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Home My WebLink AboutFIN 12/99 (2)264NOF� � REPORT TO COUNCIL FROM: Gillis A. Paterson UATE: June 22,1999 Director of Finance & Treasurer REPORT NUMDER: FIN 12-99 SUBJECT: Renewal of the General Property und Liability Insumncc Program for thc Town of Pickering for the Period July I, 1999 to July I, 2000, Extcndnble to July I, 2002 RECOMMENDATION: Thut the Executivc Committce recommend to Council thue l, the Town of Pickering renew its geneml property and liabiliry insurance covemge through the Frank Cawun Compuny ns outlincd in Auuchmcnt NI for thc period July I, 1999 to July I, 2002, to bc approvcd annunlly, with thc 1999/2000 tolal rcnewal prcmium of 5245,485 plus applicnblc taxcs; 2. the purchase of "Y2K Insurance" as outlincJ on Attnchment !l2 bc npp�ovcd ; thc Dircctor of Financc end Trensurer bc uuthoriud to mnkc applicution for thc covcruge und thc wst bc chnrged to Gencrnl Govemment appropriation for insuruncc; 3. the Director of Finnncc and Trcnsurcr, as part of thc Risk Mnnngcment Progmm, be autharized to wntinue the Rcimbursuble Deducliblc Progmm through the Insumnce Adjuster and the Frnnk Cowan Company nnd furthcr, Ihal thc Dircctor bc authoriud lo scttic nny claims within thc toWl deductible limit wherc it is in Ihc'foHn's intcrest to do so; 4. tha Director of Finnnce and Trcasurcr be uwhorized lo puy thc towl cost of any insurance claims setticd thui fall bctween ►he previous dcductiblc nnd the new ane, including nny adjusting and Iegal l:es, from tha Insurance Reserve Fund; 5, the dif'ference between thc totnl 1999/2000 insurance prcmiums plus applicable Inxes and the amounts included in the 1999 Current Operating Dudgct for insurancc be transfermd to the Insurance Reserve to provide funding for costs related to lhe Genernl Insurance end Risk Menegement Programs; 6. the Director of Finunce and Trensurer be authorized to engnge the scrvices of a risk menagement/insurnnce consultant to assist in revfewing, analyzing end reponing on optiuns fur the 2000 rcnewal including renewing with the present carriers, insurence pools and tcndering with funding to be provided by a transfer from the Insurance Reserve; and, 7. the appropriate officiuls of tha Town af Pickering be given authority to give effect thereto. ORIGIN: Director of Finance & Treasurer AUTHORITY: The Municipel Act, Sections 251 to 253 ReporttoCouncil FM12•99 D�te: ]une22,!999 265 Subject; Renewal of lhc (3eneral PropeAy and Liability Insurencc PaBe 2 Program for the Town of Pickering far the Period luly 1,1999 to ]uly 1, 2000, Extendable to July 1, 2002 FMANCIAL IMPLICATIONS: Thc renewal premium of S245,485 rcpresents n decrcuse of S74,378 or approximetely 20 per cenl from the expiring premiwns of the prior yenr, exclusive of applicable texes. With the ttvee year guarantee, ail other conditions remaining unchnnged, this results in a total sevings of approximately 5223,000. Transfecring lhe premium snvings to the Rescrve will provide funding for payment of claims falling with the increased deductibles, finance any cosis of setting up an insurance pool or tendering insurancc and risk maiagement progrnms. EXECUTNE SUMMARY; Ench year on July 1, the Town's generel liebility and property insurance policies come up for renewal. As approved by Council at the time of the 1998 