$250,000 All objects over 750 HP, 10,000 KWIKVAIAMPS, or Boilers over 75,000 square feet heating surf&e
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL FOR
CITY OF CARLSBAD
PROPERTY DAMAGE
DEDUCTIBLES: (continued) $50,000 All objects over 350 HP, 2,500 KW/KVA/AMPS, or Boilers over 5,000 square feet heating surface
$5,000 All objects over 200 HP, 1,000 KW/KVA/AMPS, or Boilers over 5,000 square feet heating surface
$2,500 All other insured objects
CONSEQUENTIAL DAMAGE: $5,000
TIME ELEMENT DEDUCTIBLES: 5X 100% Daily Value All objects over 750 HP, 10,000 KW/KVA/AMPS or 10,000 square feet heating surface
5X 100% Daily Value All objects at Wastewater Treatment facilities, utilities and SERRF
24 Hours all other insured objects
30 days Bond Revenue Interest Payments
TOTAL INSURED VALUES: $60,625,757
ANNUAL PREMIUM: $3,007
BROKER: Robert F. Driver Associates P. 0. Box 6450 Newport Beach, CA 92660-6450
Ted E. Davidson, President
PEPIP Boiler & Machinery Program Manager
Ralph S. Hurst, First Vice President
Jennifer M. Levin, Account Manager
PLEASE REFER TO POWCY FOR SPECIFIC TERMS, COA!DITlONSAND EXCLUSIONS.
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PUBLIC ENTITY PROPERTY
INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY
NAMED INSURED
ATTACHMENT
MEMBER : City of Carlsbad
1200 Carlsbad Village Dr.
Carisbad, CA 92008
NAMED INSURED:
City of Carlsbad including:
Carlsbad Building Authority Carlsbad Parking Authority Carlsbad Housing and Redevelopment Commission, consisting of Carlsbad Housing Authority Carlsbad Municipal Water District Carlsbad Redevelopment Agency
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