HomeMy WebLinkAbout2004-07-13; City Council; 17705; Property, and Boiler and Machinery InsuranceAB# 17,705
MTG. 7/13/04
DEPT. RM I CITY MGR-
RECOMMENDED ACTION:
Adopt Resolution No. 2004-230 authorizing the expenditure of $62,353 for
Property, and Boiler and Machinery Insurance.
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 (now
Driver-Alliant), for public agencies. The cost is allocated to departments based on claims,
experience and department size.
The premium to renew the insurance for the period July 1,2004 through June 30,2005
(coverage was bound pending Council and Board action) is $62,353. This is an 8.25%
decrease below the premium paid last year.
FISCAL IMPACT:
The property and boiler and machinery insurance premium is $62,353. Sufficient funds are
available in the Insurance Premium Account.
EXHIBITS:
1. Resolution No. 2004-230
2. Public Entity Property Insurance Program Summary of Coverage and Limits
3. Public Entity Property Insurance Program Boiler and Machinery Program
DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, elets@ci.carlsbad.ca.us ,,
H:\WORD\Insurmce\Z~ 05 Renewah04-05 Property AB.dac
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RESOLUTION NO. 2004-230
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 desires to renew its insurance through the Driver-Alliant 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 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 $62,353 for the payment of the premiums of said renewal.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
City of Carlsbad on the 13th dayof July , 2004, by the following vote:
AYES: Council Members Lewis, Kulchin, Hall and Packard
NOES: None
ABSENT: Council Member Finnila
ATTEST:
LORR#h’E M. WOOD, City Clerk
H:\WORD\lnsurancd2004 05 Renewa1\04-05 Property Resalution.dm
EXHIBIT 2
driver+ 1 INSURANCE SERVICES
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
PROPERTY PROPOSAL OF INSURANCE
NAMED INSURED City of Carlsbad
POLICY PERIOD:
COMPANIES:
TOTAL INSURED VALUES:
COVERAGES & LIMITS:
July 1,2004 to July 1,2005
See Attached List of Companies
$105,538,089 as ofMay 3,2004
$750,000,000 Per Occurrence: All Perils, Coverages and Insuredshlembers combined, subject to the following sub-limits:
Not Covered Dedicated Flood Limit - Per Occurrence & Annual Aggregate
Not Covered Dedicated Limit for Earthquake Shock - Per Occurrence &
Annual Aggregate
$100,000,000 Combined Business Interruption, Rental Income and Tax
Interruption per member except $500,000/$2,500,000 maximum per occurrence limit if values are not reported by
member
$ 25,000,000 Per Occurrence for Extra Expense (Pending approval by Excess
Underwriters)
$ 10,000,000 Miscellaneous Unnamed Locations for existing Members Excluding Earthquake coverage for Alaska, California and
Washington Members.
$ 25,000,000 Automatic Acquisition for new locations for existing members.
Additionally, there is Automatic coverage for new locations
greater than $25,000,000 and up to $100,000,000 for 90 days
from date of acquisition. [If values are not reported within 90
days, a maximum sublimit of $25,000,000 will apply.] The
peril of EQ is excluded from Automatic Acquisition for the
states of Alaska, California and Washington (Pending approval
hy Excess Underwriters)
$ 1,000,000 Unscheduled Landscaping, tees, sand traps, greens and athletic
fields and further subject to $10,000 maximum per tree
$ 5,000,000 Scheduled Landscaping, tees, sand traps, greens and athletic
fields and further subject to $10,000 maximum per tree. Higher
Limits available for members with scheduled values greater
than $5,000,000 for an additional premium with underwriting
approval
25,000,000 Errors & Omissions
Note: Sublimits shown in bold indicate actual / potential changes in either sublimit or coverage,
See Executive Summary for details.
PEPIP Property Proposal
City of Carlsbad
Page 2
COVERAGES & LIMITS:
(Cont.) $ 25,000,000
$ 500,000
$ 2,500,000
$ 250,000
$ 250,000
$ 10,000,000
$ 10,000,000
$ 1,000,000
$ 1,000,000
Course of Constmction including New Projects
Money & Securities
Unscheduled Fine Arts
Accidental Contamination per occunence and annual aggregate
per member with $500,000 annual aggregate for all insureds /
members
Unscheduled 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. andor Office of Emergency Services declared
disasters)
Demolition and Increased Cost of Construction due to the enforcement of building codes
Transit
Animals; not to exceed $50,000 per Animal
Watercraft under 27 feet
$ 500,000 Per acquisition for Newly Acquired Vehicles for current
members with auto coverage
Included Per Occurrence - Off Premises Vehicle Comprehensive
Damage
Included Per Occurrence - Off Premises Vehicle Collision Damage
Included Per Occurrence - On Premises Vehicle Comprehensive and
Collision Damage for all insured'members that report Vehicle
Values
$ 10,000,000 Off premises services interruption including extra expense
$
resulting from a covered peril at non-ownedoperated locations
5,000,000 Per Occurrence and Annual Aggregate for all Declarations for Earthquake Shock on Licensed Vehicles, Unlicensed Vehicles, Contractor's Equipment and Fine Artsfor all insured'members in the PEPIP Program combined that do notpurchase Earthquake limits
5,000,000 Per Occurrence and Annual Aggregate for all Declarations for Flood on Licensed Vehicles, Unlicensed Vehicles, Contractor's Equipment and Fine Arts for all insurerUmembers in the PEPIP Program combined that do notpurchase Flood coverage.
$
Note: Sublimits shown in bold indicate actual / potential changes in either sublimit or coverage.
See Executive Summary for details.
06102/04
PEPIP Proper@ Proposal
City of Carlsbad
Page 3
COVERAGES & LIMITS
(Cont.):
MAJOR EXCLUSIONS:
(Including but not limited to)
VALUATION:
ALL RISK BASIC
DEDUCTIBLE:
1)EDUCTIBI.ES FOR SPECIFIC PERILS
$ 250,000 Per Occurrence, per member for Contingent Business
Interruption, Contingent rental values, and Contingent extra
expense separately
25,000 Per Occurrence, Per Member for Jewelry, Furs, Precious Metals
and Stones Separately $
$ 100,000 Per Occurrence, per Member for Claims Preparation
$ 2,500,000 Expediting Expenses
$ 50,000 Per Occurrence, per Member for Personal Property Outside of
the USA
$ 10,000,000 Per Occurrence Per Member with an Annual Aggregate of $70,000,000 shared by Declarations 1-7 for Terrorism (Pending
approval by excess Underwriters)
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; Faulty Workmanship; Worldwide Computer Virus;
Mold; Boiler and Machinery unless coverage is purchased.
Repair or Replacement Cost Actual Loss Sustained for Time Element Coverages
Vehicles & Contractor’s Equipment / either Replacement Cost or Actual
Cash Value as declared by each member. If not declared, valuation will
default to actual cash value
$ 25,000 Per Occurrence
Not Covered Per Occurrence for Flood Zones A & V
Not Covered All Flood Zones Per Occurrence excluding Flood Zones A & V
Not Covered Per occurrence for Earthquake Shock per unit of insurance (Real & Personal Property and Time Element)
$ 25,000 Off Premises Vehicle Comprehensive Damage
$ 25,000 Off Premises Vehicle Collision Damage
Note: Sublimits shown in bold indicate actual /potential changes in either sublimit or coverage
See Executive Summary for details.
06/04/04
PEPIP Property Proposal
City of Carlsbad
Page 4
DEDUCTIBLES FOR
SPECIFIC PERILS $ 25,000 On Premises Vehicle Comprehensive Damage where vehicle AND COVERAGES (Cont.): values are declared
$ 25,000 On Premises Vehicle Collision Damage where vehicle values
are declared
$ 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
10,000 Minimum subject to $100,000 Maximum per Vehicle or Item
for Licensed Vehicles, Unlicensed Vehicles and Contractors
Equipment Per Occurrence for the peril of Earthquakefor
members who do notpurchase dedicated earthquake Iimits
50,000 Per Occurrence for Fine Arts for the peril of Earthquakefor
members who do not purchase dedicated earthquake limits
10,000 Minimum subject to $100,000 Maximum per Vehicle or Item
for Licensed Vehicles, Unlicensed Vehicles and Contractor’s
Equipment Per Occurrence for the peril of Floodfor members
who do notpurchase dedicated FIood limits
50,000 Per Occurrence for Fine Arts for the peril of Floodfor
members who do not purchase dedicated Flood limits
$
$
$
$
24 Hour Waiting Period - Service Interruption, All Perils
2.5% of Annual Tax Value - Tax Interruption per Location
25% Minimum Earned Premium and cancellations subject to 10% penalty CONDITIONS:
TOTAL ANNUAL COST: $ 62,353 Total Annual Cost*
*Total Annual Cost includes Premium, Carrier Taxes & Fees, Appraisal & Loss Prevention Inspection Fees for All Risk
Property, Earthquake, Flood, Boiler & Machinery and PEPIP
Terrorism coverage where purchased.
Note: Suhlimits shown in bold indicate actual /potential changes in either sublimit or coverage.
See Executive Summary for details.