renewul, thc T;easurer undcrtook an extensive review of various altemntives to trnditional insurance including an insurnnce pool for Durham Region. In 1998 the Town of Pickcring embarkcd in e Risk Mnnngement Probram, the initial phase of which involvcd negotiating rcnewing prcmiums with thc Town's brokcr, the Fmnk Cowun Company, resulting in u Jecv.nsc af approximntcly 572,000, or 20 perccnl, in prcmiums from that of the prior year. Tl�is prcm:�im was also approximntcly S98,000 less than the 1998 budset provision which, ufler clnims unde� thc !�icrcnsr.d deductiblc wcrc paid, rcsulled in a transfer of upproximutely 550,000 to the Insurance Reserve Fund. During the course of 1998 and thc first half of 1999 o funhcr rcvicw of deductibles, covemgcs, policies, proceJures, adjusling scrvices and pooling wns undennkcn. While morc work rcmains to be undertaken in rcgards to wme of the issues rniscd in the 1998 rcport, pooling was cxplored cxtensively. The Trca�erer, together with the Treasurcrs of thc other arcn Municipalitics in the Region of Durham, explored all espects of the concept of nn insurence pool for Durham Rcgion. The Consultant, Dion Ducrcll end Associetes, Actunrics and Insurance Consultants, essistcd with mosl of the work in exploring options nnd Ihe specifics of a pooling concept. Furthertnore, a meeting was held with representatives from thc Region of Weterloo insurence pooi to lenm from their prior years cxperience with this concept. At the same time othcr options were continued to be explored inciuding renewal with the Frank Cawan Company. In summary, while the pool continues to be an attmctive concept it dces carry with it certain risks, uncertainties end the possibiliry of additional cosis. While safeguerds would be put in place to minimize the foregoing, a pool by its very nature, is not a complete transfer of risk to a third party (insivers) and will involve edditional administrative costs. Under the pool concept, the Town of Pickering would assume additional risk. [f the pool experienced higher claims, the Town of Pickering's cost would increase. Members of the Frank Cowan Company were invited to participate in this pooling concept end they too put forlh a proposal in addition to their renewing premiums under a Uaditional inswance program. Their pmposeJ pool does not appear to offer the savings of the Durhnm Pool or renewing with Cowan's. On e straight compariscn besis (ie, epples to apples) it appears that the proposal to renew with the Frank Cowan Compeny is the least cost option for the forthcoming yenr and carries with it a thrce year rate guarnntee which, unless unexpecteA events or edversc market condiiions occur, provides a ceiling for futurc year's premiums. We feel thal ihis waq result of scveroi actions occurring simultnneously, being ttie exploration of the tnsurance pool, continued negotiations with thc Frank Cowan Compnny, end a soft insurance merket. Expiorstion of any and all possibilities will continue throughout 1999 end 2000 in order to ensure that tho Town's futurc rcnewais are et ihc least possible costs, 2 6 g Report to Council FM 12-99 Dau; Junc 22,1999 Subject: Rene�val of the General Property and Liability Insurance Pege 3 Progrem for the Town of Picl;ering for the Period July 1,1999 to July 1, 2000, Extendable to ,luly 1, 2002 As previously