HomeMy WebLinkAboutCity Council Resolution 2486/ RESOLUTION NO. 2486
A RESOLUTION OF '['HE CITY COUNCIL OF THE CITY OF
SARATOGA ESTABLISHING STANDARDS AND
REQUIREMENTS FOR INSURANCE COVERAGE
WHEREAS, the City of Saratoga requires that insurance coverage be
provided to the City under various circumstances, including the construction of
improvements upon public property, the use or rental of public property and the
granting of permits, franchises and project approvals; and
WHEREAS, in order to assure that the City is adequately protected by the
insurance policies furnished to it, the City Council desires to establish standards with
respect to the form and content of such policies and the amount of coverage provided
to the City thereunder,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Saratoga as follows:
1. The document entitled "Insurance Standards" attached hereto as
Exhibit "A," is hereby approved and adopted and shall constitute the insurance
standards of the City.
2. The insurance standards established hereunder shall become effective
on the date this Resolution is adopted.
Passed and ]~dopted at a r _crular meeting of the City Council of the City of
st day of 5~r~e
1988, by the following vote:
Saratoga held on the ,
AYES: Co~mcilrrembers Anderson, Clevenger, Moyles and Mayor Peterson
NOES: None
ABSENT:Counc~ Hlava k Mayo
a or
ATTEST:
City Clerk
EXHIBIT "A"
CITY OF SARATOGA
INSURANCE STANDARDS
Introduction
The standards set forth herein shall be applied whenever the City of
Saratoga requires liability insurance to be maintained which specifically provides
coverage for the City and its officers, officials, boards, commissions, employees and
volunteers. Such requirement may be imposed by ordinance, by contract or as a
condition for the granting of a permit, license, franchise, or other approval.
These standards shall not apply to professional liability (realpractice)
insurance coverage. If required by the City, the amount of such insurance coverage
and any other requirements pertaining thereto shall be as specified in the contract
between the City and the person furnishing the professional services covered by the
policy.
Part I of these standards contains general requirements with respect to the
form and content of the insurance coverage, and Part II describes the nature and
amount of coverage to be furnished in specific cases.
Any failure to obtain the insurance required by these standards, or to
maintain such insurance in full force and effect, shall constitute grounds for
cancellation or revocation of the contract, permit, license, or approval granted by the
City.
PART I
General Requirements
A. Scope of Coverage
General liability coverage shall be at least equivalent to either of the
following:
(1) Insurance Services Office form number GL 002 (Ed. 1/73) covering
Comprehensive General Liability and Insurance Services Office form
number GL 0404 covering Broad Form Comprehensive General
Liability; or
(2) Insurance Services Office Commercial General Liability coverage
("occurrence" form CG 000 1).
Where automobile liability insurance is required, the coverage thereunder
shall be at least equivalent to Insurance Services Office form number CA 0001 (Ed.
1/78) covering Automobile Liability, Code 1 "any auto," and endorsement CA 0025.
The policy shall not contain any special limitations on the scope of
coverage provided to the City.
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The City Manager is authorized to accept policies providing a different
scope of coverage if he determines, on the basis of the circumstances in each case,
that the City will be adequately protected under the policy against risk of loss or
liability. The City Manager is further authorized to require special endorsements to
provide additional coverage for any specific risks that are not included in the standard
form of policy, where such risks are created from the conduct or existence of the
work, use, activity, condition or other circumstance that constituted the basis for the
insurance requirement.
B. T~ype of Coverage
General liability policies should provide "occurrence" coverage and "claims
made" policies will not be accepted unless specifically approved by the City Manager.
No such approval shall be granted unless the person required to furnish the insurance
has demonstrated to the satisfaction of the City Manager that:
(1) "Occurrence" coverage is not available; and
(2) Coverage of City can and will be continued in full force and effect
(either through a continuation of the "claims made" policy or the
procurement of a new policy) for the period of time as determined by
the City Manager during which claims may lawfully be presented
against the City following the termination of the work, use, activity,
condition or other circumstance that constituted the basis for the
insurance requirement.
