NVF:KMM:KML
01/05/2022
T-33156/1886150 1
Council Agenda: 01-25-2022
Item No.: 3.7
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING THE DIRECTOR OF FINANCE TO
(A) PURCHASE INSURANCE POLICIES FOR THE SAN
JOSE-SANTA CLARA REGIONAL WASTEWATER
FACILITY CAPITAL IMPROVEMENT PROGRAM, WITH
TOTAL COST NOT TO EXCEED $ 7,221,283 INCLUDING
ESTIMATED INSURANCE PREMIUMS OF $ 4,661,872
AND A TOTAL MAXIMUM DEDUCTIBLE OF $2,559,411 ,
AS WELL AS A CASH COLLATERAL FUND OF
$1,496,471, WITH PREMI UMS TO BE PAID IN FOUR
ANNUAL INSTALLMENTS AND SUBJECT TO THE
ANNUAL APPROPRIATION OF FUNDS; AND (B) EITHER
RENEW AN EXISTING, OR SECURE QUOTES AND
PURCHASE A NEW, MASTER BUILDER S RISK
INSURANCE POLICY WITH SPECIAL ENDORSEMEN T
FOR FLOOD TO PROVIDE BUILDER’S RISK COVERAGE
THROUGH 2026 AS NECESSARY, WITH A PROJECTED
$906,000 IN PREMIUMS
WHEREAS, on December 13, 2016, the City Council approved an agreement with Alliant Risk Insurance Services, Inc. (“Alliant”) to provide broker, administrative, and claims management services to assist the City of San José (“City”) with the marketing and implementation of a multiline owner-controlled insurance program (“OCIP”) to provide a centralized insurance program for losses associated with onsite construction of projects for the Capital Improvement Program (“CIP”) at the San José-Santa Clara Regional Wastewater Facility (“RWF”); and
WHEREAS, on June 20, 2017, the City Council approved the purchase of insurance products for an OCIP at the RWF, including commercial general liability, excess liability, workers’ compensation, builder’s risk, and pollution liability insurance, and in July 2017, the City implemented an OCIP with the Cogeneration Facility being the first capital project covered by the program; and
NVF:KMM:KML
01/05/2022
T-33156/1886150 2
Council Agenda: 01-25-2022
Item No.: 3.7
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, in May 2021, staff began evaluating the feasibility of implementing a second OCIP to cover projects that concluded after March 30, 2023, including the Digested Sludge Dewatering Facility project, which is expected to commence in early 2022 but is not projected to achieve beneficial use until January 2025; and
WHEREAS, due to available insurance products and policy terms, capital improvement projects at the RWF concluding after March 30, 2023 would be covered through a second OCIP or through the requirement of contractor provided insurance; and
WHEREAS, the City has compared and reviewed insurance quotes presented by Alliant in November 2021, and desires to authorize the selection and purchase of the policies of insurance as described in the memorandum from the Director of Finance dated December 15, 2021 to generate program savings and enhance safety, risk, and claims management services during the next five years of capital projects at the RWF;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The Director of Finance is hereby authorized to:
A. Purchase insurance policies for the San José-Santa Clara Regional Wastewater Facility Capital Improvement Program, with total cost not to exceed $7,221,283 including estimated insurance premiums of $4,661,872 and a total maximum deductible of $2,559,411, as well as a cash collateral fund of $1,496,471, with premiums to be paid in four annual installments and subject to the annual appropriation of funds, as follows:
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01/05/2022
T-33156/1886150 3
Council Agenda: 01-25-2022
Item No.: 3.7
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
1. Federal Insurance Company: Commercial General Liability Insurance and Workers’ Compensation Insurance with a Program Agreement Endorsement stipulating terms of the cash collateral fund management.
2. Allied World Assurance Company, Inc.: Commercial Excess Liability Insurance.
3. Endurance Risk Solutions Assurance Company: Commercial Excess Liability Insurance.
4. Liberty Surplus Insurance Corporation: Commercial Excess Liability Insurance.
5. Great American Assurance Company: Commercial Excess Liability Insurance.
6. Westchester Surplus Lines Insurance Company: Commercial Excess Liability Insurance.
7. Ironshore Specialty Insurance Company: Contractors Pollution Liability Insurance.
8. Berkley Assurance Company: Owners Protective Professional Liability Insurance.
B. Either renew an existing, or secure quotes and purchase a new, Master Builder’s Risk Insurance policy with special endorsement for Flood to provide builder’s risk coverage through 2026 as necessary, with a projected $906,000 in premiums, the cost of which is included in the estimated insurance premiums above.
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01/05/2022
T-33156/1886150 4
Council Agenda: 01-25-2022
Item No.: 3.7
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk