HomeMy WebLinkAboutReso 1971-6196RESOLUTION NO. hi9E
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR COM-
PREHENSIVE PUBLIC LIABILITY AND PROPERTY INSURANCE
FOR THE CITY OF CHULA VISTA AND AUTHORIZING THE MAYOR
TO EXECUTE SAME
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the following two bids were received and opened
at 9:00 a.m. on the 7th day of September, 1971, at the City Hall of
the City of Chula Vista for comprehensive public liability and property
insurance for the City of Chula Vista:
Company
Agent or Broker
Net Annual Premium
Pacific Indemnity
Maryland Casualty
and
Creaser, Price Ins.
Bayle, Martin & Faye
$42,391.50
$40,932.00
WHEREAS, the Pacific Indemnity Company offered the broadest
insurance coverage as requested in the specifications, and
WHEREAS, the Maryland Casualty Company was not able to cover
riot and civil commotion as required in the specifications, and
WHEREAS, the Director of Finance recommends that the contract
for said comprehensive public liability and property damage be awarded
to the lowest qualifying bidder, the Pacific Indemnity Insurance
Company, and
WHEREAS, Pacific Indemnity Insurance Company has assured the
Director of Finance that he is a duly licensed insurance broker in the
State of California, and that he can produce an acceptable performance
bond .
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chula Vista that the said two bids be, and the same are hereby
accepted.
BE IT FURTHER RESOLVED that the contract for said comprehensive
public liability and property damage according to the specifications as
approved by the Director of Finance be, and it is hereby awarded to
Pacific Indemnity Insurance Company.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula
Vista be, and he is hereby directed and authorized to execute the same
for and on behalf of said City.
Presented by
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o don K. Grant, Director of finance George Lindberg, City Attorney
Approved as to form by
ADOPTED AND APPROVED by the CITY COUNCIL of the CITY OF CHULA
VISTA, CALIFORNIA, this 7tr day of SP~Pp~,r , 19 71 , by the
following vote, to-wit:
AYES : Councilmen p,~ riP~g~ahi} jS~ott.. '_o ~ .i~ ;;~ll,t.~n
NAYES : Councilmen I`'nne
ABSENT : Councilmen_ *~one
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Mayor of the City of Cht~ ld ~~s ::a
ATTEST
'-City Clerk
STATE OF CALIFORNIA }
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
Iq JENNIE M FULASZ~ City Clerk of the City of Chula Vista,:
California,, DO HEREBY CERTIFY that the above and foregoing is a full;
true and correct copy of , and that the
same has not been amended or repealed
DATED
_-T_: Ci-fiy Clerk ..~...~s.~.=~,_ ~-_
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creaser,
INSURANCEprICe
406 THIRD AVENUE • BOX 1355 • CHULA VISTA, CA 92012 • TELEPHONE (714) 420-1070
September 3, 1971
City of Chula Vista
276 Guava Street
Chula Vista, California 92010
Re: Liability Insurance Proposal
for the City of Chula Vista
Gentlemen:
I am pleased to present our proposal for Public Liability coverage
underwritten under the Pacific Indemnity Company Public Entity form.
Our premiums are outlined on the attached proposal form.
Our basic liability coverage is underwritten by Pacific Indemnity
Company, rated A+AAAAA in the latest Best's Guide and our Umbrella
excess liability coverage is underwritten by Stonewall Insurance
Company, rated A+AAAA in the new Best.
Our quotations are predicated on the use of our standard California
Public Entity form, specimen which is attached hereto, which does not
comply totally with the City's specifications in the following respects:
1. With respect to the Name of the Insured, the policy
would name the City of Chula Vista only. As you
know, our definition of, "Insured," in this policy
form also includes officers, servants and employees
and members of the Counsel and Boards and Commissions
while acting within the scope of their employment.
This definition, however, does not include volunteer
workers who may donate their services to the City;
and, we are not willing to incorporate the phrase,
"acting under color of title or office." We are also
not willing to include the volunteer workers.
2. With respect to naming Additional Insured, we cannot
make any blanket commitment as to our position. We
would need to know what the relationship was or is between
the City of Chula Vista and the Additional Entity to be
named; and, I believe it is only fair to warn the City
of Chula Vista in this respect.
