HomeMy WebLinkAboutRS23-Redevelopment Agency
IR~ JlGENeY-.AuEST FOR Olr.ISSION/COUNCIL AbllON
.m:
Dept
Glenda S,aul
Subject:
Resolution Designating City Administrator
or His Designee to Process Claims.
Redevelopment Agency
Date: August 13, 1985
Synopsis of Previous Commission/Council ~ion:
At the June 21, 1984 Community Development Commission Meetin~ Resolution No. 4642
was adopted authorizing Agency Counsel to process claims against the Redevelopment
Agency and to reject claims on its behalf.
Recommended motion:
COMMUNITY DEVELOPMENT COMMISSION ACTION
411' MOVE to adopt a Resolution of the Community Development Commission of the City
of San Bernardino authorizing the City Administrator of the City of San Bernardino,
or his designee, to procesS claims against the Community Development Commission
and the Redevelopment Agency of the City of San Bernardino and to reject claims
on its behalf, and to settle claims on the same basis as for City claims.
~JJ
Ig ature
Contact person:
Phone: 383-5081
Supporting data attached: Reso 1 ut i on No. 4642
Ward:
FUNDING REQUIREMENTS:
Amount: $
Project:
No adverse Impact on City:
.Cil Notes:
Date:
August 19. 1985
AQenda Item Nofs - 23
,0 OF SAN BERNARDOO - REQUIOT FOR COUNCIL ACOON
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STAFF REPORT
On June 21, 1984, Resolution No. 4642 was adopted authorizing Agency
Counsel to process claims against the Redevelopment, or to reject claims
o~ its behalf~ .
Government Code Section 935.4 specifies that a local public entity, by an
ordinance or resolution, may authorize an employee of the local public
entity to process claims under the Torte Claims Provisions of the
Government Code, and to reject claims, and not to attempt to compromise
or settle claims. That should be the sole prerogative of the insurance
carrier.
Inasmuch as the Director of Emergency Services and Risk Management has
now secured Insurance for the Redevelopment Agency and the Community
Development Commission under the City's Insurance program, it is recommended
,that the City Administrator, or his designee, be designated as the person
to process claims on their behalf, and to have the same authority to
settle claims as he has under the Municipal Code. This Includes the power
to settle claims up to $2,000.00.
It is further recommended that Resolution No. 4642, adopted June 21, 1984,
be repealed.
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75-0264
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Jan, 1984
MORAN DUM
REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO, CALIFOR.'IlIA
DATE
TO
FROM
August 15.,1985
Glenda Saul
Executive Director
Meg Wasl10ff
SUBJECT
INSURANCE COVERAGE FOR THE REDEVELOPMENT AGENCY
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On the above date I spoke with Ronald W. Solheim, Director, Emergency
Services & Risk Management regarding insurance coverage for the
Redevelopment Agency under the City's insurance program.
Mr. Solheim informs me that the Redevelopment Agency is fully coverll'd
under the City's plan up to 25 million total liability. The first
$250.000 comes out of the City's slush fund; after that the Insurance,
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Company (Caldwell & Hunt) takes over.
The City is covered under a $52,000,000 blanket liability policy for real
property damage, plus $3,000,000 Earthquake insurance. All properties
owned by the Agency are covered under these policies.
All automobiles, owned or leased by the Agency, are fully covered.
The cost to the Agency for the above insurance coverage has not as yet
been determined by the City Administrator.
At a meeting of the Community Development Commission held o'n Julie 25,
1985, the City Administrator was instructed to pursue the advisability of
placing the Redevelopment Agency under the coverage of the City's
insurance program.
On July 22, 1985, ,a letter to Ronald Solheim from Richard C. Caldwell,
Caldwell & Hunt Insurance Brokers, Inc., advising him that the
Redevelopment Agency of the City of San Bernardino was covered under the
City's present insurance contracts as an additional insured.
A Memorandum of July 22, 1985 from Ronald W. Solheim to Gleuda Saul
stating that the Redevelopment Agency is now covered for all forms of
Liability under contracts in force to the City of San Bernardino. These
Contracts to expire March 30, 1986, at which time the City will continue
to add the Agency as insured.
<:;Surance Coverage - RDA
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The Redevelopment Agency's experience in attempting to renew the Insurance premiums
in April and Hay of 1985 is increasingly typical of the problems all municipalities
are having in getting Insurance. In past years, the Agency's Insurance Broker,
Kenneth K. Kelly, had a choice of a dozen or more carriers, but when we began
looking In April of this year, only two carriers responded, and they were not
anxious to insure coverage for municipalities.
