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HomeMy WebLinkAbout2000-05-16; City Council; 15739; Property And Boiler And Machinery InsuranceCITy OF CARLSBAD .- AGEND”BlLL 60 aB#- TITLE: PROPERTY, AND BOILER AND MACHINERY MTG. 5/16/00 INSURANCE DEPT. RM RECOMMENDED ACTION: CITY MGR?iik Approval of Resolution No. dooo-/5& authorizing the expenditure of $45,767 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 152000 through May 152001 (coverage was bound pending Council and Board action) is $45,767, an increase of approximately $10,200 over the premium paid last year. This is due to an overall increase in property 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 $45,767. Sufficient funds are available in the Insurance Premium Account. EXHIBITS 1. Resolution No. gd&? -/m 2. Public Entity Property Insurance Program Summary of Coverage and Limits 3. Public Entity Property Insurance Program Boiler and Machinery Program 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 la 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2000-150 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 $45,767 for the payment of the premiums of said renewals. I I I I PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 16th day of MZW 2000, bythe following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulch NOES: None ABSENT: None ATTEST: Lm&NE WOOD, City Clerk AB Cover Sheet & Prop 8 Boiler Renewal 00 1 .4 4 .- 1 J 7 3 13 a ‘. 3 1. 3 Y 13 1. 3 J 1 3 [1 I J 1 1 EXHIBIT 2 ROBERT F. DRIWR ASSOCI;1\TES il 1% kiwi Of R~lhcrL I’. I)ri! cr (‘0.. Inc. Ff~rr~fI~fl 011 krro~~~i~tl~t. irftcgritj- trrld .crr-i~icv. PUBLICENTITYPROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL NAMED INSURED: Public Entity Property Insurance Program including: CITYOF~ARLSBAD EFFECTIVE DATE: May 15,200O to May 15,200l TOTAL INSURED VALUES: $103,131,712 COVERAGES AND LIMITS: $1,000,000,000 Per Occurrence: All Perils, Coverages and Insureds/Xlembers combined, subject to the following sublimits: No coverage Individual Flood - Per Occurrence $341,500,000 Program Flood - Per Occurrence & Annual Aggregate - all coverages - shared with other members in this Declaration No coverage Earthquake Shock - Per Occurrence & Annual Aggregate $1 OO,OOO,OOO Combined Business Interruption, Rental Income and Tax Interruption except $5,000,000 Limit if values are not reported by a member $ 25,000,OOO Extra Expense $ 50,000,OOO Miscellaneous Unnamed Locations and newly acquired as respects existing members (Does not apply to Earthquake) Page 1 of 3 IC RUW. PROPO- .kwp.wl Beaclr -7 ‘1 1 ii ,i 3 1 IL 3 ::i ii 1 g 1 ;.; i 1 .L 1 ;.I 11 .e’ -. i -: 1 -1 i -1 ,I 1 .* 1 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL CITYOF~ARLSBAD COVERAGES AND LIMITS: (continued) S 25,000,OOO S 25,000,OOO $ 25,000,000 $ 1 ,ooo,ooo $ 1 o,ooo,ooo $ 500,000 $ 1 ,ooo,ooo $1 oo,ooo,ooo $ 25,000,OOO $ 1 ,ooo,ooo $ 1 ,ooo,ooo $ 500,000 $ 1 o,ooo,ooo $ 5,000,000 $ 5,000,000 $ 5,000,000 Errors & Omissions Landscaping, tees, sand traps, greens and athletic fields Course of Construction (including new for total project values up to $25,000,000) Money & Securities (this enhancement is still under negotiation) Unscheduled Fine Arts Accidental Contamination Tunnels, bridges, dams catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared Demolition and Increased Cost of Construction due to the enforcement of building codes Transit Animals, except $100,000 Specially Trained Animals Watercraft under 27 feet (maximum unless scheduled/reported with values) Newly Acquired Vehicles (current