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City of Chula Vista
September 3, 1971
Page Two
In connection with the owners of premises used for
polling places, it is our understanding that this
will be handled by hold harmless Agreements, and
there will be no need to name Additional Insureds.
3. The Errors and Omissions Coverage will be as pro-
vided under our standard policy form, rather than
as stated in paragraph "F" of the specifications.
4. We are not willing to use the phraseology regarding
indirect property damage shown under paragraph "8" of
the specifications.
5. We will not afford inverse condemnation coverage.
6. The provision under paragraph "10", "The policy shall
be subject to a sixty day short-rate cancellation basis
when initiated by the City," is confusing to us. We
are willing, however, to amend our cancellation privilege
to sixty day notice when initiated by the Company.
7. In connection with naming the San Diego and Arizona
Eastern Railway Company, the "F" Street Bridge for which
this agreement was made is gone. If there is another
subject covered under contract please advise.
As you know, our policy form is the broadest on the market and affords,
in our opinion, more coverage than any Company's similar policy in the
State of California. As you know, the Pacific Indemnity Company main-
tains a complete Branch Office in San Diego, located in the Union Bank
Building, employing Company, salaried, Adjusters, Engineers, etc.
Also, as you know, we write more Public Entity business than any company
in the State; and, in this immediate area, we have such public business
as:
COUNTY OF SAN DIEGO
SAN DIEGO UNIFIED SCHOOL DISTRICT
SAN DIEGO UNIFIED PORT DISTRICT
CITY OF VISTA
VISTA SANITATION DISTRICT
VISTA FIRE PROTECTION DISTRICT
VISTA IRRIGATION DISTRICT
CITY OF E5CONDIDO
CITY OF LA MESA
CITY OF IMPERIAL BEACH
CITY OF NATIONAL CITY
CITY OF EL CAJON
City of Chula Vista
September 3, 1971
Page Three
In addition to the aforementioned, we have a similar form which we
just recently wrote for the City of Phoenix, Arizona; the State of
Arizona; the State of Oregon; and many of the cities in the State of
Oregon; the State of Illinois; the State of Pennsylvania; the State
of Minnesota; and, many others too numerous to mention.
Our Company is the most experienced underwriter of Public Insurance
coverage in this State and is best equipped to service this type of
coverage. We made a study of municipal hazards and coverages and
believe this to be the only policy available that satisfies the
requirements of the City.
If you have any questions regarding this proposal or would like more
detail as respects the local servicing facilities, I will be glad
to provide this information.
Sincerely,
C~1~EASER .ICE INS. AGENCY, INC.
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C~arles Shi p
Vice President
CSS:cm
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' ~ CITY 0 CHi?LA VISTA
PROl'OSl~,i:, 1'ORM
Bi.d Openi.ug: Septembcx' 7, 1971, 9:OU A,r1,
For: j^urni_shi.nb COrfPFi'.~ll:i~Sl:/E PUBLIC L" I.~BILI1'Y AND PI',OPERTY DAMAGE INSURANCE
Llnllt;i: One Million combined single limit with Four Million umbrella
Base Bia: Annual Premium $ 44. 389, 50
Additional Quctations:
(1) Above limits with $500 property damage liability
deductibl,~ 1~~i~~t;~~,:hj~i~~~~~~~' $
other than auto and
(2) ~1~s~X1~i~t~;11~~with $100 automobile property damage
liability deductible reduce annual premium by $ 1, 998.00
Note: Indicate if the sum of reductions in (1)
and (2) above would differ if both
deductibles were applicable $
(3) AnrLual cost for coverage for inverse condemnation,
if deducti.bl.e, so state _^_ Deductible--$ COVERAGE NOT
INCLUDED
Annua 1 Premium $ 4 2, 3 91.5 0
Basic: Pacific Indemnity Co. - A+AAAAA
Name of Insuring, Company Umbrella : Stonewall Ins . Co . - A+AAAA
Name of Reinsuring Company
Name of Agency CREA,~ER, PRICE INS . AGENCY INC.
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Signature
VICE PRESIDENT
Title
406 Third Ave., Chula Vista, California
Address
420-1070
Telephone
Date;_SePtember 3, 1971
NOTE: See attached letter for variations from specifications.
