HomeMy WebLinkAbout2003-06-03; Municipal Water District; 550; Property, Boiler & Machinery Insurance~~
AB# 550
MTG. 6/3/03
DEPT. RM
Adopt Resolution No. 1183 authorizing the expenditure of $76,728 for Property, and Boiler
and Machinery Insurance.
TITLE: PROPERTY, AND BOILER AND MACHINERY
INSURANCE DEPT. HD.
CITY Am. &
cin MGRi
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 (now
Driver-Alliant), for public agencies. The program is moving all members to a coverage period of
July 1 through June 30. As a result, this renewal will cover a 13 % month period. The cost is
allocated to departments based on claims, experience and department size.
The premium to renew the property insurance at our current deductible of $25,000 for the
period May 15,2003 through June 30,2004 (coverage was bound pending Council and Board
action) is $76,728. This is a 3% decrease below the premium paid last year and we are
receiving an additional 6 weeks of coverage.
FISCAL IMPACT:
The property and boiler and machinery insurance premium is $76,728. Sufficient funds are
available in the Insurance Premium Account.
EXHl BITS:
1. Resolution No. 1183
2.
3.
Public Entity Property Insurance Program Summary of Coverage and Limits
Public Entity Property Insurance Program Boiler and Machinery Program
DEPARTMENT CONTACT: Erin Letsch, (760) 602-2470, elets@ci.carlsbad.ca.us
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RESOLUTION NO. 1183
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD MUNICIPAL WATER DISTRICT,
AUTHORIZING THE RENEWAL OF PROPERTY, AND
BOILER AND MACHINERY INSURANCE THROUGH THE
PUBLIC ENTITY PROPERTY INSURANCE PROGRAM
WHEREAS, the Carlsbad Municipal Water District has previously maintained
property and boiler and machinery insurance for assets; and
WHEREAS, the Carlsbad Municipal Water District has received quotations for
the continuation of coverage; and
WHEREAS, upon evaluation of the quotations for both property and boiler and
machinery insurance, the Carlsbad Municipal Water District desires to renew its insurance
through the Driver-Alliant company.
NOW, THEREFORE, be it resolved by the Board of Directors of the Carlsbad
Municipal Water District, as follows:
1. That the above recitations are true and correct.
2. That the renewal of property and boiler and machinery insurance through
Drive r-AI lia n t is here by approved.
Passed and adopted this 3rd day of JUNE, 2003, by the following vote to wit:
AYES:
NOES:
ABSENT:
Board Members Lewis, Finnila, K
None
None
ATTEST:
EXHIBIT 2 I drivera;lillll;m.t. 1 INSURANCE SERVICES
Public Entity Property Insurance Program (PEPIP)
All Risk Property & DIC Renewal Proposal
NAMED INSURED: Public Entity Property Insurance Program and:
CITY OF CARLSBAD
POLICY TERM: May 15,2003 to July 1,2004
INSURANCE
COMPANIES: See Section 5 for schedule of Proposed Companies
BEST GUIDE RATING: See Section 5 for schedule of Proposed Conpianies
ADMITTED STATUS: See Section 5 for schedule of Proposed Companies
STANDARD & POOR’S
RATING: See Section 5 for schedule of Proposed Companies
TOTAL INSURABLE
VALUES: $ 115,197,331
COVERAGES &
LIMITS: $ 750,000,000 Per Occurrence: All Perils, Coverages and InsureddMembers
combined, subject to the following sub-limits:
No Coverage Dedicated Flood Limit - Per Occurrence & Annual Aggregate
No Coverage Dedicated Limit for Earthquake Shock - Per Occurrence &
Annual Aggregate
and Tax Intemption per member / $2,500,000 maximum per
occurrence limit if values are not reported by member
$ 100,000,000 Combined Business Intemption, Extra Expense, Rental Income
$ 10,000,000 Miscellaneous Unnamed Locations and automatic acquisition
for existing Members
Landscaping, tees, sand traps, greens and athletic fields (unless
values specifically scheduled)
Errors & Omissions
Course of Construction including new project with values up to
$10,000,000
Money & Securities
Unscheduled Fine Arts
Accidental Contamination per occurrence and annual aggregate
per member with $500,000 annual aggregate for all insureds /
members
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 (excluding Earthquake Shock and excluding F.E.M.A.
