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HomeMy WebLinkAboutCity Liability Insurance - Property Insurance Policies 8/ REQUEST FOR CITY COUNCIL ACTION �r7va.vc� Date June 1 , 1992 Submitted to: Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Admi ni str Prepared by: Robert J. Franz, Deputy City Administrator o, Subject: Renewal of Property Insurance f D CITY COUNCIi Consistent with Council Policy? [X] Yes ( ] New Policy or Exceptionf I Statement of Issue, Recommendation,Analysis, Funding Source,Alternative STATEMENT OF ISSUE: The City's insurance for property, earthquake and flood expires at midnight on June 5, 1992 and must be renewed. RECOMMENDATION: Approve the proposal from Frank B. Hall and Company to provide property, earthquake and flood insurance on the City's properties, including the new pier, for the period June 5, 1992 to June 5, 1993. The annual cost is $152,500 for all-risk coverage of $50,000,000 which includes earthquake and flood. ANALYSIS: In February of 1992, the Risk Management staff sent out requests for proposals to their insurance brokers, namely, the incumbent broker Robert F. Driver Company, Frank B. Hall and Company and Complete Energy and Marine Insurance. All responded with proposals and market assignments were made to each broker on March 2, 1992. The proposals were due and received on May 1 , 1992. Complete Energy and Marine Insurance declined to quote on non-marine property. Therefore, their proposal includes coverage for the pier only. The proposals from Robert F. Driver Company and Frank B. Hall were nearly identical in coverage and content. Robert F. Robert F. Frank B. Complete Energy Driver "1" Driver "2" Hall and Marine All Risk Limits $ 50,000,000 $ 50,000,000 $ 50,000,000 $ 91000,000 Deductible 10,000 51000 10,000 10,000 Earthquake and 5% per unit subject to a minimum of $100,000 Flood Deductible per occurrence Annual Premiums $ 166,142 $ 171 ,070 $ 152,500 $ --- Pier Coverage Value Premiums 12,690 12,690 Included 67,500 Total $ 178,832 $ 183,760 $ 152,500 $ 67,500* *Pier Onlyr Plo 5/85 REQUEST FOR CITY COUNCIL ACTION Renewal of Property Insurance The proposal of Frank B. Hall is approximately 15% lower than the comparable coverage offered by Robert F. Driver Company. Frank B. Hall and Company continues to be the broker for BICEP (Big Independent Cities Excess Pool), the City's risk-sharing pool for excess liability coverage. The proposals have been reviewed by our independent insurance consultant, Michael Tinley, of Tillinghast Company, and he concurs in the recommendation as his May 14, 1992 letter indicates. FUNDING SOURCE: Funds have been appropriated for this expense. ALTERNATIVE ACTIONS: Request additional proposals. ATTACHMENT: Letter of May 14, 1992 from Michael Tinley of Tillinghast Company -2- WPADSERT:923 Suite 900 2600Micbc1son Drive Irvine,CA 92715-1550 714 253-5200 Focsi rK i tt:714 553-1213 Manvement Consultants and Actuaries Tfflinybwt a Towers F�- r n company May 14 , 1992 Ms . Karen S . Foster Risk Manager City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear Karen: RE : PROPERTY INSURANCE PROPOSALS We have further reviewed the property insurance proposals in light of our meeting of Monday May 11 , 1992 . We have concluded that the proposal submitted by Frank B. Hall is the most responsive to the request for proposals in terms of coverage, terms, and limits and is also the more responsibly priced. There are not any significant differences in proposed coverages versus those in the expiring contracts to require any extensive comparisons . The insurance companies selected are all currently rated satisfactorily by A. M. Best and Standard & Poor. We therefore recommend that you proceed to present the Hall proposal to the City for its approval . Please let me know if I can provide any further clarification. For Tillinghast, a Towers Perrin company. GJ�/�-) REQUEST FOR CITY COUNCIL ACTION Date December 17, 1990 Submitted to: Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator Prepared by: Louis F. Sandoval , Director of Public Works Subject: Annual