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HomeMy WebLinkAboutReso 2006-987 RESOLUTION NO. 2006- ...9.n A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE PURCHASE OF BUILDERS RISK INSURANCE FOR THE ACTIVE PARK, THROUGH THE CITY'S INSURANCE BROKER, BROWN & BROWN INSURANCE, INC., IN THE AMOUNT OF FIFTY-THREE THOUSAND FIVE HUNDRED SIXTY-NINE DOLLARS ($53,569.00); AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach wishes to develop the 181't Drive Active Park located at 18115 North Bay Road; and WHEREAS, the contract between the City and General Contractor for the Active Park requires that the City provide Builders Risk Insurance to protect the City from damages that may occur to the Active Park structures during the time frame of construction; and WHEREAS, the City's Insurance Broker, Brown & Brown Insurance, Inc., has provided proposals from two insurance agencies, in the amount of Fifty-Three Thousand Five Hundred Sixty-Nine Dollars ($53,569.00), attached hereto as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Purchase. The City Commission hereby approves the purchase of Builders Risk Insurance for the Active Park through the City's Insurance Broker, Brown & Brown Insurance, Inc., in the amount of$53,569.00, attached hereto as Exhibit "A". Section 2. Authoritv of Citv Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 3. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 21 ,t day of September 2006. ATTEst:. \. , \,' " d"~' ,-, , ';".' . . ,".. '-, </~.A- 1-" ',',' Jane A. Hmes,<CMC, City Clerk "-",. , R2006- Purchase Builders Risk Insurance Page 1 of2 APPROVED AS TO FORM AND LEGAL SUFFICIENCY ~ tt t ~ttomey Vote: 4 -()-( Mayor Norman S. Edelcup Vice Mayor Roslyn Brezin Commissioner Gerry Goodman A+.:>s.~ Commissioner Darmy Iglesias Commissioner Lewis Thaler R2006- Purchase Builders Risk Insurance Page 2 of2 Moved by: (i,.,.",,""':. 1V\J~....JlA. rG \.- ~Sl M' Seconded by: VI c.~ vY\~OlL ~ R ~ 2,tJ ~Yes) _(Yes) _(Yes) 0Yes) ~Yes) _(No) _(No) _(No) _(No) _(No) COMMERCIAL INSURANCE PROPOSAL 2006 - 2007 Prepared For CITY OF SUNNY ISLES BEACH 18070 Collins Avenue Sunny Isles Beach, FL. 33160 Prepared By Robert Hollander Executive Vice President 8000 Governors Sq. Blvd., Suite 400 Miami Lakes, FL 33016 Date Prepared August 15, 2006 1 BUILDERS RISK COVERAGE FOR A FULL DESCRIPTION OF TERMS, DEFINITIONS AND CONDITIONS PLEASE REFER TO THE POLICY DOCUMENT INSURER Zurich American Insurance Co., Best's Rated A XV PROPERTY INSURED/CONTRACT Construclion of a public recreation facility. Community Center & Gym located at 18115 North Bay Road, Sunny Isles Beach, FL. Contract Term - 12 months. COVERAGE LIMITS (*) $ 6,700,000 $ 25,000 $ 25,000 Final Contract Value Property While in Transit Property at Temporary Location * Coverage Limits must be ultimately chosen by the Insured. We as Agents cannot recommend the adequate limit of protection. Higher or lower limits may be available. Piease let us know if a quote is desired. COVERAGE TERMS AND CONDITIONS Covered Losses All Risks per the Zurich coverage form; Excluding Windstorm Valuation Replacement Cost Coinsurance None. Deductible $5,000 All perils per occurrence Exclusions Exclusions include, but are not limited to, the following: Flood Earthquake Mechanical Breakdown Electrical Arcing Windstorm 2 BUILDERS RISK COVERAGE FOR A FULL DESCRIPTION OF TERMS, DEFINITIONS AND CONDITIONS PLEASE REFER TO THE POLICY DOCUMENT INSURER Citizens Property Insurance Corp. Not Rated by A.M. Bests PROPERTY INSURED/CONTRACT Construction of a public recreation facility. Community Center located at 18115 North Bay Road, Sunny Isles Beach, FL. Contract Term -12 months. Building Value of Community Center - $3,700,000 COVERAGE LIMITS (*) $ 1,000,000 ** Building . Coverage Limits must be ultimately chosen by the Insured. We es Agents cannot recommend the adequate limit of proteclion. Higher or tower limits may be avellable. Please let us know If a quote is desired. .. $1,000.000 is the maximum limit available in Cilizens Property Ins, Corp, Additional limlls are avallabte in the Excess and Surplus Lines Markets, Should you desire a quotation please let us know. COVERAGE TERMS AND CONDITIONS Covered Losses Wind & Hail Only Valuation Replacement Cost Coinsurance None. Deductible 