mentioned, this year s renewing prmium is considerably less then tnat of 1998 and is elose to the 1992 premium as nntcJ below: 1989 • 5255,512 1994 - 5257,363 1999 - 5245,485 1990 • 5270,942 1995 - 5294,166 1991- 5266,341 1996 - S3S6,865 1992 • 5245,656 1997 - 5377,586 1993 • 5238,392 199� - 5302,:;89 Therefore, it is recomm�nded that a renewal b�; underlaken through the Frank Cowan Company whlch includes a ihree yenr rate guerantee. BACKGRO`JND: �nsurence Pool A pool concept can be a gond one, cspecinlly durir.g periods of high premiums and hard markets, Meny lose their advunwges during periods of soR murkets nnd low promiums. This np�ors to be the case todny, Moreovcr, thc purchase of insurancc, by its very nnture, is the trnnsfcr of the risks, legal liebility, claims puyment rcsponsibility snd administration to thc privatc sector. Furthermore, the cost of insuronce incl�des ths cost of extemnl cxpertisc. None of the foregoing should be treated lig!itly when considcring ultemativic errnngemcnts s�ch us a pool. Over the cow�e uf the last phase of tha cxaminntion period, some assumptions appcnr lo havc been revised to produce different rcsults for consideralion. for examplc, the initiel discussions revolved nround a 5175,000 grcup dcductiblc, SI million estimnte of lotnl small losscs and a 100 per cent confidence level ►hnt the actu�l cxperiencc would bc Icss, or better, than the cstimates. Adjusting for tha withdrawnl of the Town of Whi�by und using figures providcd by thc consultant, the pool snvings estimntcd at 5485,000 �or all the municipalities after 3 years versus 51.4 m�llion in towl savings efler renewal through Cowun's. The consullant presented its finnl results baud upon u 5350,000 group dcductible, 5350,000 to 5700,000 estimute of tomi small losxs, with S I million bcing cnlled the worsl case scenario, and e 95 per cent, or less, confidence level. This method produced en estimatcs savings of appivximately 52.6 million versus the 31.4 millien mentioi�cd nbove. Cowen's infortnetion with the exception of an improved "Cowan Poui" proposel have remeined unchanged since being presented. Renewal with Cowan, based upon the original assumptions employed in the analysis, appears es cost effective or better thun the pool. Furthermore, since the pool sevings, should then materialize, would be puid out at the end of three years nt a minimwn, they must be discounted. Using the sctunry's own assumptions, the saviugs would eppear lo be reduced by approximetely S140,Q00, Investment income ma� offset somc of this reduction. Sevings from the reduced premiums proposed by Cowen aze realized each year at the time of paying the insurance premiums, Revised enalysis from �own's to equnte their pool with the proposed pool, rcveels that renewing with Cowan's to be almost es cost efTective as the proposed pool, with the Cowan pool being merginally Ihc most wst effective. QNl�!