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Home My WebLink AboutReso 2011-1796 RESOLUTION NO. 2011- Jl9la... A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE PURCHASE OF BUILDERS RISK INSURANCE FOR THE SUNNY ISLES BEACHINEWPORT PIER AND RESTAURANT, THROUGH THE CITY'S INSURANCE BROKER, BROWN & BROWN INSURANCE, INC., IN AN AMOUNT NOT TO EXCEED ONE HUNDRED EIGHT THOUSAND FIVE HUNDRED SEVENTY-EIGHT DOLLARS AND NINETY-SIX CENTS ($108,578.96), FOR A ONE-YEAR TERM; 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 Sunny Isles Beach/Newport Pier and Restaurant; 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 Pier and Restaurant structures during the time frame of construction; and WHEREAS, the City's Insurance Broker, Brown & Brown Insurance, Inc., has provided a proposal from Lloyds of London, in an amount not to exceed One Hundred Eight Thousand Five Hundred Seventy-Eight Dollars and Ninety-Six Cents ($108,578.96), for a one-year term, 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 I. Approval of Purchase. The City Commission hereby approves the purchase of Builders Risk Insurance for the Sunny Isles Beach/Newport Pier and Restaurant through the City's Insurance Broker, Brown & Brown Insurance, Inc., in an amount not to exceed One Hundred Eight Thousand Five Hundred Seventy-Eight Dollars and Ninety-Six Cents ($108,578.96), for a one-year term, attached hereto as Exhibit "A". Section 2. Authority of City 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 9th day of November 2011. R2011- Builders Risk Insurance For Pier & Restaurant Page I of2 ATTEST: ~~~ Jane A. Hines, CMC, City Clerk APPROVED AS TO FORM AND LEGAL SU I IENCY Vote: 5-0 Mayor Edelcup Vice Mayor Thaler Commissioner Aelion Commissioner Gatto Commissioner Scholl R2011- Builders Risk Insurance For Pier & Restaurant Page 2 of2 Moved by: C.c~ S~LL Seconded by: ~~~\.-\oD v (Yes) V (Yes) l/(Y es) ~Y es) (Yes) (No) _(No) (No) _(No) _(No) INVOICE Date: October 26, 2011 Account # CITYO-2 Producer: Robert Hollander City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Policy Period Transaction Type Description Insurer Amount 11-1-11 TO 11-1-12 Builders Risk Pier and Restaurant L10yds of London $108,578.96 Exhibit "A" CITY OF SUNNY ISLES BEACH 18070 Collins Avenue Sunny Isles Beach, FL 33160 j BUILDERS RISK INSURANCE PROPOSAL j Policy Term 11/01/11 TO 11/01/12 Prepared , .. By ......1 ROBERT HOLLANDER Brown & Brown Miami Tel. 305-364-7800 - Fax 305-714-4401 I -' Date Prepared October 26, 2011 -' BUILDERS RISK COVERAGE Insurer Hiscox Inc on behalf of Certain Underwriters at L10yds of London (Syndicate 3624) Non- Admitted Insurer in Florida Best's Rated A XV 1 Perils Insured: All risks of direct physical loss of or damage to property insured while at the location of the insured project, while in offsite storage or offsite fabrication or while in transit, all within the policy territory and occurring during the term of this policy (Subject to the terms, exclusions, limitations and conditions contained in or endorsed to the policy, coverage is provided against) - 1, Total Insured Value: $3,777,866 Scheduled Any One Occurrence (Not Blanket) * 1 * Coverage Limits must be ultimately chosen by the Insured. We as Agents cannot recommend the adequate limit of protection. Higher limits may be available. Please let us know if a quote is desired. Coverages: Builders Risk (New Construction of Fishing Pier & Restaurant) Project Description: New construction of a non combustible fishing pier and restaurant. Property Insured: Permanent Works - All materials, supplies, equipment, machinery, and other property of a similar nature, being property of the Insured or of others for which the Insured may be contractually responsible, including the value for incidental demolition of existing structures, site preparation, assembly or fabrication on or offsite, installation or erection, alteration, renovation or construction of the insured project. Temporary works - All scaffolding, form work, fences, shoring, hoarding, false work and temporary buildings all incidental to the project, the value of which has been declared by the Named Insured. Valuation: Property Under Construction - Cost to repair or replace the property lost or damaged at the time and place of loss with material of like kind and quality less betterment including contractor's profit and overhead and including owner's indirect expenses to the extent declared as part of the TOTAL COMPLETED VALUE*, but in no event to exceed the Limit of Liability; if not so replaced then loss shall be settled on the basis of Actual Cash Value with proper deduction for depreciation. Temporary Works - The actual cash value of the lost or damaged property valued as of the time and place of loss 2 r . 