R-86-849 - 4/10/1986quotation; and
, « i
of the necessary documents, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS
accepted, and the Mayor is authorized and directed to enter into an
ATTEST:
RESOLUTION N0. 07 9K—
WHEREAS, the City has requested quotations for City insurance; and
WHEREAS,
•
WHEREAS, the Council wishes to accept the quotation of
That the quotation of
agreement with
RESOLVED this 10th day of April, 1986.
NE LAND, - ity Secretary
submitted the best
, and to authorize the execution
for City insurance.
M K ROBiNSON�
City of Round Rock, Texas
is hereby
DATE: April 8, 1986
SUBJECT: Council Agenda, April 10, 1986
ITEM: 3B - Consider discussion concerning the City's insurance program.
The current City insurance policy expires this month. Our current carrier,
Penco, will not be able to furnish a liability umbrella policy in the future.
We have received a quotation from the only other known firm that will still
insure municipalities. We recommend accepting the TML insurance quote because
of the lower cost and being able to provide a liability umbrella policy. A
presentation will be made at the meeting.
e:
r-
r
PROPOSED PROPOSED
TML PENCO
TYPE OF COVERAGE COMPANY BIDDING LIMITS OF INSURANCE DEDUCTIBLE PREMIUM PREMIUM PREMIUM DATES OF COVERAGE POLICY 1
Property covers damage (multi- peril) to city -owned property, bldgs, etc TML 15,000,000.00 2,500 42,238 10/1/85- 09/30/86 Interlocal agreement
(THIS COVERAGE IS NOT UP FOR RENEWAL) PENCO - MERRILL not bid
General Liability covers damages by city to other persons, property TML 1,000,000.00 -0- 15,627
. 1,000 71,342
2,500 68,836
5,000 66,235
Auto Liability covers damages by city to other persons, property
•Apto Comp /Coll covers damage to city vehicles
Law Enforcement
Liability
covers city A officers for acts in line of duty
Umbrella additional coverage (excluding E7.0)
INSURANCE BIDS EVALUATION 4/86 -81
TOTAL COMPARISON PREMIUMS
(note: some coverages have not been bid by PENCO; therefore It Is the intent
of this chart to provide a comparison of bids, not a total insurance cost)
PENCO - MERRILL 1,000,000.00 1,000 90,627 90,627
TML
PENCO- MERRILL`` 1,000,000.00 1,000 38,509 38,509
TML
PENCO- MERRILL
TML
PENCO- MERRILL 1,000,000.00 500 25,554 25,554
Errors A Ommissions covers city staff, elected officials TML 500,000.00 10,000 8,642 8,642
PENCO- MERRILL 1,000,000.00 2,500
TML
1,000,000.00 -0- 48,256
1,000 43,993 43,993
2,500 41,501
5,000 38,914
ACV 1,000 34,303 34,303
ACV 1,000 29,460 29,460
1,000,000.00 1,000 18,325 18,325
1,000,000.00 n/a
2,000,000.00 n/a
18,348
27,523
PENCO- MERRILL unavailable
4/19/86- 4/18/87
71,342 (premium adjustment at 9/30/86)
3,435 3,435
$116,605 $181,585
Due to the uncertain condition of the insurance market
place the bids offered and accompanying information were not
complete to the last detail. However, a comparison has been
made using the information available. The accompanying notes
also provide insight into factors other than premiums which
affect the value of coverage offered.
NOTES TO THE INSURANCE BIDS
+ 1. TML General Liability coverage is on an occurrence
basis
- 2. TML quote is for coverage to 9/30/86 only; an
unidentifiable but higher premium is expected on
10/01/86
- 3. TML limit of coverage includes any defense cost
+ 4. Historically, coverages offered by TML have been
broader than those provided by other companies
(however, complete policy information has not been
provided to date by PENCO so an exact comparison
is not possible)
+ 5. TML has been able to provide insurance coverage
consistently
- 6. PENCO General Liability coverage is on a claims made
basis
+ 7. PENCO quote is for an annual period
+ 8. PENCO limit of coverage specified does not include
defense costs
+ 9. PENCO is a Hartford Insurance company
- 10. The Merrill agency, the City's current insurance
representative, is having difficulty providing
an umbrella policy through PENCO or any other source
RECOMMENDATION
TML is recommended for the following reasons:
1. Proposed bid cost savings
2. Participation in the TML insurance pool would stabilize
the City's insurance program
3. If TML submits a premium increase on 10/1/86, PENCO will
likely be interested in offering a competitive quote at that
time
A. REAL AND PERSONAL PROPERTY 10/01/85 $ 38,607
B. MOBILE EQUIPMENT 10/01/85 $ 3,631
C. BOILER AND MACHINERY REJECTED REJECTED
D. AUTOMOBILE PHYSICAL DAMAGE 06/12/86 $ 40,269