C. Amount of Coverage
With respect to each of the circumstances described in Part II of these
standards, coverage shall be provided in the respective amount set forth therein. In all
other cases, the amount of required coverage shall be determined by the City
Manager, based upon his assessment of the risk of loss or liability the City may incur
and the extent to which the City is already protected from such risk through sources
other than the City's own insurance.
If Commercial General liability Insurance or other form with a general
aggregate limit is furnished, either the general aggregate limit shall apply separately
to the City's coverage, or the general aggregate limit shall be twice the amount of
coverage that otherwise would be required by the City.
D. Deduetibles and Self-Insured Retentions
The policy owner shah be responsible for payment of any deductible or
self-insured retention and no portion thereof shall be charged to the City by way of
off-set, credit or otherwise. No deductible or self-insured retention shall exceed the
sum of $2,000 unless approved by the City Manager. As a condition for such approval,
the City Manager may require the policy owner to furnish the City a bond, letter of
credit, cash deposit or other security acceptable to the City Manager to guaranty
payment of all losses and expenses charged by the carrier against the deductible or
self~insured amount.
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E. Designation of City as Insured Party
Each general liability policy shall contain, or be endorsed to contain, a
designation of the City as an insured thereunder. Such designation shall read as
follows:
"The City of Saratoga, and its officers, officials,
boards, commissions, employees and volunteers."
1~. Cancellation or Reduction of Coverage
Each policy shall contain, or be endorsed to contain, a provision that the
insurance thereunder shall not be suspended, voided, cancelled, reduced in coverage or
in limits except after 30 days prior written notice to the City, given by certified mail
return receipt requested.
G. Primary and Separate Coverage
Each policy shall contain, or be endorsed to contain, a provision that the
coverage thereunder shall be primary insurance with respect to the City, and any
insurance or self insurance maintained by the City shall be excess coverage only. In
addition, the insurance under each policy shall apply separately to each insured who is
seeking coverage or against whom a claim is made or a suit is brought, subject to the
limits of the carrierts liability.
H. City's Duties After Accident or Loss
Each policy shah contain, or be endorsed to contain, a provision that any
failure by the City to comply with reporting requirements in the policy shall not affect
the City's coverage thereunder.
I. Aeeeptability of Carriers
Insurance is to be placed with carriers having a rating by A.M. Best & Co.
of at least A: VII, unless otherwise approved by the City Manager.
J. 8ubeontraetors
If the insurance covering the City is being provided by a general contractor
utilizing the services of any subcontractors, the general eontractor's policy shall
include all such subcontractors as insureds, or a separate proof of coverage shall be
furnished to the City by each subcontractor who is not included in the general
contractor's policy. All coverages provided by the subcontractors shall comply with
these standards.
K. Waiver of Subrogation
Where employer's liability coverage is required and unless otherwise
approved by the City Manager, the policy shall contain, or be endorsed to contain, a
waiver of an rights of subrogation the carrier may have against the City and its
officers, officials, beards, commissions, employees and volunteers.
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L. Proof of Cov~
The person required to provide insurance coverage shall furnish the City
with certificates of insurance and original endorsements evidencing compliance with
these standards, duly executed by a representative of the carrier who is authorized to
bind coverage on its behalf. A certificate of insurance does not constitute an
amendment to a policy and will not be accepted for this purpose. Policy endorsements
shah be on forms as specified by the City, copies of which are attached hereto as
Exhibits 1, 2 and 3. The City Manager may accept other forms of endorsement if such
other forms, either separately or in combination with the original terms of the policy,
contain all of the provisions required by these standards. The City reserves the right
to require a complete certified eopy of any insurance policy at any time.
PART H
Specific Requirements
A. Construction of Public Improvements
The following requirements shah apply to eontraetors, developers or
property owners eonstrueting publie improvements pursuant to a contract with the
City or as a condition of or in connection with an approval or permit granted by the
City:
(1) General liability coverage: $1,0O0,0O0 combined single limit per
occurrence for projects having a cost of $1,00O,0O0 or less and
$2,000,000 combined single limit per occurrence for projects having a
cost in excess of $1,00O,00O, unless a greater amount of coverage is
required in the contract specifications or development conditions.
