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Home My WebLink AboutAM Casualty insurance Texas MunicipalTown of Westlake To: Mayor and Members of the Board of Aldermen From: Trent Petty, Town Manager Subject: Meeting of August 22, 2003 Date: August 17, 2003 rVIMN-1 Consider a Resolution awarding bid on property/casualty insurance to Texas Municipal League Intergovernmental Risk Pool. � 11 I'll I'll :1 X Staff recommends approval. J'am I � c -'K 40"41 U1 I I The Town properly advertised "Request for Bids" for property/casualty insurance and received only one bid from Texas Municipal League (TML). Please recall that we have carried the Town's insurance through Texas Municipal League in previous years because of their rates. Two other companies declined to bid because they were aware that TML would be bidding and could not complete with their pricing. The total annual contribution bid of $47,840 includes a discount of $1,480 if only one annual payment is made. If quarterly payments of $12,330 are made, the total contribution will be $49,320. This amount includes property coverage for all infrastructure of the Town as well as all requested liability, errors and omissions, law enforcement and worker's compensation coverage for employees and activities related to the Town. We budgeted a total of $54,421, which included the $8,054 coverage of the building and contents of the municipal complex by Box Insurance; therefore, the remaining balance budgeted for the Town's coverage is $46,367. This is a difference of $1,473 if we make one annual payment, which includes the discount. Attached is a summary of the premiums and coverage proposed by TML along with an explanation of the coverage features. TOWN OF WESTLAKE Insurance Value Limits Coverages Deductible $ 35,000$ Premium Worker's Compensation 28,000 Statutory Fire Hydrants 125,000 $0 300,000 $13,458 General Liability 1,500,000 $1,000,000 $2,000,000 Glenw ck Farms - Water Connection Per occurrence Aggregate $0 200,000 $6,761 Law Enforcement Liability 80,000 $3,000,000 $6,000,000 Underground Fiber Optic Network Per occurrence Aggregate $1,000 2,400,000 $710 Errors and Omissions Liability 1,562,830 $3,000,000 $6,000,000 Total Real and Personal Property Per occurrence Aggregate 30,000 $1,000 $9,974 Auto Liability $1,000,000 Per occurrence $0 $1,857 Auto Medical Payments $25,000 Per person $0 Included Auto Physical Damage Actual Cash Value 250/10,000 $2,485 Real and Personal Property $7,890,830 Replacement cost $1,000 $10,231 Flood and Earthquake $7,890,830 Replacement cost $25,000 $3,528 Broiler and Machinery $7,890,830 Per accident $1,000 Inc. if real & property property is elected Public Employee Dishonesty $100,000 Per employee $1,000 $316 Total Premium $49,320 Annual P mt Discount (1,480) Total Annual Contribution $47,840 REAL AND PERSONAL PROPERTY Detail Value Contents Temporary Fire Station Ba $ 35,000$ 15,000 Temporary Fire Station 28,000 15,000 Fire Hydrants 125,000 Hwy 114 - Lift station 300,000 Fidelity Complex .. Water & Sewer Connection 1,500,000 Glenw ck Farms - Water Connection 130,000 Glenw ck Farms - Sewer Connection 200,000 Trophy Club Drive/Hwy 114 - Bridge Enhancements 80,000 Underground Fiber Optic Network 1,500,000 Hwy 377 - Pump Station/Ground Storage Tanks 2,400,000 Dove Road - Water Mains 1,562,830 Total Real and Personal Property 7,860,830 30,000 The Texas Municipal League Intergovernmental Risk c'ool's liability coveragee includes the following features at no additional cost: All Liability Coverages "Occurrence" rather than "Claims -Made" Form All coverages including Public Officials' and Law Punitive and Exemplary Damages Defense Costs Pay On Behalf Of Public Officials Coverage for Employment -Related Matters including Discrimination, Wrongful Termination, Failure to Hire or Promote and Sexual Harassment or Misconduct Criminal Defense Reimbursement Back Wages Claims filed with EEOC and Texas Commission on Human Rights Five Years Prior Acts Coverage Coverage for Members of Boards or Commissions including Airport and Utility Boards Coverage for Attorneys, Architects, Engineers and Accountants Land Use/Zoning Mental Anguish Coverage for Actual or Alleged Civil Rights Violations Whistleblower's and Workers' Compensation Retaliation Claims Enforcement Liability, Not Excluded (unless assumed by contract). Included in addition to policy limits. Included Included $10,000 50% up to $25,000 when awarded in connection with other covered damages. Included in the definition of "Suit". Included Included Included while acting as public officials or employees of the Member. Included when damages are sought. Included when sought in connection with an alleged civil rights violation. Included Included Texas Municipal League Intergovernmental Risk fool L266 I of 3 01/ 17/03 General. Liability Pollution Coverage Failure to Supply Gas, Oil, Water, Electricity or Steam due to damage to tangible property Fireworks Displays Watercraft Liability Fire Legal Liability Incidental Medical Malpractice Emergency Medical Services (EMTs and Paramedics) Special Events Law Enforcement Liability Coverage for. Alleged Use of Excessive Force Moonlighting High Speed Pursuit Coverage for Intentional Acts Damage to Seized or Impounded Property