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HomeMy WebLinkAbout2006-07-11; City Council; 18630; Renewal of Liability Coverage Through CAMELCITY OF CARLSBAD - AGENDA BILL AB# 18,630 MTG. 7/11/06 DEPT. RM TITLE: RENEWAL OF LIABILITY COVERAGE THROUGH CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL) PROGRAM DEPT. HD.C — CITY ATTY. CITY RECOMMENDED ACTION: Approval of Resolution No. 2006-185 approving the renewal of liability insurance through the California Municipal Excess Liability (CAMEL) program. ITEM EXPLANATION: The City participates in the Driver-Alliant CAMEL joint purchase program for liability coverage. Driver-Alliant negotiated a renewal for the program for 2006-07. The City's premium is $299,037, a 3% decrease from last year's premium. While this is a small decrease, a lack of capacity in the market (a relatively few number of carriers willing to provide the limits and coverage in this program) is a continuing and significant impact on premiums for governmental risks. In addition, the City's population and payroll have increased, two of the major measures of loss exposure incorporated in the premium determination. A summary of coverage is shown 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 2006-185 2. Summary of Coverage g DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, elets@ci.carlsbad.ca.us IQ. % O O O OO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2006-185 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 (CAMEL1 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, 2006 to June 30, 2007 is hereby approved and the Finance Director is authorized to issue a warrant in the amount of $299,037 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 Hth day of July , 2006, by the following vote: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafq; NOES: None ABSENT: None LO (SEAL) J_ ^a•H A W u> Iuj I Sr! 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These additional services could include, but are not limitvices, appraisal services, and other services provided to either the client or the insureing, any services contracted for by the client directly will be invoiced accordingly.nmissions are custom,a related entity, may', it is included in theices, loss control serof the insurance offenAgent or broker cotbrokerage firm, orcompensation existsadministration servincluded in the cost.5 •1 •g '? ^3 s; ^> ?!6b5! i01 ent otherwise, the brokerage firm may also receive income as a result of a contingent"u 1 £ 13 §2!'S ^Except as specificaicarriers.<Q- <N Si 1 sf1 s?"•OQ-^ ^f*"!"•^itten request directed to: Attention Chief Operating Officer, Alliant Resources Group Inc1 1 §• 5J 1 •S Further informationBeach CA 92660.|<*^o> i3o 13 ^ ^bot "1§ £•a and financial strength is a task that requires specialized skills and in-depth technical wover-all performancend operations.Analyzing insurers 'company finances a.•8 g §^1^"B»§5>^sS^si» «^ S ^ 5•< R^•s•s a 0 gi»».? 14!ynt Insurance Services, Inc. typically rely upon rating agencies for this type of market anareafor many decades, utilizing a combination of quantitative and qualitative analysis oftes such as Driver All'uvstry leaders in this aiInsurance brokeragiPoor have been ind\their ratings.goo 1 |Q 3: |«^Q g arly 6, 000 Life/Health, Property Casualty and International companies. You can visit the,tensive database ofne•x.&3£s ?r financial strength ratings visit Standard and Poor 's website at www. insure, com/ratings/prof,tess in California, visit the California Department of Insurance website at ww\v.insurance.ca.%<nation regarding insuncompanies doing busirA.M. Best has an ex,For additional infornTo learn more aboutI1