The URL can be used to link to this page

Home My WebLink About1994-06-07; Municipal Water District; 246; Property, Boiler & Machinery InsuranceCARLSBAD FNICIPAL WATER DISTRICT --‘&ENDA BILL I AB # &!%Q TITLE: MTG. /o’ DEPT. RM PROPERTY, AND BOILER AND MACHINERY INSURANCE RECOMMENDED ACTION: Approval of Resolution No. 87% authorizing the expenditure of $40,725 for continued participation in the Public Entity Property Insurance Program. ITEM EXPLANATION On October 5, 1993 Council and the Carlsbad Municipal Water District (CMWD) Board approved the placement of the City’s and CMWD’s property insurance with the Public Entity Property Insurance Program, a program developed by the Robert F. Driver company for public agencies. Coverage under this program was purchased through the Public Agency Risk Sharing Authority of California (PARSAC), the joint powers authority of which the City is a member. This action author&d the pro-rated payment of $26,231 for the period October 1, 1993 to May 15, 1994 based on a quote of $42,376 for the policy period of May 15, to May 15. The actual premium to renew the property insurance for the period May 15, 1994 through May 15, 1995 (coverage was bound pending Council and Board action) through PARSAC is $40,725, 3.9% less than the annual premium quoted last October. This is based on both the continued relative softness of the property insurance market and the ability of the members of the Public Entity Property Insurance Program to attract competitive bids as a group. Staff recommends renewal of the City’s and CMWD’s property insurance under the Public Entity Property Insurance Program through PARSAC. Continued coverage under this program will be evaluated annually with a staff recommendation to Council and the Board accordingly. FISCAL IMPACT The property and boiler and machinery insurance premium is $40,725. Sufficient funds are available in the Insurance Premium Account. f?l EXHIBITS 0 9 EXHIBITS 0 1. % 2. Resolution No. Ma-. Public Entity Property Insurance Program Property Proposal for City of Carlsbad (as part of PARSAC) 3. . PEPIP Boiler and Machinery Program Proposal for PARSAC (CARLSBAD) PEPIP Boiler and Machinery Program Proposal for PARSAC (CARLSBAD) Resolution No. Ma-. Public Entity Property Insurance Program Property Proposal for City of Carlsbad (as part of PARSAC) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 I 20 21 22 23 24 25 26 27 28 EXHIBIT 1 RESOLUTION NO. 8 7 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSB,jD MUNICIPAL WATER DISTRICT, CARLSBAD, CALIFORNIA+ AUTHORIZING THE RENEWAL OF PROPERTY INSURANCE FOR WATER DISTRICT PROPERTIES WHEREAS, the CMWD has previousIy maintained property and boiler and machinery insurance for assets; and WHEREAS, the CMWD has received quotations for the continuation of coverage Public Agency Risk Sharing Authority of California; and WHEREAS, upon evaluation of the quotations for both property and boiler and machinery insurance, the CMWD desires to renew its coverage through the Public Agency Risk Sharing Authority of California. NOW, THEREFORE, be it resohred by the Board of Directors of the Carlsbad Municipal Water, Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the renewal of CMWD property insurance through the Public Agency Risk Sharing Authority of California is hereby approved and the Fmancial Management Director is author&d to issue a warrant in the amount of $40,725 for the payment of the premiums of said renewals. 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 ‘- Special PASSED, APPROVED AND ADOPTED at a 3&q&w Meeting of the Board of District of the Carlsbad Municipal Water District, Carlsbad, California, on the 7th _ day of JUNE 1994, by the following vote, to wit: AYES: Board Members Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSENT: None Al-TEST: ALETHA L. RA EXHIBIT 2 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM PROPERTY PROPOSAL FOR CITY OF CARSLBAD (AS PART OF PARSAC) NAMEDINSURED: Public Entity Property Insurance Program including: City of Carlsbad POLICY TERM: May 15, 1994 to May 15, 1995 INSURANCE CARRJERS: See Attached Schedule COVERAGE: All Risk of Direct Physical Loss or Damage excluding Earthquake and Flood