Agency Staff contacted numerous insurance brokers In the San Bernardino, Orange
County and Los Angeles are, In an attempt to secure Insurance coverage at a rate
comparable to our previous years' premiums. According to all reports, there was
little market for industrial Insurance coverage for cities at this time.
This is due in part to the substantial rate Increase for all municipalities as a
result of continued increased underwriting losses. The declining Interest rates
in recent months has greatly affected insurance companies. Insurers are increasing
premiums on all policies and cutting back on less profitable customers to reduce
their losses.
After several weeks of search and negotiations, the Agency received a quote through
Kenneth K. Kelly Insurance from Admiral Insurance Company as follows:
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Owners, Landlords & Tenants liability, Personal Injury, $1,000
deductible, $500,000 coverage with an annual premium of $16,Qll.50.
This policy excludes claims for punitive damage and for Inverse
condemnation. '
For the previous year, the cost for Liability Insurance was $4.061.00. A 294%
Increase is realized for the 1985/86 premium over the 1984/85 year.
On May 28, 1985, the Agency received a quote from Progressive Casualty Insurance
Company for automobile insurance coverage for Agency owned and leased autos as
follows:
Single limit Bodily Injury and Property Damage liability ~ $600,000
Medical, $5,000 each accident; Comprehensive, stated amount less
$100 deductible; Collision or upset - stated amount less $250
deductible; Uninsured Motorist - $30,000; Personal Injury - $60,000
each accident. Total Annual Policy Premium $8,696.00
This amounts to 342% over last years premium which was in the amount of $1,968.00
for automobiles owned or leased by the Redevelopment Agency.
Pursuant to a directive from the Mayor and Common Council of the City of San
Bernardino, the Redevelopment Agency Is being placed under the City's master
insurance policy as an additional insured for all liability and automobile
insurance, and on August 2, 1985, General liability Policy No. A 85 EG 09177 with
Admiral Insurance Company, and Automobile Insurance Policy No. CVA-98-37-623 with
Progressive Casualty Insurance Company was cancelled.
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- - z... -: -' The 1>ress-Enterprise Monday. August 12. 1985 8-6
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t{ ~11V\~~icipCllities find
:t~q{j~re.d lns~rance
: s'carce and costly
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. , " By DAVID' BAIlNES
: ,........Entef1l'lM St.tf Writer ,
, :.. The cIty of RiVersIde bas 1,522 vehicles. Including police
~ street cleaners and utility vehicles. U a catastrophe such
. an earthquake demollsbed the fleet, the estimated $16.2
Jf1l11lon It 1!o.uld cost to replace It would have to/be borne by the., .
dty , - I ' -- , (
. :..,., _-' ' ."'.,' , Tbese rate Increases weren t
:' The CltY"S neet catastropbe'.' -: ::-J)!!cllnlng Interest rates 10 ~ unezpected, said slate Insurance
IBSUI'8DCe expired July 1 and the' '~nt.,mODtbs are also affecting Commissioner Bruce Bunner. but
aPty company that would make an ~ ~l'&ilce companies".WbIcb In- the slz.e and speed came as a
dJfer proposed only e fifth of last' vest mucb of, their capllll1 re- surprise. Insurance rates are cy.
year's coverage at nearly three ~rves, said Pinckney. an 1Dsur. cllcal In nature. and competition
times the premium. Tbe CIty re- ,apce ,~nsul~t fo~ ,several Sou.th. kept rates artificially low for the
. jected the offer and Is stili looking , ern Callfonua CIties, Incluclillg past five years. Bunner added.
fur Insurance at a reasonable' ~(\Ier5Ide. ' . Municipalities, among others
rate. sald Finance Director Hal . ' Higher ~youts and lower re- are scrambling 10 (1M the money
Brewer. . I tUrns on thell' Investments bave to pay for the IDC~ in their
: Brewer also would bave,lIked'. ~ught a rapid end to the low premiums.. Rlversl~e b!\d to ap-
te rejeCl"Rlvers\de's eaithquake I premiums of the past five years. proprlate money fram Other ac.