Underground Tank Testing Consistent with Council Policy? [ 1 Yes [X1 New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: Bids were received on October 18, 1990 for the annual testing of the City owned underground tanks, and Earth Science Technology was the low bidder out of eight bidders; however the company can only furnish liability insurance on a claims made basis. RECOMMENDATIONS: Waive the requirement for liability insurance on a per occurrence coverage, and accept the liability insurance on a claims made basis. ANALYSIS• State Law, administered by the Department of Health Services, mandates that our underground storage tanks containing gasoline, diesel, and/or waste oil be pressure tested annually to ascertain if any may be leaking. The firm of Earth Science Technology tests tanks nationwide from coast to coast, and has tested our City tanks for the past two consecutive years. However, due to the fact their business is one of many in fields related to hazardous waste, the only insurance available is on a claims made basis; and all companies in such related basis are in the same situation. Per occurrence liability insurance is not available, and this has been confirmed by our Risk Management Division. FUNDING SOURCE: 1990-91 Contractural Funds were allocated to fund the testing program, and no additional funds are required. ALTERNATIVE ACTION: None. PI O 5/85 PAGE -2- REQUEST FOR CITY COUNCIL ACTION ANNUAL UNDERGkOUND TANK TESTING. ATTACH14ENTS: NONE. LFS:DNKwbb • REQUEST ITY COUNCIL ACTION Submitted by Warren G. Hall Department City Treasurer Date Prepared December 7 , 19 79 Backup Material Attached FX Yes No , #%/OIt Subject ADAPT 1980 LIABILITY INSURANCE PROGRAM AND AUTHORIZE CITY TTORNEY TO DRAW UP A RESOLUTION AUTHORIZING THE CikW4 AND RISK MANAGER TO SIGN CONTRACTS FOR BUDGETED INSURANCE COVERAGES . City Administrator's Comments d $4 ^WCL-f Approve as Recommended. Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions: STATEMENT OF ISSUE: Numerous times during the year insurance coverage renewal dates occur which are fixed by contract . It is not always possible to get timely quote re- sponses from insurance companies so that strict adherence to a proposed cut off date could preclude response to the best proposal . Since the administration of the Risk Management program within budget is the Risk Manager 's responsibility, the delegation of authority to bind conforming contracts within budget is reasonable if shared with the City Administrator. RECOMMENLCounc N: Ole 1 . City pproe the selection of the liability program selected 1py the and Risk Manager on 12-7-79 , per attached letter. The program became effective 12-15-79 . f0AI()r 2 . The City Council authorize the City Attorney to draft a resolutio con- forming to Charter Section 613(a) and similar in content and for to Resolution 4454 ,11to authorize the Risk Manager and CJC ° to sign contracts for insurance policies as long as they conform to the adopted Risk Management Budget . " ANALYSIS : Buying insurance coverage is not like buying an off the shelf commodity. Quite often there are exclusions or inclusions of coverages which must be negotiated and clarified to complete the best package for the best premium, not necessarily the least premium. The attached program as presented to the Administrator is very desirable and should be approved. It is my intent as well as the Administrator 's to always inform the Council of the Continued Plo 3178 i -2- insurance selected, and many times it will be before the date the policy is in force. Elimination of the technical requirement for prior approval by Council of each policy seems to be desirable and necessary to the basic job of getting the best coverages for the best price within the budget. FUNDING SOURCE: Department 121 - Risk Management Budget, Acct. 483 , Liability Insurance. ALTERNATIVES : 1 . 