@.44'»li lssues Report to Cowcil FM12•99 Date: June 22,1999 26'� Subject: Renewal of Ihe denernl Property and Liability Insurance Page 4 Progrnnt for the Town of Pickedng fc, ��°' ..,u n. ,''^V9 to July I, 2000, Exlendnbic to July I, 200� It should bc noted Ihat in Joining such a pool the To�m of Pickering will be assuming rcsponsibiliry for upproximalely 20 per cent of clnims of all the other municipalities, excluding Oshawa and Whi►by, f.laims against a�i upper tier govemment are usually lerge given their responsibilities far police, water, sewer, waste and major roads. An unknown quantity is the effect of downloaded services, eg. Ambulunce. In tum, they will absorb n portion of Pickering's claims. This aspect hes not becn reviewed, Still to be discussed ere all aspects of ihe "Subscribers Agreement" of which a copy of nnother pool's has been provided. It conmins ceAain clauses that could be problematic. Govemance hes not been discussed nor hns clnims munngement and legal represenWlion. It has been agreed that our currcnt aJjusters will be retained. Future cost sharing arrungements will be n major discussion item. Given your Treasurer's previous experience in insurance and setting up pools, the desired level of understanding and comfort is stili to be nttnined. Insurers have not becn roviewed, .vid discusscd by the group. Most of the mujor espects of n pool are still to be discussed and agreed upon. Nevertheless, the possibility of Pic:kcring pnniciputing in n pool in Durhem is not bcing toWlly dismisscd at this timc. Therc are. howcver, in the opinion of thc writer, too muny unresolved queslions still to be nddressed. M increase in deductible Gom S 10,00010 520,000 is not Ixi�ag rccommended ut this timc es it does not appenr to be cast e�'ective. io s In 1999 a local firm, Pine Ridge Insurance Drokers Limited in Ajux, met with thc Trcasurcr to explain the municipal program ihey rcprcsented called Muni-Pro. On lunc 16, 1999 nn unsolicited bid wns receivcJ from this company. Whilc thc totnl dollar premium stuted lookcd attractive, insufficient detuils wcrc pmvided to comment on thc approprintencss of this progrnm in the Town of Pickering. Funhcrtnore, timc docs not {xa�tnil an examinntion, insurcre must be identified nnd policy wordings must be provided und compared to our existing cove�ag�s and an in-depth nnulysis of covernges and costs must be undr,rtnken. Scrvices, such os inspcctions, cleims audits, risk management and advicc urc ell currcotly rcccivcd as part of thc packnge. It is unknown whether this company offcrs the somc levcl of �scrvicc. Further meetings must be held ;o leum ihe compicte iietnils of the progrum nnd ►he companies involved. This wiil be undertnken in time for the 2000 renewal. diven all of Ihe foregoing, together with the c�urent wark load of the Treasurer, it is recommended that an independent outside cnnsultant be rctained to advisc the Trcasurcr, While nona iiave been contected, need was not heretofore identified, a cost estimate cannot be provided at this time. The Treasurer will undeneke very ;nenns to e.�surc cost, service and benefit ere balanced. Insurance Reserves This years renewal maintains Uie higher levels of deductible epproved by Council in 1998. By putting the sevings eside in the Insurance Rescrve, funds should be aveileble to finence predictable losus resulting from the increase in deductibies. By building up the reserve financiel flexibility to assist with future possible options is also made avuilable. Thc Insurance Reserve Fund cumntly has a balence of 5376,146 as at December 31,1998. In the arca of Risk Menagement, referencc should be mude to lhc 1996 rcport to Council No. TR23/98. Y2K Insurance Included in the Rccommendations is a provision for the purchase of what is