Report to Carson Reclamation Authority
Tuesday, January 14, 2020
Consent
SUBJECT:
Title
RATIFY THE EXTENSION OF COVERAGE THROUGH SEPTEMBER 12, 2020 AND APPROVE PAYMENT FOR A BUILDER'S RISK POLICY THROUGH AMERICAN INTERNATIONAL GROUP UK IN THE AMOUNT OF $77,111.29 PLUS $2,467.56 IN SURPLUS LINES TAXES AND STAMPING FEES, PROCURED THROUGH MARSH UK SPECIALTY INSURANCE SERVICES
Body
I. SUMMARY
In January, 2017 the CRA procured insurance policies in the area of Comprehensive General Liability ("GL") and Builder's Risk ("BR") for the period of one year. These policies are different from the Pollution Legal Liability ("PLL") and Contractor's Pollution Liability ("CPL/PLI"), in that they do not insure the pollution risk, but rather they insure traditional risks that typically occur on a project. The policies were replaced in September, 2018 by a comprehensive "wrap" insurance program developed jointly with Macerich, called an Owner Controlled Insurance Program ("OCIP").
The large OCIP program was procured with a term of 32 months, and splits coverage between the vertical development being undertaken by CAM-Carson, LLC ("CAM") and the horizontal development being undertaken by the CRA on Cell 2. Builders Risk coverage for the other cells, however, is only issued for a 12 month term until such time the CRA is in a development agreement with a developer for those cells.
Therefore, the Builders Risk, Ground Up (Property only) coverage with a Limit of $70,101,177.00 expired on September 12, 2019 for Cells 1, 3, 4 and 5, with a three month extension period until December 12, 2019. CAM has no insurable interest in this part of the policy.
This action ratifies the action of the Executive Director to bind the policy renewal, with American International Group UK, in order to avoid a gap in coverage, until it could be presented to the Board for approval, and to pay the $77,111.29 in premium plus $2,467.56 (aggregate $79,578.85) due to Marsh UK, the CRA's insurance brok...
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