(2) Automobile liability coverage: $1,000 ,00 D combined single limit per
accident.
(3) Workers' Compensation and Employers Liability: Workers'
Compensation limits as required by the State Labor Code and
Employers Liability limits of $1,0OO,0OO per accident.
(4) Policy Endorsements: Saratoga Forms INS-I, INS-2 and INS-3.
B. Use or Rental of Publie Proport]/
Except as otherwise set forth below, the following requirements shall apply
to persons renting or using public property pursuant to a lease or rental agreement
with the City, or pursuant to a special event permit issued by the City under Article
10-10 of the City Code, or pursuant to a group use permit for public parks issued
pursuant to Article 11-10 of the City Code:
(1) General liability coverage: $1,000,000 combined single limit per
occurrence, unless a different amount of coverage is approved by tile
City Manager and specified in the lease or permit.
(2) Policy Endorsement: Saratoga Form INS-1.
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The foregoing requirements shall not apply to temporary use permits issued
pursuant to Article 15-60 oi the City Code, or the temporary reservation of a
community facility for the eonc]uct of a single event which does not require either a
special event permit or a group use permit. In such cases, the insurance to be
provided, if any, shall be as specified in the temporary use permit or the reservation
agreement.
C. Frnnehises Granted by the City
The following requirements shall apply to cable television franchises
granted pursuant to Article 4-25 of the City Code, taxicab certificates granted
pursuant to Article 4-40 of the City Code, and garbage collection franchises granted
pursuant to Article 7-05 of the City Code:
(1) General liability coverage: $1,000,000 combined single limit per
occurrence, unless a greater amount of coverage is specified in the
franchise agreement or certificate.
(2) Automobile liability coverage: $1,000,000 combined single limit per
accident.
(3) Workers' Compensation and Employers Liability: Workers'
Compensation limits as required by the State Labor Code and
Employers Liability limits of $1,000,0O0 per accident.
(4) Policy Endorsements: Saratoga Forms INS-I, INS-2 and INS-3.
D. Truck Permits For Use of Restricted Streets
The following requirements shah apply to persons granted a permit to
operate a truck upon restricted streets pursuant to Section 9-40.080 of the City Code:
(1) General liability coverage: $1,000,000 combined single limit per
occurrence.
(2) Automobile liability coverage: $1,000,000 combined single limit per
accident.
(3) Policy Endorsements: Saratoga Forms INS-1 and INS-2.
E. Installations on PubHe Property
The following requirements shall apply to persons granted a permit
pursuant to Article 10-15 of the City Code for the installation of pipes, drains or
conduits, or granted an encroachment permit pursuant to Article 10-20 of the City
Code:
(1) General liability coverage: $1,000,000 combined single limit per
occurrence, unless a different amount of coverage is approved by the
City Manager and specified in the permit.
(2) Policy Endorsement: Saratoga Form INS-1.
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F. Moving of Buildings and Equipment
The following requirements shall apply to persons granted a 9ermit
pursuant to Article 16-50 of the City Code for moving buildings~ struetures and heavy
machinery or equipment:
(1) General liability eoverage: $1,0007000 combined single limit per
occurrence for Class C or Class D permits and $2~000~000 combined
single limit per oeeurrenee for Class E or Class F permits, unless a
greater amount of coverage is speeified in the permit.
(2) Automobile liability eoverage: $1~000,000 eombined single limit per
accident.
(3) Policy Endorsements: Saratoga Forms INS- I and INS-2.