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R STOCK COI)APANY
PACIFIC INOEMNIiY COMPANY
HOME OFFICE: LOS ANGELES. CALIFORNIA
CALIFORNIA PUBIIC ENTITY
SPECIAL COMPREHENSIVE
LIABILITY POLICY
POLICY PROVISIONS -PART A
PACIFIC INDEMNITY COMPANY
(A stock insurance company, herein called the company)
In consideration of the payment of the premium, in reliance upon the statements in the declarations made a part hereof and subject to all of the terms of this policy, agrees
with the named insured as follows:
INSURING AGREEMENTS
Coverage A -Bodily and Personal Injury Liahility
To pay on behalf of the insured all sums which the insured shall become obli-
gated to pay by reason of liability imposed by law, including Chapter 1681 of the
State of California Statutes of 1963, or Ilablllty assumed by contract, Insofar as
the named insured may legally do so, for damages:
()) besulting thebefrom laridralsoilncludingrcareeand lossuofnserveces, sustained by
any person or persons, or
(2) because of any other injury a person may suffer to his person, reputation,
character or feelings, including but not limited to malpractice, false arrest,
detention or imprisonment, malicious prosecution, libel, slander, defamation of
character, invasion of privacy, wrongful eviction or wrongful entry.
Coverage B -Property Damage Liahility -Automobile
To pay on behalf of the insured all sums which the insured shall become obli-
gated to pay by reason of liability imposed by law, including Chapter 1681 of the
State of Calrfornia Statutes of 1963, or liability assumed by contract, insofar as
the named insured may legally do so, for damages because of injury to or destruc-
tion of property, Including the loss of use thereof arising out of the ownership,
maintenance or use of any automobile.
Coverage C -Property Damage Liability -Except Automobile
To pay on behalf of the insured all sums which the insured shall become obli-
gated to pay by reason of liability imposed by law, including Chapter 1681 of the
State of California Statutes of 1963, or liability assumed by contract, insofar as
the named insured may legally do so, for damages because of injury to or destruc-
tion of property, Including the loss of use thereof.
Coverage D -Errors or Omissions Liability
To pay on behalf of the insured all sums which the insured shall become legally
obligated to pay, insofar as such coverage is not afforded under Coverages A or
C, on account of any claim for breach of duty made against the insured by reason
of any negligent act, error or omission of the insured if such negligent act, error
Of OmISSIOn IS Committed during the policy period and discovered during the policy
period or within twenty-four months after termination of the policy.
II. Detense, Settlement, Supplementary Payments
As respects such insurance as is afforded by this policy, the company shall:
(a) defend in his name and behalf any suit against the insured claiming such
damages, even if such suit is groundless, false or fraudulent; but the company
shall have the right to make such investigation, negotiation and settlement of
any claim or suit as it deems expedient;
(b) defend any claim against the named insured or its employee for damages under
Section 3294 of the Civil Code or otherwise for the sake of example or by
way of punishment, where such claim arises from an act or omission in the
scope of employment;
(c)(1) pay all premiums and furnish bonds to release attachments foallanrem ums
not in excess of the applicable limit of liability of this policy, p
on appeal bonds required in any such defended suit, the cost of bail bonds
required of the insured in the event of automobile occurrence or automobile
traffic law violation during the policy period, not to exceed $250 per bail
bond;
(2) puredlineapy such Isuitrand all Interest accruing aftersentrydof ]udgmenteuotil
the company has paid or tendered or deposited with the court such part of
such judgment as does not exceed the limit of the company's liability
thereon;
(3) pay expenses incurred by the insured for such immediate medical and sur-
gical relief to others as shall be necessary at the time of the injury;
(4) reimburse the insured for all reasonable expenses, other than loss of earn-
ings, incurred at the company's request.
The company agrees to pay the amounts incurred under this insuring agreement,
except settlements of claims and suits, in addition to the applicable limit of
liability of this policy.
III. Persons Insured
Each of the following is an insured to the extent set forth below:
(a) the named insured;
(b) while acting within the scope of his employment as such:
(1) any of4icer, servant or employee of the named insured, except that the
insurance so provided any officer, servant or employee does not apply to
bodily injury to or death of another officer, servant or employee of the
named insured injured in the course of and arising out of his employment;
(2) any member of the governing body of the named insured;
(3) any member of boards or commissions of the named insured;
(c) under coverages A and B, any person while using an owned automobile or a
hired automobile and any person or organization legally responsible for the use
thereof, provided the actual use of the automobile is by or with the permission
of the named insured.
