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Home My WebLink About2001-05-15; Municipal Water District; 501; Property and Boiler and Machinery InsuranceCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL AB # 60 1 TITLE: PROPERTY, AND BOILER AND MACHINERY DEPT. HD. MTG. 5/15/01 INSURANCE DEPT. RM RECOMMENDED ACTION: Approval of Resolution No. \\a4 authorizing the expenditure of $58,828 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 152001 through May 152002 (coverage was bound pending Council and Board action) is $58,828, an increase of approximately $13,000 over the premium paid last year. This is due to an overall increase in property values and a continued hardening of the property insurance market as a result of an increasing number and severity of catastrophic losses worldwide. 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 $58,828. Sufficient funds are available in the Insurance Premium Account. EXHIBITS 1. Resolution No. \;;\ r 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. 1124 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 $58,828 for the payment of the premiums of said renewals. / / I I I 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Board of Directors of the Carlsbad Municipal Water District on the 15th day of May 2001, by the following vote, to wit: AYES: Board Members Lewis, Finnila, Nygaard and Hall. NOES: None. ABSENT: Board Member Kulchin. ATTEST: AB Cover Sheet & Prop & Boiler Renewal 01 Page 2 of Resolution No. 1124 EXHIBIT 2 ROBERT F. DRIVER ASSOCIATES a Division of Robert F. Driver Co., Inc. Founded on knowledge, integrity and service. PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) PROPERTY INSURANCE PROPOSAL NAMED INSURED: Public Entity Property Insurance Program including: CITYOF~ARLSBAD (See Section 4’for compete Named Insured) May 15,200l to May 15,2002 EFFECTIVE DATE: INSURANCE CARRIERS: See Section 3 TOTAL INSURED VALUES: $109,393,932 LOCATIONS: See Section 6 ’ COVERAGES AND LIMITS: $1 ,ooo,ooo,ooo No coverage $ 345,500,000 No coverage $ 1 oo,ooo,ooo $ 50,000,000 Loss Limit per occurrence for Real Property, Personal Property, Rental Income, Business Interruption, Ordinary Payroll and Extra Expense subject to the following sublimits: Individual Flood - Per Occurrence Program Flood - Per Occurrence & Annual Aggregate - shared with other members in this Declaration Earthquake Shock - Per Occurrence & Annual Aggregate Combined Business Interruption, Extra Expense, Rental Income and Tax Interruption Miscellaneous Unnamed Locations and automatic acquisition as respects new and existing members (Does not apply to Earthquake) Newport Beach 4041 MacArthur Blvd., #300, P.O. Box 6450, Newport Beach, California 92658-6450 * (949) 756-0271 Q Fax (949) 7.52713 Lit # OC36861 l www.tidriver.com San Diego Escondido Sacramento Fresno San Francisco L- j\ 4) I I I 1 0 1 I 1 1 1 I 1 u i 1 u A) s li ., u -I CITYOF~ARLSBAD PROPERTYPROPOSAL COVERAGES AND LIMITS: (continued) $ 25,000,OOO Landscaping, tees, sand traps, greens and athletic fields $ 25,000,OOO Errors dz Omissions $ 25,000,OOO Course of Construction (including new for total project values up to $25,000,000) . $ l,OOO,OOO Money & Securities $ 10,000,000 Unscheduled Fine Arts $ 500,000 Accidental Contamination $ 500,000 Unscheduled tunnels, bridges, dams catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, street lights and traffic signals Note: Coverage is now limited to non-FEMA\OES declared emergencies and excludes damage caused by earthquake $100,000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes applying at the time of loss and up to 12 months after the loss date $ 5,000,OOO Transit $ l,OOO,OOO Animals, except $100,000 Specially Trained Animals $ l,OOO,OOO Watercraft