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EXHIBIT ~1'
GENERAL LIABILITY ENDORSEMENT
CITY OF SARATOGA ("the City")
13777 Fruitvale Avenue
Saratoga, CA 95070
A. POLICY INFORMATION
1. Insurance Company ; Policy Number
2. Policy Term (Prom) (To) ; Effective Date:
3. Named Insured
4. Address of Named Insured
5. Limit of Liability Any One Occurrence/Aggregate $
6. Deductible or Self-Insured Rentention (Nil unless otherwise specified): $
7. Coverage is equivalent to:
Comprehensive General Liability form GL00O2 (Ed 1/73)
Commercial General Liability "occurrence" form CG0000 1
Commercial General Liability "claims-made" form CG0002
8. Bodily Injury and Property Damage Coverage is:
"claims-made"
"occurrence"
If claims-made, the retroaetive date is
Note: The City's standard insurance requirements specify 'occurrence coverage." "Claims-made"
coverage requires Bpee~ api:woval
B. POLICY AMENDMENTS
This endorsement is issued in consideration of the policy premium. Notwithstanding any
inconsistent statement in the policy to which this endorsement is attached or any other
endorsement attached thereto, it is agreed as follows:
1. INSURED. The City, its elected or appointed officers, officials, employees, volunteers,
boards and commissions are included as insureds with regard to damages and defense of
claims arising from activities performed by or on behalf of the Named Insured, or products
and completed operations of the Named Insured, or premises owned, leased or used by the
Named Insured.
Form INS-l, 4/88 -1-
2. CONTRIBUTION NOT REQUIRED. The insurance afforded by this policy shall be
primary insurance as respects the City, its elected or appointed officers, officials,
employees, volunteers, boards and commissions; or stand in an unbroken chain of
coverage excess of the Named Insured's primary coverage. In either event, any other
insurance maintained by the City, its elected or appointed officers, officials,
employees, volunteers, boards or commissions shall be in excess of this insurance and
shall not contribute to it.
3. SCOPE OF COVERAGE. This policy, if primary, affords coverage at least as broad as:
(1) Insurance Services Office form number GL 0002 (Ed. 1/73), Comprehensive
General Liability Insurance and Insurance Services Office form number GL 0404
Broad Form Comprehensive General Liability endorsement; or
(2) Insurance Services Office Commercial General Liability Coverage, "occurrence"
form CG 0001 or "claims-made" form CG 0002; or
(3) If excess, affords coverage which is at least as broad as the primary insurance
forms referenced in the preceding sections (1) and (2).
4. SEVERABILITY OF INTEREST. The insurance afforded by this policy applies
separately to each insured who is seeking coverage or against whom a claim is made or
a suit is brought, except with respect to the Company's limit of liability.
5. PROVISIONS REGARDING THE INSURED'S DIYTIES AFTER ACCIDENT OR LOSS.
Any failure to comply with reporting provisions of the policy shall not affect coverage
provided to the City, its elected or appointed officers, officials, employees,
volunteers, boards or commissions.
6. CANCELLATION NOTICE. The insurance afforded by this policy shall not be
suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30)
days' prior written notice by certified mail return receipt requested has been given to
the City. Such notice shall be addressed as shown in the heading of this endorsement.
C. INCIDENT AND CLAIM REPORTING PROCEDURE
Incidents and claims are to be reported to the insurer at:
ATTN:
(Title) (Department)
(Company)
(Street Address)
(City) (State) (Zip Code)
(Telephone Number)
Form INS-I, 4/88 -2-
D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER.
I, (print/type name), warrant that I have authority to bind
the below listed insurance company and by my signature hereon do so bind this company.
SIGNATURE OF AUTHORIZED REPRESENTATIVE
(original signature required on endorsement
furnished to the City)
O R G A NIZ ATION: TIT L E:
ADDRESS: TELEPHONE: ( )
Form INS-l, 4/88 -3-
EXHIBrr q"
AUTOMOBILE LIABILITY ENDORSEMENT
CITY OF SARATOGA ("the City")
13777 Fruitvale Avenue
Saratoga, CA 95070
A. POLICY INFORMATION
1. Insurance Company .; Policy Number
2. Policy Term (From) (To) ; Effective Date:
3. Named Insured
4. Address of Named Insured
5. Limit of Liability Any One Occurrence/Aggregate $
6. Deductible or Self-Insured Rentention (Nil unless otherwise specified): $
B. POLICY AMENDMENTS
This endorsement is issued in consideration of the policy premium. Notwithstanding any
inconsistent statement in the policy to which this endorsement is attached or any other
endorsement attached thereto, it is agreed as follows:
1. INSURED. The City, its elected or appointed officers, officials, employees, volunteers,
boards and commissions are included as insureds with regard to damages and defense of
claims arising from the ownership, operation, maintenance, use, loading or unloading of any
auto owned, leased, hired, or borrowed by the Named Insured, regardless of whether liability
is attributable to the Named Insured or a combination of the Named Insured and the City, its
elected or appointed officers, officials, employees, volunteers, boards and commissions.