3% Wind & Hail Deductible - 3% of completed Value Exclusions Exclusions include, but are not limited to, the following: All perils other than Wind & Hail 3 BUILDERS RISK COVERAGE FOR A FULL DESCRIPTION OF TERMS, DEFINITIONS AND CONDITIONS PLEASE REFER TO THE POLICY DOCUMENT INSURER Citizens Property Insurance Corp. Not Rated by A.M. Bests PROPERTY INSURED/CONTRACT Construction of a public recreation facility. Gym located at 18115 North Bay Road, Sunny Isles Beach, FL. Contract Term - 12 months. Building Value of Gym - $3,000,000 COVERAGE LIMITS (*) $ 1,000,000 ** Building . Coverage Limits must be ultimately chosen by the Insured. We as Agents cannot recommend the adequate limit of protection. Higher or lower timits may be avaifable. Please let us know if a quote is desired. .. $1.000.000 is the maximum limit avaifable in Citizens Property Ins. Corp, Additional limits are available in the Excess and Surplus Lines Markets, Should you desire a quolation please let us know, COVERAGE TERMS AND CONDITIONS Covered Losses Wind & Hail Only Valuation Replacement Cost Coinsurance None. Deductible 3% Wind & Hail Deductible - 3% of completed Value Exclusions Exclusions include, but are not limited to, the following: All perils other than Wind & Hail 4 OWNER'S & CONTRACTORS PROTECTIVE LIABILITY (Project Specific General Liability) FOR A FULL DESCRIPTION OF TERMS, DEFINITIONS AND CONDITIONS PLEASE REFER TO THE POLICY DOCUMENT INSURER Scottsdale Insurance Company, Best's Rated A+ XV LIMITS OF LIABILITY (*) $ 2,000,000 $ 1,000,000 $ 1,000,000 General Aggregate Products/Completed Operations Aggregate Each Occurrence Limit * Coverage Limits must be ultimately chosen by the Insured. we as Agents cannot recommend the adequate limit of protection. Higher or lower timits may be available. Please let us know if a quote Is desired. INSURED CONTRACT Construction of a public recreation facility. Community Center & Gym located at 18115 North Bay Road, Sunny Isles Beach, FL. Contract Term -12 months. OWNERS & CONTRACTORS PROTECTIVE This policy is purchased to cover the named insured's vicarious liability for acts attributed to the independent contractor or its employees. Vicarious liability is when one party is held responsible for the actions or conduct of another party based solely on the relationship of the two parties. For purposes of the OCP policy, it is when the named insured, who is either a property owner, project owner, general contractor or other contractor, is ultimately held liable for the acts of a hired contractor, sub-contractor or independent contractor, who is working for or on behalf of the insured. 5 August 15, 2006 PREMIUM SUMMARY Builders Risk (Excluding Windstorm) Zurich American Insurance Co. Best's Rated A XV PREMIUM I $24,790.00 COVERAGE INSURER AND BEST'S RATING Builders Risk Wind & Hail Only Community Center and Gym Citizens Property Insurance Corp. .* $28,779.00 Owners & Contractors Protective Liability Scottsdale Insurance Company Best's Rated A+ XV $16.000.92 TOTAL $69,569.92 $789.00 Option to include Terrorism Coverage, as defined by the Federal Terrorism Act 2002. in the OCP. .. Note that Citizens Builders Risk Rates reflect the construction start date being prior to policy effective date (Foundation poured prior to policy inception. THE FOllOWING POLICIES HAVE MINIMUM EARNED PREMIUMS Scottsdale Insurance Company - 100% Citizens Wind Pool - 80% PREMIUM INSTAllMENT FINANCING AND DEPOSITS Policy premiums are payable in full at inception of by premium finance contract 6 QUOTATIONS ARE SUBJECT To THE FOLLOWING The premiums shown are estimated and may differ slightly due to audit, installment charges, estimated taxes and state mandated surcharges. Signed Acord Applications (see attached) This is required to bind coverage Signed Election or Rejection of Terrorism Forms (see attached) This is required to bind coverage Signed Acknowledgment of Surplus Lines Insurer (see attached) This is required to bind coverage Signed Acknowledgment of Insurer Rating (see attached) This is required to bind coverage Satisfactory Inspections and compliance with recommendations Designated contractor (Siltek Group, Inc.) holds Named Insured harmless via written contract This is required to bind coverage Designated contractor (Siltek