HomeMy WebLinkAbout2001-05-15; City Council; 16187; Property and Boiler and Machinery Insurance8 is 8 %
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CITY OF CARLSBAD - AGENDA BILL
46#.161163 TITLE: PROPERTY, AND BOILER AND MACHINERY \IITG. 5/15/01 INSURANCE
DEPT. RM
RECOMMENDED ACTION:
CITY MGRS
Approval of Resolution No. aow4~ authorizing the expenditure of $58,828
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, 2001 through
May 152002 (coverage was bound pending Council and Board action) is $58,828,
an increase of approximately $13,000 over the premium paid last year. This is due
to an overall increase in property values and a continued hardening of the property
insurance market as a result of an increasing number and severity of catastrophic
losses worldwide.
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 $58,828. Sufficient
funds are available in the Insurance Premium Account.
EXHIBITS
1. Resolution No. m/-/qq
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. 2oc1-144
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 a
issue a warrant in the amount of $58,828 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 15th day of May 2001, by the
following vote, to wit:
AYES: Counicl Members Lewis, Finnila, Nygaard and Hall.
NOES: None.
ABSENT: Council Member Kulchin.
ATTEST:
. c
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L\OFQRA@J! (@OD@!ity Clerk
AB Cover Sheet & Prop & Boiler Renewal 01
?age 2 of Resolution No. 2001-144
EXHIBIT 2
ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc.
Founded on knowledge, integrity and service.
PUBLICENTITYPROPERTYINSURANCEPROGRAM (PEPIP)
PROPERTY
INSURANCE PROPOSAL
NAMED INSURED: Public Entity Property Insurance Program including:
CITYOFCARLSBAD
(See Section 4’for compete Named Insured)
May 15,200l to May 15,2002 EFFECTIVE DATE:
INSURANCE CARRIERS: See Section 3
TOTAL INSURED
VALUES: $109,393,932
LOCATIONS: See Section 6
’ COVERAGES AND LIMITS:
$1 ,OOO,OOO,OOO Loss Limit per occurrence for Real Property, Personal Property, Rental Income, Business Interruption, Ordinary Payroll and Extra Expense subject to the following sublimits:
No coverage Individual Flood - Per Occurrence
$ 345,500,OOO Program Flood - Per Occurrence & Annual Aggregate - shared with other members in this Declaration
No coverage Earthquake Shock - Per Occurrence & Annual
Aggregate
$ 100,000,000 Combined Business Interruption, Extra Expense,
Rental Income and Tax Interruption
$ 50,000,000 Miscellaneous Unnamed Locations and automatic acquisition as respects new and existing members
(Does not apply to Earthquake)
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Newport Beach
4041 MacArthur Blvd., #300, P.O. Box 6450, Newport Beach, Calqornia 92458-64.50 e (949) 756-0271 l Fax (949) 756-2713
Lit # OC36861 l www.r$driver.com
San Dieao Escondido Sacramento Fresno San Francisco ,;q
CITYOF~ARLSBAD
PROPERTYPROPOSAL
COVERAGES AND LIMITS: (continued)
$ 25,000,OOO &i;aping, tees, sand traps, greens and athletic
$ 25000,000 Errors & Omissions
$ 25,000,OOO Course of Construction (including new for total project values up to $25,000,000)
$ l,OOO,OOO Money & Securities
$ 10,000,000 Unscheduled Fine Arts
$ 500,000 Accidental Contamination
$ 500,000 Unscheduled tunnels, bridges, dams catwalks (except those not for public use), roadways,
highways, streets, sidewalks, culverts, street lights
and traffic signals
Note: Coverage is now limited to
non-FEMA\OES declared emergencies and
excludes damage caused by earthquake
$100,000,000 Demolition and Increased Cost of Construction
due to the enforcement of building codes applying
at the time of loss and up to 12 months after the
loss date
$ 5,000,OOO Transit
$ 1 ,OOO,OOO $~i:;, except $100,000 Specially Trained
$ l,OOO,OOO Watercraft under 27 feet
