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Home My WebLink About18 - Property Insurance Program RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item 18 _ February 27, 2007 To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL From: Human Resources, Lauren F. Farley, Risk Manager, 949- 644 -3302 Ifa rlev(cDcity. newport- beach. ca. us Subj: Property Insurance Program Renewal Issue Should the City Council authorize the expenditure of $762,108 for the property insurance program renewal? Recommendation Approve the renewal of the property insurance program with a total premium of $762,108 for a total insured value of $110,852,651. Background The City purchases five different types of property insurance, Master Property (including boiler & machinery), Earthquake, Flood (Difference in Conditions Coverage), Crime, and Watercraft. These types of policies provide the city with a broad coverage base to protect the city's real & personal property and monetary assets. The only coverage in this program that is on a three year policy period (3105 to 3108) is the Crime coverage and the three year premium for this policy is $38,773. The attached property schedule shows the City's covered real & personal property interests. The worst US hurricane season on record in 2005 continues to impact the catastrophic property insurance markets especially in the Earthquake and Flood, Difference in Conditions (DIC) for both California public and private sector businesses. The premium projection for the City's 2007 catastrophic property insurance renewal (Earthquake and Flood coverage) was expected to increase 100 %. The master property policy, and watercraft policies were expected to have premium reductions between 8 and 15 %. Property Insurance Renewal Council Agenda — February 27, 2007 Page 2 Renewal Quotation With the expected difficulties in the 2007 catastrophic property insurance market, Mark Zahoryin of Brown & Brown began his negotiations early and in earnest to find ways to be fiscally prudent without compromising coverage. He was successful again in negotiating the inclusion of the Earthquake and Flood (Difference in Conditions — DIC) premium for the Newport and Balboa piers. The 2006 and 2007 premium comparison for the City's Property Insurance Program is listed in the chart below: 2006 Master Property $102,718 Earthquake & Flood $456,864 Watercraft $36,726 Total Premium $596,308 Fundina Availability 2007 % Difference $84,893 17% decrease $645,094 41% increase $32,121 12% decrease $762,108 Increase 28 % Funds which cover the recommended expenditure are in the Internal Services Budget— Insurance Reserve Fund, # 6020 - 8721 & 8726. The renewal premium of $762,108 is approximately 7% ($51,561) greater than the FY 06/07 budget amount of $711,447. However, no additional funds will be required because premium savings realized in the excess workers compensation renewal will be transferred to the 6020 -8721 budget to cover this difference. Prepared By: G 4 Lauren F. Farley, Risl a ager Submitted By: — Z17171, "ILI N CITY OF NEWPORT BEACH Property Schedule 34 -07 to 3 -1 -08 I Los# I LocatIon Name I Street Address I Year Bul# I Construction I Storks I (Area) I &Type I Improvement Reel Property I Property I Books I Insome Ind. POLICY DEPARTMENT 6 1 Polba Station 870 Sank Barbara 1974 1 Concrete Block 2 1 47,984 1 YesMM TO Follow $8,032.0961 $421,9381 1 $350,200 FIRE STATION 7 Fire Station #1 110 E. Balboa Bhd. 7962 Frame Stucco 2 3,423 YesMet TO Fallow $422,823 $48,730 $350,000 8 Fire Slallon#2 47532M Street 7952 Frame Stucco 2 1 9,953 Ye&wet TO Follm $1,096,342 $61,258 YesANel $350,000 10 Fire SlaBOn #3 868 Santa Barbara 1971 1 