HomeMy WebLinkAboutR-76-1106`SUPPORTIVE
DOCU MEN fS
FOLLOW"
RESOLUTION No.a,110
REgOLUTION AUTHORIZING AND APPROVING
PAYMB T OF $11,366 TO PENNEKAMP INSURANCE
AGENCY, INC. FOR RENEWAL OF THE CITY'S
BOILER AND MACHINERY INSURANCE COVERAGE
THROUGH THE MARYLAND CASUALTY COMPANY,
FOR THE PERIOD FROM JULY 20, 1976 TO
JULY 20, 1977, WITH FUNDS FROM THE CITY
OF MIAMI SELF-INSURANCE AND INSURANCE
TRUST FUND.
WHEREAS, in 1972 the City of Miami solicited bids to
furnish Boiler and Machinery insurance coverages for various
locations throughout the City on a blanket basis, with a
maximum amount of $100,000 per location; and
WHEREAS, the bid of the Maryland Casualty Company was
accepted through its local agent, Pennekamp Insurance Agency,
Inc., and the policy was written for a three year term; and
WHEREAS, the aforesaid policy was so written that any
repayment to the City from a failure of a boiler or compressor
was the replacement cost without depreciation, thereby enabling
the City to replace many old machines with new machines without
having to recover from the insurance carrier on the basis of
depreciated value, the policy was renewed in
1975 for one
e ear;
ITEM NO . ' —'
WHEREAS, on the policy renewal date of July 277
because of the factor listed above, namely replacement cost basis
rather than depreciated cost, and due to the then unwillingness
of any other company to write this type of coverage, the local
agent renewed the policy for an additional year; and
WHEREAS, the annual renewal premium of $11,366 is less
expensive than any renewal policy for the same coverage that
.u].d be obtained from any other company; and
and
•
CITY COMMISSION
MEETING OF
DEC L 6 1976
NoownoN No 7X - //Ulo
WHEREAS, funds are available for the payment of the
aforesaid premium from the City of Matti Self,"Insurance and
thsurance Trust Fund; and
WHEREAS, the Board of Trustees for the City of Miami
Self,,Insurance and Insurance Trust Fund are authorized by
rdinance (Ordinance No. 8417) to maintain coverage for certain
Specific risks through commercial insurance policies where a
Cost analysis demonstrates that it is more economical for the
City to do so than to rely upon self-insurance; and
WHEREAS, the Board of Trustees,composed of the City Manager,
the Director of Finance and the Insurance Manager, recommends
approval and ratification of the renewal of the aforesaid policy;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. Payment of $11,366 to Pennekamp Insurance
Agency, Inc. for renewal of the City's Boiler and Machinery
insurance coverage through the Maryland Casualty Company for
the period from July 20, 1976 to July 20, 1977, is hereby
authorized and approved, with monies therefor from the City of
Miami Self -Insurance and Insurance Trust Fund.
day of DFCFMRFR , 1976.
PASSED AND ADOPTED this 16TH
PREPARED AND APPROVED BY:
Robert F. Clark
Assistant City Attorney
APPROV1-D AS TO FORM AND CORRECTNESS:
�n^ _7
4ePt'9e F. Kn? , Jr,
City Attorney.
MAYOR
"SUPPORTIVE
DOCUMENTS
FLJLL..J'vV"
PRoM:
4
i"
nTY OF MAI. FLORIDA
I11t1140010E MEMORANDUM '78 riu
NI 3
jbaeph R. Grassi
City Manager
James E. Gunersbt
Director of rinatte
fttPittkNetd:
ilIcLoSUAts:
NcVembet 11I 1976
Oiler acid Machinery Ihautatice
Ift 1972, bids were solicited to furnish Boiler and Machinery
in
surance coverages fot various locations throughout the City) Oft
a blanket baris, for the maximum amount of $100,000.00 per loca--
tion.
The award was given to the Maryland Casualty Company, through
its local agent, Pennecamp Insurance Agency, Tnc.. The policy
was for a three (3) year term.
In 1975, because oi the great: nu;tber of claims pending, and the
Maryland Casualty Company's policy was written that any repayment
from a failure of a boiler or compressor was at replacement cost
without depreciation, the City war: ablc to reOace many old
machinery with new, without having the recovery from insurance
at a depreciated value. Therefore, in 1975, this policy was re-
newed for one year.
The policy now is again due for renewal, effective July 20, 1976
to July 20, 1977, and because of the factors listed above - that
is, that this machinery is replaced at replacement cost less the
.000.00 deductible on each occurrence, as against depreciated
cost, and no other company will write this type of coverage at
the present time, it it, my remtm(ndation that we extend this
policy for the additional year, aF the annual premium of $11,366.00
is less expensive than any renewal policy that we can obtain from
any other company, with less coverage.
I further recommend, as this premium is now due to the agent,
that you, as City Manager, authorize this payment under the powers
vested in you under Section 16-27 of the City Code, and then
ratify your actierts_b_y_the_City_commissripq,at its next regularly
scheduled meeting.
JEG:DRS:et
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