$ 500,000 Newly Acquired Vehicles
(current members with auto coverage only)
$ 10,000,000 Replacement power extra expense at scheduled utility locations
$ 5,000,OOO Off premises Service Interruption including Extra Expense resulting from a covered peril at
non-owned/operated locations
$ 5,000,OOO Contingent Business Interruption resulting from a covered peril at non-owned/operated power
generating facilities
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UPUnit\PEAIIWORD\CA Ol-OZ\Rnwl Docs\Ol-02 Pepip Properly Pro.Mrg.doc
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CITY OF CARLSBAD
PROPERTY PROPOSAL
COVERAGES AND LIMITS: (continued) $ 5,000,OOO Per occurrence and in the aggregate:
Earthquake shock on licensed vehicles, unlicensed
vehicles, contractors equipment and fine arts
combined for all insureds/members combined that do not purchase optional coverage: Earthquake
Shock
DEDUCTIBLES:
ALL RISK:
FLOOD @NDIVIDUAL):
FLOOD @‘ROGRAM):
$5,000
No coverage
$250,000 - Locations in Zone A; $100,000 - All Other Locations
EARTHQUAKE: No coverage
AUTO COLLISION: $5,000
A~T~C~MPREHEN~IVE: $5,000
SERVICE ~TERRUPTION: 24 hour waiting period all perils
UNSCHEDULEDTUNNELS, $500,000 per occurrence
BRIDGES, D&S, CATWALKS
(~~~D~OSEN~TF~R
PUBLIC USE), ROADWAYS,
HIGHWAYS, STREETS,
SIDEWALKS, CULVER’IS,
STRFXI’LIGH’ISAND
TRAFFIC SIGNALS
MISCELLANEOUS: Not applicable
VALUATION:
ALLPRoPERTY: Repair or Replace and Agreed Amount
(for vehicles, see Section 7)
BUSINF.SS INTERRUPTION: Actual Loss Sustained
ENDO- CLAUSE: Coinsurance Valuation Premium Adjustment Clause*
*If following an insured loss, it is determined that the replacement value for the damaged property is understated by 20% or more, the carriers are entitled to an additional premium equal to the diflerence between premium paid for the damaged property and the policy rate times 120% or more of the actual replacement value at the time of the loss. (This clause is still being negotiated and ultimately underwriters may become satisfied with values before binding and this clause would not apply. We will advise further.)
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WPUnit!PEPIP\WORD\CA Ol-02\Rnwl Docs\Ol-02 Pepip Progeny Pro.Mrg.doc
CITY OF CARLSBAD
PROPERTY PROPOSAL
NEW EXCLUSIONS
EFFE~MAY 15,2001 l Worldwide computer viruses such as “The Love Bug”
l Faulty workmanship
CANCELLATION: 90 Day Notice except 10 Days for Non-Payment
2000-2001 2001-2002 Total Renewal
DRIVER SIGNATURE Available Available Available
SERVICES: 6 Hours 6 Hours 12 Hours
ANNuALPREMImk
BROKER:
$52,859
ROBERT F. DRIVER ASSOCIATES Newport Beach, California
Martin S. Heflin First Vice President
PEPIP Program Manager
Gordon B. DesCombes
Senior Vice President
Nasreen Kassam Rennetta Poncy
Account Administrator Assistant Producer
For a complete listing of your terms, exclusions and conditions, please refer to your policy
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UPUnit\PEPIP\WORMCA OI-02\Rnwl Docs\Ol-02 Pepip Property Pro.Mrg.doc
EXHIBIT 3
ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc.
Founded on knowledge, integrity and service.
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL
NAMED INSURED:
POLICY TERM:
INSURANCE CARRIER:
BEST’S GUIDE RATING:
CALIFORNIA STATUS: Admitted
COVERAGE: Comprehensive Coverage including Production Machinery,
Public Utility Equipment, Digestors, Business Interruption,
Extra Expense and Bond Revenue Payments, Loss Adjustment
Agreement, Defense Outside Limits, Errors in Description,
Earthquake Resultant Damage, Ammonia Contamination,
Water Damage, Hazardous Substance Clean-up, Expediting
Expense, Consequential Damage, Electronic computer or
Electronic data processing equipment
LIMITS:
SUBLIMITS:
EXPEDITING EXPENSE
HAZARDOUS SUBSTANCE
CITY OF CARLSBAD
May 15,200l to May 15,2002
.