under 27 feet $ 500,000 Newly Acquired Vehicles (current members with auto coverage only) $ 10,000,000 Replacement power extra expense at scheduled utility locations $ 5,000,000 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 2 UPUnitWEPIP\WORD\CA Ol-02Ulnwl Docs\Ol-02 Pepip prOPer(Y Pro.Mrg.dac CITYOFCARLSBAD PROPERTYPROPOSAL COVERAGES AND LIMITS: (continued) DEDUCTIBLES: Au RISK: &+LoOD(INDIVIDUAL): l?LOOD@'RoGRAM): EARTHQUAKE: AUTO COLLIsION: A~T~C~MPREHEN~IW: SERVICEbTERRUPTION: uN!XHEDULED TUNNELS, BRIDGES,DAh$CATWALKS (~CEI~TTH~SEN~TF~R puBLICUSE),ROADWAYS, HIGHWAYS,STREEIS, SIDJZWALKS, cuLvEx23, STREFXLIGHTSAND TRAFFICSIGNALS MIscELLANEous: VALUATION: ALLPRoPERTY: BUSINESS INTERRUPTION: ENDORsEMENTCLAUSE: $ 5,000,OOO Per occurrence and in the aggregate: Earthquake shock on licensed vehicles, unlicensed vehicles, contractors equipment and fine arts combined for all insureds/members combined that do not purchase optional coverage: Earthquake Shock $5,000 No coverage $250,000 - Locations in Zone A; $100,000 - All Other Locations No coverage $5,000 $5,000 24 hour waiting period all perils $500,000 per occurrence Not applicable Repair or Replace and Agreed Amount (for vehicles, see Section 7) Actual Loss Sustained Coinsurance Valuation Premium Adjustment Clause* *If following an insured loss, it is determined that the replacement value for the damaged property is understated by 20% or more, the carriers are entitled to an additional premium equal to the diflerence between premium paid for the damaged property and the policy rate times 120% or more of the actual replacement value at the time of the loss. (This clause is still being negotiated and ultimately underwriters may become satisfied with values before binding and this clause would not apply. We will advise further.) 3 WPIJnit\PEPIPIWORD\CA Ol-OZ\Rnwl Doc.s\Ol-02 Pepip Properly Pro.Mrg.doc II I I I 1 1 u a a a u I q 1 : q 4, 1 a, CITY OF CARLSBAD PROPERTY PROPOSAL NEW EXCLUSIONS EFF’ECIWEMAY 15,2001 l Worldwide computer viruses such as “The Love Bug ” l Faulty workmanship CANCELLATION: 90 Day Notice except 10 Days for Non-Payment 2000-2001 2001-2002 Total Renewal DRIVER SIGNATURE Available Available Available SERVICES: 6 Hours 6 Hours 12 Hours ANNUALPREMIUMZ $52,859 BROKER ROBERT F. DRIVER ASSOCIATES Newport Beach, California Martin S. Heflin First Vice President PEPIP Program Manager Gordon B. DesCombes Senior Vice President Nasreen Kassam Account Administrator Rennetta Poncy Assistant Producer For a complete listing of your terms, exclusions and conditions, please refer to your policy 4 WPUnil\PEPIP\WORD\CA OI-02\Rnwl Docs\Ol-02 Pepip Property Pro.Mrg.doc II I I I 1 1 I 1 1 1 a 1 1 I I 1 ROBERT F. DRIVER ASSOCIATES Founded on knowledge, integrity and service. EXHIBIT 3 a Division of Robert F. Driver Co., Inc. PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL NAMED INSURED: POLICY TERM: INSURANCE CARRIER: BEST’S GUIDE RATING: CALIFORNIA STATUS: COVERAGE: LIMITS: SUBLIMITS: EXPEDITING EXPENSE HAZARDOUS SUBSTANCE CITY OF CARLSBAD May 15,200l to May 15,2002 CNA Insurance Company A(pooled), Excellent, Financial Size Category 15, Policyholder surplus greater than $2,000,000 Admitted Comprehensive Coverage including Production Machinery, Public Utility Equipment, Digestors, Business Interruption, Extra Expense and Bond Revenue Payments, Loss Adjustment Agreement, Defense Outside Limits, Errors in Description, Earthquake Resultant Damage, Ammonia Contamination, Water Damage, Hazardous Substance Clean-up, Expediting Expense, Consequential Damage, Electronic computer or Electronic data processing equipment $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 Page 1 Ci:\Jpunil\f’cpip\W~~rd\Brrilcl\Ol-1~2\llI-~l2 tkpip B&M f’roposa1~M1’g.D~~ Newport Beach 04/as/o I 4041 MacArthur Blvd., #300, P.U. Box 6450, Newport Beach, California 92658-6450 @ (949) 7560271 9 Fax (949) 756-2713 Lit # OC36861 l www.