HomeMy WebLinkAbout2004-07-13; City Council; 17710; Liability Coverage (CAMEL)m: RENEWAL OF LIABILITY COVERAGE THROUGH
CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL)
PROGRAM
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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
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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
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