Loading...
HomeMy WebLinkAbout2014-06-24; City Council; 21648; Renewal of Property Insurance Coverage Alliant Insurance Service Inc's Public Entity Property Insurance Program (PEPIP)CITY OF CARLSBAD - AGENDA BILL AB# 21,648 RENEWAL OF PROPERTY INSURANCE DEPT. DIRECTOR MTG. 6/24/14 COVERAGE THROUGH ALLIANT INSURANCE SERVICE INC.'S PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) CITY ATTORNEY DEPT. ASD/RISK COVERAGE THROUGH ALLIANT INSURANCE SERVICE INC.'S PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) CITY MANAGER RECOMMENDED AaiON: Approval of Resolution No. 2014-148 . approving the purchase of property insurance through Alliant Insurance Services, Inc.'s Public Entity Property Insurance Program. ITEM EXPLANATION: The City participates in the Alliant Insurance Services, Inc. joint purchase program known as PEPIP (Public Entity Property Insurance Program) for property coverage or APIP (Alliant Property Insurance Program) depending on the group of cities marketed for property coverage. Alliant negotiated a renewal of coverage for the city for the 2014-15 policy year with PEPIP. A summary of coverage is shown in Exhibit 2 and the coverage is similar to that of the current policy. The premium is $115,874.88 to continue $183,887,789.00 of coverage. (This represents a 21.18 percent increase over last year's premium). Staff recommends purchasing property insurance at a cost not to exceed $115,874.88. FISCAL IMPACT: This 21.18 percent rise represents a $20,259.79 increase in premium over last year, which is the result of added assets from Alga Norte Park and the expansion of coverage on our vehicle fleet. This premium will be paid with funds from the 2014-15 Liability Fund. The Carlsbad Municipal Water District is also insured under this coverage and contributes to the premium through the budget process. ENVIRONMENTAL IMPACT; This action is not a "project" within the definition ofthe California Environmental Quality Act in that it does not have a direct or indirect impact on the physical environment under California Code of Regulations, Title 14, Chapter 3, section 15378. EXHIBITS: 1. 2. Resolution No 2014-148 Executive Summary DEPARTMENT CONTACT: Ed Garbo, (760) 602-2470, ed.garbo@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • EXHIBIT 1 1 RESOLUTION NO. 2014-148 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE PURCHASE OF PROPERTY 4 INSURANCE THROUGH ALLIANT SERVICES INC.'S PUBLIC ENTITY PROPERTY INSURANCE PROGRAM 5 8 9 10 19 20 21 22 23 24 26 27 28 ^ WHEREAS, the City desires to renew its property insurance through Alliant Insurance 7 Services, Inc.'s Public Entity Property Insurance Program; and WHEREAS, Alliant Insurance Services has negotiated a renewal of property coverage from July 1, 2014 to June 30, 2015 for a premium of $115,874.88; and 11 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 12 California, as follows that: 1. The above recitations are true and correct. 2. That the purchase of property coverage through the Public Entity Property Insurance Program, effective July 1, 2014 to June 30, 2015, is hereby approved and the Administrative Services Director is authorized to issue a warrant in the amount 13 14 15 16 17 Ig of $115,874.88 for the payment of the premium to Alliant Insurance Services, Inc // // // // // 25 // // // I 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the 24th day of June 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Schumacher, Blackburn. None. ABSENT: None. MATT HALL, Mayor ATTEST: ^Ijl^^RA ENGLESON,<elty Clerk :0 f/. ^ illiant siMX lAi I '* (;R()n> ALLIANT PROPERTY INSURANCE PROGRAM (APIP) EXHIBIT 2 July 1,2014-July 1,2015 City of Carlsbad EXECUTIVE SUMMARY We are pleased to provide you with the 2014-2015 Alliant Property Insurance Program (APIP) attached renewal material. •;APIP'' is the umbrella name which encompasses the Alliant property insurance programs iaiown as "PEPIP" "HARPP" and SPIP ^ As membership m these programs continues to expand, the acronym "APIP" more correctly depicts the membership "PEPIP UsTunLr 'T'"- "'""""P^ "^"'-^ to be referred o s PLPiP USA , unless a more specific program name is indicated. The property market at the end of 2013 had rates generally lower, with underwriters willing to give decreases based on favorable loss history As we enter the 2014/15 APIP renewal, most APIP insureds will see rates decrSs ho^^^^^^^^^^ for hose insureds with significant loss history rates will increase. For all insureds, we expect the rate change, whXr p o down, will be well below the general commercial market VYMCUICI up or The primary $2.5M layer will continue to be placed with our long-tenn partner, Lexington (Best Rated A XV) and