HomeMy WebLinkAboutAGENDA REPORT 1992 0325 CC SPC ITEM 08EMOORPARK ITEM 8• Ell -
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
TO: HONORABLE CITY COUNCIL
FROM: RICHARD HARE, DEPUTY CITY MANAGER
DATE: March 20, 1992
SUBJECT: Consider Securing Property Insurance
Coverage through the Southern California
Insurance Authority
Background
The City has carried property coverages through our broker Tolman
& Wiker since incorporation. The coverages with Tolman & Wiker
have previously consisted of commercial property ($1,483), office
equipment ($1,003) and electronic data processing ($1,391) for an
annual total of $3,877.
The Authority has developed a comprehensive property program
which would greatly enhance the coverage now offered, however,
the Authority program requires the City to carry a $5,000
deductible. This program is offered using the carrier Robert F.
Driver Associates. Currently, 62 of the 64 cities in the
Authority belong to this program taking advantage of the
comprehensive all risk coverage and low premiums. Due to the
number of cities which belong to the program the Authority has
been able to negotiate coverage for items which are typically
excluded under other policies. Attached is a listing of the
various coverages offered.
A comparison of costs was obtained by asking Tolman & Wiker to
obtain quotes for similar coverage from other commercial
carriers. None were found which could match every aspect of the
Authority program, however, the cost of approximating the
Authority program would be $12,734 with a $5,000 deductible. The
Authority program premium would be $4,478.
Budget & Finance Committee Review
The Budget & Finance Committee discussed this matter at their
meeting held March 9th. Although the expanded coverage offered
by the Authority plan and the lower rates were attractive, the
Committee was concerned about the coverage of losses between
$250, which is our present deductible, and the $5,000 Authority
1
hccrpts \property.ins
PA _ W. LA:` +RASON JR. JOHN E WOZNIAK SCOTT MC'iTGOMERY BERNARDO M PEREZ ROY E TA__=` JR
Ma.or Mayor Pro Tam Council —ember Councilmember Council- —u
Pnotec ; ;'cycie Der
program deductible. Staff recommended setting aside a $5,000
reserve for a loss, but the Committee was concerned that two or
three losses of that size would negatively impact the budget.
The Committee recommended participating in the Authority property
insurance program and obtaining coverage under standard
commercial property, office equipment, and electronic data
processing policies to cover the $250 to $5,000 losses.
Staff investigated the possibility of structuring coverage as
suggested and found that the broker at Tolman & Wiker can obtain
a standard policy in these areas and an exclusion would be
written with the Authority policy so that the commercial coverage
through Tolman & Wiker would be first or primary coverage. The
Authority policy would be second or would apply if the loss was
excluded by the Tolman & Wiker coverage.
Proposal
As proposed by the Budget & Finance Committee the City would join
the Authority program for an annual cost of $4,478 based on
current rates and current values. The City would also renew
coverage with Tolman & Wiker limiting values to standard
commercial property, office equipment, and electronic data
processing policies. The current cost of which is $3,877. This
would be a total annual cost for comprehensive coverage of
$8,355.
Budget
There remains a credit of $13,000 in the insurance services line
item (01.4.117.648) for the remainder of this fiscal year. The
Authority program begins each January, so there would be a 30%
reduction in the quoted premium for 1992. It would be $3,135 for
the remainder of the year. The Tolman & Wiker policy would be
approximately $4,000. The expenditure for both programs would be
less than $8,000. The exact final amount will vary dependant
upon final property values applied. Therefore, participation in
the Authority program and implementation of the Budget & Finance
Committee's recommendation will not require a budget adjustment.