DESCRIPTION OF COVERAGE EFFECTIVE DATE ANNUAL CONTRIBUTIONS
8y9R
PROPERTY DECLARATION , OF COVERAGE
ROUND ROCK
COVERAGES ACCEPTED OR REJECTED
AUTOMOBILE PHYSICAL DAMAGE COVERAGE
A. COVERAGE BASIS INCLUDING COLLISION COMPREHENSIVE
B. VEHICLE REPORTING BASIS FOR COVERAGE FLEET AUTOMATIC
C. DEDUCTIBLE PER VEHICLE • 1,000
D. ADDENDUM • • NONE
PROPERTY COVERAGES
A. COVERAGE BASIS
B. VALUATION METHOD FOR LOSS ADJUSTMENT
C. BLANKET LIMIT EACH OCCURRENCE
D. FLOOD & EARTHQUAKE ANNUAL AGGREGATE LIMIT
E. TRANSIT LIMIT
ALL RISK
REPLACEMENT COST
14,407,993
. 14,407,993
. 1,000,000
F. PROPERTY INSURED
1. REAL AND PERSONAL PROPERTY INCLUDED
2. MOBILE EQUIPMENT OPTION * INCLUDED
3. DATA PROCESSING EQUIPMENT OPTION * INCLUDED
G. DEDUCTIBLES PER COVERAGE
1. ALL RISK 2,500
2. FLOOD AND EARTHQUAKE 25,000
3. BOILER AND MACHINERY REJECTED
4. AUTOMOBILE CATASTROPHE 10,000
H. PROPERTY INSURED SUBJECT TO SUB - LIMITS
1. Automobile Catastrophe Coverage 1,880,777
2. Valuable Papers & Records & EDP Media * 10,000
3. Account Receivables * 10,000
4. Loss of Revenues,Extra Expense and Rents 25,000
5. Personal Effects 5,000
6. Leasehold Interest 5,000
7. Outdoor Trees & Shrubs ($250 each) 10,000
8. Fine Arts (IF SCHEDULED ON ADDENDUM) * REJECTED
I. SPECIAL CONDITIONS AND EXCLUSIONS OR ADDENDA
1. REAL AND PERSONAL PROPERTY ADDENDA NONE
2. MOBILE EQUIPMENT NONE
3. BOILER AND MACHINERY REJECTED
* - Indicates ALL RISK coverage applies
09/08/86
Identification
of Vehicle:
Contract No.:
WS /EN/912/4
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
INTERLOCAL AGREEMENT ADDENDUM
CITY OF ROUND ROCK
Effective Date: 10/1/85 Addendum No. 1 LB
By
Additional Insured Clause
It is agreed that the "PERSONS INSURED" provision is amended to include
the person or entity named below as an "insured ", but only with respect
to liability occasioned by the activities of the "Named Insured" and only
to the extent and amount of coverage limits for which the Fund is
contractually obligated on behalf of the "Named Insured."
Additional Insured: Capital City Leasing, Inc.
4901 Spicewood Springs Road
Austin, TX 78759
1. 1982 John Deere 302 #7226
2. 1982 John Deere 410 #5503
3. 1980 GMC Garbage Truck #7977
C0611
Authorized City Official
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
By v --._.
Authorized Fund Official
Date /0
Date 9/48/r6
Effective Date: 10/1/85
Addendum No.: 1
CITY OF ROUND ROCK
Loss Payable Clause
Coverage: 1982 John Deere 302 #7226
1982 John Deere 410 #5503
Loss Payee:
City National Bank of Mineral Wells
P. 0. Box 280
Mineral Wells, TX 76067
This INSURANCE covering the interest of the loss payee shall become
invalid only because of the Member's fraudulent acts or omissions.
However, the Fund reserves the right to cancel this INSURANCE as per-
mitted by the Interlocal Agreement. Notice of cancellation mailed to the
loss payee at least ten days prior to the date the coverage for the loss
payee will end terminates this Agreement.
The INSURANCE covering the loss payee's interest as specified in this
loss payable clause will continue for subsequent coverage periods regard-
less of any coverage expiration date shown on the Interlocal Agreement
until the Fund mails notice to the loss payee at least ten days prior to
the date the coverage for the loss payee will end.
If the Member cancels the coverage as permitted by the Interlocal Agree-
ment the Fund agrees to mail notice of the cancellation to the loss payee
at least ten days prior to the date the coverage for the loss payee will
end. In any event, the Member's coverage ends on the date of the can-
cellation.
In the event the Fund pays the loss payee the Fund shall, to the extent
of payment, be subrogated to the loss payee's rights of recovery.
Contract No. C0611
WS /EN/912/7
By
Authorized City Official
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
Date /0
By » ' P_ - Date •
Authorized Fund Official
Addendum No.: 1 APD
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
INTERLOCAL AGREEMENT ADDENDUM
CITY OF ROUND ROCK
Automobile Physical Damage 4ehicle Schedule
In consideration of the contribution charged, the Fund and Fund Member agree
that, notwithstanding any provisions in the Texas Municipal League Joint Self -
Insurance Program to the contrary, the Interlocal Agreement to which this
addendum attaches shall not provide Automobile Physical Damage Coverage for any
owned or leased vehicle unless such vehicle is described in the schedule below.
Item # Eff. Date Description ID Number
All vehicles model year 1983 and newer and /or all vehicles valued at $5,000
and over
Contract Number: C0611
MG /JS/814/9
By:
Authorized City Official
Title:
Texas Municipal League
Joint Self- Insurance Fund
By: ry - . - . _. -
Authorized Fund Official
/; //
Date
t
T INr
Date '
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
INTERLOCAL AGREEMENT ADDENDUM
CITY OF ROUND ROCK
Effective Date: 10/1/85 Addendum No. 2 LB
Additional Insured Clause
It is agreed that the "PERSONS INSURED" provision is amended to include
the person or entity named below as an "insured ", but only with respect
to liability occasioned by the activities of the "Named Insured" and only
• to the extent and amount of coverage limits for which the Fund is
contractually obligated on behalf of the "Named Insured."
Additional Insured: Capital City Leasing, Inc.
4901 Spicewood Springs Road
Austin, TX 78759
Identification of
EBP Equipment:
Contract No.: C0611
WS /EN/912/5
B900 Computer System #2799
Processor Cabinet #9961
600 line /minute Printer #5668
Model B9493 -80 Disc #8740
MT 983 Terminal #8785
Fixed Disc #6864
Term Disability Printer #6881
TD 831 TDT #6972
By
By XftE / kJ Date l0-47 :pe,
Authorized City Official •
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
i ITAZSAFA6
Authorized Fund Official
Effective Date: 10/1/85
Addendum No.: 2
Coverage:
Loss Payee:
CITY OF ROUND ROCK
Loss Payable Clause
1. 1980 GMC Garbage Truck #7977
2. Data Processing Equipment
B900 Computer System #2799
Processor Cabinet #9961
600 line /minute printer #5668
Model B9493 -80 Disc #8740
MT 983 Terminal #8785
Fixed Disc #6864
Term Display Printer #6881
TD 831 TDT #6972
First State Bank
P. 0. Box 3550
Austin, TX 78764
This INSURANCE covering the interest of the loss payee shall become
invalid only because of the Member's fraudulent acts or omissions.
However, the Fund reserves the right to cancel this INSURANCE as per-
mitted by the Interlocal Agreement. Notice of cancellation mailed to the
loss payee at least ten days prior to the date the coverage for the loss
payee will end terminates this Agreement.
The INSURANCE covering the loss payee's interest as specified in this
loss payable clause will continue for subsequent coverage periods regard-
less of any coverage expiration date shown on the Interlocal Agreement
until the Fund mails notice to the loss payee at least ten days prior to
the date the coverage for the loss payee will end.
If the Member cancels the coverage as permitted by the Interlocal Agree-
ment the Fund agrees to mail notice of the cancellation to the loss payee
at least ten days prior to the date the coverage for the loss payee will
end. In any event, the Member's coverage ends on the date of the can-
cellation.
In the event the Fund pays the loss payee the Fund shall, to the extent
of payment, be subrogated to the loss payee's rights of recovery.
Contract No. C0611
WS /EN/912/6
By
By
Authorized City Official
TEXAS MUNICIPAL LEAGUE
JOINT SELF - INSURANCE FUND
Date /4-7q4,
Authorized Fund Official
-Date
6 Y9''
October 2, 1986
Ms. Joanne Land
City Secretary
City of Round Rock
214 East Main
Round Rock, Texas 78664
Dear Ms. Land:
-,..,-
TM L
RISK & INSURANCE
MANAGEMENT SERVICES
Recently you received the Interlocal Agreement and Declarations of Coverage in
effect for the City of Round Rock at 10/1/85. Enclosed is a revised Declara—
tions of Coverage indicating coverage changes since that time. Please retain
this copy for your permanent records. It does not need to be signed and
returned.
Also enclosed are two copies of addenda for your city. Please execute all
copies and return one set to our office; the other is for your permanent
records. If you have any questions at all, please give me a call.
KMH:lcd
Sincerely,
46V*
Katie Horan
Contract Manager
211 EAST SEVENTH, SUITE 1020 • AUSTIN, TEXAS 78701 -3283 • (512) 478.6601
September 29, 1986
Ms. Joanne Lane
City Secretary
City of Round Rock
214 E. Main
Round Rock, Texas 78664
Dear Ms. Lane:
KMH:ld
Enclosures
TML
RISK & INSURANCE
MANAGEMENT SERVICES
Enclosed are two original copies of the addenda for the City of Round Rock.
Please sign and execute all copies and return one set to me at the TML Fund
Office; the other is for your permanent records.
If you have any questions at all, please do not hesitate to contact me.
Katie Horan
Contract Manager
211 EAST SEVENTH, SUITE 1020 • AUSTIN, TEXAS 78701 -3283 • (512) 478-6601