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Home My WebLink About2000-05-16; Municipal Water District; 472; Property, Boiler & Machinery Insurance. CAFiLSBAD M”vICIPAL WATER DISTRICT - “GENDA BILL AND BOILER AND MACHINERY RECOMMENDED ACTION: Approval of Resolution No. ~08~ authorizing the expenditure of $45,767 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. The cost is allocated to departments based on claims experience and department size. The premium to renew the property insurance for the period May 152000 through May 15,200l (coverage was bound pending Council and Board action) is $45,767, an increase of approximately $10,200 over the premium paid last year. This is due to an overall increase in property values. Staff recommends renewal of the property insurance under the Public Entity Property Insurance Program. 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 $45,767. Sufficient funds are available in the Insurance Premium Account. EXHIBITS 1. Resolution No. 0 -iA 2. Public Entity Property Insurance Program Summary of Coverage and Limits 3. Public Entity Property Insurance Program Boiler and Machinery Program 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. 1084 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CARLSBAD, CALIFORNIA, AUTHORIZING THE RENEWAL OF PROPERTY INSURANCE WHEREAS, the CMWD has previously maintained property and boiler and machinery insurance for assets; and WHEREAS, the CMWD has received quotations for the continuation of coverage; and WHEREAS, upon evaluation of the quotations for both property and boiler and machinery insurance, the CMWD desires to renew its insurance through the Robert F. Driver Company. NOW, THEREFORE, be it resolved by the Board of Directors of the Carlsbad Municipal Water District, Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the renewal of property insurance through the Robert F. Driver Company is hereby approved and the Finance Director is authorized to issue a warrant in the amount of $45,767 for the payment of the premiums of said renewals, I I I / I - PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Board of Directors of the Carlsbad Municipal Water District on the 16th day of May 2000, by the following vote, to wit: AYES: Board Members Lewis, Hall, Finnila, Nygaard and Kulchi NOES: None ABSENT: None ATTEST: &w LORdAlNE WOOD, Secretary AB Cover Sheet 8 Prop & Boiler Renewal 00 EXHIBIT 2 ROBERT F. DRIWR ASSOCIATES ;r HiI isioti oi’ I-t~~l~cl-1 1:. I)ri\ “I’ (‘0.. Inc. I~olrIlrlrd ())I k1lml~lf’dgt’. irlrc,g’~ip trt1tl .Sf~,~\~if~fJ. PUBLICENTITYPROPERTYINSURANCEPROGFUM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL NAMED INSURED: Public Entity Property Insurance Program including: CITYOF~ARLSBAD EFFECTIVE DATE: May 152000 to May 15,200l TOTAL INSURED VALUES: $103,131,712 COVERAGES AND LIMITS: $l,OOO,OOO,OOO Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to the following sublimits: No coverage Individual Flood - Per Occurrence $341,500,000 Program Flood - Per Occurrence & Annual Aggregate - all coverages - shared with other members in this Declaration No coverage Earthquake Shock - Per Occurrence & Annual Aggregate $1 OO,OOO,OOO Combined Business Interruption, Rental Income and Tax Interruption except $5,000,000 Limit if values are not reported by a member $ 25,000,OOO Extra Expense $ 50,000,OOO Miscellaneous Unnamed Locations and newly acquired as respects existing members (Does not apply to Earthquake) Page 1 of 3 I G ~\00.01 PEPIP PROP & DIC RN WL PR~C ,lhp”I? Rroclr 05’03/00 xo1r I)irlrrl Ftrnndido .(inl.,vrrll,,.rfn r..,>r a,*. cc,., I7..,,.,.;< ,.I. PUBIACENTITYPROPERTYINSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL CITYOFCARLSBAD COVERAGES AND LIMITS: (continued) $ 25,000,OOO Errors & Omissions S 25,000,OOO Landscaping, tees, sand traps, greens and athletic fields $ 25,000,OOO Course of Construction (including new for total project values up to $25,000,000) $ l,OOO,OOO Money & Securities (this enhancement is still under negotiation) $ 1 O,OOO,OOO Unscheduled Fine Arts $ 500,000 Accidental Contamination $ l,OOO,OOO Tunnels, bridges, dams catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals unless a specific value has been declared $1 OO,OOO,OOO Demolition and Increased Cost of Construction due to the enforcement of building codes S 25,000,OOO Transit $ 1 ,OOO,OOO Animals, except $100,000 Specially Trained Animals $ 1 ,OOO,OOO Watercraft under 27 feet (maximum unless scheduled/reported with values) $ 500,000 Newly Acquired Vehicles (current members with auto coverage only) $ 1 O,OOO,OOO Replacement power extra expense at scheduled utility locations $ 5,000,OOO Off premises Service Interruption including Extra Expense resulting from a covered peril at non-owned/operated locations $ 5,000,OOO Contingent Business Interruption resulting from a covered peril at non-owned/operated power generating facilities $ 5,000,OOO Per Occurrence and in the Aggregate for PEPIP Declarations 1 through 9 combined: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage Page 2 of 3 G lP~~h’l~~PEPIP’B?‘DRCL.IP\PE~RESPR~~PRO~DS~~- ODD:VJ-01 PEPIP PROP 6 DIC RN&‘,. PROPOSAL h,R(j Dc,C 04~?5l00 - : * PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY & DIFFERENCE IN CONDITIONS INSURANCE PROPOSAL CITYOF~ARLSBAD DEDUCTIBLES: ALLRISK: FLOOD(INDIVIDUAL): FLOOD(PROGRAM): EARTHQUAKE: SERVICE~~~ERRUPTION: ALLOTHERPERILS: VALUATION: ALLPROPERTY: BUSINESSINTERRUPTION: CANCELLATION: DRIVER SIGNATURE SERVICES: ANNuALPREMluM: BROKER: $5,000 No coverage $250,000 Locations in Zone A $100,000 All Other Locations No coverage 24 hour waiting period all perils Not applicable Repair or Replace and Agreed Amount (for vehicles, see Section 6) Actual Loss Sustained 90 Day Notice except 10 Days for Non-Payment 6 Available Hours $41,013 ROBERT F. DRIVER ASSOCIATES Newport Beach, California Martin S. Heflin First Vice President PEPIP Program Manager Nasreen Kassam Account Administrator For a complete iistirq of your policy terms, mclusiorts artd corlditiorrs, please refer to your policy Page 3 of 3 G JPL?rWPt:PlP.BNDRCLlP PEPRESPR(QPROPOSAL OBD or,41 PEPIP PROP k DIC LVWL PROPOSAL MRF DOC 04 25.00 EXHIBIT 3 ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc. Founded on knowledge, integrity and service. :I 3 1 3 I 1 1 I 1 1 I I I 1 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL FOR POLICY TERM: INSURANCE CARRIER: BEST’S GUIDE RATING: CALIFORNIA STATUS: COVERAGE: LIMITS: SUBLIMITS: EXPEDITING EXPENSE HAZARDOW SUBSTANCE AMMONIA CONTAMINATION WATER DAMAGE ERRORS & OMISSIONS BUILD~G ORDINANCE COVERAGES SERVICE INTERRUPTION CONSEQUENTIAL DAMAGE: CITY OF CARLSBAD May 15,200O to May 15,200l CNA Insurance Company A, Excellent; Financial Size Category 15; Greater than $2,000,000,000 Admitted Comprehensive Coverage including Production Mach&y, I. Public Utility Equipment, Digestors, Business Interruption,. Extra Expense and Bond Revenue Payments, Loss Adjustment Agreement, Defense Outside Limits, Errors, in ; * : Description, Earthquake Resultant Damage, Amtionia Contamination, Water Damage, Hazardous Substance$lean- 1. j up, Expediting Expense, Consequential Damage $50,000,000 Combined Limit - Property Damage & Business Interruption/Extra Expense (including Bond Revenue Interest Payments for locations where the income is reported) $1 o,ooo,ooo $ 1 ,ooo,ooo $1 o,ooo,ooo $10,000,000 $1 o,ooo,ooo $ 1 ,ooo,ooo $1 o,ooo,ooo $1 o,ooo,ooo Page 1 of 3 G WPLNllVEPIP\BNDRCLIPWEPRENBMOOWROPOSAl OBD\OO-01 B&M RNWL PROPOSALMRG DOC Newport Beach ‘\ 4041 MacArthur Blvd., #300, P.O. BOX 6450, Newport Beach, Ccllforniu 92658-6450 e (949) 756-0271 0 Fax (349) 756-2713 Lit # UC36861 0 www. @river. corn San Diego Escondido Sacramento Fresco San Frarzcisco g- J ‘8 .js c ‘. 3 I. i ,. 8 3 ‘., r 1% n ‘- 3 r’a 3% ‘: 1 +%’ i ‘;y* ;I$ 3 r’ $3 :$k 7 .a’ : A,; 3 ,h ‘,? 2. i;. iv 3 * I’ ,y + 3. i ‘Z .) I i / L. : :: J 3% ” .- 1:. d .J a h .e. il L -J . 1 a I :l.& ’ I . ’ PUBLIC ENTITY PROPERTY INSURANCE PROGRAM BOILER & MACHINERY PROPOSAL FOR , SUBLIMITS: (continued) ELECTRONICDATA PROCESSINGEQUIPMENT: EARTHQUAKERESULTANT DAMAGE LOCATIONS: NIWLY ACQUIRED LOCATION& VALUATION: NOTICE OF CANCELLATION: EXCLUSIONS: OBJECTS EXCLUDED: $ 2,000,000 $ 2,000,OOO each incident $ 2,000,OOO each member $ 2,000,OOO aggregate Coverage applies only to locations covered for Earthquake Omnibus Location Wording Must be reported to carrier within 365 Days Repair ‘or Replacement except Actual Loss sustained for all Tim& Element coverages 60 days except 10 days for non-payment of premium ., : l l l ! ’ . . Nuclear Hazard War and Military Action .:, i Fire or explosion outside the object that o@rs at the ‘,‘, same time as the accident ;I .i’.