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Home My WebLink About1996-06-04; Municipal Water District; 323; Property, Boiler & Machinery InsuranceCARLSBAD ‘-” JNICIPAL WATER DISTRICT ‘-AGENDA BILL AB # 3a3 TITLE: MTG. 614196 PROPERTY AND BOILER AND MACHINERY ,9 INSURANCE DEPT. RM I RECOMMENDED ACTION: Approval of Resolution No. 938 authorizing the expenditure of $43,094 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 is purchased through the Public Agency Risk Sharing Authority of California (PARSAC), the joint powers authority of which the City is a member. The premium to renew the property insurance for the period May 15, 1996 through May 15, 1997 (coverage was bound pending Council and Board action) is $43,094, an increase of 5 ?h”h over the p remium paid last year. This is based on an increase in the values of the City’s vehicles. StafT 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 IME’ACT The property and boiler and machinery insurance premium is $43,094. Sufficient tinds are available in the Insurance Premium Account. I EXHIBITS I 1. Resolution No. 9 3 g 2. Public Entity Property Insurance Program Summary of Coverage and Limits 3. Public Entity Property Insurance Program Boiler and Machinery Program RESOLUTION NO. 9 3 8 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, CARLSBAD, CALIFORNIA AUTHORIZING THE RENEWAL OF PROPERTY INSURANCE FOR CARLSBAD MUNICIPAL WATER DISTRICT PROPERTIES WHEREAS, the CMWD has previously maintained property and boiler and 8 t achinery insurance for assets; and 9 WHEREAS, the CMWD has received quotations for the continuation of 10 overage from the Public Agency Risk Sharing Authority of California; and 11 12 WHEREAS, upon evaluation of the quotations for both property and boiler and machinery insurance, the CMWD desires to renew its insurance through the Public 13 14 Agency Risk Sharing-Authority of California. 15 NOW, THEREFORE, be it resolved by the Board of Directors of the 16 Carlsbad Municipal Water District, Carlsbad,. California, as follows: 17 1. That the above recitations are true and correct. 18 2. That the renewal of CMWD property insurance through the Public gency Risk Sharing Authority of California is hereby approved and the Financial 20 21 anagement Director is authorized to issue a warrant in the amount of $43,094 for the 22 ayment of the premiums of said renewals. 23 24 25 26 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the 2 Board of Directors of the Carl&ad Municipal Water District on the JUNE 4th day of 3 4 1996, by the following vote, to wit: 5 AYES: Board Members Lewis, Nygaard, Kulchin, Hall 6 NOES: None 7 ABSENT: Council Member Finnila 12 ATTEST: 13 14 15 16 17 18 19 20 21 22 23 24 26 27 28 II EXHIBIT 2 NAMED INSURED: POLICY TERM: INSURANCE COMPANIES: COVERAGE: Tr PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) ALL RISK PROPERTY PROPOSAL PROGRAM DESCRIPTION Public Entity Property Insurance Program including: See Attached May 151996 to May 15,1997 See Attached All Risk of Direct Physical Loss or Damage excluding Earthquake. Flood covered only if indicated under “Optional Coverages” portion of attached Summary. Coverage includes: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Real Property and Personal Property Rental Income including Bond Revenue Requirements Business Interruption (Where applicable) Extra Expense Valuable Papers and Records Accounts Receivable EDP Equipment, Media and Extra Expense Owned/Leased Vehicles - All Risk on Premises only (Collision, Upset and Overturn on Declared Vehicles provided only if indicated under “Optional coverages” portion of attached Summary 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 Service Interruption from Public and Private Utilities Tax Interruption ((When Reported) Replacement Cost and Agreed Amount 90 Day Notice of Cancellation except 10 days for Non-Payment Coverage not Confined to Schedule (Except Earthquake, Flood and Licensed Vehicles) Automatic Coverage - report newly acquired locations within 120 Days Expediting