HomeMy WebLinkAbout1993-10-05; Municipal Water District; 224; Property, Boiler & Machinery InsuranceCARLSBAD -JNICIPAL WATER DISTRICT -‘ AGENDA BILL (;’
AB # 224 TITLE: ~ MTG. 10/5/93 PROPERTY, AND BOILER AND MACHINERY
INSURANCE
DEPT. RM
RECOMMENDED ACTION:
Approval of Resolution No. 85 0 authorizing (1) the combination of CMWD properties with City
Properties for insurance purposes and the renewal of property insurance in accordance with staff
recommendations; and (2) the cancellation of current CMWD property insurance.
ITEM EXPLANATION
The current City insurance policies, through insurance broker Cal-Surance, expire October 1, 1993 (new
coverage was bound pending Council action). Coverage for the CMWD through the California
Municipal Insurance Authority (CMIA), the joint powers authority of which the City is a member,
expires Jan 1, 1994. By canceling the CMWD’s current coverage and combining CMWD properties with
City properties for insurance purposes, the type of coverage and the effective dates of coverage would
be the same. This would enhance administrative efficiency and ensure consistency in coverage. As a
result, quotes from CMIA and Cal-Surance for coverage for both the City and CMWD properties were
solicited.
CMIA submitted a quote of $42,376 for both CMWD and City properties. This quote is 31% less than
the premiums paid last year and reflects both the soft state of the property insurance market and the
ability of a joint powers authority to obtain a lower rate for its members. Since the policy period runs
from May 15 to May 15, the pro-rated premium is $26,231 for the period October 1, 1993 to May 15,
1994. The property insurance is provided through the Public Entity Property Insurance Program
developed by the Robert F. Driver company for public agencies. The program provides coverage equal
to or greater than that of existing policies in effect and is backed by insurance carriers with a rating of
A-XI or better in the Best’s Key Rating Guide. There are currently 21 public agencies in California
participating in the program which includes cities, joint powers authorities and special districts. The
Boiler and Machinery insurance is provided by the Pacific Indemnity company with a rating of
A+ +:XIV in the Best’s Key Rating Guide.
Cal-Surance submitted a quote of $49,501 for City properties alone. The broker was not able to provide
a quote on CMWD properties in time for this report.
The recommended quote is $26,231 for the provision of property, and boiler and machinery insurance,
for both the City and the CMXD, through CMIA, for the period October 1, 1993 to May 15, 1994.
Cancellation of the current CMWD insurance coverage will result in a refund of $1,906. To achieve the
monetary savings of insurance through CMIA, as well as consistency in coverage and administrative
efficiency in managing the insurance of both City and CMWD properties, requires that the Board
authorize the combination of CMWD properties with City properties for insurance purposes, the
renewal of property insurance in accordance with staff recommendations, and the cancellation of current
CMWD property insurance.
FISCAL IMPACT
The recommended quote is $26,231. A refund of $1,906 for cancellation of existing CMWD coverage
reduces the impact to $24,325. Sufficient funds are available in the Insurance Premium Account.
PAGE 2 OF AB # &!q
EXHIBITS
1. Resolution No. 60
2. Property, and Boiler and Machinery Quotations and Coverage
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RESOLUTION NO. 850
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CARLSBAD,
CALIFORNIA, AUTHORIZING THE COMBINATION OF
WATER DISTRICT PROPERTIES WITH CITY PROPERTIES
FOR INSURANCE PURPOSES, THE RENEWAL OF PROPERTY INSURANCE FOR WATER DISTRICT PROPERTIES AND CANCELLATION OF EXISTING WATER DISTRICT INSURANCE
WHEREAS,. the City and the CMWD have previously maintained
lroperty and boiler and machinery insurance for assets; and
WHEREAS, the CMWD desires to combine City and CMWD properties
For insurance purposes; and
WHEREAS, the City has received quotations for the continuation
If coverage from Cal-Surance and the California Municipal Insurance
iuthority; and
WHEREAS, upon evaluation of the quotations for both property and
Ioiler and machinery insurance, the CMWD desires to renew its coverage
:hrough the California Municipal Insurance Authority.