cailed YiK Insurance, being offered for the first time by the Frank Cowan Company. We undcrstand that �� Report to Counci) FIN12-S9 Uate; Junc 22,1999 Subject: Renewe! of the Deneral Pro{xrty end Liabiliry Insumnce Page 5 Program for the Town of Pickering for the Period July 1,1999 to luly I, 2000, Extendable l0 luly I, 2002 this is unique in Municipnl insurence and will provide limited levels of protection to Ihe Town under certain conditions for this "occurcence", The Treasury will meke appliwtion for the insurance, purchese snme, assuming reasonable ierms end cost, and chnrge the promium to the eppropriete account. o lusio Cost alone is not a rceson to alter en insurance progrem. The "low bidder" principal dces not apply in a business that relies upon protection wverage and service. Our present broker and inswance cartiers heve provided sound advice and good scrvice for many years. Decisions to a:ter the progrem or change insurers cannot be teken IighUy if the best interest of the Town and its retepuyers ure to be preserved, Traditionnl insurance must be purchased until, and if, a pool is put in pluce, therefore, renewal with Cowan's is recommendcd. ATTACHMENTS: t. 1999•2000 Insurance Program 2. Y2K Contingent Liability Insurance Prepurcd/Approvcd / Endorscd Ry; l6° (3illis A. Paterson Dircctor of Finance & Trei�surcr (lAP;vw Attechments Recommended for thc consideretion of Pickering Town Council .� �� / ` ✓�V � es J. ul Chief min tive 0 cer .',T7ACki1E?!� r. � TG REP�RT q,�1, 11•4q F�RANi{ CO�AN COMPANY LIIVIITED Insurance Managers For Public Entlfies 26g 4 COWAN STRE[T EAST PRINCETON•ONTARIO NQl 1 VO Mo 14, 1999 Mr. Gil Paterson, C.M.A., ��I��' 11�� Director of Corporate Service, Corporation of the Town of Pickering, I The Esplanade, PICKERING, Ontario L1V 6K7 RE: 1999 - 2000 INSURANCE PROGRAM Dear Gil: We are now pleused lo enclose four copies of our 1999 Insurance Report setting out Ihe Town's coverages on renewal togett�er with our recommendations. This Report contnins a Year 2000 "M1flllenn(um Bug" Alisinterpretatton of Dnte Exclusion Endorsement. Please pey specitic attention to the wording of the Endorsement and the Speciai BulleHn dated August, (998 N•h(ch is enclosed. Also enclosed is an Estimate of Values for your perusal. This letter serves to confirm �hat the Insurance Program is bound and covered, effective Renewal Data es set out in our Insurnnce Report. Please be advised ihnt the Automobile Liability Insurance Cenificates for the Insuring Company hnve not been issued. As soon as ihese are completed, we will fonvard samc to you. 1 will be cantacting you shortly to artange an uppointmcnt io present our curtent Report. We Irust tho enclosed will be found in order and look fonvard to rcceiving renewal inswctions, If you huve any questions, please do not hesilate lo call. Y sincerely, FRANK C W N CO IMITED /kg Da W. Reed, A.I.I.C., Encls. Vice-President. Telephone (519) 458•4331 ,', . Facsimlte (519) 458-4366 � . I , , _ 270 ESTIMATE OF VAI,IlES CO�PORATION OF THE TOWN OF PICKERING The inFormacion conwfned herein is confldential, commercial, flnancizl, sclentiflc and/or technical informadon thac ts propriewry co Frank Cowan Company Llmited and cannot be dlsclosed co others. Any such disclosure could reasonably be expected to result in signl8cant preJudlce to the competitive