Expense Errors and Omissions Fine Arts 4lWQ6 h:\u\rlw\word~enl96\maf.doc I PEPIP 96197 Program Summary I Page - 2 - 1 COVERAGE CONTINUED: LIMITS: SUBLIMITS: 25. Fire Department Service Charges 26. Vacancy Clause - Deleted (see sub-limits below) 27. Joint Loss Agreement with Boiler Carrier(s) 28. Leasehold Interest Endorsement (limited to one year) 29. Transmission Lines on Premises 30. All extensions of coverage per manuscript policy form $500,000,000 Loss Limit Per Occurrence subject to a maximum limit of $250,000,000 per location on all coverages except as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 Extra Expense Valuable Papers and Records Accounts Receivable Transit Architects, Engineers and Claim Consultant Fees Mobile and Contractor type Equipment Fine Arts (Unscheduled) Service Interruption Expediting Expense Newly Acquired Locations -. 11. Vacancy Clause 12. Errors and Omissions 13. Reolacement Power Extra 14 . Expense at Utility Locations Demolition and Increased Cost of Construction DEDUCTIBLE/ TOTAL INSURED VALUES/ ANNUAL COST ANNUAL COST (Includes premium, taxes and fees where applicable and surplus lines brokerage fees) See Attached Summary 5,000,OOO per location 1 o,ooo,ooo 1 o,ooo,ooo 5,000,000 2,750,OOO 5,000,000 1 ,ooo,ooo 5,000,000 500,000 5,000,000 5,000,OOO within 90 days 2,500,OOO after 90 days 5,000,000 2,500,OOO 50,000,000 4118lQ6 h:Wlwlword\renl96\proar.doc EXHIBIT 3 PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) BOILER AND MACHINERY PROGRAM -PROGRAM DESCRIPTION/SUMMARY OF COVERAGE INSURANCE COMPANY: Lumbermens Mutual Casualty Company (Kemper Group) BEST’S GUIDE RATING: A, Excellent; Class 14 Policyholders’ Surplus of $1,500,000,000 to $2,000,000,000 CALIFORNIA STATUS: RATING TERM: Admitted May 151996 to May 151997 (Policy expires May 15, 1996) COVERAGE: Comprehensive Coverage including Production Machines and Public Utility Equipment. Definition of “Objects” to include Digestors, constructed by cement with metal lids. This coverage follows the All Risk Property Policy form and covers perils which are normally excluded. LIMITS: $ 50,000,000 $ 1 ,ooo,ooo 1 ,ooo,ooo 5,000,000 100,000 2,000,000 Combined Limit including Property Damage, Business Interruption (including Bond Revenue Payments) and Extra Expense. Business Interruption only applies to those locations where such values have been reported. Demolition and Increase in Loss for Covered Property and Business Interruption - Extra Expense Expediting Expense Errors and Omissions l Applies to each of the following: *Ammonia Contamination .Water Damage *Hazardous Substance Clean-up Consequential Loss (to Refrigerated or Frozen Goods in Storage) Electronic Data processing Equipment (currently only applies to the City of Santa Barbara) April 29,1996 h:\u\rtw\word\boilerVe\renl96\progdes.doc PEPIP B&M 96197 Program Program Description Page-2- VALUATION: ENDORSEMENTS: MAJOR EXCLUSIONS (including but not limited to): PROPERTY DAMAGE DEDUCTIBLES: COMBINED BUSINESS INTERRUPTION AND EXTRA EXPENSE DEDUCTIBLES: Repair or Replacement except Actual Loss Sustained for all Time Element Coverages .Joint Loss Agreement with Property Companies .Omnibus location wording .Earthquake Resultant Damage .Nuclear Hazard .War and Military Action *Freeze and Wind t 2,500 All Insured Objects except: 5,000 All Objects over 200 H.P. or 1,000 KWKVAIAMPS or Boilers over 5,000 square feet heating surface $ 50,000 All Objects over 350 H.P. or 2,500 KWKVNAMPS or Boilers over 10,000 square feet heating surface $ 250,000 All Objects over 750 H.P. or 10,000 KWKVAIAMPS or Boilers over 75,000 square feet heating surface $ 375,000 All Objects over 25,000 H.P., or 25,000 KW/KVA/AMPS, or Boilers over 250,000 square feet heating surface 30 Days for Revenue Bonds 24 Hours All Objects except: 5 X 100% Daily Value All Objects over 750 H.P. or 10,000 KW/KVA/AMPS or 10,000 square feet heating surface; 5 X 100% Daily Value All Objects at Waste Water Treatment Facilities, Utilities and SERRF April 29.1996 h:\u\rlw\word\boilerbnl96~rogdes.doc