1 f' I ; - " . j J Co-Insurance: J Deductible: 1 .J .1 -1 ,1 ..l .J Property Of Others (including items supplied by the owner or for which the Insured is legally responsible) - The cost to repair or replace the property lost or damaged with material of like kind and quality including contractor's charges incurred prior to loss and related to such property, if any, less betterment, or the property owner's cost, whichever is less Existing Property - The cost to repair or replace the lost or damaged property with material of like kind and quality valued as of the time and place of loss. In the event that repair or replacement with materials of like kind and quality can not be effected due to obsolescence or non-availability of such materials or the means and methods of fabricating, manufacturing, or installing such materials, repair or replacement shall be effected with materials, means and / or methods that are functionally equivalent to the lost or damaged property but excluding betterment. If not so replaced, loss shall be settled at Actual Cash Value (the cost to repair or replace as determined above, less depreciation) Plans, Blueprints, Drawings, Renderings, Specifications Or Other Contract Documents And Models - The cost to reproduce with property of like kind and quality including the cost of gathering or assembling information from back up data if replaced. If not replaced - the value of blank material Trees, Shrubs, Plantings And Landscaping - The cost to replace with property of like kind, quality and size plus the proper proportion of labor expended if such damage occurs after installation Property In Transit - The invoice cost plus accrued shipping charges less shipper's liability, if any Delay In Completion Coverage - Actual Loss Sustained per policy endorsement if applicable. No coinsurance applicable. The applicable amount shown below shall be deducted for each claim arising from insured loss or damage in anyone occurrence. The Company shall be liable only for its proportion of the amount of insured loss or damage in excess thereof, subject to all terms and conditions of the policy. In the event that more than one physical damage deductible shall apply to insured physical loss or damage in anyone occurrence, only the largest shall be applied. If Delay In Completion coverage is provided by this Policy, the Deductible Period shown below will always be applied in addition to any dollar deductible or percentage (%) deductible stated for physical damage . $10,000 Per Occurrence Physical loss of or damage to property insured, except . $10,000 Physical Damage to Property in Transit (per conveyance) . $10,000 Physical Damage to Property in Offsite Temporary Storage and/or Offsite Fabrication . $10,000 Physical Damage to Trees, Plants, Shrubs and Landscaping; 3 ~ 1 . $10,000 Physical Damage to Plans, Blueprints, Drawings, Renderings, Specifications or other Contract Documents and Models at the Insured Project . $25,000 Per Occurrence as respects WATER DAMAGE* and/or INTERIOR WATER INTRUSION*; other than Flood . $25,000 Per Occurrence as respects Flood, except . $100,000 Per Occurrence as respects Flood for locations in Special Flood Hazard Areas (SFHA), areas of 100 year flooding (Zones A, AE, AH, Vand Shaded X) as defined by the Federal Emergency Agency or equivalent . $10,000 Per Occurrence as respects Earthquake . 5% of the total insured values at risk at the time and place of loss subject to a minimum deduction of $100,000 Per Occurrence as respects the peril of Named Windstorm . $25,000 Per Occurrence of the total insured values at risk at the time and place of loss as respects All Other Windstorm SUBLlMITS: J . $3,777,866 Physical Damage Per Occurrence (hard costs + owner supplied material) . $3,777,866 Per Occurrence and Annual Aggregate Earthquake . $3,777,866 Per Occurrence and Annual Aggregate Flood (including Flood in Special Flood Hazard Areas (SHFA), areas of 100 year flooding (Zone A, AE, AH, V and Shaded X), as defined by the Federal Emergency Management Agency or equivalent (annual aggregate) . $3,777,866 Per Occurrence and Annual Aggregate Named Windstorm . $3,777,866 All Other Windstorm . $100,000 Physical Damage to Property in Transit (per conveyance) . $100,000 Physical Damage to Property in Offsite Storage and / or Offsite Fabrication (per location) . $25,000 or 20% of the amount of physical loss or damage to insured property, whichever is less - Expediting Expense . $25,000 Trees, Plants, Shrubs & Landscaping Materials (max $2,500 per item including landscaping) . $5,000 physical damage to Plans & Blueprints & Other Contract Documents . $25,000 Fire Brigade Charges & Extinguishing Expenses . $250,000 or 25% of the amount of physical loss or damage to insured property, whichever is less - Debris Removal . $500,000 Interior Water Intrusion Damage . $1,000 Claim Preparation Costs . $10,000 Architects and/or Engineers Fees in restoration following an insured loss _i ~l ***Sublimits of Liability are included in the Limit of Liability and are not in addition to the Limits of Liability. All Sublimits are Per Occurrence unless noted otherwise*** Forms & Endorsements: 1. HISCOX Inc. Completed Value Builders Risk Policy Form until a mutually agreeable form is accepted. 2. Dredging Endorsement 3. Piling, Sheet Piling & Caisson Endorsement 4 '~ POLICY TERRITORY: While located at the location of the insured project and while in transit within and / or offsite storage and/or offsite fabrication within the fifty (50) states comprising the United States of America, and within the District of Columbia including the territorial coastal waters of any of the foregoing -. SPECIAL CONDITIONS: 1. Quote is only valid until 10/31/11. Because the general underwriting requirements of the Company may change, we reserve the right to withdraw or amend this document and proposal at any time 2. 100% Fully Earned Premium 3. Policy Form & Endorsements: HISCOX Inc. Completed Value Builders Risk Policy Form until a mutually agreeable form is accepted. J 4. Perils Excluded: Loss or damage caused by, resulting from, contributed to or made worse by any of the following, all whether direct or indirect, proximate or remote or in whole or in part caused by, contributed to or aggravated by any insured physical loss or damage, except as specifically allowed in the policy: Consequential loss, damage or expense; Cost of making good fault, defect, error, or omission in workmanship, supplies, materials, designs, plans or specifications (resultant damage is covered); War; Nuclear; Inventory Shortage; Infidelity & Dishonesty; Fungus; Pollution & Contamination; Asbestos Removal; Loss or Damage covered by manufacturer / supplier under a guarantee or warranty; Normal subsidence, settling, cracking, expansion, contraction or shrinkage; Cessation of work; Infestation, disease, freeze, drought, hail, ice, snow, vermin, rodent and animal damage to trees, plants shrubs and landscaping; Erosion of finish or rough grades from runoff; Electrical/ Mechanical injury or error / omission in creating processing or copying electronic records; Cyber risk-data recognition; Nuclear, chemical or biological terrorism; Water damage to property in the open and other perils per HISCOX Builders Risk policy form. j 5. Property Excluded: Land & land value; Water; Vehicles, Existing Property (unless values declared and sublimit provided); Testing of prototypical & used equipment; Property located at other than project site except while in transit or offsite storage / fabrication; Contractor's equipment and other property per HISCOX Builders Risk policy form. 6. Standard Coverage Extensions: Debris Removal; Property in Transit; Property in Offsite Storage and/or Offsite Fabrication; Expediting Expense; Plans & Blueprints; Fire Department Service Charges / Extinguishing Expenses; Cold Testing; Trees, Plants, Shrubs & Landscaping Materials. -" 7. Optional Coverage Extensions: Damage to Existing Property (Limited or All Risk); Ordinance & Law / Demolition & Increased Cost of Construction; Contractor's Extra Expense; Pollution & Contamination Cleanup & Decontamination; Interior Water Intrusion Damage; Claim Preparation Costs; Mold & Fungus Remediation; Delay In Completion. -l 5 8. Other Endorsements: Dredging Endorsement; Piling, Sheet Piling & Caisson Endorsement 9. Extension of Term: With prior notification to and agreement by the Company if the insured project has not been completed on schedule, this policy may be extended for up to three months, exclusive of the Hot Testing period if applicable, at pro-rata of the rates as provided in the policy and if applicable, extension of the Hot Testing period shall be subject to a one (1) month extension at Not Applicable% of the rates as provided in the policy for the Hot Testing period. Extensions beyond this period and extensions of the Hot Testing period are subject to payment of additional premiums at rates and terms to be developed by the Company at the time of the Company's agreement to such additional extensions. 