Conaetwrame 2 13,605 YesM'et TO Follow $3,117,882 $140,013 Conuek Block $350000 9 Fire Station 94 124Mad%Aw. Balboa Island 1993 Frarne Stu= 2 097 Yegmet NIA $902,212 $13,10 Mariners $350200 11 Fire Station #5 410 Maripld CDM 1948 Frame Stucco 1 2,095 Yesmat TO Follow $270,757 $17,502 $350,000 $350,000 12 Fire Salim #6 7348Irvine Ave. 1958 Frame Saryn 1 2,926 YesMet TO Follow $35&441 $32,816 $1,000,000 $350000 13 Fire Bali #7 Crest Ridge Drive, TBD Frame Stucco 1 7,555 No NIA $1,238,908 TBD $350,000 u 15 Balboa 100 E. Balboa Blvd. 1929 Concrek Black 1 5566 Yesmat TO Follow $676,175 $52,5W $670,529 $350,000 16 Corona Dal Mar 420 Marigold 1950 Concrete Ski= 1 4,055 YesANel TO Follow $472,038 $43,754 $316,712 $350,088 17A Mariners 2003 Dover Drive 1963 Conuek Block 9 9,102 YesANel TO Follow $1,114,458 nla nta $350,000 17B Mariners 1300 Irvine Avenue 2006 Conaea Block 1 15,000 Y"m I New $5,800,000 $325,000 $1,195,304 $350,000 18 Camel 1020AVOCado Are. 1995 1 Seel Frame/Concrete 2 43,957 YesMel NIA 1 $9,456,449 $1,000,000 $5,005,465 $350000 wmmr...c4.dren�rosamu won 1 Of 7 CITY OF NEWPORT BEACH Property Schedule 3 -1-07 to 3 -1 -08 LocR I Location Name I Street Addreae I Year Gulf I Construction I Stories I )Area) I &Type I Improvement I Real Property I PropMy I Books income- I 32 Bldg D- Vehicle & Equip Repairs 592 Superior 1982 Reinforced Conoretel Frame 1 16,000 YesnDry HVAC 1998 WAC 1989 $1,635,314 Included $350,000 33 Bldg E- Covered Storage & Paint BwM 592 Superior 1982 Steel Frame 1 9,760 No Roofs 1989 $155,201 $43,055 $350,000 34 Bldg G - Equipmeld Storage 592 Superior 1980k Metal Steel Frame 1 10,258 No Roofs 1989 $402,794 Included $350,000 35 Bldg H -Fire Dept Warehouse 592 Superior 1970'& SteeVStW» 1 10,644 YeslOry Roofs 1989 $612,356 Indudetl 5350,fxlo 36 Bldg I - Men Storage 592 Superior 1970k Metal 1 4,540 No Roofs 1989 $53,531 Included 37 - Parks Dee Bldg K - Parks DaptAVamhouse 592 Superior 1982 Concrete Block 1 2,800 Yes/Dry Roofs 1989 $156,672 Incluclad $350,000 36 Bldg 0 - Coveretl Stange Sired 592 Superior 19M heel Fra ne 1 5,475 No Roofs 1989 $97,714 Included $350,000 39 OMer Mist. Building 592 Superior 1990s Metal Fame 1 3,015 No Roofs 1989 $39,785 Included nvinau fMU \Y WIIIYIYIYI i i VUIn 4CAICR 41 Call Beek Consnunity Center 115Agale Am 1985 Concrete Black 1 1,555 N/A $217,598 $1,145 $350,000 42 Oases Sr. a9zerre Gelder & Passive 800 Marguerite Ave. 1992 -Admin Bldg Concrete Block 1 10,200 YesANet To Fdlow $1,25&633 $43,055 $350,000 Park 5M Ave., Com 1% MPR 19WArts &Craft 1950k- School Building 43 Ensign View Park & Theater Arts 2501 Cliff Dr. 1973 Franft= 2 8,042 Yesmet To Follow $1,225,296 $1,120 $350,000 Center .aoma..�wexer�, asa�m. m�u'n 2 of 7 CITY OF NEWPORT BEACH Property Schedule 3 -1 -07 to 3 -1-08 Loci Location Name Street Address Year Built got Construction Stories Squm Fad (Area) Sprinklers 11, Type updated Improvement Real Properly Personal Property Books Business Incense MISCELIANEOUS 54 ReskDom 6894 Seashore Dr. 1968 Concrete Blxk 432 NIA $28,039 $4,375 55 Restroom 208 E. Bay Ave. 2(501 Concrete &xk 500 NIA $36,167 $10,937 56 Restroom (Balboa Pier) 881 E. Ocean Front 2002 1 Concrete Block 1 240 NIA $16,877 $4,375 57 Resboom (Buck Gully) 214 Glen Dr. 1956 Concrete Black 1,5W To follow $73,297 $17502 58 Restroom (2 ) - Big Corona Beach 2909 & 3029 Breakers Dr. 1956 Cm crate Block 720 To Follow $52,731 $17,502 59 Restum 70 McFadden Place 1989 Concrete Black 884 NIA $51,154 $10,937 60 Resbcom 1501 W. Ocean Front 19% Concrete Block 324 To Follow $19,988 $4,375 61 Restroom 22619th Sheet 1940 Frame Stucco 432 To Follow $26.038 $4,375 62 Resbom- Irvine Terrace Park 721 Malabar Dr. 1960 Concrete