Item 18 - Insurance Limits for Call-A-Ride Serviceaw
REPORT
.-,1G.ENDA
t
€ 1TTY OF PG AY
This report is included. on the Consent. Calendar. There will be no separate discussion of the
report prior to approval by theCity Council unless members of the Council, staff oz public
F A..,.,,,,r o' _
request it. to, be removed from the Consent. Calendar anddiscussed separately. If you wish to ery�, � ?TMHE Go
have this. gegart pulled for discussion, please fill out a. slip indicating the report number
and` give it to the City Clerk prior to the beginning -of of the City` Council maetinq-
TO:; Honorable Mayor and Members of the City Council
FROM r' James L.` Bowersox, City Ma
Ii`jITIT'ATBD BY Lee Lewis, Directoz of Community Servic
DATE: October 28, 1986
SUBJECT: Insurance Limits for Call -,A -Ride Service
BACKGROUND
As a, result of the passage of Proposition 51 in June of this
year, the Cityts liability exposure has been limited .to its level
of participation in areas of exposure. One area the City has
been requesting high limits. of liability exposure to protect.
against "'deep pocket"' claims has been. public transit. Transit is,
provided by contractors either in the form of the, County Of San
Diego or a direct contractor with the City 'such as the Poway
Valley Seniorr. Citizens,; Inc.., providing 'Call.-A-R:ido., The Coun,ty
=
of San,, Diego has reduced insu:ra�nce 1 m�its. for all con:t,r.actors
basedon reduced. liab ty to $1. million to, reduce the excessive
l
cast of '.insu:rance. Staff is recommending a simi:lar reduction for
its Gall---A-Ride service..
FINDINGS .
The City has. required $3 million liability coverage limit for the
eld.ery anal handicaptransit servi:ceas part of the contract with
the PVSC for 1986.-87.. Staff and the City Attorney have reviewed
the City's exposure= in light of Proposition.` 51 and have deter®
mined that the coverage exceeds the City's liability. A reduc-
tion of the 'liability lim to to, $1 million coverage would more
than adequately pr6vide for the City "s exposure., A reciu.ction: to
the $1, million Jim -it would greatly reduce the contractor,'s
insurance cost for providing Call -A -Ride services._ Funding forthe
Call -A -Ride: service is extremely low- and would, enable the
contractor toz provide improved service
z
ACT, ION:
OCT Z 8:1986 tT E fA f
1 of
Agenda Report
Qctobr ?`-9-, 198'6`
gage 2
RECOMMENDATION
it, is recommended that the City
Council authorize they 14ayo-t to
execute , n amendment of Section
7.- AF I and 3. of the contract
between- the Poway Valley Staniar
C'i;.tizens, lac., and ;the. City o
Poway, to. reduce the amount- of 'insurance
from $3 million to $I,
mi Ilion. with; the approval of the. PVSC, I:nz.
Attachment
:
n
E
"
J
JJ
OCT 1986 IBJ
2 of 3"
During performance hereunder, CONTRACTCR or its subcontractors shall,
procure the following insurance, which may contain self -insurances
retentions subject to CITY approval. of funding, and shall not, of its
own: initiative, cause: such' insurance to be cancelled or materially
changed during the course of this Agreement:
• Crshensve General Liability Insurance in the amount of
$3,000,000 per occurrence naming the CITY, OWIRACTORr employees,
and officers as additional insureds in the event of any liability
arising oat of allegations due to negligence on the part of the
Operator.:
• Workers' Compensation Insurance covering CXNTRP 1'cR's employees as
required by the laws of the State of California to statutory
limits.
AutbileLiability Insurance in the amount of $3,000,000°
including contractual liability and personal injury liability.
Prior to ccninencenent hereof, and except for Workers' Canpensat.i.oa and
Fhiployer'sLiability Insurance,- CONTRPCTOR shall furnish a Certificate
of Insurance thereof to CITY, which shall certify that. CONTRACTali`s or
subcontractor's insurance policy provides:
The coverage shall be primary asto any other
respect to performance hereunder.
Thirty (30) dayswritten notice of cancellationor material change
to= be given to CITY.
Cocurence, as used herein, Bans any event or related exposure to con—
ditions which` result in bodily injury or property damage.
Except as nay be providedotherwise in the Afire t, CONTRACTCEt shall
investigate, indemnify, defend, and hold harmless, CITY, = its officers, agents,
and employees frac- any andall claims, darnands, loss, or 'liability of any kind
or nature whether real or alleged which CITY, its officers, agents, andemploy
ees may sustain or incur, or which may be imposed upon them or any of than, for
any acts or anissions= by C RACTCR, its officers, agents, or employees
hereunder..