and/or Office of Emergency Services declared disasters)
$ 1,000,000
$ 25,000,000
$ 10,000,000
$ 500,000
$ 2,500,000
$ 10,000
$ 250,000
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CITY 0 F CARLSBAD
Public Entity Property Insurance Program (PEPIP)
All Risk Property & DIC Renewal Proposal
SUB-LIMITS (Continued): I
$
$ 10,000,000 Transit
$
$
$
$
$
$
10,000,000 Demolition and Increased Cost of Construction due to the
enforcement of building codes
1,000,000 Animals; not to exceed $25,000 per Animal
1,000,OOO Watercraft under 27 feet
500,000 Newly Acquired Vehicles (current members with auto coverage
5,000,000 Replacement power extra expense at scheduled utility locations
5,000,000 Off premises services interruption including extra expense
resulting from a covered peril at non-ownedloperated locations
5,000,000 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 Item-A); Earthquake Shock
Interruption, contingent rental values, and Contingent extra
expense separately
and Stones Separately
only)
$ 250,000 Per Occurrence, per member for Contingent Business
$
$ 100,000 Per Occurrence, Per member for Claims Preparation 8
$ 2,500,000 Expediting Expenses
$
25,000 Per Occurrence, Per Member for Jewelry, Furs, Precious Metals
50,000 Per Occurrence, per Member for Personal Property Outside of
the USA
MAJOR EYCLUSIONS
(including but not limited to): War and Civil Risks; Third Party Liability; Professional Liabilityhndemnity;
Fidelity, Surety Bonds and Credit Business; Financial Guarantee; Contingency and
Non-Appearance; Electronic Date Recognition Exclusion; Land and Water,
Asbestos, Pollution, Seepage & Contamination, Debris Removal and Cost of
Clean-up for Pollution, limitations and exclusions, Faulty Workmanship,
Worldwide computer virus, Mold, Sabotage and Terrorism.
VALUATION: . Repair or Replacement Cost Actual Loss Sustained for Time Element Coverages
Vehicles & Contractors Equipment / either Replacement Cost or Fair Market
Value as elected by each member by declaring values in the manner losses are
to be adjusted (Le., Replacement or Fair Market)
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CITY OF CARLSBAD
Public Entity Property Insurance Program (PEPIP)
All Risk Property & DIC Renewal Proposal
DEDUCTIBLES FOR SPECIFIED PERlLS AND COVERAGES
“BASIC” DEDUCTIBLE $ 25,000
$ 100,000
!3 250,000
.5 %
10%
10,000
50,000
25,000
25,000
1,000
500,000
24 Hour Waiting
Period All Perils
2.5% of Annual Tax
Values per location
Per Occurrence (Or More As Scheduled Below)
All Flood Zones Per Occurrence excluding Zones A & V
Where Flood Coverage is Purchased
Flood Zones A & V Where Flood Coverage is Purchased
Per occurrence for Earthquake Shock per unit of
insurance (Real & Personal Property and Time Element)
subject to a $100,000 minimum except for buildings
constructed prior to 1940, Where Earthquake Coverage is
Purchased
Per Occurrence for Earthquake Shock per unit of
insurance (Real & Personal Property and Time Element)
subject to a $100,000 minimum for buildings constructed
prior to 1940, Where Earthquake Coverage is Purchased
Per Vehiclehtem Vehicles or Contractors Equipment
subject to $100,000 Maximum as respects perils of
Earthquake & Flood, Where Flood and Earthquake
Coverage is Purchased
Per Occurrence Fine Arts For Perils of Earthquake and
Flood
Per Occurrence Comprehensive Vehicle Property Damage
Per Occurrence Collision Vehicle Property Damage
Per Occurrence Specially Trained Animals
Per Occurrence 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
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Service Interruption
Tax Intemption
04/22/03
EXHIBIT 3
driver*altiant 1 I N s u RAN c E s E RV I c E s
Public Entity Property Insurance Program (PEPIP) .
