The URL can be used to link to this page

Home My WebLink About2003-06-03; City Council; 17183; Property, Boiler & Machinery InsuranceAB# l7 183 TITLE: PROPERTY, AND BOILER AND MACHINERY MTG. 6/3/03 INSURANCE DEPT. RM ITEM EXPLANATION: DEPT. HD.~ CITY Am.& CITY MGR~ 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 (now Driver-Alliant), for public agencies. The program is moving all members to a coverage period of July 1 through June 30. As a result, this renewal will cover a 13 % month period. The cost is allocated to departments based on claims, experience and department size. The premium to renew the property insurance at our current deductible of $25,000 for the period May 15,2003 through June 30,2004 (coverage was bound pending Council and Board action) is $76,728. This is a 3% decrease below the premium paid last year and we are receiving an additional 6 weeks of coverage. FISCAL IMPACT: The property and boiler and machinery insurance premium is $76,728. Sufficient funds are available in the Insurance Premium Account. EXHIBITS: 1. Resolution No. 2003-133 2. 3. Public Entity Property Insurance Program Summary of Coverage and Limits Public Entity Property Insurance Program Boiler and Machinery Program DE PA RTM E NT CONTACT: Erin Letsc h , (760) 602-2470, elets @ ci . carls bad .ca. us t 1( 1: 1: 1: 1L 1: 1f li 18 19 20 21 22 23 24 25 26 27 28 2003-133 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD CALIFORNIA AUTHORIZING THE RENEWAL OF PROPERTY, AND BOILER AND MACHINERY INSURANCE THROUGH THE PUBLIC ENTITY PROPERTY INSURANCE PROGRAM 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 Driver-Alliant ' company. NOW, THEREFORE, be it resolved by the City Council of the City of Carlsbad, CAI as follows: 1. That the above recitations are true and correct. 2. That the renewal of property and boiler and machinery insurance through Driver-Alliant is hereby approved and the Finance Director is authorized to issue a warrant in the amount of $76,728 for the payment of the premiums of said renewals. PASSED AND ADOPTED THIS 3rd DAY OF JUNE ,2003, BY THE FOLLOWING VOTE TO WIT: AYES: Council Members Le NOES: None ABSENT: None ABSTAIN: None WAU D E A .Y E w IK'WAYO R ATTEST: H:\WORD\lnsurance\2003 04InsuranceMB Prop Ins 2003-04.doc I EXHIBIT 2 3 3 3 I 1 3 f driver+ztlliant 1 INSURANCE SERVICES Public Entity Property Insurance Program (PEPIP) All Risk Property & DIC Renewal Proposal NAMED INSURED: Public Entity Property Insurance Program and: CITY OF CARLSBAD POLICY TERM: May 15,2003 to July 1,2004 INSURANCE COMPANIES: See Section 5 for schedule of Proposed Companies BEST GUIDE RATING: See Section 5 for schedule of Proposed ComIjanies ADMITTED STATUS: See Section 5 for schedule of Proposed Companies STANDARD & POOR’S RATING: See Section 5 for schedule of Proposed Companies TOTAL INSURABLE VALUES: $ 115,197,331 COVERAGES & LIMITS: $ 750,000,000 Per Occurrence: All Perils, Coverages and InsuredsMembers combined, subject to the following sub-limits: No Coverage Dedicated Flood Limit - Per Occurrence & Annual Aggregate No Coverage Dedicated Limit for Earthquake Shock - Per Occurrence & Annual Aggregate and Tax Interruption per member I $2,500,000 maximum per occurrence limit if values are not reported by member $ 10,000,000 Miscellaneous Unnamed Locations and automatic acquisition for existing Members $ 1,000,000 Landscaping, tees, sand traps, greens and athletic fields (unless values specifically scheduled) $ 25,000,000 Errors & Omissions $ $ 100,000,000 Combined Business Interruption, Extra Expense, Rental Income 10,000,000 Course of Construction including new project with values up to $10,000,000 $ 500,000 Money & Securities $ 2,500,000 Unscheduled Fine Arts $ 10,000 Accidental Contamination per occurrence and annual aggregate per member with $500,000 annual aggregate for all insureds / members 250,000 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 (excluding Earthquake Shock and excluding F.E.M.A. and/or Office of Emergency Services declared disasters) $ GWUnitWEPIF’-PEPIP USA\03-04 RennuanPropxalWroperty Proposal Final 03-04.doc Page 1 04/21/03 1 CITY 0 F CARLSAD Public Entity Property Insurance Program (PEPIP) All Risk Property & DIC Renewal Proposal SUB-LIMITS (Continued): $ $ $ $ I 10,000,000 Demolition and Increased Cost of Construction due to the 10,000,000 Transit enforcement of building codes 1,000,000 Animals; not to exceed $25,000 per Animal 1,000,000 Watercraft under 27 feet 500,000 Newly Acquired Vehicles (current members with auto coverage 5,000,000 Replacement power extra expense at scheduled utility locations 5 ,OOO,OOO Off premises services interruption including extra expense resulting from a covered peril at non-ownedoperated locations 5,000,000 Per occurrence and in the aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureddmembers combined that do not purchase optional coverage Item-A); Earthquake Shock Interruption, contingent rental values, and Contingent extra expense separately and Stones Separately only) 250,000 Per Occurrence, per member for Contingent Business 25,000 Per Occurrence, Per Member for Jewelry, Furs, Precious Metals 100,OOO Per Occurrence, Per member for Claims Preparation 8 2,500,000 Expediting Expenses the USA 50,000 Per Occurrence, per Member for Personal Property Outside of 3 1 1 G:UPUnil\PEPIP\_PEPIP USA\03-W RenewanProposaWroprty Proposal Final 03-04 doc Page 2 MAJOR EYCLUSIONS (including but not limited to): War and Civil Risks; Third Party Liability; Professional Liabilityhdemnity; Fidelity, Surety Bonds and Credit Business; Financial Guarantee; Contingency and Non-Appearance; Electronic Date Recognition Exclusion; Land and Water, Asbestos, Pollution, Seepage & Contamination, Debris Removal and Cost of Clean-up for Pollution, limitations and exclusions, Faulty Workmanship, Worldwide computer virus, Mold, Sabotage and Terrorism. VALUATION : . Repair or Replacement Cost . Actual Loss Sustained for Time Element Coverages . Vehicles & Contractors Equipment / either Replacement Cost or Fair Market Value as elected by each member by declaring values in the manner losses are to be adjusted (Le., Replacement or Fair Market) CITY OF CARLSBAD Pub1 ic Entity Property Insurance Program (PEPIP) All Risk Property & DIC Renewal Proposal DEDUCTIBLES FOR SPECIFIED PERILS AND COVERAGES “BASIC” DEDUCTIBLE $ 25,000 Per Occurrence (Or More As Scheduled Below) $ 100,000 All Flood Zones Per Occurrence excluding Zones A & V Where Flood Coverage is Purchased $ 250,000 5% Flood Zones A & V Where Flood Coverage is Purchased Per occurrence for Earthquake Shock per unit of insurance (Real & Personal Property and Time Element) subject to a $100,000 minimum except for buildings constructed prior to 1940, Where Earthquake Coverage is Purchased Per occurrence for Earthquake Shock per unit of insurance (Real & Personal Property and Time Element) subject to a $100,000 minimum for buildings constructed prior to 1940, Where Earthquake Coverage is Purchased 10% $ $ 10,000 Per Vehiclehtem Vehicles or Contractors Equipment subject to $100,000 Maximum as respects perils of Earthquake & Flood, Where Flood and Earthquake Coverage is Purchased Per Occurrence Fine Arts For Perils of Earthquake and Flood Per Occurrence Comprehensive Vehicle Property Damage 50,000 25,000 25,000 Per Occurrence Collision Vehicle Property Damage 1,000 Per Occurrence Specially Trained Animals 500,000 Per Occurrence 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 24 Hour Waiting Period All Perils Service Interruption 2.5% of Annual Tax Values per location Tax Interruption G:WUnit\PEPIP\-PEPIP USA\03-04 Rcnewal\Pmpsal\Property Pmpsal Final 03-04.doc Page 3 04/22/03 , 3 J 9 3 1 3 3 I I .a -1 3 EXHIBIT 3 driver+aIfiant 1 INSURANCE SERVICES Public Entity Property Insurance Program (PEPIP) Boiler & Machinery Renewal Proposal NAMED INSURED: POLICY TERM: INSURANCE CARRIER BEST’S GUIDE RATING: STANDARD AND POOR’S RATING: CALIFORNIA STATUS: TOTAL INSURED VALUES: COVERAGE & LIMITS: NAMED INSURED CLAUSE: NEWLY ACQUIRED LOCATIONS: VALUATION: City of Carlsbad May 15,2003 to July 1,2004 Lexington Insurance Company CNA Insurance Company Foreign Excess Ins. Companies See Tab labeled “Companies” See Tab labeled “Companies” See Tab labeled “Companies” $ 115,197,331 $100,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $10,000,000 Primary 50% of $90,000,000 Excess of $10,000,000 50% of $90,000,000 Excess of $10,000,000 Combined Limit - Property Damage & Business InterruptiodExtra