posidon of Fronk Cowan Company Limited, stgniflcant interference with its competitive posltion and/or cause it undue loss. May i 7, 1999 r �,: i' . !: EXHIBIT "A" 2'��, ESTIMATE OF BLIILDINGS AND FIXED EQllIPMENT IINLICENSED EQIJIPMENT CONTENTS CORPORATION OF THE TOWN OF PICKERING BWl01NGS AND STRUCTUAES GENIL�BflAflY 1 21240001 MUN.OFfICESILIBAARY 11,THE ESPLANAOE FIAE 2 22400002 FIAE HAII 553 NINGSTON RD. 3 2240-0003 FIRE HAU SIS WEIIINGTON ST, CIAAEM 4 224U-0004 FIRE NALI 1818 BAYLY Si. 5 2240•1830 STONAGE SHEO 1618 BAYLY ST. R 2240 BIJ5 FIAE HAII NIS HWYl7, BROUGHAM 7 2240•�288 FIAE HAII FINCH & �IXIE, PICKEAING MUSFUM 8 27d4•0083 ODUFElLOWS HAIL GAEENWOOU MUSEUM 8 27440082 GENEflAI STOAE GREENW000 MUSEUM 10 27440081 BUCKSMITH SHOP GREENW000 MUSEUM ii 2744W95 COIE HOUSE GREENWOOD MIISEUM 12 2744•0084 COMA.BAAN GREENWOOD MUSEUM 13 274400A8 BEEF flINO BAAH GREENW000 MUSEUM 14 27440088 BIBIE CHURCH GREENW00� MUSEUM 15 27440088 CNURCH SHEU GAEENW000 MUSEUM 18 21440090 BROUGNAM NOTEL OAEENWOOU MUSEUM 17 2744008A COUINS HOUSE GREENWOOU MUSEUM 18 2744•0102 STOAAGE SHED GAEENWOOD MUSEIIM 18 27440081 l06 HOUSE GRFENWOOD MUSEUM 20 27440088 LOIi BAAN GREENWOOD MUSEUM 21 27448148 GASISTEAM BARN GAEENlM00D MUSEUM 22 274M1-0101 AOMISSIONS BLUG GAEENWOOD MUSEUM 23 27441828 STOAAUE SHEU GAEENW000 MUSEUAi 24 27441828 PAVILLION GREENW000 MUSEUM ifi 27M PUTEABOUGH SCNOOL GREENIVOOD MUSEUM 1I81UpY YB 214fi-0103 LIBRAflY 1340 ROU�EMONT Ofl. 27 2745-0105 tIBRARY SIS N7IREVALE fl0, WHREVAL 1B 2746•8196 tIBHARY WIS WESTNEY flD, GHEENW00� LIMRS i ' � ,: s 22,217,100 644,200 178,600 804,400 2300 90,000 1,279,000 105,000 35,000 64,700 114,BW 21,A00 10,900 67,800 14,?90 198,700 98�900 18,400 78,700 87,Y00 198,700 224,000 4,400 18,400 6,000 BY7,700 98,700 328,700 �72 EXHIBIT "A" E3?'IMATE OF BllILDINGS AND FIXED CQl11PMENT IJNLICENSED EQ0IPMENT GONTENTS CORPORATION OF THE TOWN OF PICKERING �� 1 INGS AND STRUCTUflES TRANSPOATATIO 28 2315•0008 TRANSITIIVORKS CENTAE OEHSAN AO.W. 30 2720•�J001 SAND OOME DEASAN RD.W. 31 232o-0008 STOAAGE SHEO OEASAN flD.W. 92 29200010 SALT DOME DERSAN AO.W. 33 231Q0008 STOflAGE B1�6 OERSAN RO,W. 94 STONAGEIGARAGE OEASAN AO.W. PKS 8 RECILIB J5 2718•�11 COMM.CENTAEIl18 WIS LNERPOOL AD.S. POOL 78 2717 0012 OUNBANTON POOL WIS WHITES AD. COMPIE% 37 i1900085 RECAEATION COMPLE% 1887 VALIEY FARM RD. AAENA 3B 2715•0014 DON BEEH ARENA WIS OILIINGHAM A0. PAAKS 8 pEC 38 271A 0076 OYMISRS.CENTAE NIS KINGSTON A�. 40 2718 0071 COMM.CENTflE SIS BAYtEY ST.IWEST SHOREI 41 2718-0071 COMM.CEHTAE EIS BAOCK AU, BROUGHAM 42 27180018 PAAR BL00. OOH BEEfl PARK, BAOUGHAM 43 27180010 COMM.CENTRE EIS BROCK B0, CUREMONT 41 1718�0078 LB.CLIlBNOUSE WIS BROCK R0, CtAAEMOHT 45 2718-0018 FIElOHOUSE CUAEMONT PAAK 48 2718•1827 PICNIC SHEITEfl CUAEMONT PAflK 47 2718 COMM.CTflILIBIFHISRS. 48/1 OLO BAOCK A�,CUflMNT 48 4718-0OBO CUMM.CENTAE NIS HWYI7, GAEEN RNEB 48 Y7180073 COMM.CENTflE EIS GAEENW000 fl0, GAEENW00 50 271&1828 ST08AGE BLO�. BS GAEENW00� RD, GAEENW00 51 T71B-0074 COMM.CENTflE W�S SIOELINFI& M1.ZIAN 62 Y718•1826 STOAAGE SHEO WIS SIOEIINE/& 1ATIION 67 2718-0023 PAAK STOAAGE CENTENNULPABK 64 7718-001BFIELOHOUSE OUHMOOflEFAflK 66 2718-0026 FIElOHOUSE KIHSMEN PAAK UMRS � : �, �� ; 3,333,800 128,600 28,200 118,600 73,800 633,100 J,600,OD0 1,838,100 28,172000 8,167,700 452,600 371,300 207,000 15,200 530,400 82,300 