10. Policy Term: Such coverage applies for such periods commencing directly with work at the insured project and continues in full force and effect until the earlier of the final acceptance by the owner, the expiration or cancellation date provided or the expiry of the Named Insured's interest unless otherwise agreed by endorsement. In the event that an owner places insurance on any portion of the work which has been declared and accepted as Substantially Complete or any portion of the work is occupied or placed into commercial service for its intended purpose, coverage as respects such portion of the work shall cease as of the Substantial Completion Date as stated in the Certificate of Substantial Completion, the date of occupancy or the date of commercial service, whichever first occurs. Notwithstanding the foregoing provisions of the policy, the policy is extended to cover the insured project during periods of occupancy or commercial service occurring prior to or after completion of the insured project but prior to final acceptance by the Owner for up to a period of 0 consecutive weeks 11. Additional Insured: To the extent required by any contract or subcontract, and then only as their respective interests may appear, any individual(s) or entity(ies) specified in such contract or subcontract are recognized as Additional Insureds. As respects architects, engineers, manufacturers and suppliers, the foregoing is limited to their site activities only precluding coverage respectively under policies for professional liability and products liability and warranty coverage as applicable. 12. Policy Territory: While located at the location of the insured project and while in transit within and lor offsite storage within the fifty (50) states comprising the United States of America, and within the District of Columbia including the territorial coastal waters of any of the foregoing 13. Please read this document carefully as it may differ from the terms and conditions requested in your submission specifications. Where there is a difference between this document and your submission specifications, this document shall prevail. 14. Office of Foreign Assets Control (OFAC) Disclosure Notice: This proposal or resulting Binder, the continuation of any bound insurance, and any payments to you, to a claimant or to another third party, may be affected by the administration and enforcement of U.S. economic embargoes and trade sanctions by the office of Foreign Assets Control (OFAC), if we determine that any such party is on the "Specialty Designated Nationals or Blocked Persons" list as maintained by Office of Foreign Assets Control. 15. Should this document contemplate quota share participation in the insurance placement set forth herein or in any layer being a part of such placement, the terms and conditions of this document are amended to include common terms and conditions accepted by all companies. 16. Cancellation: 60 Days, except 10 Days for Non-Payment 17. Optional TRIA Coverage is available for an additional premium of $1,500 plus taxes and fees. You must advise at time of binding the Insured's decision to elect or reject coverage. 6 18. Current listing of mortgagees, additional loss payees, and additional interests is required prior to binding. 19. SUBJECT TO: UPDATE Line item breakdown of contract award amount (if multiple buildings or structures, allocation by each as available); UPDATE owner or third party supplied material to be installed and not included in above amount; Most current CPM schedule, critical path or bar chartlTime Line for project development period; FEMA Form 81-93 (Flood Determination) 20. Must have completed due diligence prior to releasing binder ~ I j j i l: 7 OCTOBER 26, 2011 PREMIUM SUMMARY COVERAGE INSURER DEPOSIT TERM PREMIUM Builder's Risk Hiscox/Underwriters at L10yds of London $108,578.96 ~ MINIMUM EARNED AND MINIMUM ANNUAL PREMIUM CONDITIONS LLOYDS BUILDERS RISK Deposit Premium is 100% minimum earned for mid term cancellation and will be adjustable upon project completion based on final total contract value and actual project term at the rates shown below: -1 FLORIDA FEES & SURCHARGES Annual Rates: . $0.18 per $100 plus taxes and fees Physical Damage ($8,500 AOP Term Premium) . $0.35 per $100 plus taxes and fees Physical Damage Named Windstorm if applicable (Monthly Rate effective from June 1st to November 30th) ($92,559 Wind Term Premium) Florida fees and surcharges are 100% fully earned at inception. _J i . .I 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 ...