CNA Insurance Company
A(pooled), Excellent, Financial Size Category 15, Policyholder
surplus greater than $2,000,000
$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
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Newport Beach
04/as/o I .,
4041 MacArthur Blvd., #300, P.O. Box 6450, Newport Beach, California 92658-6450 l (949) 7.560271 l Fax (949) 756-2713
Lit # OC36861 l www. $driver. corn
San Dieno Escondido Sacramento Fresno San Francisco
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL
MAY l&2001 TO MAY 15,2002
CITY OF CARLSBAD
SUBLIMITS: (continued)
AMMONIA CONTAMINATION
WATER DAMAGE
CONSEQUENTIAL DAMAGE
ERRORS & OMISSIONS
BUILDING ORDINANCE COVERAGES
SERVICE INTERRUPTION
EARTHQUAKE RESULTANT
DAMAGE
ELECTRONIC DATA
PROCESSING MEDIA
LOCATIONS:
NEWLY ACQUIRED
LOCATIONS:
VALUATION:
NOTICE OF CANCELLATION:
EXCLUSIONS:
$10,000,000
$10,000,000
$10,000,000
$10,000,000
$ 1 ,ooo,ooo
$1 o,ooo,oOO
$ 2,000,OOO each incident
$ 2,000,000 each member
$ 2,000,OOO aggregate
Coverage applies only to locations covered for Earthquake.
$ 2,000,000
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
l 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)
l Flood
l Testing
l Lack of power, light, heat, steam or refrigeration
l A delay in or interruption of any business activity
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL
MAY 15,200l TO MAY 15,2002
CITY OF CARLSBAD
EXCLUSIONS: (continued) l Explosion, except for steam or centrifugal explosion
l Freeze or Wind
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OBJECTS EXCLUDED: l
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PROPERTY DAMAGE
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
Felt, wire screen, die, extrusion plate and swing hammer
DEDUCTIBLES: $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 ob’ t jet s over 750 HP, 10,000 W/KVA/AMPS,
or Boilers over 75,000 Sq. Ft. heating surface
$375,000 All objects over 25,000 HP, 25,000 W/KVA/AMPS,
or Boilers over 250,000 Sq. Ft. heating surface
ELECTRONIC DATA PROCESSING MEDIA:
$2,500 All other insured objects
$lO/foot Deep Well Units, $2,500 Minimum
$5,000
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PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
BOILER & MACHINERY PROPOSAL
MAY 15,200l TO MAY 15,2002
CITYOF~ARLSBAD
CONSEQUENTIAL DAMAGE: $5,000
TIME ELEMENT DEDUCTIBLES: 24 Hours on All Objects except:
5X 100% Daily value All objects over 750 HP, 10,000
KW/KVA/AMPS or 10,000 Sq. Ft. heating surface;
5X 100% Daily value All objects at Wastewater
Treatment Facilities, Utilities and SERFF;
120 Hours (5 Days) @ SERFF:
120 Henry Ford Avenue, Long Beach, CA;
30 days for Bond Revenue interest payments
Coverage does not apply to the following locations:
City of Glendale; Broadway Steam Power Plant,
Pasadena, CA; Glenarm Power Plant, Pasadena, CA;
City of Burbank
TOTAL INSURED VALUES: $100,288,335
ANNUAL PREMIUM: $5,969
BROKER: Robert F. Driver Associates
P. 0. Box 6450
Newport Beach, CA 92660-6450
Ted E. Davidson, President
PEPIP Boiler & Machinery Program Manager
Gordon B, Descombes
Senior Vice President
Nasreen Kassam, CPCU
Account Administrator
REFER TO YOUR POLICY FOR A COMPLETE LISTING OF TERMS, EXCLUSIONS AND CONDITIONS.
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04/05/o t
RONALD R. BALL
CITY Al7ORNEY
JANE MOBALDI
ASSISTANT CITY ATTORNEY
DAMIEN B. BROWER
DEPUTY CITY A-ITORNEY
CINDIE K. McMAHON
DEPUTY CITY Al-t-ORNEY
CITY OF CARLSBAD
1200 CARLSBAD VILLAGE DRIVE
CARLSBAD, CALIFORNIA 92008-1989
(760) 434-2891
FAX: (760) 434-8367
May 22,200l
RANDEE HARLIB
SECRETARY TO CITY ATTORNEY
ARDIS SEIDEL
LEGAL SECRETARY/PARALEGAL
Charles Jacobs
7725 Haley Drive
Granite Bay, CA 95746
RE: CT-00-09
Dear Mr. Jacobs:
The City Council, at its meeting of May 15, 2001 denied the tentative map for your
property. I have enclosed an executed copy of the agenda bill and its accompanying
Resolution No. 2001-I 17 for your files.
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RANDEE HARLIB 4$---
Secretary to City Attorney
enclosure
c: City Clerk d