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Home My WebLink About2004-07-13; Municipal Water District; 573; Property, boiler & machinery insurancen ut > 0 a a a a .. z 0 F 0 J 0 z 3 0 0 a - AB# 573 MTG. 7/13/04 CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BIL~ ‘@ - - -7 TITLE: PROPERTY, AND BOILER AND MACHINERY DEPT. HD. .L’* c- INSURANCE CITY ATTY. DEPT. RM I RECOMMENDED ACTION: Adopt Resolution No. 1219 authorizing the expenditure of $62,353 for Property, and Boiler and Machinery Insurance. 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-AIIiant), for public agencies. The cost is allocated to departments based on claims, experience and department size. The premium to renew the insurance for the period July 1 , 2004 through June 30,2005 (coverage was bound pending Council and Board action) is $62,353. This is an 8.25% decrease below the premium paid last year. FISCAL IMPACT: The property and boiler and machinery insurance premium is $62,353. Sufficient funds are available in the Insurance Premium Account. EXHl BITS: 1. Resolution No, 1219 2. Public Entity Property Insurance Program Summary of Coverage and Limits 3. Public Entity Property Insurance Program Boiler and Machinery Program H :\WO I< 1 )\Ins urancc\2001 05 Rcncw~al\O4-05 Watcr Prol~crty 4 B. doc 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I6 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 1219 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 desires to renew its insurance through the Driver-AIIiant 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 Driver- Alliant is hereby approved. PASSED AND ADOPTED this 13th day of July ,2004, by the following vote: AYES:Board Members Lewis, Kulchin, Hall and Packard N0ES:None ABSENT: Board Member Finnila , // - - T’O~~AINE M. WOOD, Secretary EXHIBIT 2 driver+;::!!’: I INSURANCE SERVICES PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) PROPERTY PROPOSAL OF INSURANCE NAMED INSURED: City of Carlsbad POLICY PERIOD: COMPANIES: TOTAL INSURED VALUES: July 1, 2004 to July 1,2005 See Attached List of Companies $105,538,089 as of May 3,2004 COVERAGES & LIMITS: $750,000,000 Per Occurrence: All Perils, Coverages and Insureds/Members combined, subject to the following sub-limits: Not Covered Dedicated Flood Limit - Per Occurrence & Annual Aggregate Not Covered Dedicated Limit for Earthquake Shock - Per Occurrence & Annual Aggregate $100,000,000 Combined Business Interruption, Rental Income and Tax Interruption per member except $500,000/$2,500,000 maximum per occurrence limit if values are not reported by member $ 25,000,000 Per Occurrence for Extra Expense (Pending approval by Excess Underwriters) $ 10,000,000 Miscellaneous Unnamed Locations for existing Members Excluding Earthquake coverage for Alaska, California and Washington Members. $ 25,000,000 Automatic Acquisition for new locations for existing members. Additionally, there is Automatic coverage for new locations greater than $25,000,000 and up to $100,000,000 for 90 days from date of acquisition. [If values are not reported within 90 days, a maximum sublimit of $25,000,000 will apply.] The peril of EQ is excluded from Automatic Acquisition for the states of Alaska, California and Washington (Pending approval by Excess Underwriters) $ 1,000,000 Unscheduled Landscaping, tees, sand traps, greens and athletic fields and further subject to $1 0,000 maximum per tree $ 5,000,000 Scheduled Landscaping, tees, sand traps, greens and athletic fields and further subject to $1 0,000 maximum per tree. Higher Limits available for members with scheduled values greater than $5,000,000 for an additional premium with underwriting approval 25,000.000 Errors & Omissions Note: Sublimits shown in bold indicate actual i potential changes in either sublimit or coverage. See Executive Suniiiiary for details. COVERAGES & LIMITS: (Cont.) $ 25,000,000 Course of Construction including New Projects $ 500,000 Money Rr. Securities $ 2,500,000 Unscheduled Fine Arts $ 250,000 Accidental Contamination per occurrence and annual aggregate per member with $500,000 annual aggregate for all insureds / members S 250,000 Unscheduled 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) $ 10,000,000 Demolition and Increased Cost of Construction due to the enforcement of building codes $ 10,000,000 Transit $ 1,000,000 Animals; not