HomeMy WebLinkAboutAgenda Statement 1974/09/10 Item 11
AGENDA ITEM NO. [ 11 ]
CHULA VISTA CITY COUNCIL MEETING OF: September 10, 1974
ITEM TITLE: Resolution - Accepting Bids and Awarding Contract
for Comprehensive Public Liability and Property Damage
Insurance and Appropriating Additional Funds Necessary
INITIATED BY: Director of Finance
BACKGROUND
The City of Chula Vista's present insurance policy expires on September 12,
1974. The following bids were received, which include the same deductible
of $500 property and $100 automobile and the additional coverage of fire
and theft for all vehicles.
Plan I Pl an II
Primary and Excess Primary and Excess
of 5 million com- of 10 million com-
bined single limit bined single limit
Imperial Insurance Co. $ 51,925 $ 53,875
Harbor Insurance Co. 68,064 No Quote
Maryland Insurance Co. 96,632 103,076
ATT ACHED:
Resolution [X t2
Ordinance [ ]
Agreement [ ]
Plat [ ]
See EXHIBITS [x] No. 1,2
J. ~!rofOffll fJrm
Financial Statement:
The recommended bid exceeds the 1974-75 budget by $7,925. Request special
appropriation of $7,925 from General Fund Surplus.
Commission-Board Recommendation: N/A
~artment Head Recommendation:
Recommend that the low bid of Imperial Insurance Company with Creaser Price Agency
be approved and that Plan II be accepted giving the City a total of 10
million combined single limit coverage.
City Manager Recommendation:
Concur
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ern: OI:' CHULl\ VISTA I
)cning;
EXHIBIT
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Furnizhing CO~'JlRElli:NSIVE PUBLIC LIABILI'ry AND l)ROPERT'i DAHl~GE INSURhNCl~
PROPOSl\L FORB
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September 3, 1974, 9:00 A.M.
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Primary and Excess Coverage of 5 million combined single limit
lid:
Annual Premium
$_47,250.
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oI'1,,'oQ, "Oil ~UA4
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.onal Quotations:
(1) Above limits \>lith $500 property dam3ge
deouctible reduce annual premium above by
$
4,600.
(2) AboVQ limits with $100 automobile property
darnagc li~bili ty deductible reduce annual
prci::\ium by
(3) Annual Cost for coverage for inverse con-
deilulation, if deductible, so state
Deductible
$
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$
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(4) Annual cost for coverage of Fire and Theft
for self propelled vehicles (see attached
Equipment Inventory) crd.,{ $.
4,500.
'f J
Annual Premium ./ '$
51,925.
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ity will consider the following alternate bids on property damage deductible:
(1) $1,000 property damage deductible reduce.
annual premium by $ 1,800.
(2) $500 automobile property damage liability deductible
reduce annual premium by $ 1, 350 .
p~ental Quotations on Base Bid:
Primary and Excess coverage of 10 million combined single limit
o.l~
Addi tiona1 A~nual Premium II $ ],,9 SO. ....
Name of Insuring Company Imperial Insurance cb.
Treaty Re~ American Re: Argonaut
Name of Reinsuring Company . Ins. Co., New Enq land Re: ECRA
Name of Agency
Inc.
Vice-President
Tille
P.o. Box 1355, Chula vista, California 920~2
Address
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420-1070
'llclephone
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CITY or CIIUf.J, V 15'1'1\ I
PROPOSi~L 1"0;1,;.1
IpCld nj :
Scpte!:tb(~r 3, 1974, 9:00 A.~1.
t~urnishing CO~lpn2HENSIVE PUBLIC J,li\BILl'1'Y }\:m PROPERTY Dr~\!l\GE nlSUl~\NCE
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prill1ary und Excess Coverage of 5 r.lillion combined :iinglc limit
Annual Premium
$ SEE ATTACHED
Bid:
:iollal Quotations:
(1) Above limits with $500 property <1J.m~ge
deductible reduce annual premium above by
(2) Above limits \'lith $100 automobile property
damage liability deductible reduce annual
premium by
$-
(3) . Annual Cost for cov0rage .for inverse con-
demnation, if deductible, 50 state
Deductible
$
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$,
(4) Annual cost for coverage of Fife and Theft
for self propelled vehicles (see attached
Equipment Inventory)
$_ SEE ATTACHED
JI.nnui3.1 premiul'U . , $
city will consider the following alternate bids on property damage deductible:
(1) $1,000 property damage deductible reduce
annual premium by $_ .
