HomeMy WebLinkAboutItem 27 - Minters Chapel Road Insurance!u F4 u rem A
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
STEM 0
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGE ii' ZZ/,
JANUARY 15, 2002
MINTERS CHAPEL ROAD — POLLUTION LIABILITY
INSURANCE POLICY PURCHASE
City Council consider approving the City's purchase of a $ 5,000,000 Pollution Liability
Insurance Policy for the construction of the Minters Chapel Road Construction Project
for a price of $ 37,611.00, authorize staff to acquire the policy effective January 31, 2002
for a period of 18 months, and take any necessary action.
FUNDING SOURCE:
Funds are currently available in Account # 178-78102-010; 1999 GO Bonds
BACKGROUND:
Staff is finishing the cost participation process with the abutting property owners and
plans to submit the project to Council for award in February, 2002. Part of the bidding
process included an add alternate pay item for pollution liability insurance provided by
the contractor for comparison with prices the City could solicit.
Risk Management has recently received a very competitive quote for pollution liability
insurance from AIG Insurance Company, an insurance company with an A++15 rating.
The quote is for an Owners Controlled Insurance Program Policy (OCIP) that will be
controlled by the City. The proposed policy provides much more protection for the City
than those proposed by the bidders in terms of long term coverage and pre-existing
condition coverage.
The OCIP will be written in an Occurrence Form instead of a Claims Made Form for a
period of 18 months. An Occurrence Form allows the City to file claims after the 18
months period has expired. This is very important for this type of coverage. A Claims
Made Form lasts for only the 18 month period and claims must be filed within that 18
month coverage period.
0:\agenda\1-15-02\MC Road Pollution Insurance Policy
January 10, 2002 (8:23AM)
The proposed OCIP provides for both onsite and offsite cleanup, does not have the pre-
existing condition exclusion, has third party claim coverage and allows us to add the
funding participants as additional insureds. The contractor's proposed policy and
associated cost will not be utilized with the approval of the AIG proposal.
Staff recommends approval.
0:\agenda\1-15-02\MC Road Pollution Insurance Policy
January 9, 2002 (5:06PM)