The insurance with respect to any person or organization other than the
named insured does not apply under division (c) of this insuring agreement:
Form 1WOOlb (570) ~ )\
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(1) to any person or organization.; or to any_ agent or employee thereof, en-
gaged in selling, repairing, servicing, delivering, testing, road testing,
parking or storing automobiles, with respect to any occurrence arising out
of any such occupation, if there is other valid and collectible insurance
available to such person as a named insured or as an agent or employee
of a named insured under a policy with limits at least equal to the require-
ments of the applicable Financial Responsibility Laws; provided that, in the
event there is no such other valid and collectible insurance, coverage shall
be afforded such person or organization with limits of liability equal to
the requirements of the Financial Responsibility Laws;
(2) with respect •to any hired automobile, to the owner, or a lessee thereof
other than the named insured, or to any agent or employee of such owner
or lessee.
IV. Policy Period, Territory
This policy applies only to occurrences which take place during the policy
period anywhere in the world.
EXCI uslnwc
This policy does not apply:
(a) under coverages A and C to liability arising out of the maintenance and use of any
aircraft (1) owned by, hired by, or loaned to the insured, or (2) in flight (meaning
the time commencing with the actual take-off run of the aircraft and continuing
thereafter until it has completed its landing run) by or for the account of the
insured;
(b) under coverage A, to any obligation for which the insured or any carrier as his
insurer may be held liable under any workmen's compensation, unemployment com-
pensation or disability benefits law, or under any similar law;
(c) under coverage A, except with respect to liability assumed by the insured under con-
tract, to bodily injury to or sickness, disease or death of any employee of the in-
sured arising out of and in the course of his employment by the insured;
(d) under coverages B and C, to injury to or destruction of (1) property owned by the
assumed I ab lityrfor damageedtotorodestructiono of suchupropertyrunlesslthernamed
insured would have been liable in the absence of such assumption of liability;
(e) under coverage C, (1) to injury to or destruction of aircraft in the care, custody
or control of the insured, or (2) to the ownership, maintenance or use of any
automobile;
(f) under coverage D, to injury to, destruction or disappearance of any tangible property
(including money) or the loss of use thereof;
(g) to liability arising under Article 1, Section 14 of the Constitution of California.
CONDITIONS
The conditions, except conditions 4, 5, 6 and 7, apply to all coverages.
Conditions 4, 5, 6 and 7 apply only to the coverage or coverages noted thereunder.
1. Premium The premium stated in the declarations is an estimated annual premium
only for the automobiles and a flat annual charge for exposures other
than automobiles. At the end of each annual period of this policy, the earned premium
for automobiles shall be computed in accordance with the company's rules, rates,
rating plans, premiums and minimum premiums applicable to this insurance. If the
earned premium thus computed exceeds the estimated advance premium paid, the named
insured shall pay the excess to the company; if less, the company shall return to the
named insured the unearned portion paid by such insured.
The named insured shall maintain, for each hazard, records of the information
necessary for premium computation.
2. Inspection and Audit The company shall be permitted but not obligated to inspect
Neither the company's righthto make inspections oorthe making thereof nor any report
thereon shall constitute an undertaking, on behalf of or for the benefit of the named
insured or others, to determine or warrant that such property or operations are safe.
The company may examine and audit the named insured's books and records at
any time during the policy period and extensions thereof and within three years after
the final termination of this policy, as far as they relate to the subject matter of this
insurance.
3. Definitions
(a) Occurrence. The word "occurrence" means an event or a continuous or repeated
exposure to conditions which causes injury to persons or damage to property during
the policy period that is neither knowingly nor intentionally caused by or at the
direction of the insured.
(b) Automobile. Except where stated to the contrary, the word "automobile" means
a land motor vehicle or trailer as follows:
(1) Owned Automohile-an automobile owned by the named insured;
(2) Hired Automobile-an automobile used under contract in behalf of, or loaned
to, the named insured provided such automobile is not owned by or registered
in the name of (a) the named insured or (b) an officer, servant or employee of
the named insured whe is granted an operating allowance of any sort for the
use of such automobile;
(3) Non-owned Automobile-any other automobile.