Coverage includes: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Reai Property and Personal Property Rental Income including Bond Revenue Requirements Business Interruption (If Values Declared) Extm Expense Valuable Papers and Records Accounts Receivable PDP Equipment, Media and Extra Expense Owned/Leased Vehicles - All Risk and Collision Upset and Overturn on Declared Vehicles Demolition and Increased Cost of Construction Debris Removal Contingent Liability due to Building Codes Transit Architects’, Engineers’ Fees and Claim Consultant Fees Course of Construction on Premises or within 1,000 ft. Mobile Equipment, Contractor Type Equipment (If Values Declared) Service Interruption from Public and Private Utilities for Gas,Electric, Water and Telecommunications (excluding Power Plant Locations) Tax Interruption (When Reported) Replacement Cost and Agreed Amount 90 Day Notice of Cancellation except 10 days for Non- Payment Carl&ad Proposal Page-2- i r i- I L COVERAGE co-: LIMITS: DEDUCTIBLE: TOTAL INSURED VALUE: ANNUAL COST: (Includes premium, taxes and fees where applicable and surplus lies brokerage fees) 20. 21. 22. 23. 24. 25. 26. 27. Coverage not Confined to Schedule (Except Licensed Vehicles) Automatic Coverage - 120 Days Expediting Expense Errors and Omissions Fine Arts Fire Department Service Charges Vacancy Clause - Deleted Joint Loss Agreement with Boiler Carrier(s) $500,000,000 Loss Limit Per Occurrence all Coverages except as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Valuable Papers Accounts Receivable Transit Atchitects, Engineers and Claim Consultant Fees Mobile and Contractor type Equipment Fine Arts (Unscheduled) Service Interruption Expediting Expense Newly Acquired Locations (Except Earthquake and Flood must be Reported) $ 5,000 Ail Other Perils 5,000 Vehicle Collision $ 52,876,064 See Attached 25,000,000 25,000,000 5,~,~ 5,~,~ 59000,000 L~,~ 5,~,~ 500,000 5,~,~ f EXHIBIT 3 PEPIP BOILER AND MA CHINERY PROGRAM PROPOSAL FOR PARSAC (CARLSBAD) INSURANCE COMPANY: BEST’S GUIDE RATING: CALIFORNIA STATUS: POLICY TERM: COVERAGE: LIMITS: VALUATION: JOINT LOSS AGRkEMENT: MAJOR E%ZLUSIONS (but not limited to): American Manufacturers Mutual Insurance Company (Kemper Group) A, Excellent; Class 14 Policyholders’ Surplus of $1,5oo,ooo,ooo to $2400400400 Admitted May 15, 1994 to May 15, 1995 Comprehensive Coverage including Production Machines. This coverage follows the All Risk Property Policy form and covers perils which axe nonraally excluded. $ 50,000,OOO Combined Limit including Property Damage, Business Interruption and Extra Expense $ l,OOO,OOO Increased Cost of Construction $ 100,000 Applies to the following: l Expeditig Expense *Ammonia Contamination l Water Damage *Hazardous Substance Clean-up NZonsequential Loss Repair or Replacement except Actual Loss Sustained for all Time Element Coverages Included Ha&quake Resultant Damage B&M Proposal Page - 2 - PROPERTY,DAMAGE DEDUCTIBLES: 5,000 All Objects except: 50,000 All objects over 350 H.P. or 2,500 KW/KVA/AMPS or 10,000 square feet 250,000 All Objects over 750 H.P. or 10,000 KW/IWA/AMPS or 100,000 square feet TIMEELEMENT DEDUCTIBLES: 30 Days for Revenue Bonds 24 Hours All Objects except: 5 X 100% Daily Value All Objects over 750.H.P. or 10,000 KWKVNAMPS OR 10,000 square feet; All objects at Waste Water Treatment Facilities, Utilities and SERIF See attached worksheet for individual premium and cost comparison PARSAC (CARLSBAD) NEW ANNUAL PREMIUM: $3,173 CURRENT PREMIUM: ANNUAL SHORT RATE CANCELLATION $ 4,211 PENALTY: $ NETINITIAL SAVINGS: $ 1,038 SAVINGS: $ 1,038 CANCELLATION CREDIT: AMOUNT DUE WW94: NATURAL EXPIRATION DATE: PRO RATA ADDITIONAL PREMIUM: $ $ $ 3,173 - fWXKAGENCYfdSfCsE(ARMG AUTHOftKYOCCAU~ hvolce No. R INVOICE O&e007 9, 1994 *, CT; ‘3:; ; J -, ‘- 1;. 12; ‘-. / I i i ‘!A2 X’. I’ I_._. ’ 0 , I;? MAY 12r$;! I ; -0ate bqjhgtjg(l ‘;e. ,&3+; .& :,;;$( I. 21 ” MmberEntUyz City of Carlsbad & Carlsbad Municipal Water District ENOORSEMENT Anmml Remlum for Participation In the Public Entity Roperty Insurance Program I: - & :*;. Please send remittance, along with a copy of th.is invoice, to below address no later than June 15, 1994: PARSAC 11344cobmRoad $%tr. CA 95670 $37,552