NAMED INSURED:
POLICY TERM:
INSURANCE CARRIER:
BEST’S GUIDE RATING:
STANDARD AND POOR’S
RATING:
CALIFORNIA STATUS:
TOTAL INSURED VALUES:
COVERAGE & LIMITS:
NAMED INSURED CLAUSE:
NEWLY ACQUIRED
LOCATIONS:
VALUATION:
Boiler & Machinery Renewal Proposal
City of Carlsbad
May 15,2003 to July 1,2004
Lexington Insurance Company $10,000,000 Primary
CNA Insurance Company
Foreign Excess Ins. Companies
See Tab labeled “Companies”
50% of $90,000,000 Excess of $10,000,000
50% of $90,000,000 Excess of $10,000,000
See Tab labeled “Companies”
See Tab labeled “Companies”
$ 115,197,331
$100,000,000
$ 10,000,000
$ 10,000,000
$ 10,000,000
$ 10,000,000
$ 10,000,000
$ 10,000,000
$ 2,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
Combined Limit - Property Damage & Business InterruptiodExtra
Expense (including Bond Revenue Interest Payments for locations
where the income is reported), Production Machinery, Public Utility
Equipment, Digestors, Business Interruption, Extra Expense, Bond
Revenue Payments, Loss Adjustment Agreement with Defense
Outside Limits, Electronic computer or Electronic data processing
equipment with the following sublimits:
Expediting Expense
Errors & Omissions
Utihty Interruption for Utilities owned by others & for covered
objects and covered perils
Ammonia Contamination
Water Damage
Consequential Damage
Electronic Data Processing Media
Demolition and Increased Cost of Construction
Hazardous Substance
Building Ordinance Coverages
Named Insured covers entities your acquire or that you have 50% or more ownership or
management control prior to loss
Must be reported to carrier within 365 Days
Repair or Replacement except Actual Loss sustained for all Time Element coverages
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driver+alliant I INSURANCE SERVICES
Public Entity Property Insurance Program (PEP1 P)
Boiler & Machinery Renewal Proposal
EXCLUSIONS (Including but .
not limited to): . . . . . . . .
D .
OBJECTS EXCLUDED: . .
D . . .
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Nuclear Hazard
War and Military Action
Fire or explosion outside the object that occurs at the same time as the accident
Water (fire extinguishing)
Lightning (fire extinguishing)
Flood
Testing
Lack of power, light, heat, steam or refrigeration
A delay in or interruption of any business activity
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
Felt, wire screen, die, extrusion plate and swing hammer
NOTICE OF
CANCELLATION: 60 days except 10 days for non-payment of premium
DEDUCTIBLES: $ 2,500 Except as shown below for Specific Objects or Perils unless lower
than shown here
$ 5,000 Electronic Data Processing Media
$ 5,000 Consequential Damage
$
$
$
5,000
50,000
100,OOO
Objects over 200 hp, 1,OOO KW/KVA/Amps or Boilers over 5,000
square feet of heating surface
Objects over 350 hp, 2,500 KW/KVA/Amps or Boilers over 10,000
square feet of heating surface
Objects over 500 hp, 5,000 KW/KVA/Amps or Boilers over 25,000
square feet of heating surface
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G:UPU~~I\PEPI~~BO~AO~-O~~O~~ 03-04 BohA03-04 pepip b&m proposal pri.doe April 15,2003 @
driver+aIfiant I INSURANCE SERVICES
Public Entity Property Insurance Program (PEP1 P)
Boiler & Machinery Renewal Proposal
DEDUCTIBLES (Continued): $ 250,000
$ 350,000
24 Hours
30 Days
$ 5,000
$ 50,000
$ 250,000
$ 350,000
120 Hours
24 Hours
104 per foot
TOTAL COST $ 3,827
BROKER:
$ 4,320
Objects over 750 hp, 10,000 KWKVNAmps or Boilers over 75,000
square feet of heating surface
Objects over 25,000 hp, 25,000 KWIKVNAmps or Boilers over
250,000 square feet of heating surface
Business InterruptionExtra Expense Except as noted below
Business Interruption - Revenue Bonds
Business Interruption - Objects between 200 and 349 hp
Business Interruption - Objects between 350 and 749 hp
Business Interruption - Objects between 750 and 25,000 hp
Electronic Data Processing Media
Waste Water Facilities (120 Hrs = 5 x Daily Value)
Utility Interruption
Deep Water Wells
Annual Total Cost for comparison only
Term Total Cost from May 15,2003 to July 1,2004 (Pay this amount)
DRIVER ALLIANT INSURANCE SERVICES
Newport Beach, CA 92660-6450
License No. OC36861
Rick Steddom
Vice President
Saira Nasim
Account Administrator
Please refer to your policy for a complete listing of terms, exclusions and conditions
*Analyzing insurers’ over-all performance and financial strength is a task that requires specialized skills and in-
depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Driver Alliant Insurance Services typically rely upon rating agencies for this type of market
analysis. Both A.M. Best and Standard and Poor have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings
A.m. Best has an extensive database of nearly 6,000 lifehealth, property casualty and international companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit standard and poor’s website at www.standardanduoors.com . To learn more about companies doing
business in California, visit the California department of insurance website at www.insurance.ca.gov.
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