Jails Coverage for Actual or Alleged Violations of Civil Rights Mutual Aid Agreements Automobile Liability Medical Payments Vehicles Added During the Year Broad coverage for damages or injuries that occur within 45 days of a sudden and accidental pollution incident. No time limitation for damage or injury resulting from the Member's products (such as water) or chlorine usage and coverage extends to gradual as well as sudden events. Included Included Included Included up to full Limits of Liability Included Included Included Included Included for the Member and officers acting in their capacity as Law Enforcement Officers. Included if there is no physical contact with Member's vehicle.. Included Included Included Included Included $25,000 for vehicles with design capacity of 6 passengers or less. Automatic coverage at no additional charge. Texas Municipal League Intergovernmental Risk Pool L266 2 of 3 01/17103 Deductible Reimbursement for Volunteers High Speed Pursuit Automobile Physical Damage Deductible Limitation Up to $500 for damage to vehicles owned by volunteer firefighters or emergency medical personnel when damage occurs during emergency response on behalf of the Member. Included if there is physical contact with the Member's vehicle. $ 10,000 maximum deductible for all vehicle damage sustained in one occurrence, except for damage resulting from hail. Texas Municipal League Intergovernmental Risk Pool L266 3 of 3 01/17/03 Property Coverage Features The Texas Municipal League Intergovernmental Risk Pool's property coverage includes the following features at no additional cost: Coverage Commews Coinsurance Provision None Pollution Damage to Covered Property Caused by a Included at Real and Personal Property Limit Covered Peril Pollution Clean up $10,000 each covered premises Accounts Receivable $10,000* Valuable Papers/EDP Media $10,000* Loss of Revenue/Extra Expense/Rental Income $25,000* Personal Effects of Employees/Volunteers $5,000* Debris Removal Included at Real and Personal Property Limit Demolition of undamaged portions of covered structures Included at Real and Personal Property Unlit Boiler & Machinery Included (except generating electric utilities) Increased cost of construction due to Building Ordinances Included at Real and Personal Property Limit Loss to undamaged portion of a covered structure Included at Real and Personal Property Limit Newly acquired/constructed structures Automatic $ 1,000,000 or total Building and Contents values, whichever is less. Additional limits available upon notification, No time limitation applies. Certain types of property must be reported. Property in Transit $1,000,000 Property Off Premises Included at Real and Personal Property Limit Sewer Backup Included at Real and Personal Property Lin -lit Communications Equipment Included at Real and Personal Property Limit Computer Equipment Included at Real and Personal Property Limit Electrical Damage — EDP equipment Included at Real and Personal Property Limit Glass Breakage Included at Real and Personal Property Limit Glass Display or Trophy Cases Included at Real and Personal Property Limit Texas Municipal League Intergovernmental Risk Pool P368 1 of 2 01/26/03 Ground Maintenance Equipment Fine Arts Fire Department Service Charge Fire Equipment Recharge Commandeered Boats Outdoor Property -Trees, Plants, Shrubs Any one tree, plant or shrub Outdoor Property — Detached Signs, Fences, Antennas Temporary repairs after a loss to prevent further damage Inventory costs related to a loss Portable equipment Property of Others Premises Boundary Spoilage Off Premises Utility Failure Lock replacement after a loss Changes in temperature/humidity Architectural/Engineering fees incurred as the result of a loss Underground Sprinkler Systems Included at Real and Personal Property Limit Lesser of repair cost or scheduled value Must be reported Included Included Included in Mobile Equipment $10,000 $250 Included at Real and Personal Property Limit Must be reported Included at Real and Personal Property Limit Included Included at Real and Personal Property Limit Included at Real and Personal Property Limit None Included at Real and Personal Property Limit Included at Real and Personal Property Limit Included at Real and Personal Property Limit Included at Real and Personal Property Limit Included Included at Real and Personal Property Limit Must be reported * These are the basic Coverage Extension Limits provided at no cost to the Member. Additional limits are available and if this Invitation to Bid requests such additional limits, they have been included in this response. Texas Municipal League Intergovernmental Risk Pool P368 2 of 2 01/26103 A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, AWARDING THE BID ON PROPERTY/CASUALTY INSURANCE. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: The Board of Aldermen of the Town of Westlake does hereby award the bid on property/casualty insurance to Texas Municipal League Intergovernmental Risk Pool. SECTION 2: This Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 22nd DAY OF SEPTEMBER 2003. ATTEST: Scott Bradley, Mayor Ginger Crosswy, Town Secretary Trent O. Petty, Town Manager APPROVED AS TO FORM: L. Stanton Lowry, Town Attorney