The following described equipment shall be deemed an automobile while towed by
or carried on an automobile not so described, but not otherwise: if of the crawler-
type, any tractor, power crane or shovel, ditch or trench digger; any farm-type
tractor; any concrete mixer other than of the mix-in-transit type; any grader,
any other oequipment not specified below, which bse desl'g edt for usle Iprineipally toff
public roads.
or ecarorlied ion an sautomob Qe las above adefbned solely for purposesleof transportation
or while being operated solely for locomotion, but not otherwise: if of the non-
crawler type, any power crane or shovel, ditch or trench digger; and any air-
compressing, building or vacuum cleaning, spraying or welding equipment or well
drilling machinery.
(c) Semitrailer. the word "trailer" includes semitrailer.
(d) Two or More Automobiles. The terms of this policy apply separately to each auto-
mobile insured hereunder, but a motor vehicle and a trailer or trailers attached
thereto shall be held to be one automobile as respects limits of liability.
(e) Use. Use of an automobile or aircraft includes the loading and unloading thereof.
4. Limits of Liability The limit of liability stated in the declarations under Coverage
Coverage A A as applicable to "each person" is the limit of the company's
of services, arising outlaofllbodily anjurdy,msckriesscourdldiseaseaorsars~ing out of lany
other injury a person may suffer to his person, including death at any time resulting
therefrom, sustained by one person as the result of any one occurrence; the limit of
such liability stated in the declarations as applicable to "each occurrence" is, subject
to the above provision respecting each person, the total limit of the company's liability
for all damages, including damages for care and loss of services, arising out of bodily
person,sincludngrde~athsatoany~ti eoresulting therefromrysustained byytwofortmore
persons as the result of any one occurrence.
5. Limits of Liability The limit of liability stated in the declarations under cover-
Covera~es 9 and c ages B and C as applicable to "each occurrence" is the total
injury to or destruction of all p operty ofpone orl'more persons) oraorganizationsg includf
ing the loss of use thereof, as the result of any one occurrence.
6. Limits of Liability-Products Subject to the limit of liability with respect to "each
Coverages A and C occurrence," the limits of liability under coverages
A and C stated in the declarations as "aggregate
products" are respectively the total limits of the company's liability far all damages
arising out of the use of or the existence of any condition in water sold or distributed
by the insured during each annual period.
1. Limits of Liability The limit of errors or omissions liability stated in the declar-
coverage o ations as applicable to "each person" is the total limit of
the company's liability for all sums payable under coverage D
to any one person or organization.
Subject to the above provision with respect to "each person," the limit of errors
and omissions liability stated in the declarations as "aggregate" is the total limit of
the company's liability for all sums payable under coverage D during each annual
period.
8. Limits of Liahility For the purpose of determining the limit of the company's lia-
bility, all bodily and personal injury and property damage
arising out of continuous or repeated exposure to substantially the same general
conditions shall be considereo as arising out of one occurrence.
9. Severability of Interests The term "the insured" is used severally and not collec-
tively, but the inclusion herein of more than one insured
shall not operate to increase the limits of the company's liability.
10. Financial Responsibility Laws When this policy is certified as proof of financial
responsibility for the future under the provisions
of any motor vehicle financial responsibility law, such insurance as is afforded by this
policy for bodily injury liability or for property damage liability shall comply with the
provisions of such law to the extent of the coverage and limits of liability required by
such law. The insured agrees to reimburse the company for any payment made by the
company which it would not have been obligated to make under the terms of this
policy except for the agreement contained in this paragraph.
11. Notice of an Occurrence Upon the happening of an occurrence written notice shall
be given by or on behalf of the insured to the company
or any of its authorited representatives as soon as practicable after an officer or an
employee in charge of reporting such losses to insurance companies learns of the
occurrence. Such notice shall contain particulars sufficient to identify the insured and
also reasonably obtainable information with respect to the time, place and circum-
stances of the occurrence, the names and addresses of the injured and of available
witnesses.
11. Notice of Claim or Suit If claim is made or suit is brought against the insured,
the insured shall immediately forward to the company
every demand, notice, summons or other process received by him or his representative.