to exceed $50,000 per Animal $ 1,000,000 Watercrafl under 27 feet $ 500,000 Per acquisition for Newly Acquired Vehcles for current members with auto coverage Included Per Occurrence - Off Premises Vehicle Comprehensive Damage Included Per Occurrence - Off Premises Vehicle Collision Damage Included Per Occurrence - On Premises Vehicle Comprehensive and Collision Damage for all insured7members that report Vehicle Values $ 10,000,000 Off premises services interruption including extra expense resulting from a covered peril at non-ownedoperated locations 5,000,000 Per Occurrence and Annual Aggregate for all Declarations for Earthquake Shock on Licensed Vehicles, Unlicensed Vehicles, Contractor’s Equipment and Fine Arts for all insuredhnembers in the PEPIP Program combined that do not purchase Earth quake limits 5,000,000 Per Occurrence and Annual Aggregate for all Declarations for Flood on Licensed Vehcles, Unlicensed Vehicles, Contractor’s Equipment and Fine Arts for all insiired/members in the PEPIP Program combined that do not purchase Flood coverage. $ $ Note: Sublimits shown in bold indicate actual i potential changes in either sublimit or coverage. Scc Executive Summary for details. COVERAGES Sr LIiMITS $ 250,000 (Cont.): $ 25,000 $ 100,000 $ 2,500,000 $ 50,000 $ 10,000,000 Per Occurrence, per member for Contingent Business Interruption, Contingent rental values, and Contingent extra expense separately Per Occurrence, Per Member for Jewelry, Furs, Precious Metals and Stones Separately Per Occurrence, per Member for Claims Preparation Expediting Expenses Per Occurrence, per Member for Personal Property Outside of the USA Per Occurrence Per Member with an Annual Aggregate of $70,000,000 shared by Declarations 1-7 for Terrorism (Pending approval by excess Underwriters) MAJOR EXCLUSIONS: (Including but not limited to) War and Civil Risks; Third Party Liability; Professional Liabilityhdemnity; 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; Faulty Workmanship; Worldwide Computer Virus; Mold; Boiler and Machinery unless coverage is purchased. 0 Repair or Replacement Cost 0 0 Actual Loss Sustained for Time Element Coverages Vehicles & Contractor’s Equipment / either Replacement Cost or Actual Cash Value as declared by each member. If not declared, valuation will default to actual cash value VALUATION: ALL RISK BASIC DEDUCTIBLE: DEDUCTIBLES FOR SPECIFIC PERILS AND COVERAGES: $ 25,000 Per Occurrence Not Covered Per Occurrence for Flood Zones A & V Not Covered All Flood Zones Per Occurrence excluding Flood Zones A & V Not Covered Per occurrence for Earthquake Shock per unit of insurance (Real & Personal Property and Time Element) $ 25,000 Off Premises Vehicle Comprehensive Damage $ 25,000 Off Premises Vehicle Collision Damage Note: Sublimits shown in bold indicate actual / potential changes in either sublimit or coverage. See Executive Summary for details. DEDUCTIBLES FOR SPECIFIC PERILS $ 25,000 On Premises Vehicle Comprehensive Damage where vehicle AND COVKRAGES (Cont.): values are declared $ 25,000 On Premises Vehcle Collision Damage where vehicle values are declared $ 1,000 Per Occurrence - Specially Trained Animals $ 500,000 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 10,000 Minimum subject to $1 00,000 Maximum per Vehicle or Item for Licensed Vehicles, Unlicensed Vehicles and Contractors Equipment Per Occurrence for the peril of Earthquakefor members who do not purchase dedicated earthquake limits 50,000 Per Occurrence for Fine Arts for the peril of Earthquakefor members who do not purchase dedicated earthquake limits 10,000 Minimum subject to $100,000 Maximum per Vehicle or Item for Licensed Vehicles, Unlicensed Vehicles and Contractor’s Equipment Per Occurrence for the peril of Floodfor members who do not purchase dedicated Flood limits 50,000 Per Occurrence for Fine Arts for the peril of Floodfor members who do not purchase dedicated Flood limits $ $ $ $ 24 Hour Waiting Period - Service Interruption, All Perils 2.5% of Annual Tax Value - Tax Interruption per Location 25% Minimum Earned Premium and cancellations subject to 10% penalty CONDITIONS: TOTAL ANNUAL COST: $ 62,353 Total Annual Cost* *Total Annual Cost includes Premium, Carrier Taxes & Fees, Appraisal & Loss Prevention Inspection Fees for All Risk Property, Earthquake, Flood, Boiler & Machinery and PEPP