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HomeMy WebLinkAboutItem 15 - Railroad InsuranceMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: OCTOBER 15, 2019 SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT FOR RAILROAD LIABILITY AND PHYSICAL DAMAGE INSURANCE RECOMMENDATION: City Council to consider the renewal of annual contracts for railroad liability and physical damage insurance coverage with Westchester Insurance Company and RLI Insurance Company. FUNDING SOURCE: Funds are available in the CVB budget (various accounts) in the estimated annual amount of $156,000. BACKGROUND: The City of Grapevine is fully -insured for railroad liability and physical damage insurance. The City's consultant Hub International Insurance Services (HUB) secured competitive pricing for the renewal of these policies. Westchester Insurance will provide a coverage limit for liability of $25,000,000 which is the City's required coverage per DART contract. RLI will provide $2,000,000 in physical damage insurance coverage for the train cars. City staff reviewed the proposals provided by HUB International and determined that Westchester and RLI would provide the best policies, pricing and service for meeting the needs of the City. These are one-year contracts. Staff recommends approval. MH/GJ Railroad Protective Liability Carrier: Westchester Fire Insurance Company A.M. Best Rating: ++ XV Policy Terra: 10/1/2019 to 10/1!2020 Coverage Description- Excursion railroad Liability —occurrence Limits Each Occurrence $2, 000, 000 General Aggregate $50,000,000 Products/Completed Operations Aggregate $50,000,000 Personal Injurer Advertising Injurer $257000,000 Medical Payments $5,000 Damage t0 Premises Rented by You $100,000 Liquor Liability -Each Occurrence $0,000,000 Liquor Liability --Aggregate $6,000,000 $15,000 Per Occurrence Deductibles $25,000 Per Occurrence Liquor Liability Estimated Exposure: Based On $2,1002000 of projected ticket revenues Rate: Flat Per $100 Of ticket revenue ADDITIONAL TERMS AND CONDITIONS Fona�s s GLEC, 194 (09f13) GLE0241 (05115) LE00 (01.,"99) LE , (1011-4) LEG2 (09115) ALL -21101 (11106) 1L P G01 (01104) Hue Ace Tracks Excursion R ilro d Li ability Insurance P l icy Addifi real in. ur d Railroad Operations Endorsement - Scheduled Additlonal Insureds Named hi ured - Amended Grapevine Vintage Pail:ro d city of Grapevine Cl-ty of Grapevine Convention & VisAors Bureau Liquor Liah i I ity Covera ge Form - 1 a 1000 Per Occurrence $25,000 Per Occurrence Liquor Liability undse Endorsement - Covers occurTences that first tock pLce ager 111301200 -1 and befo re 11130201 the sun ris period) Trade Or Econon. iic Sancti cn s Endorsement TreasuRe Dep artment*sf ce. Of Foreign Assets. Cont - l ("OFACr, ) Advisofy Mortice To Policyholdersj Page 15 of 32 Railroad Physoca� Dannage Carrier: ILLI Insurance Company A.M. Best Rating, A+ RC1 Policy Terra: 10/1/2019 to 101112020 RAILROAD AD ROLLING STOCK AND MOBILE EQUIPMENT T Coverage Description Limit All Covered Property $1,935,900 All Covered Property in any one Occurrence $12935,900 Business Income Extra Expense 1501000 Deductibles: Per Locomotive $25,000 Per Car $10,000 subject t $25,000 any One Occurrence Business Income Based on $2,100,000 In Annual Revenue VALUATION: ; Actual Cash value 0 HU Page 14 of 32 premium Summary Description iption f Coverage Prior Year Premium Current PremiUM Railroad Liability $124,950 $140,034 Railroad Physical Damn $127992 $15,860 Total Estimated Annual Premium* $137r942 $155 894 Hu� Page 18 of 32