Block 588 To Follow $31,754 $2,187 63 Reshoom - Buffalo Hills Park 1891 Port Weslboume Place 1970 Fmme SM000 900 To Follow $54,250 $4,375 64 Restroom - Buffalo Hits Park 1910 Pod Camay Place 65 Resboom & Laundry -Marine Park Marina Peck Brick 600 To Follow $39,784 $4,375 Be Restroom 5800 Seashore Dr. 1986 Concrete Block 240 WA $15,672 68 Restroom 3706 W. Balboa Blvd. 1991 Concrete Black 286 WA $17,360 69 Restroom 9000otdonmd AVe. 1988 Ckshcrete Block 372 WA $18,836 70 -71 LWtNtlgs. (2) 5th & Golden Rod 1988 Concrete Black - WA 72 St rage/Garage 1901 Bayside Wood Frown - To Follow $18,180 73 San Joaquin Hills Park & Lawn Bowling Bldg. 1550 Crown Dr. North Brick 2,000 To Follow $204000 $354000 74 Mobile otke 17013'4 Ford Road Mobile Honre 540 To Follow $12,911 75 Theater 707 Balboa Blvd. TBD To Follow $480.000 - $350At10 76 West Newport Comnundi Or 883 W. 15th Street 1976 TBD 11,980 To Follow $500.000 $35,335 $350,000 PUMP STATfONS 77 62nd Street 515%cami Sbeel 1961 30% Rebuilt piping &pumps $1,000,000 78 Newport Pier 9 Newpot Fier 1989 None - 79 Lido Island 102 Pia m Genoa 1929 50% Rebuilt piping, pumps, well control & panel $2,5DD,DDD s0 Baby Island 21 %Bay Island 1922 None $601),001) 81 Linda Island %Linda Island 1970 one $1,501),001) 82 Harbor Island 1 36% Harbor Island Drive 1926 ace cenho pane $1DD,DDD 83 Cdlire lSlaM %Collins lslarM 1953 ne $6D1),DDD 64 DiamaM 106 34 Diamond Avenue 7948 ne $2,000,001) F Sedion5 100%Jade Avenue 1998 one I $2,001),DDD .wom...q >xoniq.pwtem GxuT 01 I@ CITY OF NEWPORT BEACH Property Schedule 3 -1-07 to 3 -1 -08 Loe# I Location Name Street Address YarBuBt CorraWdian Stortas (Area) aType ImprovemsM ReelProperb Property Booke Irrcome PBfiP STATIONS, cWd. 86 19M sum 49 %Starfish Court 1985 None $1,500,000 87 Harbor Mite 25 %Marine 1910 None $2,500,000 — Carrolton 2323 %Bayslde Ddve 1974 None $1,000,000 _ 89 China Cave 2699 %Cove Lane 1941 None $1,000,000 — 90 Mein Beach 3299 %Breakers Drive 1952 New control panel $7,500,000 — 91 Buck Gully 3733160wm Elvd 1946 - None $1,000,000 92 Cam Shores 117% Milford Drive 1992 None $1,500,000 — 93 Polaris 1019% Polaris Drive 1962 None $1,500,000 — 84 Mariners 950'h Mariners Drive 1962 None $600,000 95 Jamboree 3001 %Jamboree Raatl 7963 one 96 Bran Tract 1199 Pod Sheffield Place 1986 None $1,000,000 97 Back Bay Below 2149 Vista Entrada 1969 None $2,000,000 98 Ford Road 2779 Y, Ford Road 1975 New oomol panel $1,000,000 — 99 Mson 1201% Belcourt Drive North 1981 NON 100 Zone 3 Pump Station 3300 Pacific View Drive 1972 25% modified new regulating 8 control fMures $3,000,000 _ 101 Zone 4 Pump Station 3300 Padfic View DfAre 1972 25% modified new regulating &control Whose $850,000 102 ZO"5PuMSahon 39 %Marro Bay 1972 100;6 rebuilt In 19% $550,000 — 103 Zone SAm PUrrp St. Hillsborough 1972 None $900,000 — 104 161h SL Pump Station 951 W. 7801 Street 1997 None $4,000,000 — 105 DolphinAvenueWells 9649 Dolphin Ave. Fountain Valley 1997 None $1,000,000 — 106 Tamura School Wells 17399 Magrolia Ave. Fountain Valley 1991 None $1,000,000 107 Bigcanyon C -Club On Jamboree Road 1996 None 400,000 108 Newport Beach C. pub On Santa Barbara 1998 None 300,000 4 of CITY OF NEWPORT BEACH Property Schedule 3 -1 -07 to 3 -1 -08 LwR Location Name Strad Address YmrBuIR ConsWGion Wof Stoda Square Feel (Area) Sprinkler &Type Uptlatml Improvement Real Property Porsone Property Books Business Income Parks, Community Carters & Pock, wo'd. 115 Bonita Creak Palk & Community Center 3010 Le Vida 1992 2,876 Activity Rmm $50,000 — Food Concession $50,000 — Play Equipment — Restrooms — 116 Buffalo Hills Pads Newport Hills a. EasOWest @ Ford Po, 1970 Play Equipment $50.000 — Restrooms — 117 