2. CONTRIBUTION NOT REQUIRED. The insurance afforded by this policy shall be primary
insurance as respects the City, its elected or appointed officers, officials, employees,
volunteers, boards and commissions; or stand in an unbroken chain of coverage excess of the
Named Insured's primary coverage. In either event, any other insurance maintained by the
City, its elected or appointed officers, officials, employees, volunteers, boards or
commissions shall be in excess of this insurance and shah not contribute to it.
3. SCOPE OF COVERAGE. This policy, if primary, affords coverage at least as broad as:
(1) Insurance Services Office form number CA O001 (Ed. 1/78), Code 1 ("any auto") and
endorsement CA 0025.
Form INS-2, 4/88 -1-
(2) If excess, affords coverage which is at least as broad as the primary insurance forms
referenced in the preceding section (1).
4. SEVER~BII.ITY O1~ IltTEREBT. The insurance afforded by this policy applies separately to
each insured who is seeking coverage or against whom a claim is made or a suit is brought,
except with respect to the Company's limit of liability.
5. PROVISIONS REGARDING THE INSURED'S DUTI~-q AFTER ACCIDENT OR LOSS. Any
failure to comply with reporting provisions of the policy shall not affect coverage provided
to the City, its elected or appointed officers, officials, employees, volunteers, boards or
commissions.
6. CANCELLATION NOTICE. The in~surance afforded by this policy shall not be suspended,
voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior
written notice by certified mail return receipt requested has been given to the City. Such
notice shall be addressed as shown in the heading of this endorsement.
C. INCIDENT AND CLAIM REPORTING PROCEDURE
Incidents and claims are to be reported to the insurer at:
ATTN:
(~'itle) (Department)
('~ompany)
(Street Address)
(~ity)' (State) (Zip Code)
(Teiephone Number)
D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER.
I, (print/type name), warrant that I have authority to bind
the below listed insurance company and by my signature hereon do so bind this company.
SIGNATURE OF AUTHORIZED REPRESENTATIVE
(original signature required on endorsement
furnished to the City)
OR GANIZ ATION: TITLE:
ADDRESS: TELEPHONE: ( )
Form INS-2, 4/88 -2-
l~X34'[R]'r "3"
WORKERS' COMPENSATION/EMPLOYERS LIABILITY ENDORSEMENT
CITY OF SARATOGA ("the City")
13777 Fruitvale Avenue
Saratoga, CA 95070
A. POLICY INFORMATION
1. Insurance Company ("the Company");
Policy Number
2. Effective Date of This Endorsement
3. Named Insured
4. Employer's Liability Limit (Coverage B)
B. POLICY AMENDMENTS
In consideration of the policy premium and notwithstanding any inconsistent statement
in the policy to which this endorsement is attached or any other endorsement attached
thereto, it is agreed as follows:
1. CANCELLATION NOTICE. The insurance afforded by this policy shall not be
suspended, voided, cancelled, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail return receipt requested has been
given to the City. Such notice shah be addressed as shown in the heading of this
endorsement.
2. WAIVER OF SUBROGATION. The Insurance Company agrees to waive all rights
of subrogation against the City, its elected or appointed officers, officials,
employees, volunteers, boards and commissions for losses paid under the terms of
this policy which arise from work performed by the Named Insured for the City.
C. SIGNATURE OF INSURER OR AUTHORizED REPRESENTATIVE OF THE
INSURER,
I, (print/type name), warrant that I have authority to
bind the below listed insurance company and my signature hereon do so bind this
company.
SIGNATURE OF AUTHORIZED REPRESENTATIVE
(original signature required on endorsement furnished
to the City)
ORGANIZATION: TITLE:
ADDRESS: TELEPHONE: ( )
Form INS-3