13. Assistance and Cooperation of the Insured The insured shall cooperate with the
company and, upon the company's re-
quest, shall attend hearings and trials and shall assist in effecting settlements, secur-
ing and giving evidence, obtaining the attendance of witnesses and in the conduct of
suits, and the company shall reimburse the insured for any expense, other than lass
of earnings, incurred at the company's request. The insured shall not, except at his
own cost, voluntarily make any payment, assume any obligation or incur any expense
other than for such immediate medical or surgical relief to others as shall be impera-
tive at the time of injury. The breach of any warranty or failure to comply with any
In Wi Whereof, the company has caused this policy to be executed and att~
sentative t co any.
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condition of this policy on the part of any additional insured shall not affect or
prejudice the rights of the named insured. The insured may, at the insured's own.
cost, have the insured's attorneys participate in the defense of any suit or in the
prosecution of any appeal.
14. Action Against Company No action shall lie against the company unless, as a
condition precedent thereto, the insured shall have
fully complied with all the terms of this policy, nor until the amount of the insured's
obligation to pay shall have been finally determined either by judgment against the
insured after actual trial or by written agreement of the insured, the claimant and
the company.
Any person, organization or the legal representative thereof who has secured such
judgment or written agreement shall thereafter be entitled to recover under this policy
in the same manner and to the same extent as the insured. Nothing contained in
this policy shall give any person or organization any right to join the company as a
co-defendant in any action against the insured to determine the insured's liability.
bankruptcy or insolvency of the insured or of the insured's estate shall not relieve
the company of any of its obligations hereunder.
15. Other Insurance If the insured has other valid and collectible insurance against
a loss covered by this policy, the insurance extended by this
policy shall be excess insurance only and not primary or contributing.
16. Subrogation In the event of any payment under this policy, the company shall
be subrogated to all the insured's rights of recovery therefor
against any person or organization not affiliated with or under the control of the
insured, and the insured shall execute and deliver instruments and papers and do
whatever else is necessary to secure such rights. The insured shall do nothing after
loss to prejudice such rights.
11. Changes No notice to any representative or knowledge possessed by any other
person shall be held to effect a waiver or change in any part of this
policy or estop the company from asserting any right under the terms of this policy;
nor shall the terms of this policy be waived or changed, except by endorsement issued
to form apart of this policy.
18. cancelation This policy may be canceled by the named insured by mailing to
the company written notice stating when thereafter the cancelation
shall be effective. This policy may be canceled by the company by mailing to the
named insured at the address shown in this policy written notice stating when not less
than thirty days thereafter such cancelation shall be effective. The mailing of notice
as aforesaid shall be sufficient proof of notice. The time of the surrender or the
effective date of cancelation stated in the notice shall become the end of the policy
period. Delivery of such written notice either by the named insured or by the
company shall be equivalent to mailing.
If the named insured cancels, earned premium shall be computed in accordance with
the customary short rate table and procedure. If the company cancels, earned
premium shall be computed pro rata. Premium adjustment may be made either at the
time cancelation is effected or as soon as practicable after cancelation becomes
effective, but payment or tender of unearned premium is not a condition of cancelation.
19. Acts, Omissions or Errors Any act, omission or error, on the part of any
insured under the policy shall not prejudice the
interest of any other insured under this policy.
~sted, but this policy shall not be valid~/ countersigned by a duly authorized repre-
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CITX JF Cfi1J'i:~ VTfiTA
SPI;C:II'ICA'L'IC+AiS }?OP. CO;.PP.i;}E NSI~"F. PUBLIC L-IABILI_TY ,
AN}.) PROi?i,RTY DAMAGE :NSli}tA~CE
1. Policy Period:
The policy shall insure far three years, commencing at 12:01 A.M., September
13, 1971.
2. Rating:
The insurance company underwriting or acting as re-insurer, for any or all
of the insurance covered in these specifications must be a California Admitted
Company having a minimum rating of A-AAA in the latest edition of Best's
Insurance Guide.
3. Premium Basis:
The premium for the second and third years shall be subject to renegotiation
prior to cc~rnmencement of each subsequent annual period. Tile insurance come any
may use a composite rate premium basis as an alternate method of computing
premiums.