(2) $500 automobile propert.y damage liability deductible
reduce annual premium by $_
>lcrnental Quotations on Base Bid:
Primary and Excess coverage of 10 million cOlibined single limit
i}nnual Premium $ SEE A'ITACH~
Name of Insuring Cowpany _ HARBOR INSURANCE CO. (A+AAAAA)
Name of Reinsuring Company
Name of Agency
'Eitlc
400 CEDAR STREET, SAN DIEGO, CA. 92112
1\ddrc~S
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8/29/74
238-1B2a
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CITY OF CHULA VISTA
INSURANCE PROPOSAL
;ffective date of Coverage:
September 13, 1974
'r..:l.mary Insurance
Harbor Insurance Co. (A+AAAAA)
Limit of Liability $1,000,000 CSL
Except Errors & Omissions
Sub-Limit $50,000/150,000
Premium (Annual)
Flat Non Adjustable
$58,429.00
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Deductibles
Automobile Property Damage $100.00
General Property Damage $500.00
Policy to Exclude:
(1) Inverse Condemnation
(2) Hospital Malpractice
(3Y Aircraft & Airport Liability
(4) HangarKeepers Liability
(5), Pollution and Contamination (Bureau Wording)
Premium to include Fire and Theft for self-propelled
vehicles - subject to $500 deductible for fire on all
vehicles with values of $15,000 or more. $3,035.00.
:'ollowing Form Excess Coverage (Harbor Insurance Company)
Limits $4,000,000 Excess $1,000,000
Premium
Flat Non Adjustable
Policy to Exclude:
Same as Primary, but also excluding Errors & Omissions.
$6,600.00
Following Form Excess
Limits $5,000,000 Excess $5,000,000
All Coverages:
Premium ~o be Negotiated
2ND and 3RD year premiums subject to renegotiation 60 days prior
to September 13, 1975 and September 13, 1976 respectively.
Robert Driver Co./Harbor Insurance Co.
DJte: August 29, 1974
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Cr'f'f OF C!lUIJ~ VIS'l',\
PROi'OS;U, FOlU.1
I Opcnin<;1:
Scptcnilicr 3, 197~, 9:00.h.M.
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Furnishing CmU'HEllENSIVB PUl3LIC LV\I3ILl'rY liliD PROPEHTY Dl\M1\GE IliSURJ\!;Ce
s:
Prim\.trJ' and Excess Coverage of 5 mi.lliun combined r.ingle limit
:0 Bid:
1\nnual Premium
$ 98,247.00
,i ti anal Quota Hans:
(1) i\bove 1 il1\ltS with $500 property damage
deductible reduce annual premium above by
(2) i\bovc li!1\it-.r. \'lith $100 automobile property
damage liability deductible reduce ahnunl
premium by
$ 3,209.0_L
$, _ 2,173. 2.~
(3) Annual Cost for coverage ,for inverse con-
demnati.on, if deductible, so state
Deductible
$
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(No Quote)
(4) Annual cost for covc~age of Fire and Theft
for self propelled vehicles (see attached
Equipnlcnt Inventory)
$ 3,767.00
Annual Premium ' $-26,632.00
~ty will consider the fOllowing ultern~te bids on property damage deductible:
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(1) $1,000 property damage deductible reduce
annual premium by $ 3,. 661. 00
(2) $500 automobile property damage liability deductible
reduce annual premium by $ 3, 762.00
~l~~ental Quotations on Base Bid:
Primary and Excess coverage of 10 million combined single limit
Annual Premium
$103,076.00
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Name of Insuring Company Maryland Insurance Cornpa'ny
Name of Reinsuring Company 8etpp. Iosurancp. Company
Name of Agency.
DELETIONS ON S~ECIFICATIONS
Executive Vice President
Title
1571 Fourth Ave., San Diego, CA 92101
^ddrc~s
:c: 8/30114
237.-6281
Telephone
71^i50 ' :'
CITY OF CIlUL/\ VIS'rA
SPECIFICA'l'IONS FOR CO!'lPEEHENSIVE PUBLIC LIABILITY
AND PEOPER'!'Y Dl\W\GE INSURI\NCE
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1. Policy Period:
The policy shall insure for three years I cOllUl1cncing at 12: 01 A.M., September
13, 1974.