Recommendation
Staff concurs with the recommendation of the Budget & Finance
Committee and it is recommended that the City Council authorize
the City Manager to secure property coverage through the
Authority program and renew coverage for commercial property,
office equipment, and electronic data processing equipment
through Tolman & Wiker.
attachments: Driver Quote
Coverage Summary
2
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November 27, 1991
ROBERT F. DRIVER ASSOC LA --
a Division of Robert F. Driver G,.. ln_
Mr. Richard Hare
Deputy City Manager
City of Moorpark
799 Moorpark Avenue
Moorpark, CA 93021
RE: So. Cal. JPIA /AII Risk Property Program
Dear Richard,
I am able to provide the following tentative quote_
• CO;t1PLE1 t l A.SI, R 1Y "1: BO.AD Sf.R1 K P
DEC - 2 1c9" 1
tY
Property (including Buildings, contents, all equipment)
Total Insurable Value: x'5,499,491.00
Deductible. $5,000
Premium: $2,035.00
(I 've included $2,418,634 Land Improvema"Is, is this vacant land should it be
included ?).
Vehicles - Comprehensive & collision (needed list showing year, make, mode4 serial
number and value of each vehicle)
Total Value. $114,531
Deductible. $1,000
Premium: $1,764 00
So. Cal. JPIA Surcharge: $449.00
Program Development Charges: $161.00
CIGA: $19.00
TOTAL: $4,47 &00
Please let me know if you wish to bind coverage, I wii' need a list of locations with breakdown
of values for each. Should you have any questions, -lease do not hesitate to call.
Sincerely,
Ann Rincon
Administrative Assistftt ll STRFFT. St 17-F "i.: \7 1',
- _71 -
�!. C-U.11OR.A1-1
-
ROBERT F. DRIVER COMPANY, INC.
�7�t�e7
Z�IltAt
TYPE OF COVERAGE:
CARRIER:
POLICY TERM:
,LOCATION COVERED:
POLICY SUGARY
Multi Peril Property
Home Insurance Company
January 1, 1991 to January 1, 1992
Per Schedule on file with Company
This policy summary is to be used only as a quick reference of
coverage. Please refer to the policy on file with the SCJPIA for
specific conditions.
(LIMITS AND COVERAGES:
MAXIMUM LIMIT ANY ONE OCCURRENCE PER CITY IS $50,000,000
I. PROPERTY
1. Building'(loss limit per City)
a. All Risks (excl EQ and Flood)_
b. Replacement Cost
c. Agreed Amount
2. Personal Property (Loss Limit per City)
a. All Risk (excl. EQ and Flood)
b. Replacement Cost
c. Agreed Amount
3. Loss of Income (Loss Limit Per City)
a. All Risk (excl. EQ and Flood)
b. Actual Loss Sustained
c. Extra Expense to Reduce Loss
4. Loss of Rents (loss Limit Per City)
a. All Risks (excl. EQ and Flood)
b. Actual Loss Sustained
1
AMOUNT OF INSURANCE
I
incl . in occurrence 1 imit,
I
incl. in occurrence limit
I
f
incl . in occurrence 1 imit�
i
incl . in occurrence 1 imitj
i
Optional per reported
values
�IR�ii �iR1 f i; SUIT:_ ';r.. �;�l�T =7 c- ii�fi ?' oU
POLICY SUMvARY
(Continued)
5. Rental value (Loss Limit Per City)
a. All Risk (Excl. EQ and Flood)
b. Actual Loss Sustained
6. Extra Expense (Loss Limit Per City)
a. All Risks (Excl. EQ and Flood)
b. Actual Loss Sustained
7. Computer Equipment. (Loss Limit
Per City)
a. All Risk
b. Replacement cost
c. Agreed Amount
8. Contractor's, Mobile & Scheduled
Equipment (Loss Limit Per City)
a. All Risk
b. Replacement cost
c. Agreed Amount
d. Rental Reimbursement
5. Builder's Risk (Loss Limit Per City)
a. All Risk (Excl. EQ and Flood)
b. Replacement cost
c. Agreed Amount
10. Accounts Receivable (Loss Limit
Per-City)
a. All Risk
b. Actual Loss Sustained
11. Valuable Papers (Loss Limit Per City)
a. All Risks
b. Actual Loss Sustained
12. Fine Arts (Loss Limit Per City)
a. All Risks
b. Agreed Value
13. Radio & Telephone Equipment (Loss
Limit Per City)
a. All Risks
b. Replacement Cost
c. Agreed Amount
2
Incl. in occurrence 1 it t
Optional per reported
values
Incl. in occurrence 1 izit
Incl. in occurrence licit
Optional per reported
values
Incl. in occurrence 1 i=t
Optional per reported
values
Incl. in occurrence limit
Incl. in occurrence 1 im- it
$5,000,000
Optional per reported
values
$5,000,000
Optional per reported
values
$5,000,000
Optional per reported
Values
14 . A--�_omtobi:_ P-': "sica: Dama_e
On Premises C71y (loss _jmi= Per City)
a. All Risks
b. S tatec Value
II. AUTOMCB= PHYSICAL DA)aGE:
A. Comprehensive
B. Collision
C. Steed Value
III. EMERGE-ENCY VEHICLES:
A. Al: Risks
B. Ir.._luding Equipme= Witty n or on
ve�::i cles
C. St__ed Value
IV. EARTH =UAXE & FLOOD (PER CITY):
A. Pr =axy Coverage
B. Replacement Ccst
C. Agreed Arount
V . EXTENs IONS O? CO:. Z 2AX3E :
A.