4. Name of Insured:
The name insured shall be the City of Chula Vista including its City Counci.l.,
elected or appointed beards and commissions, officials, officers, employees,
and volunteer members of the Police or Fixe Departments, individually and
collectively, when acting within the scope and performance of t'neir duties
and acting under color of title of office.
5. Additional Insureds:
The additional insureds under this policy shall be the San Diego and Arizona
Eastern Railway Compa:~y. Due to contractual agreements, the City may be
required from time: to time to name other agencies as beinb additional in.sure:is
under the poli.c.y. Certificates of insurance may also be requested as needed.
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6. Operations Insured:
a. The owner of premises used for votir_g polls and any person acting as
a voting registrar while using the premises for the registration of voters,
but only as respects bodily injury liability and subject to limits of each
person and each occurrence. The policy shall contain a cross-liability or
severabil.ity of interest provision insuring the liability of one insured for
injury or damage su:;tained by another insured.
b. Liability incurred for. which the City shall become obligated to pay by
reason of liability imposed by law, including Chapter 1681, California
Statutes of 1963 et. seq, of the Government Cede of the State of California
or any amendments thereto during the policy period.
c. Liability for which the City shall beccmie obligated to pay because of
false arrest, detention or imprisonment, malicious prosecution, libel,
slander, defamation of character, invasion of privacy, wrongful eviction,
wrongful entry, assault and battery, and malpractice.
d. Liability for which the City shall become obligated to pay because of
damages for care and loss of services, mental anguish, fright, humiliatior_,
or any other xn~ury that any person may suffer to his person, reputation,
character, feeling or estate.
e. In connection with all coverages afforded by the policy, the insurance
company shall furnish all legal counsel and shall defend all claims made
against the insured even if such claim is groundless, false or fraudulent.
The insurance company shall have the right, at its sole expense, to make
such a.nvestigations, negotiation and settlement of any claim or suit as it
deems expedient, including defense against punitive or exemplary damages.
f, Errors anc'•. omissions: the company agrees to pay on behalf of the
insured al.l sums which the insured shall. become legally liable to pay as
danu;ges because of any negligent act, error or omission, committed or
alleged to have been cosrur.itted by officials or employees of the insured
during the performance of their duties as such officials and/or employees
dur.i.ng the course of their emplo}anent by the insured. TY:is endorsement
does not cover any individ~sl us respects claims arising out of. or contrib-
uted to by any dishonest, .f_raudulent, or criminal. act of such indivi:iual,
7. Cccurrences and Accidents:
All portions of the policy shall apply to occurrences whether or not such
shall be deemed accidents,
8. Indirect Property Damage:
The property damage liability insurance agreement should be extended by the
following additional wording: "and all other indirect and consequential
damage for cahich legal liability exists in connection therewith."
9. Exclusions to be Eliminated:
The following conditions shall not he excluded:
a. Water craft exclusion
b. Exclusion of liabili_t}= to a perser. not a party to a contract
c. Water damage exclusion
d. Exclusion of damage to underground pipes
e. E,clusion cf blasting, explosion or collapse
f. Liability assumed under any written. coat?,act including liability
arising out of the sole negligence of the indemnities
g, Amend the usu..;I exclusions so as to insure liability f.or damage by
fire or explosion to pr.o~erty of others occupied or rented to the CiL-y
h. Riot anal civil commotion
-3-
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10. Policy Conditions:
The policy shall be subject to cancellation by either party giving a sixty-
day advance taritten notice to the other party. The policy shall be subject
to a sixty-day short-rate cancellation basis when initiated by the City.
Notice of injury claim or suit shall be given to the company as soon as
practicable after knowledge of such injury, claim or suit is received by
the City Attorney, City Clerk or Director of Finance.
11. Limits:
$1,000,000 combined single limit with an additional $4,000,000 umbrella.
12. Right to Reject:
The City reserves the right to reject any or alI quotations and to accept
the quotation that best suits the needs of the City. The City is interested
in securing as broad a form of coverage as is obtainable.
1.3. Premium Payments:
Fremium payments will be paid within thirty days of acceptance of policy.