- ,; .’ water (cre extingui.shing) . bioTtg (fire extmgulshmg) Testing Testing Lack of power, light, heat, steam or refrigeration Lack of power, light, heat, steam or refrigeration A delay in or interruption of any business activity A delay in or interruption of any business activity Exolosion. extent for steam or centrifugal explosion Exolosion. extent for steam or centrifugal explosion l l l Freeze or Wind L Explosion of gas or unconsumed fuel from tirnace of the boiler Electronic Date Recognition Clause (Y2K) Bonus and penalties of a Power Sales Agreement Exclusion Insulating or refractory material Non metallic vessel unless meets ASME standards Catalyst Buried vessel or piping Furnace, oven, stove, incinerator, pot kiln Structure, cabinet or compartment containing the object Vehicle, aircraft, self-propelled equipment or floating vessel Elevator escalator, crane, hoist, ladle or bucket,.power shovel, dragline, escalator scale or conveyor bili. not excluding any boiler, fired vessel, unfired vessel normally subject to vacuum or internal pressure other than the weight of contents -.. 6 \ ‘. ,’ Page 2 of 3 G:\mUNIWEPIP\BNDRCLIhPEPRENBMOO\PROPOSAL-01 B&M RNWL PROPOS,4L.MRG.DOC ’ . . ’ -. <.~ ?’ , ‘: 1 I . 1.. -j L, 1 ‘r_. / A,, * .‘#l ;;. 3 -e * ‘_ .*i I$, 2,s a 1. j -?‘. *xi 3 I’ I‘__ .’ 1 ‘_ ._ I . . ..c. -a ..Y a FTC- :1 LC PUBLIC ENTITY PROPERTY INSURANCE PROGRAM BOILER & MACHINERY PROPOSAL FOR CITY OF CARLSBAD OBJECTS EXCLUDED: (continued) l Object manufactured by you for sale l Machine or apparatus used for research, diagnosis, medication, surgical, therapeutic, dental or pathological l &?,‘$:e screen, die, extrusion plate and swing hammer PROPERTY DAMAGE DEDUCTIBLES: $5,000 All objects over 200 HP, 1,000 KW/KVA/AMPS, or Boilers over 5,000 Sq. Ft. heating surface $50,000 All objects over 350 HP, 2,500 KW/KVA/AMPS, or Boilers over 10,000 Sq. Ft. heating surface $250,000 All objects over 750 HP, 10,000 KWLKVNAMPS, or Boilers. over 75,000 Sq. Ft. heating surface $375,000 All objects over 25,000 HP, 25,000 KW/KVA/AMPS, or Boilers over 250,000 Sq. Ft. heating surface $2,500 All other insured objects ‘. ,_‘. (- ,. .-’ ,I j .’ :-, . , ” I >:r.y.; ‘ ,; y;;,: ‘, -. . ..‘i .; (.. .,.:, .: i . . ,.. : ” i_ ‘.’ CONSEQUENTIAL DAMAGE: TIME ELEMENT DEDUCTIBLES: $5,000 5X 100% Daily Value All objects over 750 HP, 10,000 KW/KVNAMPS or 10,000 square feet heating surface -.,, TOTAL INSURED VALUES: ANNUAL PREMIUM: BROKER: 5X 100% Daily Value All objects at Wastewater Treatment facilities, utilities and SERRF 24 Hours all other insured objects 30 days Bond Revenue Interest Payments $95,859,830 $4,754 ROBERT F. DRIVER ASSOCIATES Ted E. Davidson, CEO/Managing Executive PEPIP Boiler & Machinery Program Manager Martin S. Heflin, First Vice President Nasreen Kassam, Account Administrator For 4 complete listing of yourpolicy terms, exclusions and conditions, please refer to yourpolicy. Page 3 of 3 G:~~I~PBP~P\B~RCW~\~E~RENBMDO\PRO~OSAL.OB~~O~ B&M RNWL PROPOSAL.MRG.DOC Cindee Hollingsworth~- Council Member Quesiton on Insurance Page 1 From: To: Date: Subject: Jim Elliott Cindee Hollingsworth; Frank Mannen Tuesday, May 16,200O 11:06AM Council Member Quesiton on Insurance Frank Below are a few answers to questions related to the insurance agenda bill 1) What is Service Interruption Insurance? The service interruption insurance provides Carlsbad with coverage for the costs related to the loss of a service that we receive (such as SDG&E power). In the event of a loss of power, the city would have to find an alternate source of power for a short period of time - such as portable generators. The insurance would cover the cost of the generators the city might have to rent (after a 24 hour waiting period). 2) How are insurance costs allocated? Initially, the liability insurance fund pays all costs for insurance for the city. Then the total costs in the liability insurance fund are allocated to the various city departments based on the number and cost of claims, the number of employees, the number of fleet vehicles. Finance handles the annual allocation of these costs as part of the budget and year end closing accounting entries. Let me know if you need further information. Jim Jim Elliott City of Carlsbad jelli@ci.carlsbad.ca.us www.ci.carlsbad.ca.us Phone # 760-602-2409 Fax # - 760-602-8553