Group, Inc.) primary and excess GL carriers have Bests Rating of B+ or better This is required to bind coverage General Contractor provides Certificate of Insurance to Scottsdale Insurance Company P.O. Box4110 Scottsdale. AZ. 85261 This is required to bind coverage Designated contractor carries minimum 1/2/2 primary GL limits with PER PROJECT GENERAL AGGREGATE endorsement This is required to bind coverage Written confirmation signed by the Named Insured that the insured has not and will not waive any rights of recovery against the designated contractor nor hold harmless and/or indemnify the designated contractor except for the sole negligence of the named insured. This is required to bind coverage 7 SPECIAL NOTE REGARDING (SCOTTSDALE INS. CO.) Scottsdale Insurance Company is an A rated facility (as shown above), however it is not an "admitted" Carrier in the State of Florida and therefore is not backed by the Florida Guaranty Association. This fund protects policyholders from the inability of an admitted Carrier to honor an open or outstanding claim following bankruptcy or other form of liquidation. The State guarantees each policyholder up to $300,000 per policy. August 15, 2006 The undersigned hereby acknowledges that (s)he has instructed Brown & Brown, Inc. to place insurance coverage(s) with a surplus lines company and understands that the insurance coverage(s) written are not subject to the protection and benefits of the Florida Insurance Guaranty Association. I further understand that this policy contains a minimum earned premium of at least 25% or a flat minimum premium whichever is greater. Company and/or Companies: Scottsdale Ins. Co. Signature 8 CITIZENS PROPERTY INSURANCE CORPORATION DISCLAIMER Brown & Brown, Inc. ("Brown & Brown") does not certify the financial stability of any insurance carrier or state-sponsored insurance market. We have endeavored to place your coverage with an insurance carrier with an A.M. Best financial rating of "A-" or better: We were unable to obtain a quotation with a carrier with an "A-" or better rating. While Brown & Brown cannot certify the financial stability of a company or otherwise predict whether the financial condition of a company might improve or deteriorate, we are hereby providing you with notice and disclosure of financial condition so that you can make an informed decision regarding the placement of insurance coverage. Accordingly, you acknowledge the following: . Insurance coverage is being placed with Citizens Property Insurance Company ("Citizens"), a state-sponsored property insurance company which is currently un-rated by A.M. Best. In order to obtain insurance coverage for property perils, and specifically for the peril of windstorm, you are agreeing to all underwriting and coverage requirements of Citizens. . You acknowledge that only Citizens can bind coverage and that you do not have coverage for windstorm losses, whether caused by tropical depressions, tropical storms, hurricanes, tornadoes or any other type of windstorm, until Citizens issues a binder or policy of insurance. . Citizens is not subject to the protections afforded by the Florida guaranty fund or association. . You acknowledge that submitted premiums and limits are subject to change after review and underwriting by Citizens. . There is a possibility that Citizens may not be able to bind coverage if a named storm is within the geographic restrictions imposed by Citizens underwriting guidelines. . The financial condition of insurance companies and entities such as Citizens may change rapidly and that such changes are beyond the control of Brown & Brown. . You may obtain additional information regarding Citizens from its website at http://www.citizensfla.com. . You have had an opportunity to carefUlly consider the information provided regarding your insurance quote and will review it with your accountants, legal counsel and advisors. . You fully understand the risks associated with insurance coverage with Citizens and release Brown & Brown, its agents, employees, parent, subsidiaries, successors, assignees and related companies from any and all liability, claims, demands, judgments, decrees or orders in the event of carrier insolvency, liquidation or rehabilitation. [CUSTOMER] By: [Name