14. Additional Quotations Desired:
a. $500 general property damage liability deductible, excludi.rg auto-
mobile -- reduction in quoted premium
b. $100 automobile property damage liability deductible -- reduction in
quoted premium
Note: It is expected that the carrier would settJ_e all claims whether or
not the insured paid the deductible amount even if the claim as originally
presented does not exceed the applicable deductible amount.
c. Coverage for loss caused by inverse cordenuiation -- if a deductible
is applicable, please so state.
15. Assessabilities:
Policies must be non--assessable.
16. Survey:
Each ba_dding insurer shall be responsible for matting such surveys of the
risk as the bidding carrier deems necessary. Statistical data relating to
properties and exposures to the City as furnished herein and by staff on
request has been carefully prepared but is not warranted by the City to be
accurate.
17. 'I'he following information concerning the agent, broker or company:
Please describe facilities available to or qualifications of the agency
and/or bidding carrier performing the following:
a. Casualty engineering inspection
b. Claims handling service in the metropolitan San Diego area
c. Quarterly loss information
F~id OpE:ni_.g:
For:
Limits :
Basc Bid;
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C iT i' ~F C?3uT'~.A VISTA
FROPOSAL FOP.M
September 7, 1971, 9:G0 A.rl.
Furnish3.ng C0MP'rE1~ NSiVE PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE
One rlillion combined single limit with Four Million umbrella
Annual Prema_um $ 40,932.00
Additional i~uc-tata•ons:
(lj ~>ba;e limits tia:;.~h $500 property darlage ii.ability
aeductiL~le reQUi.~: annual premium above by $
(2) AF:ove limits witl-~ $100 automobile property damage
liability deductible reduce annual premium by $
Note: Indicate if t'~e sum of reductions in (1)
and (2j above would differ if both
deductibles were applicable $
(3) Annual cost fax cove~~age for inverse cc-ndemnation,
if deductible, so state _ Deductible--$
Annual Premium $ 40,_932..00
Maryland Casualty Company
Name of Insuring Coapany Eagle Star Insurance Company
Name or lt::insuring Comparj~ ~_ _ ____
Narne oz Agency Bayly, Martin & Fay, Inch
r~ f~~
hn Mitrea Signature !~
Vice President
1 it' e _. ___._
2333 So. California First National Bank B1dQ.
San Diego, Calif~ddre:ss
234-3633
Telephone
~. 9-7-71 SEE ATTACHED LETTER
Datc~
/a l /. ~I • ~~/,
DIVISIO NAL OFFICES °
LOS ANGELES ILIA
TIoN & FADY
GAYLY
IN c.
NEW YORK CITY ,
,
O F S A N D I E G O
SAN FRANCISCO INSURANCE BROKERS
PHILADELPHIA
ANCHORAGE 2333 FIRST NATIO NAL BANK BUILDING
HONOLULU SAN DIEGO, CALIFORNIA 92101
SAN DIEGO TELEPHONE 714-234-3633
SAN PEDRO September 7
1971
SEATTLE ,
LONDON
Mr. Gordon Grant, Finance Officer
City of Chula Vista
City Hall
Chula Vista, California
Dear Gordon:
Our quotation is made up of two policies based on a $500.00 Property Damage
deductible:
1. $300,000 Combined Single Limit - Maryland Casualty Company
2. $4,700,000 Combined Single Limit - Eagle Star Insurance Co.
Both companies rate A+AAAAA.
AFFILIATED OFFICES
AROUND
THE
WORLD
Both carriers contemplate the exclusion of Riot and Civil Commotion and Inverse
Condemnation. ~°--~°°-°°-~-- ~~~---..-,,..a,,,.,..~_..__,
The primary layer has the following modifications:
1. 10% participation by the insured with respect to Personal
Injury.
2. Thirty day cancellation instead of sixty days as requested
in the specifications.
3. Rather than charge for XCU-Street Construction, when no exposure
exists, it can be included on a per job basis at a rate of
less than $.29 per $100.
In our research in the market, we have found a carrier who would afford coverage
for Inverse Condemnation, providing they were given a firm order for an annual
premium approximately between $5,000 and $6,000.
Enclosed find sample policies from both the Maryland Casualty Company and Eagle
Star Insurance Company.
We have enjoyed being your Broker over the past years and hope we may still have
that pleasure.
Sincerely,
BAYLY, MARTIN & FAY, INC.
of San Diego
:!'/.7ohn Mitrea __l
C' Vice President '
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