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HomeMy WebLinkAbout2004-07-13; City Council; 17710; Liability Coverage (CAMEL)m: RENEWAL OF LIABILITY COVERAGE THROUGH CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL) PROGRAM n W IT a 6 2 .. z 0 F 0 a -I G z 3 0 0 CITY ATTY. AB# 17,710 MTG. 7/13/04 DEPT. RM RECOMMENDED ACTION: Approval of Resolution No. 2004-235 the California Municipal Excess Liability (CAMEL) program. approving the renewal of liability insurance through ITEM EXPLANATION: The City participates in the Driver-Alliant CAMEL joint purchase program for liability coverage. Last year, forces such as significant losses associated with mold claims, the September 11 disaster, negligible interest income from investments, and loss of asset value in the financial markets, sustained the hard market. This resulted in a significantly higher premium than the previous year. Since then, the market has begun to stabilize, and Driver-Alliant negotiated a renewal for the program with the current carrier for a slight decrease in premiums. The City’s premium is $300,000, a 5% decrease from the previous year. A binder and summary of coverage are show as Exhibit 2. FISCAL IMPACT: Sufficient funds are available in the Liability Fund to cover this premium. The Carlsbad Municipal Water District and Housing and Redevelopment Agency are also insureds under this coverage and contribute to the premium through the budget process. EXHIBITS: 1. Resolution No 2004-235 2. Summary of Coverage DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, elets@ci.carlsbad.ca.us H:\WORD\CAMEL Program\CAMEL 04-05 AB.doc I CITYMGR * t 1 2 3 4 5 6 I 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-235 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE RENEWAL OF LIABILITY INSURANCE THROUGH THE CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) WHEREAS, in 1999 the City became a member of the California Municipal Excess Liability program (CAMEL) for purposes of obtaining liability coverage; 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 liability coverage through the California Municipal Excess Liability program effective July 1, 2004 to June 30, 2005 is hereby approved and the Finance Director is authorized to issue a warrant in the amount of $300,000 for the payment of the premium to the Driver-Alliant Company. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of July , 2004, by the following vote: AYES:counci1 Members Lewis, Kulchin, Hall and Packard ABSENT: Council Member Finnila N0ES:None ATTEST: h ORRAINE M. WOOD, City Clerk H:\WORD\CAMEL ProgramCAMEL 04-05 Resoludon.dac If) 0 0 N x c, 0 ~ w a c B 0 c.( x a I - e ci B 0 N x I c, 0 0 0 N x I I w - Y m ._ - c, 6964 00 00 00 00 0" 0, a 0 .. 64 69' 69