of tnsured] Title: [Official Capacity of Person Signing] Date 9 ADDITIONAL COVERAGE CHECKLIST I Insured Date Producer: I Please advise if "ou would like ouotations for increased lim"t of liability, or for coveraaes listed below: nI!J~ I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J I c:=J c:=J c:=J c:=J C:=J c:=J I Automobile c:=J C:=J c:=J I Bailees CoveraQe c:=J C:=J C:=J I Boiler & MaChinery c:=J c:=J c:=J Broadened PIP c:=J c:=J c:=J Builders Risk c:=J c:=J c:=J BuildinQ Ordinance or Law c:=J c:=J c:=J Business Income c:=J C:=J c:=J CarQo c:=J C:=J c:=J ComputerlEDP c:=J C:=J c:=J Contractors' Equipment c:=J C:=J C:=J Crime c:=J C:=J C:=J I Difference in Conditions c:=J c:=J c:=J I Directors' & Officers c:=J c:=J c:=J I Drive Other Car CoveraQe c:=J c:=J c:=J I Employee Benefits Liability c:=J c:=J c:=J Employee Dishonesty - 1" Party c:=J c:=J c:=J Employee Dishonesty - 3'. Party c:=J C:=J c:=J Employment Related Practices c:=J C:=J c:=J ERISA Bond c:=J C:=J c:=J c:=J C:=J C:=J c:=J C:=J C:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J c:=J Errors & Omissions Liability Extra Expense Fiduciary Liability Flood (excess) Flood (primary) ForQery & Alteration GaraQe Liability GaraQekeepers Liability General Liability Glass Quote: 1. 2. 3. Hired/Non-Owned Liability Hired Car Physical DamaQe Installation Floater International/ForeiQn Exposure Internet Liability Kidnap & Ransom Leasehold Improvements Liquor Liability Mobile Equipment Money & Securities Ocean Marine Off Premises Power Interruption Owners'IContractors Prot Liab. Pollution Liability Professional Liability Product Recall Properly Rental ReimbursemenVTowinQ Rental I ncome SpoilaQe Transit or Transportation Umbrella Uninsured Motorist (primary) Uninsured Motorist (excess) USL&H Valuable Papers & Records Watercraft Liability Workers' Compensation Other (Describe) Producer 10 IMPORTANT NOTICE This proposal is based upon the exposures to loss made known to the Agency" Any changes in these exposures (i.e., new operations, new products, additional states of hire, etc") need to be promptly reported to us in order that proper coverage(s) may be put into place" We ask that you not accept this brief description of the coverage provided as a full explanation of the terms and conditions of the policies discussed in this proposal. For a full understanding of the scope of coverage, terms, exceptions and conditions please refer to the actual policy document wordings. In addition to the commissions or fees received by us for assistance with the placement, servicing, claims handling, or renewal of your insurance coverages, other parties, such as excess and surplus lines brokers, wholesale brokers, reinsurance intermediaries, underwriting managers and similar parties, some of which may be owned in whole or in part by Brown & Brown, Inc., may also receive compensation for their role in providing insurance products or services to you pursuant to their separate contracts with insurance or reinsurance carriers" Additionally, it is possible that we, or our corporate parents or affiliates, may receive contingent payments or allowances from insurers based on factors which are not client-specific, such as the performance and/or size of an overall book of business produced with an insurer. We generally do not know if such a contingent payment will be made by a particular insurer, or the amount of any such contingent payments, until the underwriting year is closed. We may also receive invitations to programs sponsored and paid for by insurance carriers to inform brokers regarding their products and services, including possible participation in company-sponsored events such as trips, seminars, and advisory council meetings, based upon the total volume of business placed with the carrier you select. We may, on occasion, receive loans or credit from insurance companies. Additionally, in the ordinary course of our business, we may receive and retain interest on premiums you pay from the date we receive them until the date the premiums are remitted to the insurance company or intermediary. In the event that we assist with placement and other details of arranging for the financing of your insurance premium, we may also receive a fee from the premium finance company. Wholesale