Expense (including Bond Revenue Interest Payments for locations where the income is reported), Production Machmery, Public Utility Equipment, Digestors, Business Interruption, Extra Expense, Bond Revenue Payments, Loss Adjustment Agreement with Defense Outside Limits, Electronic computer or Electronic data processing equipment with the following sublimits: Expediting Expense Errors & Omissions Utllity Interruption for Utilities owned by others & for covered objects and covered perils Ammonia Contamination Water Damage Consequential Damage Electronic Data Processing Media Demolition and Increased Cost of Construction Hazardous Substance Building Ordinance Coverages Named Insured covers entities your acquire or that you have 50% or more ownership or management control prior to loss Must be reported to carrier within 365 Days Repair or Replacement except Actual Loss sustained for all Time Element coverages Page 1 of3 April 15. 2003 G UPUnit\PEPIP\-Bo~lcr\03-04\Propsal 03-04 BoileA03-04 pepip b&m proposal pri doc 1 1 4 I 3 1 I I a a 1 ‘I ‘I I driver+alliant 1 INSURANCE SERVICES Public Entity Property Insurance Program (PEPIP) Boiler & Machinery Renewal Proposal EXCLUSIONS (Including but rn not limited to): rn rn rn rn rn rn rn rn rn rn rn rn OBJECTS EXCLUDED: rn Nuclear Hazard War and Military Action Fire or explosion outside the object that occurs at the same time as the accident Water (fire extinguishing) Lightning (fire extinguishing) Flood 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, power shovel, dragline, escalator scale or conveyor but not excluding any boiler, fired vessel, unfued 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 NOTICE OF CANCELLATION: 60 days except 10 days for non-payment of premium DEDUCTIBLES: $ 2,500 $ 5,000 $ 5,000 $ 5,000 $ 50,000 $ 100,Ooo Except as shown below for Specific Objects or Perils unless lower than shown here Electronic Data Processing Media Consequential Damage Objects over 200 hp, 1,000 KW/KVA/Amps or Boilers over 5,000 square feet of heating surface Objects over 350 hp, 2,500 KW/KVA/Amps or Boilers over 10,000 square feet of heating surface Objects over 500 hp, 5,000 KW/KVA/Amps or Boilers over 25,000 square feet of heating surface Page 2 of 3 G:UPUnit\PEPI4BoilerU)3-04~opo~ 03-04 Boiler\03-04 pepip b&m proposal pri.doc April 15.2003 driver+aiIiant I INSURANCE SERVICES Public Entity Property Insurance Program (PEPIP) Boiler & Machinery Renewal Proposal DEDUCTIBLES (Continued): $ 250,000 $ 350,000 24 Hours 30 Days $ 5 ,OOo $ 50,000 $ 250,000 $ 350,000 120 Hours 24 Hours 104 per foot $ 3,827 $ 4,320 TOTAL COST: Objects over 750 hp, 10,OOO KW/KVA/Amps or Boilers over 75,000 square feet of heating surface Objects over 25,000 hp, 25,000 KW/KVA/Amps or Boilers over 250,000 square feet of heating surface Business InterruptiodExtra Expense Except as noted below Business Interruption - Revenue Bonds Business Interruption - Objects between 200 and 349 hp Business Interruption - Objects between 350 and 749 hp Business Interruption - Objects between 750 and 25,000 hp Electronic Data Processing Media Waste Water Facilities (120 Hrs = 5 x Daily Value) Utility Interruption Deep Water Wells Annual Total Cost for comparison only Term Total Cost from May 15,2003 to July 1,2004 (Pay this amount) BROKER: DRIVER ALLIANT INSURANCE SERVICES Newport Beach, CA 92660-6450 License No. OC36861 Rick Steddom Vice President Saira Nasim Account Administrator Please refer to your policy for a complete listing of terms, exclusions and conditions *Analyzing insurers’ over-all performance and financial strength is a task that requires specialized skills and in- depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Driver Alliant Insurance Services typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings A.m. Best has an extensive database of nearly 6,000 lifehealth, property casualty and international companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit standard and poor’s website at www.standardandDoors.com . To learn more about companies doing business in California, visit the California department of insurance website at wWw.insurance.ca.gov. Page 3 of 3 G:WUnit\PEP1P\_Boi3-04~~~ 03-04 BoileA03-04 pepip b&m proposal pridoc April 15.2003 Q