IlISlIi'ance premium wben It ex. oar JlC!!lcy bolders In all sectors counts to pay the Increese In Its
plred June 30. It Increased 429 bIlve dlscover:<1- Insurers an: !Jl' earthquake Insurance: Corona ....as
percent to $137.500 In July. but ,~Ing prenuums on all poliCIes able to Incorporate \he more than
the CIty Is required under bond and cutting back on less profitable $100.000 Increase III its premium
ciovenanlS to bave catastropbe cUstomers to reduce losses. ~ In Its budget, wblcb bad not been
~erage on muniCIpal buildings. nlclpallties are amoDLthe first to completed.
f!aul,.P1nckney. the clty's Insur. ,~ Even when ~unlclpalltles are
. ~~e '):onsultant. sald Riverside ' ,. DaIJas. Texas. Is without able to find money to pa)' bigher
w..luckyto find companies to liability ~ce because tile premiums. many are having dlfff'l
lII'OWde coverage. even at the cbeapest policy II could find of, culty finding Insurance. Municipal
wst\y Increased price. fered less coverage and blgher Insurance Isn.t profitable for In,
:' J984 was the worst year In dedul$bles ~or ~ percent more surance comp8ll1es because of
t!ttL b~ry of the property and than tile city s expired policy. sald Ia....yers. tendency to be name ,
atSualty Industry. explalned Jen- c!ty Risk Manager Mark Ferraro, them In suits. As Insurers reevalu.
1(I(~t-l'llcboJson, a spokeswoman : ~:,.Te~ama IS faced with d~ ate their policies In terms of prof,
, for- Ibe Western Insurance Infor. Incorparation because the preml' It, municipalities are dropped. ex,
t1la.Uo.n Servtce. wblcb Is funded um on the only policy It can find: plalned Rlcbard Griebel. e
by ,the property and casualty In- e!l~ the IOWIl'S entire $25,000 · spokesman for FIreman's Fund,
4Sfry. "The property and casual. ,budget r The RIverside Unified School 015,
tt,: (ndustry experienced pre-tax ,. Corone's liability Insurance trlCI'S experience ..'ben It tried to
operating losses of $2,9 billion In Increased 465 percent and Its self I renew Its Insurance tbls spring, is
1~4;~ Nicholson said. "compared Insured retention (SIR) rate dOu, . increasingly typical of the prob-
WlIb a 13,04 billion profit in 1983," bled to $200.000 ....ben It ....as re- 'Iems municipalities are ba\ing in
:.,. NIcbolson attributed the as- newed In June, SIR Is the amount I getting Insurance, ,
tronomlcal losses last year to under ....bleb the city adjusts and I Assistant Superintendent Da.
Jiuge underwriting losses, whlcb pays claims by Itself. Deputy Qty I v1d, Bail bad a small selection of
I\lCreased by 63 percent to $20,52 Manager Jobn Grindrod said, , carriers to cboose from, In pre\l-
billion. Slate Insurance Commls- . RIverside County Is In. ous years. Bail said. be bad a
sIOller;, Bruce Bunner noted that sured by a $6 million binder for a . cbolce of a dozen or more carri-
11ISlInlJ'S were surprised by cases ~; stllJ to be negotiated price be- I ers. \l.'ben be began looking in
tfllit;eropped up unexpectedly In \ cause It was unable to find a I' April, there were only three or
recent years - such .as asbestos . company to provide full general i four carriers aDd they "'ere not
pplsonlng - that occured decades liability coverage wben its policy 'anxious to Insure municipalities,
allo but wbose effects just recent. expired in June. ac:cordlng to
IX -bepn shoWing up, County Risk Manager Robert Gra.
barn.
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-As lIle,' year 'went by Ii sot
, progesslvely worse~ 'TIle c:cJ\IenIge
<<01 less and tbe prlcelncrellSed."
,.BaI1 said. MOo tbe day before tbe
-meeting to accept tbe c:ovenI&e.
tbe company reduced Its covel'll8e
, 41y ten mI11lon." The district end-
ed up paying $450,000 for $25
m1U1on In IlabUlty coverage. Last
- year;U cost $192,000 for $50 DIU-
lion of covel'll8e.
Insurers give several reasDlI5
for DOl insuring munlctpallUes.
-We like to build up a long term
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,i~oD5hi; db"! 't:UeDt:-iind
~ bav\Dg to bid every YeD!' end pas-
.sIbly Dllt &etUD& tbe po\IcY Inter-
l:cferes: CODlplalned GrIebeL Most
.... nunents require tbree bids
:~ parcbaclng any COlIIIlllIdlty:
, " Pinckney. tbe ctty of JUver
~ slde.s \DSUrance' CODSlI1taDt. says
.' venunent Is ~to IDsIU'e be-
',~use iof tbe eonc:entrattoD Mof
~"bold\DgS In a small trea. U
, -sometb\Dg happens. most or all of
, ,. tbe propertY wl1I go."
i::' , More claDgerous QI8Il COlleen.
. traUon of holdIngS Is tbe threat of
substaDtI81 losses when Involved
. In a lawsuit. Governments are of,
ten named In suits as defendents
even wileD tbey are not directly
involved. Ca1lfomla law eays a
codefendent who Is found only
partially liable can be foreed, to
pay tbe entire settlement if tbe
olber parties 4n Ibe suit can't pey-
. , For example. if a ctty ,Is
foUlld 10 percent' liable In a
t F ~ .:...
:..~ 12. 1985 The Press-Enterprise' 0
_.--c--~__._...~- ..-.'-
E=- iiat 'tile penOll ,1!bO
, 80' at JIlIble -on\J4lad
:_~ tile city .uQId
. ve In JlDY tile tiulkof tbe Judge"- ,
r.J."~. ..~~..;..::;
'. With Uttle ftUef projected for
;;8 ,ear l!I' more, mUDictJl8llUes are
.eet''II ".yaliD cut IIIsuI'8Ilce
-costs. Sonie. like DaI\aS, are \DSUr.
: In& tbemselftl -, , "
it. : ' : Ail ' ere 'u~pa~--iatleaSt
iianotber yeer of b\glI rates alrll"1lnr '
JtrylngtOfIDd',tbe lpOlley Iu ....3 ,.
for 1t.~ After an. ayslttverslde
'County JUsk Manager Bob.:1iIJ!, '
:~~ :~ctp81ltles~~ ~~~:
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AUTHORIZING THE CITY ADMINISTRATOR OF THE
CITY OF SAN BERNARDINO OR HIS DESIGNEE TO PROCESS CLAIMS AGAINST
THE COMMUNITY DBVELOPMENT COMMISSION AND THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO AND TO REJBCT CLAIMS ON ITS BEHALF.
AND TO SETTLE CLAIMS ON THE SAME BASIS AS FOR CITY CLAIMS.
BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Administrator of the City of San
Bernardino or his designee is hereby granted authority, pursuant
to the provisions of Government Code Section 935.4 to process
claims filed against the Community Development Commission of the
City of San Bernardino and against the Redevelopment Agency of
the City of San Bernardino, which processing of claims shall also
include the right to act on behalf of the Commission in rejecting
claims. and in issuing notices of inSUfficiency of sU~h claims.
In processing and rejecting of claims in accordance with the
authority granted herein, the City Administrator or his designee
shall have that authority which would otherwise be exercised by
the Commission, as governing body of the Redevelopment Agency.
SECTION 2. The City Administrator or his designee shall
have the same power and authority to allow, compromise and settle
any claim against the Community Development Commission or
Redevelopment Agency as granted him as to City Claims by San
Bernardino Municipal Code Section 3.16.050.
SECTION 3. Resolution No. 4642 designating Agency Counsel
as the party responsible for processing claims is hereby
repealed.
ADOPTED:
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RESOLUTION NO. 464~
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
AUTHORIZING AGENCY COUNSEL '1'0 PROCESS CLAIMS AGAINST
REDEVELOPMENT AGENCY AND '1'0 kEJECT CLAIMS ON ITS BEHALF.
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BE 1'1' RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION AS
FOLLOWS: r,' '. ", ;,"- r:, ", ",' '
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SECTION 1. Agency counsel is hereby granted authority,
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7 pursuant to the provisions of Government Code Section 935.4, to
-'Ii' process-c-liliins filed against the 'Community -Development 'Comm'ission
$~k '.- .:~ !'._;-~ .~~. .
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and against the Redevelopment Agency of the City of San" ,
Bernardino, which processing of claims ,shall include the right to
act on behalf of the Commission in rejecting claims, and in
~ssuipg no_tices of ~nsuffic~ency of such claims, but shall not
include the power to accept claims. In processing and r~jection
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of claims in..accordance 'with the authority granted he~fi~/,' Agency
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counsel shall have that authority which would otherwiseb~
exercised by the Commission, as governing body of the
Redevelopment Agency.
ADOPTED:
.Tulv 9. 1984
~ "'20, Approved' iIl~ to form:
~~"-21 AGENCY COUNSEL
22.
Of 23 By
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