Terrorism coverage where purchased. Note: Sublimits shown in bold indicate actual i poteiitial changes in either sublimit or coverage. Scc Executive Summary for details. EXHIBIT 3 driver, sX;: 3-i :;I ~ I N s u RAN c E s E RV I c E s PUBLIC ENTITY PROPERTY INSURANCE PROGRAM (PEPIP) 2004-2005 BOILER & MACHINERY PROPOSAL OF INSURANCE NAMED INSURED: POLICY PERIOD: COMPANIES: TOTAL INSURED VALUES: *STATUS/RATING: COVERAGES & LIMITS: City of Carlsbad July 1, 2004 to July 1, 2005 Lexington Insurance Company CNA Insurance Company Foreign Excess Ins. Companies (See attached list of Companies) $105,538,089 as of May 3,2004 See Attached List of Companies for Best's Guide Ratings, Admitted Status and Standard & Poor's Ratings $1 0,000,000 Primary 50% of $90,000,000 Excess of $10,000,000 50% of $90,000,000 Excess of $10,000,000 $ 100,000,000 Included Inc 1 uded $ 25,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 0,000,000 0,000,000 0,000,000 2,000.000 2,000,000 1,000,000 1 .000,000 1 .000.000 Combined Limit - Property Damage & Business Interruption/ Extra Expense (including Bond Revenue Interest Payments for locations where the income is reported), Production Machinery, Public Utility Equipment, Digestors, Loss Adjustment Agreement with Defense Outside Limits, Electronic Computer or Electronic Data Processing with the following sublimits: Inspection Services Machine or Apparatus used for Research, Diagnosis, Medication, Surgical, Therapeutic, Dental or Pathological Purposes Automatic Acquisition Expediting Expense Errors & Omissions Utility Interruption for Utilities owned by others Ammonia Contamination Water Damage Consequential Damage Electronic Data Processing Media Earthquake Resultant Damage per occurrence and annual aggregate for Members who purchase Dedicated Earthquake Coverage Demolition and lncreased Cost of Construction Hazardous Substance Bui Iding Ordinance Coveragcc NAMED INSURED CLAUSE: NEWLY ACQUIRED LOCATIONS: VALUATION: EXCLUSIONS: (Including but not limited to) OBJECTS EXCLUDED: NOTICE OF CANCELLATION: Named Insured covers entities you acquire or in which you have 50% or more ownerslup or contractual control prior to loss $25,000,000 Automatic Acquisition for Boiler & Machinery values at newly acquired locations. Values greater than $25,000,000 or Power Generating Facilities must be reported within 90 days and must have prior underwriting approval prior to binding Repair or Replacement except Actual Loss sustained for all Time Element coverages 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 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 hrnace of the boiler Bonus and penalties of a Power Sales Agreement Exclusion Insulating or refractory material Non metallic vessel unless it meets ASME standards Catalyst Buried Vessels or Piping Furnace, Oven, Stove, Incinerator, Pot Kiln Structure, Cabinet or Compartment containing the Object Vehicles, 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 Objects manufactured by you for sale Felt, Wire, Screen, Die, Extrusion Plate and Swing Hammer 90 days except 10 days for non-payment of premium 06/03/04 DEDUCTIBLES: S 2,500 $ 5,000 $ 5,000 $ 5,000 S 50,000 $ 100,000 $ 250,000 $ 350,000 Except as shown for Specific Objects or Perils Electronic Data Processing Media Consequential Damage Objects over 200 hp, 1000 KW/KVA/Amps or Boilers over 5,000 square feet of heating surface Objects over 350 hp. 2500 KW/KVA/Amps or Boilers over 10,000 square feet of heating surface Objects over 500 hp, 5000 KW/KVA/Amps or Boilers over 25,000 square feet of heating surface Objects over 750 hp, 10,000 KW/KVA/Amps or Boilers over 75,000 square feet of heating surface Objects over 25,000 hp, 25,000 KW/KVA/Amps or Boilers over 250,000 square feet of heating surface $ 10 per foot / $ 2,500 Minimum for Deep Water Wells 24 Hr. Waiting Period - Utility Interruption 24 Hours - Business IntermptiodExtra Expense Except as noted below 30 Days - Business Interruption - Revenue Bonds 5 X 100% Daily Value - Business Interruption - All Objects over 750 HP or 10,000 KW/KVA/Amps or 10,000 Square feet Heating Surface 5 X 100% Daily Value - Business kterruption - All Objects at Waste Water Treatment Facilities and All Utilities TOTAL ANNUAL COST: The Total Annual Cost for your Boiler & Machnery coverage is Included in your All Risk Total Annual All Risk Cost