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HomeMy WebLinkAbout1999-12-14 - AGENDA REPORTS - INS RENEWAL EARTHQUAKE FLOOD (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented December 14, 1999 Ken Striplin EARTHQUAKE AND FLOOD INSURANCE RENEWAL City Manager Council approve the expenditure of an amount not -to -exceed $85,500 from Account No. 1600-8501 to renew the City's Earthquake and Flood insurance policies, and authorize the City Manager or designee to execute all documents related thereto, subject to City Attorney approval. In order to protect the City's assets, commercial insurance coverage is procured. Each year the City evaluates its insurance policies to determine appropriate coverage. To ensure we are receiving the highest amount of coverage for the lowest possible price, the City goes through an extensive bidding process. In December of each year, the City renews its Earthquake and Flood insurance policies for the proceeding 12 months. Proposals were solicited from the following companies, which represents the majority of insurance companies offering Earthquake and Flood insurance coverage in the State of California. Insurance Company Associated International Insurance Company General Star Insurance Company RLI Insurance Company Royal Insurance Company Pacific Insurance Company, Ltd. Westchester Fire Insurance Company Pacific Insurance was selected due to its broad contract and competitive price. Addendum A provides more detail of the coverage as provided by the recommended policies. !f r�ends Item: -7— Earthquake and Flood Insurance Renewal December 14, 1999 Page 2 FISCAL IMPACT The total premium is $85,424.97, which represents a decrease of $4,358, or approximately five per cent over the cost for 1999. Funds for this expenditure have been budgeted in Account No. 1600-8501. ALTERNATIVE ACTION Other action as identified by the City Council. ATTACHMENT Earthquake Binder B991100050, Addendum A S:\MS\CCAGENDA\12-14-99\PLDRENEW.DOC City of Santa Clarita Earthquake Binder B991100050 Addendum A Coverages: Difference in Conditions, Earthquake and Flood, Earth- quake Sprinkler Leakage (EQSL). Policy Limit: $5,000,000 per occurrence and in the annual aggregate as respects Flood and Earthquake, Real Property, Ordinance or Law, Personal Property, EDP Hardware, and Business Income $2,500,000 Sublimit for Demolition, Increased Cost of Construction Property Real Property, Ordinance or Law,'Personal Property, Covered: EDP Hardware, Business Income, Demolition, Increased Cost of Construction Deductibles: Earthquake & EQSL - 5% per unit of insurance subject to a minimum of $50,000 per occurrence. Flood - $50,000 per occurrence All other Perils: $25,000 per occurrence Total Insurable $29,468,394. Value: 11/18/99 dmw