HomeMy WebLinkAboutAgenda Report - September 2, 1987 (78)^ITY 1! € t'(CIi MEETING
SEPTEMBER 2, 1987
PURCHASE OF BOILER
AND MACHINE INSURANCE
COVERAGE AUTHORIZED Council was apprised that through the City's association
with the California Joint Power Insurance Authority
CC -21(c) (CJPIA), the City has learned of a void in its insurance.
CC -21.1(f) coverage. The City has not had coverage of its mechanical
and electric equipment. The type of coverage the City is
looking for will provide coverage to all of the City's
electric substations and distribution systems, the electric
and mechanical components of the sewer plant, air
conditioning equipment, pumds on water wells, generators
and the like. This coverage covers repair or replacement
of equipment destroyed in an incident.
27
IF,
r.'y+ye'�?
u'lw"t..u�s�k�^`kai�^'v�cf�
k'ai EV
00
Following discussion, Council on motion, of Council Member
Hinchman, Snider second, authorized the purchase of .bailer
and machinery insurance coverage and appropriated dollars
from the following funds to fund this purchase:
Electric $20,589
Water 1,000
Sewer 4,000
$25,589
,.....,...... ........r.wiv. : .:'...:.r r+sr±4.'cri4"VbY.V„^.a�°''`Y"�y�..'?"_-^c,'.^_'xe:'.:'mli:'Ad!xs^sYti'++:ct ..5-. 1:...:.'in'wC<ti4•.?wJ+'-42n`'�S-4'3YuA4'' I�i'.Piid ��..r:}w'[t^.�EaTI"}j"=_?i'!_`v'�'C`..--.--—� •"�v-��
ll>t17%, *T 0A Tr flry
T.:.1: THE CITY �-CUN .l
R: .. iR: CITY M - NAGER"S C)FF;CE September iQ
AUTHORIZE PURCHASE. OF BOILER AND MACHINERY INSURANCE COVERAGE
PREPARED BY: Assistant City Manager
RECOMMENDED ACTION: That the City Council authorize the purchase of boiler
and machinery insurance coverage.
BACKGROUND INFORMATION: Through the City's association with the California Joint
Power Insurance Authority (CJPIA) we learned of a void in
our insurance coverage.
We have not had coverage of our mechanical and electric equipment. The type of
coverage we are looking for will provide coverage to all of our electric
substations and distribution systems, the electric and mechanical components of the
sewer plant, air conditioning equipment, pumps on water wells, generators and the
like. This is much like the fire insurance on your home or collision insurance on
your automobile - it covers repair or replacement of equipment destroyed in a
incident.
Through our agent, Mike Ramsey, we were put in touch with the Hartford Stearn Boiler
Inspection and Insurance Company. A representative of The company has inspecte,
our electric substations, sewer plant, City Hail, and Public Safety Building.
On Wednesday, August 3., 1987, I met with Mr. Ramsey and the representative. After
our meeting Mr. Ramsey and I concluded that for the coverage provided, the premium
quoted, it is in the best interest of the City to purchase phis coverage. We asked
Hartford Steam Boiler to bind the coverage.
I have included the proposed coverage document which quotes an annual premium of
$25,589. Council should by aware the deductible on other transformers and
miscellaneous electric equipment located in substations, is reduced to $2,500.
I strongly recommend the Council authorize the purchase of this insurznce and
appropriate dollars from the following funds for purchase of boiler and machinery
insurance:
Electric $20,589
Water 1,000
Sewer 4,000
Respectfully submitted,
uE r,y L . Glenn
Assistant City Manager
JLG:hr
Attachment
TXTA.07A COUNC256
ro1566 rG�
IVAND IN
BOILER AND MACHINERY INSLIRANCE
PROPOSAL FOR
CITY OF LODI
221 WEST PINE STREET
LODI, CALIFrANIA 95240
SUBMITTED TO: NEWMAN & RAMSEY
INSURANCE AGENCY
402 PINE STREET
LODI, CA 95240
SUBMITTED BY: FRASER R. SELLSTROM
SENIOR ACCOUNT EXECUTIVE
HARTFORD STEAM BOILER
2785 MITCHELL DR., SUITE 200
WALNUT CREEK, CA 94598
DATE: AUGUST 25, 1987
CI.1f OF - ALL LOCATIONS
:A bt
POLICY FORM
PROPERTY DAMAGE LIMIT
RECOVERY
DEDUCTIBLE
�� r1ITS
WATER DAMAGE
AMMONIA CONTAMINATION
EXPEDITING EXPENSE
ADDITIONAL EXPENSE
(HAZARDOUS SUBSTANCE)
PCP's
Extended Comprehensive
$5.000,000.
. Repair or Feplacement on
all objccrs except Electric
Transfort,.,-rs 25 years or older.
ACV on these Trsnsforar.rs.
. $1,000. except Electric
Transformers in Suis --Stations
which will be $25,000. and 12,,,Y''00
$5, on all other Transformers
and Miscellaneous Electrical
Apparatus located in Sub -Stations.
$5,000.
$5,000.
$5,000.
$5,000.
$5,000.
$5,000.
TOTAL ANNUAL PREMIUM $25,589.00
1,214 PO