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WITHDRAWN • OTHER-SEE MINUTES •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
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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
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^ WHEREAS, the City desires to renew its property insurance through Alliant Insurance
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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
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Ig of $115,874.88 for the payment of the premium to Alliant Insurance Services, Inc
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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
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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