members with auto coverage only) Replacement power extra expense at scheduled utility locations Off premises Service Interruption including Extra Expense resulting from a covered peril at non-owned/operated locations Contingent Business Interruption resulting from a covered peril at non-owned/operated power generating facilities Per Occurrence and in the Aggregate for PEPIP Declarations 1 through 9 combined: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Page 2 of 3 Cj .JPLA,T,PEP,P RNDRC-LIPJ’EPRESPRO” PROPCXAL OBD’GC-Ol PFPIP PROP & DIG RNWL PROPOSAL MRt.7 DOC 04 ‘2 5 ‘00 I I f f i I r WI! ” a , A 7 I i! 7: .:t ,.. 7 i f I 1 A: i t ‘< 3 *. 1 1 1 1 I I PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL CITYOF~ARLSBAD DEDUCTIBLES: ALLRISK: FLOOD(~NDIWDUAL): FLOOD (PROGRAM): EARTHQUAKE: SERVICE&I-ERRUPTION: ALLOTHERPERILS: VALUATION: ALLPROPERTY: B~~~~~INTERR~~oN: CANCELLATION: DRWER SIGNATURE SERVICES: ANNuALPREMrUM: BROKER: $5,000 No coverage $250,000 Locations in Zone A $100,000 All Other Locations No coverage 24 hour waiting period all perils Not applicable Repair or Replace and Agreed Amount (for vehicles, see Section 6) Actual Loss Sustained 90 Day Notice except 10 Days for Non-Payment 6 Available Hours $41,013 ROBERT F. DRIVER ASSOCIATES Newport Beach, California Martin S. Heflin First Vice President PEPIP Program Manager Nasreen Kassam Account Administrator For a complete listing of your policy terms, exclusions and conditions, please refer to your policy Page 3 of 3 G ‘JPWIT PEP,* BNDRCLIP’,PEPRENPR~,~ROPOS~L OBD W-111 PEPIP PROP 8i DIC RNWL PROPOSAL.hiRC KKK Founded on knowledge, integrity and service. .c 3‘ N ‘* $ ASSOCIATES PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL FOR ROBERT F. DRIVER ASSOCIATES ., A.-. EXHIBIT 3 a Division of Robert F. Driver Co., Inc. POLICY TERM: INSURANCE CARRIER: BEST’S GUIDE BATING: CALIFORNIA STATUS: COVERAGE: LIMITS: SUBLIMITS: EXPEDITING EXPENSE H~zmotis SUBSTANCE AMMONIA CONTAMINATION WATER DAMAGE ERRORS & OMISSIONS CITY OF CARLSBAD May 15,200O to May l&2001 CNA Insurance Company A, Excellent; Financial Size Category 15; Greater than $2,000,000,000 ~ ’ .I,,*, ,‘. Admitted /, ,’ ^, .,~I ,- .; ~ , . .* >I 11 i i i i.’ ‘.f,: i>‘. !j Comprehensive Coverage including. Production ~~~~~~~~~~~~~~~ Public Utility Equipment, Digestors, Business Interruptron ~f,;:$?$‘i: Extra Expense ),,,‘. ,,“~~~,.;x~,r:i:“‘.,‘, and Bond Revenue &y+‘$$s’;-~~,: ,Log$$ ;‘q+~-~:‘~I , I.., a.: $4 ::>,,,t+J,‘“; ‘F ‘5; 5% Adjustment Agreement, Defense Outside Limitsj;: E~~rszln;,.i:,,~~::.~~~~~~~ ;::- .p:*$,$ “:‘+ .pp& Description, Earthquake Resultant ,Damage, ~~o~laj..:,,“,.i,.L-, Contamination, Water Damage, Hazardous- S~bs~~~~~~~~~~.~~~~~” !,i..;; up, Expediting Expense, Consequential Damage J ‘- ‘t “, ;. $50,000,000 Combined Limit - Property Damage & Business Interruption/Extra Expense (including Bond Revenue Interest Payments for locations where the income is reported) $1 o,ooo,ooo $ 1 ,ooo,ooo $1 o,ooo,ooo $1 o,ooo,ooo $1 o,ooo,ooo BUILDING ORD~VANCE COVERAGES $ 1 ,OOO,OOO SERVICE INTERRUPTION $1 o,ooo,ooo CONSEQUENTIAL DAMAGE: $1 o,ooo,ooo Page 1 of 3 G:VPUN~EPIP\BNDRCLIP\PEPRENBMOO\PROPOS~.OB~~-01 B&M RNWL PROPOSALMRGDX d Newport Beach 4041 MacArthur Blvd., #300, P.O. BOX 6450, Newport Beach, California 92658-6450 0 (949) 756-0271 l Fax (949) 7.56- 13 - J Lit # OC36861 l www. $driver. corn fl i,-y San Diego Escondido Sacramento Fresno San Francisco 6 ..: PUBLIC ENTITY PROPERTY INSURANCE PROGRAM BOILER & MACHINERY PROPOSAL FOR CITYOFCAFUSBAD SUBLIMITS: (continued) ELECTRONICDATA