From
Lee Harriss, Special District Administrator
Title
Resolution adopting an amendment to the Public Improvement District (PID) Policy with regard to purchasing liability insurance policies
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommend Action
Approve
Analysis
The Finance and Government Committee reviewed the policy at the meeting on February 6, 2018 and recommended adoption. In addition, PID board members have reviewed the proposed changes, are in favor, and their comments are attached.
The proposed revision includes the following updates:
Sec. IV. PID Stakeholder Groups and Responsibilities, B. PID Advisory Board Responsibilities (pages 9-11):
7. Insurance: The PID advisory boards will acquire general liability, automobile liability, and errors and omissions insurance, such coverage to be paid for from PID assessments. Property insurance for valuable assets is optional and to be paid for from PID assessments. The insurance policies must be occurrence-based, not claim-based, and the City of Grand Prairie must be named as additional insured on all policies.
The PID advisory board should consult its insurance advisor /agent on the appropriate levels of insurance. PIDs may obtain insurance through the Texas Municipal League (TML) at government rates and/or purchase it from a private carrier. PIDs will pay for insurance purchased from TML, and the cost of the TML liability insurance will be allocated based on PID area maintained or PID budget. PIDs will pay their own deductibles.
a. General Liability Coverage
If a PID chooses not to exercise the City's TML coverage for General Liability, the PID MUST purchase GL Insurance that provides the following:
GL
Min Per Occ $1,000,000
Aggregate $2,000,000
Deductible $10,000 or less
Best Rating A or better
PID GL Includes:
Personal and Advertising Injury
• Products and Completed Operations
• Fire Liability - also known as Tenants Liability
• Medical Payments to Others
All PID Landscapers/other Artisan Contractors must provide the following:
1. Contractor should provide PID/City a Certificate of Insurance.
2. Contractor’s Insurance certificate shows $1,000,000 each of general, automobile, and employer’s liability.
3. The Contractor’s certificate should name the City of Grand Prairie as additional insured on general and automobile liability and include a waiver of subrogation clause naming the City of Grand Prairie on all types of coverage.
4. Contractor Exception: If the contractor is a sole proprietor and does not have any employees, then employer’s liability insurance is not required. However, the sole proprietor must complete the Employer Notice of No Coverage current form and provide a copy of the confirmation.
b. Property Coverage
If a PID chooses not to exercise the City's TML coverage for Property, the PID MUST purchase Property Insurance that provides the following:
Property
Coverage should be the replacement cost or the reconstruction cost of the PID property value. The City’s PID Administrator will provide the dollar value amount of the PID assets to the PID.
Best Rating: A or better
c. Optional Other Insurance Coverage
Additional recommended coverage for PIDs include the following:
D&O Cyber Liab.
Min Per Occ $1,000,000 $1,000,000
Aggregate $2,000,000 $2,000,000
Deductible $10,000 or less $10,000 or less
Best Rating A or better A or better
d. General Conditions Required for All PID Insurance
1. The City Council waives the contract requirement for PID Insurance.
2. However, the City does require the following for any PID Insurance Policy to be paid by the City:
a. The City must be an Additional Named Insured on all PID Insurance policies
b. The PID must provide the City with a certificate of insurance for all PID Insurance policies
c. The PID must provide a copy of the PID Insurance policy to the City, once an underwriter issues a policy.
d. The PID must provide the City with an invoice for the PID Insurance Policy
Financial Consideration
There is no financial impact for the City; the PIDs will pay for their insurance policies, and PIDs will pay their own deductibles.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING RESOLUTION 4483-2011 BY ADOPTING THE REVISED PUBLIC IMPROVEMENT DISTRICT (PID) POLICY
Whereas, the City of Grand Prairie has designated several areas as Public Improvement Districts (PIDs) within the City of Grand Prairie; and
Whereas, it is necessary to adopt the City of Grand Prairie’s revised Public Improvement District policy;
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. That the City Council adopt the following revisions to the attached Public Improvement District policy:
The replacement of current language:
IV. PID Stakeholder Groups and Responsibilities:
B. PID Advisory Board Responsibilities:
7. "Insurance: The PID advisory boards will acquire general liability, automobile liability, and errors and omissions insurance, such coverage to be paid for from PID assessments. Property insurance for valuable assets is optional and to be paid for from PID assessments. The insurance policies must be occurrence-based, not claim-based, and the City of Grand Prairie must be named as additional insured on all policies.
The PID advisory board should consult its insurance advisor/agent on the appropriate levels of insurance. PIDs may obtain insurance through the Texas Municipal League (TML) at government rates or purchase it from a private carrier. PIDs will pay for insurance purchased from TML, and the cost of the insurance will be allocated based on PID area maintained or PID budget. PIDs will pay their own deductibles." (p.9)
And the insertion of the following language:
IV. PID Stakeholder Groups and Responsibilities:
B. PID Advisory Board Responsibilities:
7. "Insurance: The PID advisory boards will acquire insurance, such coverage to be paid for from PID assessments. PIDs may obtain insurance through the Texas Municipal League (TML) at government rates and/or purchase it from a private carrier. PIDs will pay for insurance purchased from TML, and the cost of TML liability insurance will be allocated based on PID area maintained or PID budget. PIDs will pay their own deductibles.
a. General Liability Coverage
If a PID chooses not to exercise the City's TML coverage for General Liability, the PID MUST purchase GL Insurance that provides the following:
GL
Min Per Occ $1,000,000
Aggregate $2,000,000
Deductible $10,000 or less
Best Rating A or better
PID GL Includes:
• Personal and Advertising Injury
• Products and Completed Operations
• Fire Liability - also known as Tenants Liability
• Medical Payments to Others
All PID Landscapers/other Artisan Contractors must provide the following:
1. Contractor should provide PID/City a Certificate of Insurance.
2. Contractor’s Insurance certificate shows $1,000,000 each of general, automobile, and employer’s liability.
3. The Contractor’s certificate should name the City of Grand Prairie as additional insured on general and automobile liability and include a waiver of subrogation clause naming the City of Grand Prairie on all types of coverage.
4. Contractor Exception: If the contractor is a sole proprietor and does not have any employees, then employer’s liability insurance is not required. However, the sole proprietor must complete the Employer Notice of No Coverage current form and provide a copy of the confirmation.
b. Property Coverage
If a PID chooses not to exercise the City's TML coverage for Property, the PID MUST purchase Property Insurance that provides the following:
Property
Coverage should be the replacement cost or the reconstruction cost of the PID property value. The City’s PID Administrator will provide the dollar value amount of the PID assets to the PID.
Best Rating: A or better
c. Optional Other Insurance Coverage
Additional recommended coverage for PIDs include the following:
D&O Cyber Liab.
Min Per Occ $1,000,000 $1,000,000
Aggregate $2,000,000 $2,000,000
Deductible $10,000 or less $10,000 or less
Best Rating A or better A or better
d. General Conditions Required for All PID Insurance
1. The City Council waives the contract requirement for PID Insurance.
2. However, the City does require the following for any PID Insurance Policy to be paid by the City:
a. The City must be an Additional Named Insured on all PID Insurance policies
b. The PID must provide the City with a certificate of insurance for all PID Insurance policies
c. The PID must provide a copy of the PID Insurance policy to the City, once an underwriter issues a policy.
d. The PID must provide the City with an invoice for the PID Insurance Policy"
(pages 9-11)
Section 2. That this resolution shall be effective immediately upon its passage in accordance with the Charter of the City of Grand Prairie and that is accordingly so resolved.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 6TH DAY OF FEBRUARY, 2018.