B\'st"SH''A YV^ ? ^r'"^" ^j^""^ of capacity in the $22.5M x/s $2.5M layer, with Lloyd's of London (Btst Rated A XV) as its quota-share partner. Excess limits will be placed with London, Bermudian, European and U S Domestic markets (Best Rated minimum of A- VII) up to a limit of $1,000,000,000. Members should note several key highlights for this year's renewal: ' Increased sub-limit for Unscheduled Tunnels, Bridges, Dams, Catwalks, Roadways Highways Streets Sidewalks, Culverts, Street Lights and Traffic Signals - from $500k to $2MM - Boiler & Machinery for participating members ofthe APIP Boiler Program maintained • Cyber (Privacy Liability) Coverage for both 1^' and 3'^ parties from the Beazley Syndicate at Lloyd's (for those members eligible) with some improvements in coverage as outlined on the following summary " Pollution Liability Coverage from Illinois Union Insurance Company (for those members eligible) with some improvements in coverage as outlined on the following summary Alliant Business Services (ABS) will continue to play a significant role not only in providing various types of loss control services, but also in providing appraisal services. For the 2014-2015 policy year property valuations will continue to be a key focus. As a reminder, it is underwriters' intent to have all buildings with a scheduled value of $5,000 000 or more aooraised once every five years. The cost of this service is included in the total annual cost. Members may also choose to have ower valued buildings appraised. The cost to have all or specific buildings appraised between $25,000 and $5 000 000 will be quoted at the time the request is made. ' 1 Year-over-Year Rate and Premium Comnarisnn \ V Citv of Carlsbad 13-14 / . (at.12/05/2013) •: 14-15:. Variance Total Insurable "Values: $ 160,765,094 $ 183,887,789 14.38% Account Rate (per hundred dollars): 0.0594750 0.0630139 5.95% Earthquake TIV: $ 0 $ 0 N/A Earthquake Limit: Not Covered Not Covered N/A *Total Annual Cost: $ 95,615.09 $ 115,874.88 21.18% * TOTAL COST includes: all premiums, underwriting fees, commissions, loss control expenses pro-ram administration charges and applicable taxes. e;^lJcnics, pro^^ram Pase Mav 2014 2014-2015 Alliant Property Insurance Program (APIP) Executive Summary City of Carlsbad 2014-2015 Proposed Coverage Sub-Limit Changes effective 7/01/2014 . Item 13-14 Coverage or Sublimit Per Occurrence 14-15 Coverage or H Sublimit Pending Per Occurrence Unscheduled Tunnels, Bridges, Dams, Catwalks (except those not for public use), Roadways, Highways, Streets, Sidewalks, Culverts, Street Lights and Traffic Signals unless specific values for such items have been declared (excluding Earthquake Shock and excluding F.E.M.A. and/or Office of Emergency Services declared disasters) $500,000 $2,000,000 Enhancement Per Occurrence and in the Annual Aggregate as respects the peril of Earthquake Shock for Licensed Vehicles, Unlicensed "Vehicles, Contractors Equipment and Fine Arts combined, for all Member(s) / Entity(ies) of this Declaration combined that do not purchase optional dedicated Earthquake Shock coverage, and/or where specific values for such items are not covered for optional dedicated Earthquake Shock coverage as part of the Member(s) / Entity(ies) schedule of values held on file with Alliant Insurance Services, Inc. $5,000,000 $5,000,000 per occurrence per member subject to an Annual Aggregate of $10,000,000 per declaration. Enhancement Per Occurrence and in the Annual Aggregate as respects the peril of Flood for Licensed Vehicles, Unlicensed Vehicles, Contractors Equipment and Fine Arts combined, for all Member(s) / Entity(ies) of this Declaration combined that do not purchase >tional dedicated Flood coverage, and/or where specific values lor such items are not covered for optional dedicated Flood coverage as part of the Member(s) / Entity(ies) schedule of values held on file with Alliant Insurance Services, Inc. $5,000,000 $5,000,000 per occurrence per member subject to an Annual Aggregate of $10,000,000 per declaration. Enhancement Scheduled Landscaping, tees, sand traps, greens and athletic fields and further subject to $25,000 / 25 gallon maximum per item. $5,000,000 $5,000,000 or 110% of Scheduled Landscaping values, whichever is greater for Enhancement Cyber Liability Coverage A Summary of Changes for Cyber Liability is included with the Coverage Proposal Enhancement Pollution Liability A Summary of Changes for Pollution Liability is included with the Coverage Proposal Enhancement Thank you for your continued support of APIP. We look forward to working with you this next year, you have any questions about your Renewal Proposal. Please let us know if Pace 2 Mav 2014