PROCESSINGEQUIPMENT: EARTHQUAKERESULTANT DAMAGE LOCATIONS: NEWLY ACQUIRED LOCATION% VALUATION: NOTICE OF CANCELLATION: EXCLUSIONS: OBJECTS EXCLUDED: $ 2,000,000 $ 2,000,OOO each incident $ 2,000,OOO each member $ 2,000,OOO aggregate Coverage applies only to locations covered for Earthquake 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 War and Military Action Fire or explosion outside the object that occurs at the same time as the accident Water (fire extinguishing) . k;ohtdenmg (fire extmgulshmg) Testing * Lack of power, light, heat, steam or refrigeration A delay in or interruption of any business activity 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,, ower shovel, dragline, escalator scale or conveyor bu 9 not excluding any boiler, fired vessel, unfired vessel normally subject to vacuum or internal pressure other than the weight of contents Page 2 of 3 G:UPUNIIIPEPIP\BNDRCLI~\PEPRENBMOO\PR~PO-OI B&M RNWL PROPOSAL.MRG.DOC 8 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM BOILER & MACHINERY PROPOSAL FOR CITYOFCAFUBAD OBJECTS EXCLUDED: (continued) PROPERTY DAMAGE DEDUCTIBLES: l Object manufactured by you for sale l Machine or apparatus used for research, diagnosis, medication, surgical, therapeutic, dental or pathological purposes l Felt, wire screen, die, extrusion plate and swing hammer $5,000 All objects over 200 HP, 1,000 KW/KVA/AMPS, or Boilers over 5,000 Sq. Ft. heating surface $50,000 All objects over 350 HP, 2,500 KW/KVA/AMPS, or Boilers over 10,000 Sq. Ft. heating surface $250,000 All objects over 750 HP, 10,000 KW/ISVA/AMPS, or Boilers over 75,000 Sq. Ft. heating surface $375,000 All objects over 25,000 HP, 25,000 KWKVA/AMPS, or Boilers over 250,000 Sq. Ft. 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: $95,859,830 ANNUAL PREMIUM: $4,754 BROKER: ROBERT F. DRIVER ASSOCIATES Ted E. Davidson, CEO/Managing Executive PEPIP Boiler & Machinery Program Manager Martin S. Heflin, First Vice President k Nasreen Kassam, Account Administrator For a complete listing of your policy terms, exclusions and conditions, please refer to your policy. Page 3 of 3 G:VP~IWEPIp\BNDRCLlPP~NBM~~RO~~L.~B~~i B&M RNWL PROPOSAL..MRG.DOC I .‘,) ; j.l,‘j,“, Cindee Hollingsworth - Council Member_Quesiton on insurance Page 1 From: To: Date: Subject: Jim Elliott Cindee Hollingsworth; Frank Mannen Tuesday, May 16,200O 11:06AM Council Member Quesiton on Insurance Frank Below are a few answers to questions related to the insurance agenda bill 1) What is Service Interruption Insurance? The service interruption insurance provides Carlsbad with coverage for the costs related to the loss of a service that we receive (such as SDG&E power). In the event of a loss of power, the city would have to find an alternate source of power for a short period of time - such as portable generators. The insurance would cover the cost of the generators the city might have to rent (after a 24 hour waiting period). 2) How are insurance costs allocated? Initially, the liability insurance fund pays all costs for insurance for the city. Then the total costs in the liability insurance fund are allocated to the various city departments based on the number and cost of claims, the number of employees, the number of fleet vehicles. Finance handles the annual allocation of these costs as part of the budget and year end closing accounting entries. Let me know if you need further information. Jim Jim Elliott City of Carlsbad jelli@ci.carlsbad.ca.us www.ci.carlsbad.ca.us Phone # 760-602-2409 Fax # - 760-602-8553 i MIRECEIVE I CITWOWCIL CAJ r* =J 1 /