NOW, THEREFORE, be it resolved by the Board of Directors of the
:arlsbad Municipal Water, Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the' renewal of' CMWD property insurance with City
lroperty insurance through the California Municipal Insurance Authority is
lereby approved and the Financial Management Director is authorized to
cancel the existing CMWD coverage and issue a warrant in the amount of
526,231 for the payment of the premiums of said renewals.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Board
If District of the Carlsbad Municipal Water District, Carlsbad, California,
In the 5th day of OCTOBER 1993, by the following vote, to wit:
AYES:
NOES:
ABSENl
Board Members' Lewis, Stanton, Kulchin, Finnila
None
'. . Board Member Nygaard
TTEST:
-ETHA L. RAUTENKRANZ, Secretary I
Seal)
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ROBERT F. DRIVER ASSOCIATES
‘I Di\~isio/l of Rohm F. Dri\~cv~ Co.. 1,~.
. COMPLETL? INSl:R;INCEBO,~D SERI ICE l
EXHIBIT 2
Public Entity
Property Insurance Program
Property Proposal for City of Carlsbad and
Carlsbad Municipal Water District
Presented By:
ROBERT F. DRIVER ASSOCIATES
Ralph S. Hurst
Vice President
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.;/,.;(I IlIRC’It .?I-RFE7‘. SC’ITE _‘.:O. ;VEI1’PORT REACH. C‘.4LtFOR,VI.-\ ‘)lhhO-_‘hIY
1714) 7.v.1,271 . F‘.A,Y 17141 7.W271.;
ROBERT F.DRI'JER WSOC _IC:i14 -756-2713 :38 ko.035 ?.01
PUBLIC l%?Vl’ITY PKOPERTY INsUMCE PROGRAM
PROYERTY PRiWOSAL FOR CITY OP CARISBAL) AND CARLSBAD MWICIPAL WXI’ER DXSTIUCT
(AS l”hFIT OF CiU-FO~IA MZTMcllpAL INSURANCE AUTHORWY)
NAMED INSIIREL): hrbfic Dnl&y Pqwy Insurtlnce Program including;
city of C&bad and Carlskd Municipal Water Distrkt
PKoiwsm EFFECTI’VE l-lA’I’&r Ckdm 1, 1993 t.u May 15, 1994 (Program runs May 15 to May 15)
INSURANCE CARRU: See Attached Structure
COVERAGE: All Risk of Dirwl Physical ILoss or Damage cxcfudine tirthquake and Flood
Coverage includes:
1. F&al Pmperty and Personal Fropwty
2, RcntaI Income including Bond Revowe Requirenxzls
3, Business Intcrrupti0n (If V~~lues %clatd)
4, Extra Elcpense 5. Valuable Papw arid Rwords 6. Accwnt,s Receivable
7. BDP Eqtfpmenr, Me& and B&-a &qww 8. Chvned/~sQd Vehicles - All Risk and Collision Upat and
Ovoflum on Declared V&i&s 9. Dctndition and lnoreoacd Cost of Cur~stIuCUCill 10. Debris Removt\l 11, Cordngenl Liability due to Building Codes
12, Transit 13. Architects’, Engineers’ Fees and Ckim Consultant Fees
14. Couri;e nf Construction on Promises or willh 1,000 ft. 15. Mobile E!quipent , Contractor Type Equipnent (If Values
16. Service Lnt~ption from F@ublic and Private Utilities for Gas, Electric, Water and Tebxmmuni~tbn,ns (w&ding Power Pht IJ3cationR) 17. Tax Interruption (When Rcyoti> 18. Rcplactnaen~. Cost and Ag& Amount 19.90 Day No&e of ~IXChtion wxpt 10 ciw hr Nfin-Paymenl