06102l04
EXHIBIT 3
driven 1 INSURANCE SERVICES
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP)
2004-2005 BOILER & MACHINERY
PROPOSALOFINSURANCE
NAMED INSURED:
POLICY PERIOD:
COMPANIES:
City of Carlsbad
July 1,2004 to July 1, 2005
Lexington Insurance Company $10,000,000 Primary
CNA Insurance Company Foreign Excess Ins. Companies
(See attached list of Companies)
50% of $90,000,000 Excess of $10,000,000 50% of $90,000,000 Excess of $10,000,000
TOTAL INSURED VALUES: $105,538,089 as of May 3,2004
*STATUS/RATING: See Attached List of Companies for Best’s Guide Ratings, Admitted Status and Standard & Poor’s Ratings
COVERAGES & LIMITS: $ 100,000,000 Combined Limit - Property Damage & Business Interruption/
Extra Expense (including Bond Revenue Interest Payments for
locations where the income is reported), Production Machinery,
Public Utility Equipment, Digestors, Loss Adjustment
Agreement with Defense Outside Limits, Electronic Computer
or Electronic Data Processing with the following sublimits:
Included Inspection Services
Included Machine or Apparatus used for Research, Diagnosis, Medication, Surgical, Therapeutic, Dental or Pathological Purposes
$ 25,000,000 Automatic Acquisition
$ 10,000,000 Expediting Expense
$ 10,000,000 Errors & Omissions
$ 10,000,000 Utility Interruption for Utilities owned by others
$ 10,000,000 Ammonia Contamination
$ 10,000,000 Water Damage
$ 10,000,000 Consequential Damage
$ 2,000,000 Electronic Data Processing Media
$ 2,000,000 Earthquake Resultant Damage per occurrence and annual
aggregate for Members who purchase Dedicated Earthquake
Coverage
$ 1,000,000 Demolition and Increased Cost of Construction
$ 1,000,000 Hazardous Substance
$ 1,000,000 Building Ordinance Coverages
06/03/04
c
2004-2005 PEPIP Boiler & Machiney Proposal
Page 2
~ CityofCarlsbad
NAMED INSURED CLAUSE:
NEWLY ACQUIRED
LOCATIONS:
VALUATION:
EXCLUSIONS:
(Including but not limited to)
OBJECTS EXCLUDED:
NOTICE OF
CANCELLATION:
Named Insured covers entities you acquire or in which you have 50% or more ownership or contractual control prior to loss
$25,000,000 Automatic Acquisition for Boiler & Machinery values at newly
acquired locations. Values greater than $25,000,000 or Power Generating
Facilities must be reported within 90 days and must have prior underwriting
approval prior to binding
Repair or Replacement except Actual Loss sustained for all Time Element
coverages
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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
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
Bonus and penalties of a Power Sales Agreement Exclusion
Insulating or refractory material
Non metallic vessel unless it meets ASME standards
Catalyst
Buried Vessels or Piping
Furnace, Oven, Stove, Incinerator, Pot Kiln
Structure, Cabinet or Compartment containing the Object
Vehicles, 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
Objects manufactured by you for sale
Felt, Wire, Screen, Die, Extrusion Plate and Swing Hammer
90 days except 10 days for non-payment of premium
06/03/04
~-
2004-2005 PEPllP Boiler & Machinery Proposal
City of Carlsbad
Page 3
DEDUCTIBLES: $ 2,500
$ 5,000
$ 5,000
$ 5,000
$ 50,000
$ 100,000
$ 250,000
$ 350,000
Except as shown for Specific Objects or Perils
Electronic Data Processing Media
Consequential Damage
Objects over 200 hp, 1000 KWKVAfAmps or Boilers over
5,000 square feet of heating surface
Objects over 350 hp, 2500 KWKVA/Amps or Boilers over
10,000 square feet of heating surface
Objects over 500 hp, 5000 KWKVNAmps or Boilers over
25,000 square feet of heating surface
Objects over 750 hp, 10,000 KWKVNAmps or Boilers over
75,000 square feet of heating surface
Objects over 25,000 hp, 25,000 KWKVAfAmps or Boilers over
250,000 square feet of heating surface
$ 10 per foot / $2,500 Minimum for Deep Water Wells
24 Hr. Waiting Period - Utility Interruption
24 Hours - Business IntermptionExtra Expense Except as noted below
30 Days - Business Interruption - Revenue Bonds
5 X 100% Daily Value - Business Intemption - All Objects over 750 HP or 10,000 KWKVNAmps or 10,000 Square feet Heating Surface
5 X 100% Daily Value - Business Interruption - All Objects at Waste Water
Treatment Facilities and All Utilities
TOTAL ANNUAL COST: The Total Annual Cost for your Boiler & Machinery coverage is Included in
your All Risk Total Annual All Risk Cost
06/03/04