1979/80 Liability Program - None. 2 . Do not request City Attorney to write the resolution requested. APPRO D iY CITY COUNGD- �gil REOLJE ) FOR CITY COUNCIL ACTION e CITY CLERK U Date Auqus t 21, 1989 Submitted to: Honorable Mayor and City Council Submitted by: Paul Cook, City Administrator i�a 0 Prepared by: Michael Adams, Director of Community Development Subject: WAIVER OF PROFESSIONAL LIABILITY INSURANCE REQUIREMEXTS PURSUANT TO RESOLUTION NO. 6023 _ " �- " Consistent with Council Policy? FT Yes [ ] New Policy or Exception " Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachm : :; STATEMENT OF ISSUE' On August 2, 1989 , Community Development ' s Environmental Review Committee discussed the Redevelopment Agency's plan for Main-Pier Phase II on the westerly 200 block of Main Street and made the determination that an environmental impact report should be prepared. Pursuant to this decision, STA, Inc. was chosen to prepare the Main-Pier Phase II EIR. The contract amount is $10,000 and therefore does not require Council Action; however, the firm does not have professional liability. RECOMMENDATION• Approve waiver of professional liability insurance requirements for STA, Inc. , pursuant to Resolution No. 6023 . ANALYSIS• STA, Inc. prepared the EIRs for both the parking/commercial structure approved for the easterly 200 block of Main Street and the demonstration block on the western 200 block of Main Street and, as a result, has an excellent understanding of issues pertaining to this area of the City. Owing to this familiarity with the Downtown Specific Plan, redevelopment, and environmental and historical issues within the area, STA, Inc. is the firm most able to provide the City with a thorough document in a timely and cost effective manner. STA, Inc. , is requesting a waiver of the professional liability insurance requirement pursuant to Resolution No. 6023 . The Consultant possesses the general liability insurance required by the City; this insurance adequately covers the exposure of the consultant to potential liability problems . Professional liability insurance is usually carried by large civil engineering firms, not small land planning firms . Most insurance companies will not A� consider writing this type of insurance for a small land planning firm. P10 5/85 Consequently, the City Insurance and Benefits Manager has reviewed this request and along with staff recommends that Council accept the Consultant's insurance and waive the professional liability insurance requirements pursuant to Resolution 6023. FUNDING SOURCE: Economic Development Account No. E-TM-ED 810-3-90-00. ALM MMIVE ACTION: Deny the request for waiver and direct staff to solicit bids from other planning firms. ATTACHMENTS 1. Memo from Ed Thompson, Insurance and Benefits Manager 2. Resolution No. 6023 3 . Contract 4. Letter from STA, Inc. MA:KM: lab RCA - 8/21/89 -2- (3389d) CITY , OF HUNTINGTON BEACH • INTER-DEPARTMENT COMMUNICATION 'S . : ' . HUNTINGTON BEACH - •. - - thy. w FromThompson �'�' To Mike Adams. Edward H. Director, Comm. Developnment Risk Manager Subject STA, Inc. Date August 8, 1989 Your staff is requesting a waiver of the professional liability insurance. for EIR consultant STA, Inc. , to prepare an EIR for Main Pier II. My understanding of the project indicates that there is minimal liability to the City generated by their EIR, and that waiver of the Professional Liability Insurance would be appropriate in this case. I understand further that the same consultant prepared the EIR for other downtown projects and did so without the Professional Liability Insurance. In that the instant EIR project appears not to create any great liability to the City, I would recommend a waiver on the Professional Liability coverage in this case as well. EHT:j gf cc Bob Franz DErALiT�J�4�iY OF COMMUy1TY DEVELOPMENT pLANN►NO DIVISION J REQUES . -,'FOR CITY COUNCIL ACTION Date September 18, 1989 Submitted to: Honorable Mayor and City Council Submitted by: Paul Cook, City Administrator ��_a__ Prepared by: Michael Adams, Director of Commun%ty Developlifie�t Subject: WAIVER OF PROFESSIONAL LIABILITY IN App80VED T--� v NCIL PURSUANT TO RESOLUTION NO. 6023 Consistent with Council Policy? [ yes [ l New Policy or Ex tion Y'CIT CLERK Statement of issue, Recommendation,Analysis, Funding Source, Alternative 'tons, ttachments: �/,-� a, ��r�.