$driver.com San Diego Escondido Sacraqzento Fresno San Francisco a a a a a a a a a a a a a I a I PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL MAY 15,ZOOl TO MAY 15,2002 CITY OF CARLSBAD SUBLIMITS: (continued) AMMONIA CONTAMINATION WATER DAMAGE CONSEQUENTIAL DAMAGE ERRORS & OMISSIONS BUILDING ORDINANCE COVERAGES SERVICE INTERRUPTION EARTHQUAKE RESULTANT DAMAGE ELECTRONIC DATA PROCESSING MEDIA LOCATIONS: NEWLY ACQUIRED- LOCATIONS: VALUATION: NOTICE OF CANCELLATION: EXCLUSIONS: G:Upunit\l’~pip\Word\DoilrhO1-02\01-(12 kpip B&M I’roposal~MrgDoc $1 o,ooo,ooo $10,000,000 $10,000,000 $10,000,000 $ 1 ,ooo,ooo $1 o,oOO,ooo $ 2,000,OOO each incident $ 2,000,000 each member $ 2,000,OOO aggregate Coverage applies only to locations covered for Earthquake. $ 2,000,000 Omnibus Location Wording Must be reported to carrier within 365 Days Repair or Replacement except Actual Loss sustained for all Time Element coverages 60 days except 10 days for non-payment of premium l Nuclear Hazard l War and Military Action l Fire or explosion outside the object that occurs at the same time as the accident l Water (fire extinguishing) l Lightening (fire extinguishing) . Flood l Testing l Lack of power, light, heat, steam or refrigeration l A delay in or interruption of any business activity Page 2 (5 c4/02/01 i C.J Iill 9 Ill ill 1 3 a a a a 3 I a a a a a a a PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL MAY l&2001 TO MAY 15,2002 CITYOF~ARLSBAD EXCLUSIONS: (continued) l l 0 l l OBJECTS EXCLUDED: 0 l l Felt, wire screen, die, extrusion plate and swing hammer Explosion, except for steam or centrifugal explosion Freeze or Wind Explosion of gas or unconsumed fuel from furnace 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 but not excluding any boiler, fired vessel, unfired vessel normally subject to vacuum or internal pressure other than the weight of contents Object manufactured by you for sale Machine or apparatus used for research, diagnosis, medication, surgical, therapeutic, dental or pathological purposes 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 W/KVA/AMPS, or Boilers over 75,000 Sq. Ft. heating surface $375,000 All objects over 25,000 HP, 25,000 W/KVA/AMPS, or Boilers over 250,000 Sq. Ft. heating surface ELECTRONIC DATA PROCESSING MEDIA: $2,500 All other insured objects $lO/foot Deep Well Units, $2,500 Minimum $5,000 Page 3 (i:ilpunil\Pcpip\Wonl\B~ilt’r\l)L-(~~-112 I’cpip B&M Pmp(~bal_Mrg.Doc 47, 04/05/o I i\\” J PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER & MACHINERY PROPOSAL MAY 15,200l TO MAY l&2002 CITYOF~ARLSBAD CONSEQUENTIAL DAMAGE: $5,000 TIME ELEMENT DEDUCTIBLES: 24 Hours on All Objects except: 5X 100% Daily value All objects over 750 HP, 10,000 KW/KVA/AMPS or 10,000 Sq. Ft. heating surface; 5X 100% Daily value All objects at Wastewater Treatment Facilities, Utilities and SERFF; 120 Hours (5 Days) @ SERFF: 120 Henry Ford Avenue, Long Beach, CA; 30 days for Bond Revenue interest payments Coverage does not apply to the following locations: City of Glendale; Broadway Steam Power Plant, Pasadena, CA; Glenarm Power Plant, Pasadena, CA; City of Burbank TOTAL INSURED VALUES: ANNUAL PREMIUM: BROKER: $100,288,335 $5,969 Robert F. Driver Associates P. 0. Box 6450 Newport Beach, CA 92660-6450 Ted E. Davidson, President PEPIP Boiler & Machinery Program Manager Gordon B, Descombes Senior Vice President Nasreen Kassam, CPCU Account Administrator REFER TO YOUR POLICY FOR A COMPLETE LISTING OF TERMS, EXCLUSIONS AND CONDITIONS. Ci:Vponil\Pep~p\Word\lloihnll1-02\01-02 Popip B&M I’roprrsal~M~g.Doc Page 4 ,- i ,’ ’ 04/05/o I 2