-""'" Construction schedule and itemized contract cost breakdown This is required to bind coverage Satisfactory Inspections and compliance with recommendations _1 8 - r.'" r , I I I STATEMENT ACKNOWLEDGING THAT COVERAGE HAS r' I 1 BEEN PLACED WITH A NON-ADMITTED CARRIER ! ~ I ~ Per Florida Statute, the insured is required to sign the following E&S disclosure: The undersigned hereby agrees to place insurance coverage in the surplus lines market and understands that superior coverage may be available in the admitted market and at a lesser cost. Persons insured by surplus lines carriers are not protected by the Florida Insurance Guaranty Association with respect to any I ~ right of recovery for the obligation of an insolvent unlicensed insurer. 11 L City of Sunny Isles Beach Named Insured L [ ~ l~ Signature of Insured's Authorized Representative Date Hiscox on behalf of Certain Underwriters at L10yds of London Name of Excess and Surplus Lines Carrier Builders Risk Type of Insurance [ , L 11-1-11 Effective Date of Coverage L L r' L L~ l_l 9 IMPORTANT NOTICE THIS BRIEF DESCRIPTION OF INSURANCE COVERAGE IS BEING PROVIDED AS AN ACCOMMODATION ONLY AND IS NOT INTENDED TO COVER OR DESCRIBE ALL POLICY TERMS. FOR MORE COMPLETE INFORMATION ON THE SCOPE AND LIMITS OF COVERAGE, PLEASE REFER TO THE POLICY DOCUMENT. Compensation. 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. That compensation is derived from your premium payments. 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. That compensation is partially derived from your premium dollars, after being combined (or "pooled") with the premium dollars of other insureds that have purchased similar types of coverage. 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 of 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: Peachtree Special Risk Brokers .... This intermediary is owned in whole or part by Brown & Brown, Inc., the parent company of Brown & Brown Miami Division. Brown & Brown entities operate independently and are not required to utilize other companies owned by Brown & Brown, Inc., but routinely do so. 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. Compensation paid for those services may be up to 15% of the premium you pay for coverage, and any compensation paid for those services is derived from your premium payment. The fee, if any, for the Wholesale Insurance Broker's/Managing General Agent's services above is $No Fee. .J -' Questions and Information Requests. Should you have any questions, or require additional information, please contact this office at 1-800-432-8844 or, if you prefer, submit your question or request online at [http://www.bbinsurance.com/customerinquiry.shtml]. c' -< 10 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 Lewis .J. Thaler, Vice Mayor Isaac Aelion. Commissioner Jeanette Gatto, Commissioner George "Bud" Scholl, Commissioner Alan .J. Cohen, City Manager Hans Ottinot, City Attorney .Jane A. Hines, CMC, City Clerk MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Alan J. Cohen, City Manager DATE: November 9, 2011 RE: APPROVAL OF BUILDER'S RISK INSURANCE FOR SUNNY ISLES BEACH PIER RECOMMENDATION: It is recommended that the City Commission consider the attached resolution approving the purchase of Builder's Risk Insurance for the Sunny Isles Beach Pier, in the amount of One Hundred Eight Thousand Five Hundred Seventy-Eight Dollars and Ninety-Six Cents ($108,578.96). REASONS: The City has undertaken a redevelopment project for the Sunny Isles Beach Pier. The City has entered into an agreement for construction of the Pier and construction is now set to commence. As such, the City desires to obtain Builder's Risk Insurance for the pier redevelopment project. Builder's risk insurance is a special type of property insurance which indemnifies the owner against damage to buildings/structures while they are under construction. Builder's risk insurance coverage will protect the City's insurable interests during the construction/redevelopment phase of the Pier, should those items sustain physical loss or damage from a covered cause. The City's Property Insurance Broker, Brown and Brown Insurance, Inc., has secured a proposal from Lloyds of London, in the amount of One Hundred Eight Thousand Five Hundred Seventy- Eight Dollars and Ninety-Six Cents ($108,578.96) for Builder's Risk Insurance for the Sunny Isles Beach Pier. ADDITIONAL INFORMATION: Builder's risk insurance indemnifies the policy owner against losses due to fire, vandalism, lightning, wind, and similar forces. It usually does not cover acts of war or intentional acts of the owner. Coverage is typically during construction period only and is intended to terminate when the work has been completed and the property is ready for use or occupancy. Pier Builder's Risk Insurance l\genda i'demo l)~te tiC- Il-q- {I Agenda Item