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Home My WebLink AboutAGENDA BACKUP 04-03-80 D Central Contra BOARD OF DIRECTORS District NO. VI. oB-1 4/3/80 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE March 80 SUBJECT TYPE OF ACTION PROPERTY INSURANCE COVERAGE Risk Management Program Walter N. Funasaki INITIATING DEPT./DIV. Administration/Accounting SUBMITTED BY ISSUE: As reported at the Board Meeting of February 21, 1980, Schroder Insurance Agency has billed the District $101,000 for property insurance coverage for the policy year July 1, 1979 through June 30, 19~0 for which a premium of $76,866 had been quoted in its broker proposal. The broker has been unable to obtain any further reduction of the premium from the insurance ca r r i e r s . BACKGROUND: The quoted premium of $76,866 has been paid, as directed by the Boa rd. A meeting was held with Schroder Insurance Agency to review the causes of the premium disparity. The reasons cited by the broker are summarized as follows: Premium Quoted in Broker Proposal (See May 31, 1979 letter attached) $ 76,866.00 Broker's Explanation for Difference: Arithmetical Error in Proposal 6,901.00 Premium Increase Resulting From Increase in Total Property Value From $83,131,082 in 1978 to $92,501,360 in 1979 9,214.00 Increase of 7% "Expected" by Broker Due To Anticipated Rate Increases 6,509.00 Increase Caused by 40% Increase in Earth- quake Rates Between Quotation Date and Pol icy Date Premium Calculated 44,391.00 143,881.00 Premium Reduction Achieved Through Broker's Forfeiture of Its Commission and Primary Carrier's Contribution of Premium Income <42,881.00> Premium Billed $101,000.00 REVIEWED AND RECOMMENDED FOR BOARD ACTION Page 2 PROPERTY INSURANCE COVERAGE The reasons presented by the broker for a premium which, except for the extraordinary forfeiture of its commission and the earnings of the primary carrier, would be nearly double the premium quoted in its original proposal are unconvincing. The error of $6,901 was the result of the addition of the wrong premium amounts in the broker's own proposal. The understatement of $9,214 and $6,508 are attributed by the broker to premium quotations being prepared based on conditions existing on the quotation date instead of those for which the quotations were being obtained. The increase of $44,391 which is explained as the result of a 40% increase in earthquake rates would indicate that the earthquake premium itself was $111,000 in the original $76,866 quo- tation and is not plausible. In the District staff's opinion, the gross understatement in the property insurance premium was caused by an erroneously determined quotation. Schroder Insurance Agency advises that the property coverage will have to be renegotiated for the policy year beginning July 1, 1980 and that the premium will likely be at the $140,000 range. A reevaluation of the coverage and retention limits for property insurance, as well as the reappointment of the placing broker for the new policy year, is warranted by the changed circumstances since the Board's original decision in establishing the property insurance coverage. RECOMMENDATION: The District should retain the current property insurance policy through June 30, 1980 and payment of the $24,134 balance of the $101,000 premium should be authorized. The firm of Kaine & McAuliffe should be requested to obtain quotations for the policy year July 1, 1980 through June 30, 1981 for varying levels of property insurance coverage and retention limits to enable selection of an appropriate program, and upon such selection ~istrict staff will seek authorization from the Board to place the property insurance coverage. BOARD OF DIRECTORS NO. VIr. NB-5 4/3/80 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE April 3, 1980 SUBJECT TYPE OF ACTION AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR DISTRICT SEWERING PROJECT 2814, STATE RTE 4, ARNOLD INDUSTRIAL HIGHWAY, AUTHORIZATION FOR EAST OF FREEWAY 680 WORK ACCEPTANCE Jay S. McCoy INITIATING DEPT./DIV. ENGINEERING/COLLECTION SYSTEM SUBMITTED BY ISSUE: The project contractor, Burdick Contractors, Inc., has satisfactorily completed work and we are ready to file Notice of Completion. The total con- struction cost of the project is $377,498.50. RECOMMENDATION: Accept as complete and authorize the District General Manager- Chief Engineer to file a Notice of Completion. REVIEWED AND RECOMMENDED FOR BOARD ACTION CLW G. Central Contra BOARD OF DIRECTORS NO. VI!. NB-4 4/3/80 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Ap r i I 3, I 980 SUBJECT AUTHORIZATION TO FILE NOTICE OF COMPLETION OF DISTRIC SEWERING PROJECT 2904, DIABLO RD., DANVILLE TYPE OF ACTION ACCEPTANCE AND AUTHORIZATION SUBMITTED BY Jay S. McCoy INITIATING DEPT./DIV. Engineering/Collection System ISSUE: The project contractor, Dalton Construction Company, has satisfactorily completed trench and road surface repair work authorized by Contract Change Order No.2 and we are ready to file Notice of Completion. RECOMMENDATION: Accept as complete and authorize the District General Manager-Chief Engineer to file a Notice of Completion. REVIEWED AND RECOMMENDED FOR BOARD ACTION TING JE~/V~ ./ N/v~Mc e.~ CLW Central Contra BOARD OF DIRECTORS NO. VII. NB-3 4/3/80 VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Ma rch 28, 1980 SUBJECT POSITION PAPER TYPE OF ACT ION SUBMITTED BY Parcel No. Area 80-10 W.C. 80-11 S.R. 0-12 DANV. 80-13 W.C. AUTHORIZATION FOR P.A. 80-10 (WALNUT CREEK AREA),P.A 80-11 (SAN RAMON), P.A. ~0-12 (DANVILLE), AND P.A. 80-13 (WALNUT CREEK) TO BE INCLUDED IN THE NEXT ANNEXATION INITIATING DEPT./DIV. Engineering/Collection System Jay McCoy Owner & Address Parcel No. & Acrea e Remarks Lead A ency MANUEL S. RODRIGUES 1150 Snyder Ln. Walnut Creek, CA 139-062-12 1 . 1 0 Ac re s The Deerwood Corp. P .0. BOX 178 San Ramon, CA 94583 208-240-036 40.0 Acres Three lot minor sub with one single family home on each. Negative Declaration by City of Wa 1 nut Creek W.C. Proposed Sub 5475, zoned Administrative Offices, with 7 lots. Owner plans to develop 2 lots next year as corporate headquarters and sell or develop the remainder later. Negative Declaration by County. Existing house, fai 1 ing septic tank, District to prepare "Notice of Exemption" COUNTY Jack G. Cohen 624 El Pintado Danville, Ca 94526 197-161-27 1 . 83 Ac. Fletcher Tyler 411 Kirby Court Walnut Creek, CA 139-040-001 3 acres CCCSD Three lot minor subd. Tentative map approved and 'INegative Declaration" by the City of Walnut Creek. 40,000 sq.ft. lot size, one single family house pe r lot. W.C. RECOMMENDATION: Authorize P.A. 80-10 through P.A. 80-13 to be included in the next formal annexation to the District. REVIEWED AND RECOMMENDED FOR BOARD ACTION ~ INI IATI7D/Ji1:" II~ JMc CLW San BOARD OF DIRECTORS NO. VI. OB-2a 4/3/80 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE March 31, 1980 SUBJECT APPROVAL OF AGREEMENT WITH MWM, MACKINLAY/WINNACKER/ MCNEIL, AlA & ASSOCIATES, INC., FOR ARCHITECTURAL SERVICE ASSOCIATED WITH THE NEW OFFICE BUILDING TYPE OF ACTION APPROVAL OF AGREEMENT Clark L. Wed e SUBMITTED BY BACKGROUND: Through extensive negotiations, MWM and District staff have formulated the attached agreement which is being presented to you for consideration and approval. The basic intent used in drafting the language in the agreement is to provide protection for the District which has been achieved to a great extent. The contents of the document will be briefly discussed at the Board meeting. RECOMMENDATION: Approve agreement with MWM and authorize its execution by the President of the Board. Attachment REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. ~:J... ~LW