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HomeMy WebLinkAboutF-8e - Request for Funds to Assist Insurance Payment for Friends of OasisJuly 27, 19.81 :mow CITY COUNCIL AGENDA r it ITEM NO. TO: MAYOR AND CITY COUNCIL FROM: Parks, Beaches, and Recreation Director SUBJECT: REQUEST FOR FUNDS TO ASSIST INSURANCE PAYMENT FOR FRIENDS OF OASIS RECOMMENDATION: Approve the request of Friends of Oasis to pay one half of the insurance premium that covers their oper- ation, and direct staff to prepare the necessary budget amendment of $2,400. T% T C'n T7 CIO T/1T7 As required by Council Policy I-17, Oasis Senior Center Operation and Relationships, Friends of Oasis shall provide evidence of adequate insurance coverage as determined by the City's Insurance Administrator. The attached proposal satisfies this condition. The Friends of Oasis are requesting that the cost of this insurance be shared on an equal basis. Their request is based on their significant contributions of time and money to provide the services at Oasis. The Parks, Beaches, and Recreation Commission at their meeting of July 7, 1981, voted in support of this request. i Ronald A. Whitley RAW:ma Attachments IN ASSOCIATION CLARK E. MCDERMED A PROFESSIONAL CORPORATION WILLIAM M. MONROE A PROFESSIONAL CORPORATION PER H. TREBLER A PROFESSIONAL CORPORATION TIMOTHY C. KUZELKA McDERMED, MONROE & TREBLEB ATTORNEYS AT LAW SUITE 710 CROCKER BANK BUILDING 1200 NORTH MAIN STREET SANTA ANA, CALIFOI?NIA 92701 July 14, 1981 Ron Whitley, Director Parks, Beaches and Recreation Dept City of Newport Beach Re : Friends of Oasis Dear Ron: AREA CODE 714 TELEPHONE 558-8112 Under separate cover, I have sent along a copy of a proposal of insurance for the Friends of.Oasis, the premium for which is $4,800.00. We propose that the City pay one-half of this amount. In support of this request the following is presented for your consideration, The Friends of Oasis organization has reached a point in its development where contents, medical payments and liability insurance is necessary. This is so not only because we have assets to protect but because it is the responsible thing to do. Accordingly, a lengthy and, I believe, thorough process of selection began and culminated in the successful bid from Alexander & Alexander, a highly regarded local insurance agency. In a recent meeting, the board of directors of Friends of Oasis, of which I am a member, authorized me to accept the bid from this company and to present a request to the City that they share in the cost of insurance. I can assure you that each and every member of our board focuses upon the limitations to the City's budget and realizes that every dollar requested must be justified. Every person who has come into contact with the Center has been impressed with its vitality and the range of activities and services that it offers. This is in large part due to the tremendous effort of volunteers. We are grateful for the City's support and there can be no clearer manifestation of that than the contributions of time and money by volunteers and contributors. One dramatic example of this is the fact that the entire transportation system operated by the Friends of Oasis is supported by volunteers and contributors. We estimate the monthly cost of the transportation to be $1,619.00. M MCDEAMED, MONROE & _ ��EBLER ATTORNEYS AT LAW Ron Wh i t le y P age 2 July 14, 1981 Perhaps a more pertinent factor favoring our request is that this insurance will benefit the City. It will stand as a protective barrier between claimants and the City's funds, This is so because it is reasonable to assume that in any incident involving the Center, the City would be named as a defendant in a lawsuit. As the City grows and other organizations such as Friends of Oasis develop, it is suggested that the City must establish a precedent of encouraging insurance coverage, Can there be any doubt that line items for insurance in future budgets would be accepted? I will of course be happy to make a presentation before the Parks, Beaches and Recreation Commission and before the Council if you, or the Council deem it advisable, Please advise. P HT : j j k V ry truly yogrs- PER H. TREBLER MCDEAMED, MONROE Bc _ i�EBLER ATTORNEYS AT LAW EXAMPLES OF SUPPORT OF OASIS FROM SOURCES OTHER THAN CITY FUNDS I. Volunteers For period 7/1/80 to 6/30/81 we have documented 14,548 hours of volunteer work II. Contributions toward operation of transportation system (2 Vans were acquired at no cost to city) For period 1/1/81 to 3/31/81 (3 months) Depreciation Fuel, lube, oil Insurance Wages Payroll Taxes $1,035.00 708.00 813.00 2,067.00 1) 141) nn $4, 856.00 3 = $1,619.00 per month PROPOSAL Friends of Oasis 800 Marguerite Avenue Corona Del Mar, California SECTION I - Property Insurance This coverage affords protection against "All Risks" for personal property of the insured subject to all exclusions, definitions and conditions of the policy. Limit Co-insurance Deductible $50,000 90% $100.00 Miscellaneous coverages: Money and securities (All Risk form) (1) loss of money or securities inside premises $1,000 limit; $100 deductible (2) loss of money or securities outside premises $1,000 limit; $100 deductible. PREMIUM: $340.00 SECTION II - Liability Insurance This coverage affords protection against bodily injury and property damage arising out of negligence of the insured to which the insured is legally liable, and is defined within the insurance policy. $1,000,000 Combined bodily injury and property damage single limit. 1 Miscellaneous coverages: Blanket contractural liability - affords coverage for assumed liability by means of a contract. Products liability Premises Medical payments - $1,000 limit per person, $10,000 limit per accident Personal Injury Protection - covers the legal liability of an insured for an offense (i.e., libel, slander, defamation of character, false arrest, unlawful detention, etc.) Extended Coverage Endorsement - Broad form property damage: covers property in the care, custody & control of the insured subject to exclusions - Employees as additional insureds - Fire legal liability - $25,000 limit - Non -ownership watercraft liability - Incidental Malpractice liability - World wide products liability - Advertising offense liability PREMIUM: $1,399.00 SECTION III - Automobile Insurance This covers the operation, maintenance, and use of a covered automobile. $1,000,000 combined single limit liability Medical payments coverage - $2,000 limit per person Uninsured Motorist coverage - $30,000 limit Physical damage - Collision and comprehensive: $250 deductible Covered autos: 1973 Ford van 1980 Ford van PREMIUM: $3,061.00 TOTAL PREMIUM SECTION I, II, & III = $4,800. SECTION IU - Optional Coverages Recommended Directors and officers liability - this covers a claim made against a director or officer for a "wrongful act" such as an error, misstatement or misleading statement or act or omission. Limits of Liability Annual Premium 3 Year Prepaid $ 500,000 $ 596.00 $1,610.00 1,000,000 701.00 1,895.00 3,000,000 1,052.00 2,843.00 Deductible per loss $2,500.