20. Coverage not Confmed lo Schedule (J3xcept Vehicles) 22. Automatic Cowagt - 12.0 D;rys 23. Expediting Expense
24 Errors and Omissions
Ro%ERj- F.DRIVER fISS@C
DWUCTIBLE:
$TpJ3”g3 15:38 tso.C’35 5.0’2
26. Fire JIkptment Service Charges 27. Vacancy C&WE - Delo~ed 28. Jainl toss Aglwmcnt with Boiler Carrier@)
$250400,000 Loss Limit Per CWzurraEe ail fi3wemge6 8x60pt as rollows:
1, Valuable Papers
2, Accounts Rcceivablc 3, Tra~sil
4, Architects, Engineers tind
Ciititn Cousultant Pe.etj
S, Mobile and Contractor type
Equipment (If Va+es Wlared) 6. Fine Arts (Unschcdulcd)
7 I servirx I~lt.crnlpiioa 8, Expcditinp, Expense 9, Ewthqutkke
10. Flood
25,000,ooo
25 ,ooo,ooo
5,om~
s,ooo,ooo
s ,M~,ooO
1 .ooo,ooc, 5 ,ooo,ooo
soo,uoo Available Available
Covemge is not confmcd to location xchcduk+ on tilt:
(Except EIarthquake and Flood PvZuAt. Re Reptied)
$ 5,000 All Other Perils (Includes Vehicles)
TOTAL UWAIRER VALUE: s 47,925,404
GNNUAL CQST: $ 38,165 * & **
(hxlude prernibrm, taxw and fee where
apphable and suryluts
lines brokerage fe&
SIXCWT TERM PFtm
(OCTOBm 1, 1993 TO
MAY 15, 1994)
$ 23,624
*Xncludos VeMcle Collision FWrnium of $11,305 on DfUre4l
VdIiGlaS tota11iq $2,261,071 In Vfihle per schedule submitted 011 Y/21/93.
**Includes Contractor& Equipment
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IV.
V.
VI.
VII.
PEPIP CARRIERS
ALLRISK PRIMARYAND
EXCESS PROPERTY
$S.~.ooO PRIMARY/ALL RISK EXCLUDING EARTI’IOUAKE/FLOOD
POLICY
coMPANY l!m BEST RATING CA. STATUS
RLIIW. co. SFCOO8585 &VII Admitted
LexiIlgton Ins. co. 868 5931 A++; XV Non-Admitted
$5.000.000 EXCESS OF s5.000.0001ALL RISK EXCLUDING EARTHOUAKE/FLOOD
Industrial Indemnity JA912-5662 A-; XV Admitted
Royal Indemnity RHD 4cNI353 A-; XI Admitted
$15.000.000 EXCESS OF $10.000.000/ALL RISK‘ EXCLUDING EARTHOUAKE/FLOOD
Twii City Ins. KG CM00256 A+;XV Admitted
Home Ins. Co SPXF 82178 A-; XI Admitted
AllianzIns. co. FC5023241 A+; VIII Admitted
$25400.000 EXCESS OF S2s.000.~ RISK EXaUDING EARTHOUAKEiFLOOD
Fireman’s Fund xER2381820 A; XIV Admitted
Navigators 93Mao471 A, VII Admitted
Agricultural CPP7947282 A; x1 Admitted
Essex Ins. co. 1AC 9535 A;VI Non-Admitted
$50.000.000 EXCESS OF sSO.OOO.OOO/ALL IUSK EXCLUDING EARTHOUAKE/FLOOD
Industrial Indemnity N9608011 A-; XV Admitted
$100.000.000 B OF S100.000.0001ALL -IJDJNG EARTHOUAKE/FLOOD
Royal Indemnity RHmm355 A-; XI Admitted
Industrial Indemnity Nx 9608011 A-; XV Admitted
Travelera 7XJPW-225T613-l-93 A-; XV Admitted
$50.000.000&BFLOOD EX
Travelera 7xJPFF-225%14-3-93 A-; XV Admitted
_. --.- ..-... _.- $
‘PUBLIC ENTITY PROPERTY INSURANCE PROGRAM .
