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09/01/2023
T-18795.001 / 2050162 1
Council Agenda: 9/26/2023
Item No.: 3.5
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 (1) SELECT AND PURCHASE CERTAIN CITY
PROPERTY, LIABILITY, AND EXECUTIVE RISK
INSURANCE POLICIES FOR THE PERIOD OF OCTOBER
1, 2023 TO OCTOBER 1, 2024, AT A TOTAL COST NOT
TO EXCEED $3,919,533, AS WELL AS AN 18.0%
CONTINGENCY FOR ADDITIONAL PROPERTY OR
ASSETS SCHEDULED, SUBJECT TO THE
APPROPRIATION OF FUNDS; AND (2) SELECT AND
PURCHASE ADDITIONAL LIABILITY INSURANCE FOR
THE PERIOD OF OCTOBER 22, 2023 TO OCTOBER 22,
2024, AT A COST RANGING FROM $500,000 TO
$1,250,000, SUBJECT TO THE APPROPRIATION OF
FUNDS
WHEREAS, the City of San José (“City”), working in conjunction with the insurance broker Alliant Insurance Services, examined the City’s existing insurance program along with alternative coverages that could be considered, in accordance with the annual insurance renewal process of the City; and
WHEREAS, the City’s insurance program generally includes property insurance for City facilities and property (which includes property previously owned by the Redevelopment Agency of the City of San José, now owned by the City), airport owners and operators liability insurance, secondary employment law enforcement professional liability insurance, auto liability insurance (for Airport and Regional Wastewater Facility fleets only), insurance for physical damage to Airport shuttle buses, police aircraft hull and liability insurance, government crime insurance, and Terrorism Risk Insurance Act coverage on the property and airport liability policies, and a Life/Accidental Death and Dismemberment Policy for the Police Air Support Unit; and
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Council Agenda: 9/26/2023
Item No.: 3.5
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
WHEREAS, the City desires to add one additional insurance product: an Automobile Physical Damage policy for the Police Department’s schedule of grant-funded vehicles and equipment; and
WHEREAS, the City desires to authorize the selection and purchase of the policies of insurance as described in the memorandum from the Director of Finance dated September 5, 2023;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The Director of Finance is authorized to:
1. Select and purchase City property, liability, and executive risk insurance policies for the period of October 1, 2023 to October 1, 2024, at a total cost not to exceed $3,919,533, as well as an 18.0% contingency for additional property or assets scheduled, subject to the appropriation of funds, with the following insurance carriers:
a. Coverage – Property Insurance, including Boiler and Machinery and Terrorism Risk Insurance Act Coverage: Insurance Carrier – Factory Mutual Insurance Company.
b. Coverage – Terrorism Insurance: Insurance Carrier – Beazley Syndicate 2623/623 at Lloyd’s.
c. Coverage – $15 million in Excess Flood Insurance for locations in high and moderate hazard flood zones on a 50/50 quota share basis: Insurance Carrier – The Princeton Excess and Surplus Lines Insurance Company and Arch Specialty Insurance Company.
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Council Agenda: 9/26/2023
Item No.: 3.5
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
d. Coverage – Auto Liability Insurance for the vehicle fleets at the San José Mineta International Airport and San José – Santa Clara Regional Wastewater Facility: Insurance Carrier – Gemini Insurance Company.
e. Coverage – Auto Physical Damage for the Airport shuttle buses:
Insurance Carrier – Hanover Insurance Company.
f. Coverage – Secondary Employment Law Enforcement Professional Liability: Insurance Carrier – Lexington Insurance Company. g. Coverage – Accidental Death, Accidental Dismemberment, and Paralysis Policy for the Police Air Support Unit: Insurance Carrier – Arch Insurance Company.
h. Coverage – Government Fidelity/Crime Coverage: Insurance Carrier – Great American Insurance Company.
i. Coverage – Auto Physical Damage for the Police Department grant-funded vehicles and equipment: Insurance Carrier – AGCS Marine Insurance Company.
2. Select and purchase Additional Liability Insurance for the period of October 22, 2023 to October 22, 2024 at a cost ranging from $500,000 to $1,250,000, subject to the appropriation of funds.
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09/01/2023
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Council Agenda: 9/26/2023
Item No.: 3.5
DRAFT--Contact the Office of the City Clerk at (408) 535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk