2000-24174 RESO
RESOLUTION NO.
2000-24174
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
THE PURCHASE OF ALL RISK PROPERTY INSURANCE
(FINE ARTS) FOR THE BASS MUSEUM AND THE CITY IN
GENERAL, FOR AN ANNUAL PREMIUM OF $23,375.00
(NET OF BROKER COMMISSIONS), FOR A THREE-YEAR
PERIOD, AS PROPOSED BY ARTHUR J. GALLAGHER &
CO., THE CITY'S BROKER OF RECORD.
WHEREAS, as proposed by Arthur J. Gallagher and Co., the City's broker of record, the
Administration herein recommends the purchase of All Risk Property Insurance (Fine Arts) for the
Bass Musuem and the City in general, with Lloyds Underwriters, for a total annual premium of
$23,375.00 for threeyears; and
WHEREAS, funding is available from the SelfInsurance Fund Number 540.1792.000390;
and
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby approves the purchase
of All Risk Property Insurance (Fine Arts), for the Bass Musuem and the City in general, for an
annual premium of $23,375.00 for a three-year period, as proposed by Arthur J. Gallagher & Co.,
the City's broker of record.
PASSED AND ADOPTED this 29th day of
November rt- 2000.
~
Mayor
ATTEST:
jrA,tt~ ~ MJN-
City Clerk .
APPROVED AS 10
FORM & lANGUAGE
& FOR EXECUTION
~ f!~ 11o;!~CJr
CIty IIomey
, . 'NOV-06-13 17:00 Fr..:AR7IIUR J GALLAGlER
13055931408
7-309 P.Ol/05 Job-Z78
.
November 6, 2000
ARTHUR J. GALLAGHER & CO, - MIAMI
Via F,....mn1e #1(305) 673-7023/~/'-;) '~~. ..~,.__'..._._ ......
Ii I I~ [.... ' "..,... --"
) '." '.II I~ r-'7
Mr. CIifi'I ""'llIlr'l,C1aImI CoonIhlator , ' ;, ) I 0 _~:, . " ;
City ofMWni. BelIch !! ! 1 ' : ,"
1700Caa.vmtiall~DriVl! NOV 7 2000 " _.,'
Miami Beach, Ft 33139 ~. ,L,:i-~- '1~ - J ~ -
Re: CityofMiamiBe.cblBwaMuseum-12f20/2000~a.t-h. :. ,
-, ~ j ,
---__J
Dear Cliff:
Further to our telephone convenatlon enclosed is our proposal on the above.
We were able to obWn a 3- year policy. payable in IUlD.Ua1 installmlll1lll. Rates would be
guaranteed for the three (3) years, subject to undetwriter review if there is material
changl! in rlXpOIII1'e or for .m""V in the loss experience.
Please note the &IIII1IIl pra:cium quoted for the reI1llWaI 523,375. This is appro:rlm,tAty a
7% premium iDcreue from the ell.i'irlng premium of $21,750, while the values of the
permanent collection have increaeed by lll%, flnm $14,500,000 to $16,000,000.
We were also able to obtain a 10% "no claims" bonus payable l\llI1ually, if the Museum
dooll not incur lilY 10.- fur the given year.
Tn Bddition the Transit Limit has been incrcUcd from $1,500,000 to $2,5000,00 at no
additional P1"""'ium charge.
Cliff: underwriters have been advised the pllI'll'"m""t Collection will be moved from
stonge at the ''Fortress'' to the renovated Bass Museum, sometime late November or
early December. It is a requlrcnent that undcrwritcJ:& be notified accordingly.
Finally, Underwriters have confumed the City's interest is included on the existing and
rcnllWal polley to provide coverage for Artwork loaned to the City ofMiuni Beach (not
affiliated with the Museum). Undcrwritets request that pieces loaned to the City have an
appraised value.
Please feel free to call us should you have any questions.
S~ly.
Lisette de Diego
Area. Assistant Vice President
cc
Jon Van der Voort, ARM
Koger Executivll Center, 8300 N.W. 53rd Slreet . Suite 350. Miami. FL 33166 . P.O. Box 02-5288, Miami. FL 33102-5288
Phone 3051592-8080 . Facsimile 3051592-4049
LIo)C" UudGrwritIlI:s
"All Risk" FiDa ArlI Coverage, subject to attached fonn.
12120/2000 to 12120/2003
'. " .... 'NOY-GS-33 11:01 Frlll:ARTIUl J IiALLAGlER
130551314118
CIIr of...... Beada
II.- Mr- .... ~ol - ooL 12/'JOIOG :a.a.....aJ
~
CarrIer:
eO'f'race:
Policy TI!l'1D:
LocatloafJ .Imfbt:
> Bass MuslllUl1 Permanent Collection including Happy Mother:
)> p........nent Collection in IIlorap at the Milllni FartreM:
}> Perrnan..m ('.nI1"Cdnn in storage at PIlm Beach Fortress:
)> TIle 1;1'.........111- Located outside 1700 Washington Avenue:
}> Hnltv'-aust Mflmnrial- 1933 Meridian Avenue:
}> Misr...l1l1T1N11J1 t ~:
}> Collection of Otbcn at BUll Museum:
}> Tmnsit:
}> Legal Liability:
1-910 P.OZ/OZ Job-Z19
.
,<,<,."h' ~
$ 500,000
$16,000,000
$ 1,000,000
$ 2,000,000
$ 2,500.000
$ 1,000,000
$ 3,000,000
$ 2,500,000
$1,500,000
Detluctible'.: ''NU'' except aa1lOtl!ld below:
}> Fire, Theft, W'mdDxm lIDd V_.HIII'Il;
$100,000 per 0CCUl'RIIICe- ''}Inlllle''''ot M.llmmial"
$ 5,000 per occum:nce-"Happy Mother" and the "MeIIllaid"
}> Flood:
S 5,000 per 0CClIl.'1'llIlC- "H~y Mothec"
$ 25,000 per occun:enc:e.. "The Mmnai4"
$200,000 per occ:urrellCe - Bass Museum
> Legal Liability - $100,000 per occutreJlCC.
Rates:
}> .1121100 Awtage Rate (Bued an Permanent Collection and Sculptures)
.TerDI Premium:
}> $70,125 (Three-YtlIlrTcrm) -Payable inAmiu.! InBtaUmcm.tof$23,37~ each year.
TIl'DlI/CouditklD8:
}> Year 2000 exclusion Claus<:
}> 3 Year Policy Tenn, at guaranteed rate fur three: years, subject to rc-rate ifthere is
matcriIIl ""...ngc in exposure or 1br change in loss experience.
}> 10% No C1ai1IlI Bonus- Payable ftnnnlllly.
}> Special Bxln'bits a:e not included in this premium. They are dealt with on an
individual basis for limits, coverage and ratll8/premium.
}> Transit Limit increased from $1.5Million to $2.5Millio11 at no additional premium.
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
illlp:\\ci.miam~beach.fl.u.
COMMISSION MEMORANDUM NO. lS 1 S- -00
TO:
MaYf,lr Neisen O. Kasdin and
Members of the City Commission
DATE: November 29, 2000
FROM:
Jorge M. Gonzalez
City Manager
~~
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE PURCHASE OF
ALL RISK PROPERTY INSURANCE (FINE ARTS) FOR THE BASS
MUSEUM AND THE CITY IN GENERAL, FOR AN ANNUAL PREMIUM
OF $23,375.00 (NET OF BROKER COMMISSIONS), FOR A THREE-YEAR
PERIOD AS PROPOSED BY ARTHUR J. GALLAGHER & CO., THE
CITY'S BROKER OF RECORD.
ADMINISTRATION RECOMMENDATION:
Adopt the resolution.
ANALYSIS:
The City's/Bass Museum property insurance needs are covered by All Risk Property Insurance (Fine
Arts). This insurance provides coverage at the Bass Museum (includes the museum and at various
storage facilities), various sculptures located outside the museum, the Holocaust Memorial, and art
on loan to the Bass Museum and the City.
The current policy with Lloyds Underwriters expires on December 19,2000. The City's broker,
Arthur J. Gallagher Co., following our directions, has identified a replacement policy (also offered
by Lloyds Underwriters). The new policy, which would be effective on December 20, 2000,
provides for identical coverage with the only changes being an increase in property values, and
premium rate (please see attached renewal quote). The new annual premium is $23,375.00
representing an annual increase of $1,625.00. Funds are available from the Account Number
540.1792.000.390.
The Administration recommends that purchase of the All Risk Property Insurance (Fine Arts) for the
Bass Musuem and City for an annual premium of$23,375.00 for a three-year period, as proposed
by Arthur J. Gallagher & Co., the City's Broker of Record.
GMG~
f:\Sall\risk\cliffipropcrty-finartsOO.wj:id
FUN APPROVED
AGENDA ITEM C ....,'D
DATEJ \- 2<1-00