CURRENT PARTICIPANTS
NAMED INSUREDS:
Bay Cities Joint Powers Insurance Authority
(includes Cities of: Albany, Emeryville, Hayward,
Monte Sereno, Pleasanton, Piedmont, Redwood City,
Union City and South San Francisco Redevelopment Agency)
City of Burbank
City of Cathedral City
Community Development Commission
City of Corona
City of Costa Mesa
City of El Segundo
City of Fontana
City of Fresno
City of Garden Grove
’ City of Glendale
Irvine Ranch Water District
City or Long Beach
City of Modesto
City of Pasadena
City of San Mate0
City of San Buenaventura
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PEPIPl+qpm
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City of Santa Ana
City of Santa Barbara
City of Simi Valley
City of Torrance
ROBERT F.DPI’JER F\SSOC m:m-756-2713 -. SEP 23 ‘93 15:39 ho.035 P.C3,
X3ERT F. IlRl VEK ASSCI>I:~AI.‘I?~$
it h&iiJJl of Roht F. ihGc:r f:tJ., In<: -Y
‘34. BOILER AND MACHINERY PROPOSAL
KIA?‘l[i:S liY)R CITY OF CARLSB~
NAMED INSURED: city of car1sbad
TEXM: Oct.aber 1, 1993 to May 1.5, 2994
COMPANY: Padfk Xndetnnity Corrtpatry
Chubb Group
BEST WIDE HATING: AS i- ) S~periot, Clnixi XIV Policyholders surphls of $1,5w,m,w to $&wo,000,ooo
CAIDQRMA S’i-ATUS: Admilted
LIMITS: $ 20,000,000 Combin& Single Limit Property Damage Including Business Interruption and
Extra Expense Sub-Limits:
$ 35,OQO Expediting ~penns
:
35,ow waler Danragc
35,CKXl Demolitisn and Lncrmsr~ Cost. of Constmctiur~
:
35,000 Amrnania Coutatninat~iou 35 ,cKM HmTdous SllbstarIcc
COVERAGE: Cornprehcnaive Cowage including Productbn Machines, Business
Intwmption and Bxtra Bxpeme (AcU Lms Sust$ncd)
VALUATION: Repair or Re&cemnt Ccwmgc
DEDUCTIBLE: % 5,000 hq.wty Damge
24 Horlrs - Combined Business Intemptjnn and Extra Expcnve
ANNuALmEMluM; $ 4,211
SHORT-TERM I’REMIUM:
(OC’lDBER 1, 1993 TO MAY IS, 1994) $ 2,6iI’7
SUBJEt2T TO POLICY TERIW, CONDITIONS AND l~xt-YLIti!wbNs
September 23, 1993/gw
.k?fi HIliV% S?%EfiT, Si,VTIi 230, NP:WFCU?T 814C:H, CAiJfi’IMiVIA YZ66f1-,!61Y
(71J) 7.56-0271 l I:AX {714j 7.562713
03&3/9?- 17: I35 7143331554 302
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Vehicle Deductiblea:
Vehicle Cover e fox Vehicles Value Under “ff $2Q,CKM:
Hired Auta Physical f)amragee:
Mobile Equipment:
C&mpariaon of Premium
{dam 7i co at Renewak bad with biler & Machinery }
vlicj4dJP8.I6/P.u-u
P00
Full Comprehenerivvcs & Collision while parked at covered locationr
Hired Vehicies !I any) muet be reported to carrier
$S,OWI Deductible
$2,749 lncrcaae (7.1% increase)
$1,000 All VehieIer
Deductible ia per Vehicle
Fire, Theft & Collieion while parked at cavered locations.
Coverage Provided
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25,000 Limit 1,000 Deductible
$ L,CKW Deductible
$2,806 Dacraars
f&8% decrearre)
t;S;s?EE&TL 99 :LJ’I: E6&3’6E: