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Home My WebLink AboutAGENDA BACKUP 05-29-80 Central BOARD OF DIRECTORS N'VII. NB - 1 5/29/80 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT ADOPT RESOLUTION AUTHORIZING THE LAW FIRM OF WILSON MORTON, ASSAF & MCELLIGOTT TO DISMISS THE COURT OF CLAIMS ACTION AGAINST THE UNITED STATES GOVERNMENT DISMISSAL OF COURT OF CLAIMS ACTION SUBMITTED 5-1y S. McCoy INITIATING DEPT./DIV. Engineering/Collection System BACKGROUND: The Bollinger Canyon sewer system was funded and constructed in 1967 by Local Improvement District 48, primarily to serve youth training facilities proposed by Contra Costa County. The three parcels of land intended for use had been acquired from the Federal Government after being declared surplus. County use of these parcels subsequently ceased and the Federal Government exercised their right to reacquire the title to the property in 1972/1973. Sewer assessment bond payments were not paid after 1974/1975 and thereby became delinquent. The Board of Directors adopted a resolution in November 1978 authorizing the law firm of Wilson-Morton to proceed with inverse action against the Federal Government to protect the six-year statute of limitations for legal recourse. At present, two of the three parcels have been purchased by the State of California wherein all outstanding bond payments were paid in full. The third (landlocked) parcel was recently sold to the original, adjacent property owner; however, no action has been taken to payoff the assess- ment bonds. In view of the above, legal counsel is recommending that the Court of Claims action against the United States be dismissed since there is no longer any cause of action justified now that the last parcel is in private ownership. The collection of the delinquent assessments on this parcel can be enforced by the County. RECOMMENDATION: Approve subject Resolution authorizing Wilson-Morton to dismiss pending Court of Claims action against the United States Government. REVIEWED AND RECOMMENDED FOR BOARD ACTION _C~W ~~~ Central Contra BOARD OF DIRECTORS District Page 1 of 2 NO.VII. NB-3 5/29/80 ~OSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE May 27, 1980 UBJECT TYPE OF ACTION PROPERTY INSURANCE FOR 1980-1981 Risk Management Program SUBMITTED BY Walter N. Funasaki INITIATING DEPT./DIV. Administration/Accounting ISSUE: At its regular meeting held on April 3, 1980, the Board of Directors author- ized another insurance broker to obtain premium quotations for the District's prop- erty insurance coverage for the July 1, 1980 through July 1, 1981 policy year. BACKGROUND: The Board of Directors reviewed the matter of the disparity in the premium quoted by Schroder Insurance Agency and the premium billed for property insurance coverage for the July 1, 1979 through July 1, 1980 pol icy year. It was the determination of the Board that the $24,134 difference between the $101,000 premium billed and the quoted premium of $76,866 should be paid, and that premium quotations for property insurance coverage for the next pol icy year be obtained from another broker; all other District insurance coverages which are serviced by Schroder Insurance Agency were not intended to be affected by this decision. Kaine and McAul iffe has successfully marketed the property insurance coverage for 1980-1981 and has obtained premium quotations which are significantly lower than the premium which the District was scheduled to be charged by Fireman's Fund, our present carrier. The premium quotations for alternative coverage limits of $20 million, $25 million and $30 million with $25,000 or $100,000 self-retention limits are presented in comparative form with the District's present 1979-1980 property insurance coverage. (Attachment I) The coverage 1 imits for 1980-1981 apply to All Risks including Earthquake. and Flood and excluding coverage on under- ground pipe. Kaine and McAul iffe recommends that the purchase of insurance covering the. incremental expense of continuing operations following a property loss be con- sidered. Premium quotations for limits of $250,000 and $500,000 will be obtained for presentation to the District. The expense incurred in renting and operating the temporary boilers in the recent Sol ids Conditioning Building explosion loss over and above the expense of normal operations would have been cover~d under such insurance. The District has received a request by Schroder Insurance Agency to be given an opportunity to present a quotation for the property insurance coverage for 1980-1981 . REVIEWED AND RECOMMENDED FOR BOARD ACTION Central itary District BOARD OF DIRECTORS Paae 2 of 2 NO. POSITION PAPER I VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE May 27, 1980 SUBJECT TYPE OF ACTION PROPERTY INSURANCE FOR 1980-1981 Risk Management Program SUBMITTED BY Walter N. Funasaki I INITIATING DEPT./DIV. Administration/Accounting RECOMMENDATION: Property insurance coverage for 1980-1981 should be placed through Kaine and McAuliffe for coverage 1 imits of $20,000,000, All Risk including Earth- quake and Flood, excluding underground pipe, with self-retention limits of $25,000 for All Risks and $1,000,000 for Earthquake and Flood for an annual premium of $103,157. A supplemental authorization for incremental expense insurance will be presented to the Board at a subsequent meeting. Consistent with the Board's action on April 3, 1980, Schroder Insurance Agency's request to present property insurance quotations for 1980-1981 should be denied. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. GEN. MGR./CHIEF ENG. ~ENTRAL CONTRA COSTA SANITARY DISTRICT Limit Coverage Kaine and McAul iffe, 1980-1981: $ 20,000,000 All Risk Including Earthquake and Flood $ 25,000,000 All Risk Including Earthquake and Flood $ 30,000,000 All Risk Including Earthquake and Flood Schroder Insurance Agency, 1979-1980: $ 20,000,000 All Risk $ 5,000,000 Earthquake and Flood Property Insurance Deductible 1. $ 25,000 All Risk $ 1,000,000 EQ & F 2. $ 1 00,000 All R i s k $ 1,000,000 EQ & F 1. $ 25,000 All Risk $ 1,000,000 EQ & F 2. $ 100.000 All Risk $ 1,000,000 EQ & F 1. $ 25,000 All Risk $ 1,000,000 EQ & F 2. $ 1 00, 000 All R i s k $ 1,000,000 EQ & F $ 100,000 $ 250,000 - Flood 5% of loss - Earthquake Attachment I Annual Charge 1. $ 1 03 , 157 2. $ 94,500 1. $ 118,902 2. $ 109,725 1. $ 126,257 2. $ 116,550 $ 101,000", * Reduced from $143,881; scheduled for 1980-1981, approximately $144,000.