'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+lIAA in the latest edition of Best's
Insurance Guide.
3. Prmniurn Basis:
The premium for the second and third years shall be subject to renegotiation
prior to commencement of each subsequent annual periOd. The insurance company
Inay 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 Council,
elected or appointed boards and commissions, officials, officers, employees,
and volunteer members of the Police or Fire Departments, individually and
collectively, when acting within the scope qnd performance of-their 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 Company. Due to contractual ayreements, the City may be
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required from time to time to name other agencies as being additional insureds
under the policy. Certificates of insurance may also be request~d as needed.
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6. Operations Insured:
a. The o\\'ner of premises used for voting palls and any person acting as
a voting registrar while using the prcmise~ 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
severability of interest provision insuring the liability of one insured for
injury or ddmage sustuined by another insured,
f ~currCd for which the City shall become Obl19~O_p-"Y..l>l-
rcason of 1iabilItympos~~ by 1a\.;, includin9 Chapter--168-1, California
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Statutes of 1963 et,_seq.--ofthe Government'Code~pf the State of California
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~ndments thereto dur ing the policy period. ~-_____
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c. Liability for which the City shall become obligated to pay because of
false arrest, detention or imprisonnlent, malicious presecut~on, libel,
slander, defamation of character, invasion of privacy, wrongful eviction,
wrongful entry, assault and battery, and malpractice, _
~ ~bility for which the City shall bec~m: obligated to pay~:~ausc of
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damages for car~os~rvices, me~~}._anguish;'- fri~l;~, humiliation,
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or any other injury that__any-p-erson rnaY5uffer_t:2 his person, reputation,
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cr, 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 claims are groundless, false or fraudulent.,
The insurance company shall have the right, at its sole expense, to make
such investigations, negotiation and settlement of any claim or suit as it
deems expedient, including defense against punitive or exemplary damages.
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~ ~rs and' omissions, The company agrees to pay on behalf of :~
immrcd ('11~luus which th~ in~llrcd ~)hall become legally Uable to pay as
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damages because of "any'. negligent act, error or omission, committed or
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alleged to h~ve been committed by officials or employees of the insured
during the performance of their duties as such officials and/or employees
during the course of,...their employment by the insured. This endorsement
does not c9v~ndiVidual as respects claims arisi:; out of or contrib-
~ any dishonest, fraudulent, or criminal act of su~h individua~.
7. Occurrences 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 which legal liability exists in connection therewith."
9. Exclusions to be Elimin~ted:
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The following conditions shall not be excluded:
a. Water craft exclusion
b. Exclusion of liability to a persoij not a party to a contract
c. Water damage exclusion,
d. Exclusion of damage 'to underground pipes
e. Exclusion of blasting, explosion or collapse
f. Liability assumed under any written contract including liability
arising out of the soln negligence of the indemnities
g. Amend the usual exclusions so as to insure liability for damage by
fire, or e:-t:plosion to property of others occupied or rented to the City
'f b..-Rio.t....and~.civil commotion
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10. Policy Conditions:
'l'he policy shall be subject to cancellation by either party giving a sixty-
day advance written 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 suite ,shall be given to the company as soon as
practicable after knowledge of such injury, claim or suite is received by
the city Attorney, city Clerk, or Director of Finance.
11. Limits:
Primary and exce~s to reach limits of 5 million combined single limit.
12. Right to Reject:
The City reserves the right to reject any or all quotations and to accept
the quotation that best suit~s the needs of the city. The City is interested
in securing as broad a form of coverage as is obtainable.
13. Prerni~~ Payments:
Premium pa~nents will be paid within thirty days of acceptance of policy.
14. It is expected that the carrier would settle 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.
15. Assessabilities:
policies must be non-assessable.
16. survey:
Each bidding insurer shall be responsible for making 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.
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17. The following services are to be provided by the agent, broker or company:
a. Casualty engineering inspection (as needed).
b. Claims handling service located within the metropolitan San Diego area.
c. Quarterly loss information.
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