Broker/Managing General Agent: Horan Goldman of Florida This intermediary is not owned in whole or part by Brown & Brown, Inc., the parent company of Brown & Brown Miami. Brown & Brown entities operate independently and are not required to utilize other companies owned by Brown & Brown, Inc. In addition to providing access to the insurance company, the Wholesale Insurance Broker/ Managing General Agent may provide additional services including, but not limited to: underwriting; loss control; risk placement; coverage review; claims coordination with insurance company; and policy issuance. The compensation received by the Wholesale Insurance Broker/Managing General Agent for the services above is based upon commission. The commission for the services above is typically in the range of 5% to 15% of policy premium. Should you have any questions, or require any additional information, please contact this office. If for any reason you prefer not to contact this office, you can submit a report concerning any 11 entity related to Brown & Brown, Inc. through Ethicspoint bye-mail viawww"ethicspoint.com. or by toll-free call to 866-384-4277. Brown & Brown does not have direct binding authority with any excess and surplus lines market. 12 ... TO: FROM: DATE: RE: City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax (305) 947-2150 Building Department (305) 947-5107 Fax City Commission Norman S. Edelcup, Mayor Roslyn Brezin, Vice Mayor Gerry Goodman, Commissioner Danny Iglesias, Commissioner Lewis J. Thaler, Commissioner A. John Szerlag, City Manager Hans Ottinot, City Attorney Jane A. Hines, City Clerk MEMORANDUM A. John Szerlag, City Manager ~vJ~ Priscilla Walker, CMC, Deputy City Clerk September 26, 2006 Approval of Purchase of Builder's Risk Insurance At its regular meeting of September 21, 2006, the City Commission adopted Resolution No. 2006-987, which approved the purchase of Builder's Risk Insurance through Brown and Brown Insurance. Attached is a copy of the approving resolution to assist you in processing this item. Thank you. :pw Attachments cc: Hans Ottinot, City Attorney (w/o attachments) Jean Watson, Finance Director Tom Acquaro, Human Resources Director Active Park - Builder's Risk Ins Purch Trans Memo City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3 II 3 Fax (305) 947-2150 Building Department (305) 947-5107 Fax City Commission Norman S. Edelcup, Mayor Roslyn Brezin. Vice Mayor Lewis .J. Thaler, Commissioner' Gerry Goodman, Commissioner Danny Iglesias, Commissioner A. John Szerlag, City Manager Hans Ottinot, City Attorney Jane A. Hines, City Clerk TO: The Honorable City Com FROM: A. John Szerlag, City Mana r DATE: September 21,2006 RE: PURCHASE OF BUILDERS RISK INSURANCE; ACTIVE PARK PROJECT The contract between the City and General Contractor for the Active Park requires that the City provide Builders Risk Insurance. The purpose of this type of coverage is to protect the City from damages that may occur to the Active Park Structures during the time frame of construction. Mr. Bob Hollander, our insurance representative, has secured coverage proposals from two Insurance Agencies which will protect us from possible damage to the buildings during the construction time frame. Policy costs total $53,569.00, and funds are available account number 20-600-5611. Should you which to delve further into this matter, attached are communications from our insurance representative, and the Law Department. Before closing, please know that Mr. Hollander also indicated that the City may wish to purchase additional General Liability Insurance via a $1,000,000.00 Owners Construction Liability policy with a premium of $16,000.00. While I'm not a fortune teller, I believe that our existing General Liability coverage of $2,000,000.00 through the General Contractor taken in tandem with the City's Aggregate Liability coverage of $1 0,000,000.00 is sufficient coverage. As always, please feel free to contact me should you have any questions. AJS/iw Attached cc: Bob Hollander, Brown & Brown Insurance Hans Ottinot, City Attorney Patricia SaintVil-Joseph, Deputy City Attorney Thomas Acquaro, Human Resources Director ~ b. t)- DN Agenda Item \ D W Commission - Purchase Of Builders Risk Insurancc - Activc Park. Doc Date q-2\-o6