�- u.�e.�r.• �,ca�-ti. (9 cs -,v STATEMENT OF ISSUE: c►4 k-�- �`7"''"'�' �'�'��' ' " �cv On August 24, 1989, Community Development ' s Environmental Review ` Committee discussed the Redevelopment Agency' s plan for the remaining structures on the eastern 100 block of Main Street. The City recently received a request to demolish the structures at 116-120 Main Street. The Committee made the determination that an environmental impact report should be prepared. Pursuant to this decision, STA, Inc. was chosen to prepare the EIR in conjunction with preparation of the Main Pier Phase II EIR. The contract amount is $4, 900 with possible budget augments of up to $10, 000, and, therefore, does not require Council Action; however, the firm does not have professional liability insurance. RECOMMENDATION• Approve waiver of professional liability insurance requirements for STA, Inc. , pursuant to Resolution No. 6023 . ANALYSIS• STA, Inc. prepared the EIRs for both the parking/commercial structure approved for the easterly 200 block of Main Street and the demonstration block on the western 200 block of Main Street and, as a result, has an excellent understanding of issues pertaining to this area of the City. The firm is currently preparing the Main-Pier Phase II EIR. Owing to this familiarity with the Downtown Specific Plan, redevelopment, and environmental and historical issues within the area, STA, Inc. is the firm most able to provide the City with a thorough document in a timely and cost effective manner. P10 5/85 STA, Inc. , is requesting a waiver of the professional liability insurance requirement pursuant to Resolution No. 6023 . The Consultant possesses the general liability insurance required by the City; this insurance adequately covers the exposure of the consultant to potential liability problems . Professional liability insurance is usually carried by large civil engineering firms, not small land planning firms . Most insurance companies will not consider writing this type of insurance for a small land planning firm. Consequently, the City Insurance and Benefits Manager has reviewed this request and along with staff recommends that Council accept the Consultant ' s insurance and waive the professional liability insurance requirements pursuant to Resolution 6023 . FUNDING SOURCE: California Resorts, Inc. - $4 , 900 - 116 and 120 Main Street . Economic Development Account No. E-TM-ED 810-3-90-00 - Budget Augments - 122, 124 , 126 Main Street . ALTERNATIVE ACTION: Deny the request for waiver and direct staff to solicit bids from other planning firms . ATTACHMENTS: 1. Memo from Ed Thompson, Insurance and Benefits Manager 2 . Resolution No. 6023 3 . Contract 4 . Letter from STA, Inc . MA:KM: lab RCA - 9/18/89 -2- (3583d) • ROBER" DRIVER COMPANY, INC. INSURANCE SUMMARY PROPERTY NAMED INSURED: City of Huntington Beach, Huntington Beach Parkincr Ali"--ity, Huntington Beach Public Facilities Corporation, Hunting on Beach �, v, � �nrovement ✓ Co29xAtllon, Huntington Beach Redevelopment Agency and for the Huntington Beach Public Financing Authority and/or its Affiliated, Subsidiary and Associated Corporations and/or other Entities and/or Joint Ventures as their Interest may Appear COMPANIES AND POLICY NUMBERS BY LAYERS: PRIMARY LAYER Commonwealth - CWMP3323 Lloyds - SI1922 1ST EXCESS LAYER. Continental - SFC2983315 Houston - 9HP10623 Lloyds - SI1923 United Fire - UIM461122 . North American - NA00127 2ND EXCESS LAYER .' Commonwealth - CWMP3324 Fireman's Fund - XSP0003973 POLICY TERM: June 5, 1989 to' June 5, 1990 LIMITS OF LIABILITY: $50, 000, 000 per Occurrence and in the Annual Aggregate Each as Respects Earthquake and Flood PRIMARY LAYER $10, 000, 000 per Occurrence and in the Annual Aggregate Each as Respects Earthquake and Flood Excess of Deductibles 3636 BIRCH STREET, SUITE 230, NEWPORT BEACH, CALIFORNIA 92660-2619 (714) 756-0271 •PAX 714-756-2713 ._- .. .f: x'•=> ;ei:�--`^ :r: �r. - „y�:'Fd''.ri?i•�vs ak t`s-'uS','�'�-�P...+�:.. - :�,: :.e:r. -,- - - .. .