Castaways Park 700 Dover Dr. _ 118 Channel Place Pads Channel Place @ 44th SL 1990 Play Equipment $30,000 — Rest=nna — 119 Corona Del Mar State Beach Ocean Blvd. @Jasmine Ave. Comm Dal Mar 1970 1956 Food Concession $50,000 — Restrooms Shower 120 Eas@luff Park & Eastblulf Boys &Gins Club 2401 Vista Del Oro 1988 12,131 Play Equipment $50,000 Restrooms — 121 Galaxy Vlm Park Galaxy Dr. Beaveen Polaris & Manners W. — 122 Gateway Park Gomerof Va Udo& Newport Blvd. — 123 Harbor View Nature Park San Miguel Dr. @ Park Vim Dr. — 124 Inspiration Point Ocean Blvd. @Orchid Ave. _ 125 Irvine Team Park Seadrift Dr. @Evita Dr. 1980 Play E UI men $50000 Restrooms Tennis Court $50 000 — 126 Jasmine Creek Via Park Harbor View Or. @ Marguedt0 Ave _ 127 lln,)s Road Park i0ngs Road West of SL Andmws Rd. _ 128 9281mot Park V Steel @Del Sur _ 128 Las Ames Park Balboa Blvd. @ 18th St. Ray Equipment 30 000 Tennis Court $150,00,0 130 Uda Perk Via Udo Entrance to Utlo bland 131 Uncoln AMletic Center (School property- qty, leases) 3101 Pacific Vim Dr. 1951 7,300 Gymnasium — Restmoms $25,000 Parka, Community Centers &Poole, word. 132 Lookout Point Ocean Blvd. Beavew Goldenrod 8 Heliotrope \ .nmro,- ..mwxeawwwmu mrnn 5 of 7 CITY OF NEWPORT BEACH Property Schedule 3 -1-07 to 3 -1-08 Loch Location Name StreoAddress Year Bultt Construction ti of Stories Square Feat (Area) Spdnklws &Type Updated Improvement - Rat Property Personal Property Boors Business Inwme 133 'ATStreet Park 'M'SUeet @Senano — 134 Marian Bergeson Aquatic Center Easrblug Dr, @Vista Dr. Showers $15,000 Restrooms Included 135 Manner's Park It A. Vincent Jorgensen Comm. Ch 2003 Dover Dr. 1957 1,820 Activity Room $15,000 Play E ul nt $50,000 Restrooms Tennis Court $75,000 136 Myrtle Park 829 Harbor Island Dr. $10,000 137 138 Newport Aquatic Center (Clyowns.leasedtothe The Center. The Center carries Bldg. ins.) Nom Star Beachl One WhitecliB Or. 1987 Restrooms $30,000 Showers 139 Newport Island Park Marcus @ 39th St. Play Equipment $5,000 140 Newpon Harbor High School Pool IMne Aft @15th St Restrooms $35,000 $5,000 Shower 141 Newpod Shores Pam 61st St @ Coast Blvd. Play Equipment 142 Nom Star Beach One Whi(eclifi Dr. 143 Old School Park Darnatlon Ave. @ 4th Ave., Com Activity Roan $35,000 — 144 Peninsula Pads Main SL @Oceanfront Balboa 2002 Play Equipment — Restrwars Shower 145 Rhine Whad Park Lido Pa* Dr. — 146 San Miguel Park 2200 San Mguel Dr. 1983 Restrooms Play Equipment 147 Spyglass HII Park Spyglass Hill Rd. El Capitan Rd. Play Equipment 850,000 — 148 Spyglass Hill Reservoir Park Muir Bead) Circle Play Equipment $50,000 149 Sunset View Park Superior Ave. Between Ticonderoga & Coast fMy. W. 150 Upper Newport Bay Regional Pam (County) IrAne Ave. @ Unlverslty Dr. 151 Veterans' Memorial Park 15th SL @ Bay Ave. 152 Wesidi f Pam WWdid Dr. @ Polaris Dr. — 153 West Jetty Yrew Pam Ocean Bhd. @ Cnannal Road Balboa ..wo,oi...wuxemwroun . m wAn 0 017 CITY OF NEWPORT BEACH Property Schedule 3 -1 -07 to 3 -1 -08 I loca Locatlon Name I Strat Address I Yarltul& I Construction Stories I (Arm) I &Type I Improvement I Real Property I Property I Boob I Monte I Parks. Community Caters & Pools. wnrd. 154 West Wwpon Park Seashore Dr. Between 57th St. & River Jetty Play Equipment $30,000 — Restrooms Showers Tennis Court 155 38th Street Park Balboa Blvd. @ 38th Street Play Equipment $45.000 — Restrooms 156 Orange Coast Harbor Dept 1901 Bayside Dr. Restrooms — 157 Orange Coast College 1801 W. Coast Hwy. Restrooms — 158 Balboa Peninsula Facing The Bay 16th & 19th Steel Restrooms — Showers Total Estimate Replacement Cost: $94,949,942 $8,714,699 $7,188,010 Total Insured Value $110,852,651 9 wm+ . as »nwmen a mwn 7017