Tenants Improvement
B.
Elevator Collision
C.
Personal property of others and
ii-j occurrence limit
Personal = ffects
D.
Ne ly Acgaired Locations
E.
Property in Transit
F.
Cc-sequen_ial Loss
G.
Debris Removal
H.
Pollutant Clean Up and Removal
I.
F -'e Department Service Caarge
J.
Wa_er Damage, Other Liquid
Powder or Molten Material Damage
K.
Preservation of Property
L.
B.:siness Continuation Expense
M.
Revard
N.
B_=zk -up of Water Through Sewers
arrd Drains
O.
Pr: :perty Off :remises
P.
O-_ _door = = ope_ty
Q.
C: -t of :nvenzory
3
Inc_. _n =cc::rrence
Opt_ --na: zer reported
Val --'as
Val-ze as stated
Opt_onal per reported
values
Val- a as stated
Opt=onal per reported
Values
$1, coo, 0%c0
Opt=onal per reported
va :_ =s
Inc:.. in occurrence limit
$50,000
Inc:.
in occurrence limit
Inc,:,
in occurrence limit
Inc:.
i_-i occurrence limit
Inc= .
ii-j occurrence limit
Inc:.
in occurrence limit
$25,000
Inc:.
in occurrence limit
Inc:.
in occurrence limit
Inc:. in occurrence limit
Inc:. in occurrence limit
$5,:00
Inc:. in occurrence limit
Inc-_ in occurrence limit
Inc:. in occurrence Limit
Inc- in occurrence limit
POLICY SUMMARY
(Continued)
VI. DEDUCTIBLES:
A. Buildings, Personal Property, Computer $5,000
Equipment, contractor's Mobile and
Scheduled Equipment, Auto Physical
Damage - On Premises, Builder's Risk,
Fine Arts, Emergency Vehicles, and all
"Extensions of Coverage" included in the
occurrence limit.
B. Radio & Telephone Equipment in $1,000
Vehicles, Auto Physical Damage -
Comprehensive and Collision.
C. Loss of Income, Loss.of Rents, Rental NONE
Value, Extra Expense, Accounts
Receivable, and Valuable Papers
VII. ENDORSEMENTS:
1. Occurrence Limit of Liability
2. Agreed Amount
3. Stated Value
4. Errors and Omissions
5. Newly Acquired Property (Personal and Scheduled)
6. Property Covered
7. Rental Income Bond Obligation
8. Special Endorsement Broadening coverage
9. Earthquake Sprinkler Leakage (EQSL)
10. Occurrence mit of Liability Endorsement Extension
11. Demolition
12. Increased Cost of Construction
13. Contingent Liability from Operation of Building Laws
14. Contingent Liability from Operations of Buildings laws/
Increased Time to Rebuild
15. Functional Replacement cost
16. Building Ordinance /Increased Period of
17. Radio and Television Antennas
18. Radio and Television Antennas /Business
Extra Expense
19. Contingent Business Income
20. Builders Risk Renovations
21. Vacancy Permit
22. Extortion Coverage Endorsement
23. Replacement Coverage Endorsement
4
Restoration
Income or