8A,300 8,700 3,000,000 2�7.800 607,800 11,800 187,500 10.000 1.000 121,800 121,800 EXHIBIT "A" 273 ESTIMATE OF Bl11LDINGS AND FIXED EQtJIPMENT � IINLICENSED EQl11PMENT CONTENTS CORPORATION OF THE TOWN OF PICKERING BUILOINGS ANO STAUCTUAES PARKS 8 HEC 58 2718dB23 PICNIC SHELiEH NIHSMEH PAAK 26,7C0 57 2718 0040 STOAAGEIP•A BLO KINSMEN PARN LIMITS 10,000 58 47180081 MIIIEH HOUSE SIS VINITEVALE AD, WIIITEVAL 81,300 59 2718 0082 CHAISTIAN HOUSE SIS WHITEVALE RD, YMREVAL ACV 10,000 60 27180055 SUN HUT SIS WHITEVAIE A0, YAIREVAL 18,700 81 2718 8148 TRAIIER•CHANGRM AIEX ROBEATSON PAAK 8,000 82 2718•0041 STORAGE BlUO NIS OEASAN A0. UMRS i0,000 89 2718�0078 SiORAGE SHED NIS OEASAN AD. 14,000 64 flEC'L FLOOOLIGHTING AlL LOCATIONS 5W,000 65 TENNIS FLOODIIGNTING ALL LOCATIOHS 2BZ200 6B TENNIS PA05 8 FENCINO All IOCATIONS 478,400 87 CAEATNE PUY STRUCTURES ALL LOCATIONS 124,80f1 fi8 PLAYGAOUN�7 EOUIPMENT All LOCATIONS 26B,9W 68 BLEACHERS All IOCAlIONS 128,500 70 BALL OUMOND FENCINGIBACKSfOPS All IOCATIONS 306,W0 ARENA 71 GAOSS AEVENUE OON BEEfl ARENA LIMI�S 600,000 COMPIEX 7� GROSS REVENUE CEHTflAI COAE COMPLE7( LIMITS 880,000 73 GROSS REVENUE POOI COMPLE% IIMITS l00,000 74 GP,OSS REVENUE AREN� COMPIE% LIMITS 650,000 POOL 75 GAOSS AEVENUE UUNBANTON POOL LIMRS 100,000 MUSFUM 78 GAOSS REVENUE GREENW000 MUSEUM UMITS 84,500 GENEAAL 77 E7fTM EIIPENSE ANY ONE LOCATION LIMRS 1,000,000 78 AENTAIINCOME lIMR3 600,000 _ i , � � � 274 EXHIBIT "A" ESTIMATE OF BllILDINGS AND FIXED EQUIPMENT 11NLICENSED EQllIPMENT CONTENTS CORPORATION OF THE TOWN OF PICKERING CONTENTS AND EOUIPMENT ARENA 1 DON BEEfl AAENA CONTENTS & E�IIIPMENT COMPIE% 2 flECREATIONCOMPLE%CONTENiS FIRE OEPT. J FIRE NALI CONiENTSIFIRE�FIGHTING EDUIPIRADIO E4 GENEAAL 4 M�NICIPAL COMPIE% CONTENTS LIBRARY 5 BAY pIOGES LIBAARY CONTENTS 8 flOUGE Nlll IiBRAflY CONTENTS, 1340 flOUGEMONT �q. 7 GREENWOOD IIBRAAY CONTEHTS, WIS WESTNEY RO 8 CUREMONT IIBRAflY CONTENTS, 4841 OLO BAOCK RD. B WHITEVALE LIBRAflY CONTENTS SIS WHITEVAIE AO 10 MAIN LIBpARY, ONE TNE ESPLAN�E SOUTN MUSEIIM 11 GAEENWOOU MUSEUM CONTENTSIEQUIPMFNT 12 MUSEUM AOMIN.CTSIEOUIPIAATIFACTS PAANS 8 AEC 13 GENEflAI CONTENTSIEOUIPMEHTIAADIO EDUIPICOMM.CTfl CTS 14 UNLICENSEO PARKS d AECAEATION EUUIPMENT POOI 16 OUNBABTON POOL CONTENTS 8 EUUIPMENT TAANSPOflTAT10 • IB CONTENTSIEUUIPMENTIAA010E�UIP 123,100 , sozeoo 478,800 1,323,800 474,600 685,000 159,200 168,BW 80� 100 9,580,000 70,0� ' 25,000 344,700 648,800 41,000 218,800 � j, � :,�ijt -.. � � . . .. . t. . �. . .. � EXHIBIT "A" 2�5 ESTIMAZE OF BtlILdINGS AND FIXED EQllIPMENT ONLICENSED EQIIIPMENT CONTENTS CORPORATION OF THE TOWN OF PICKERING, CONTENTS ANO EOUIPMENT WOAKSIENB 17 WOAKSIENO.CENTAE CONTENYSIEOUIPMENTIRADIO E0. 18 MISCEUANEOUS BOAO EOUIPMENT 1B UNIICENSEO EUUIPMENT GENILIBRAflY 20 VAtUABIE PAPEBS GENEAAL 21 ACCOIINTS AECENABIE RECREATION 22 CHECKHOOM 1IA81LITY GEN. 23 DATA PHOCESSINQ INSURANCE MUSEUM 24 FINE ARTS ROATER UBAAAY 25 LIBAARY E%HIBRION FOAM SHOUID BE REPOflTEO TO U& 188,900 814,800 719,900 IIMITS 500,000 IIMITS 500,000 IIMITS 5.000 IIMITS 1,�OA.590 VALUED 2,000 VALUEO SCHEUULETOOETENMINE�CCUHATEWFOflMATION. ANYCHANGESOAOISCAEPANCIES ' i , i ?7� EXHIBIT "B° AIlTOT90BILE PLEET SCHEDULE (TOWN) CIERKS DEPT 1• 401 88 iONTIAC TEMPEST 2 300 83 GMC PICKUP J 401 87 CHEV. BlA2Efl 4 412 80 CNEV. C�RSIC� MAYOPS OFFICE 5 007 88 BUICK IESABAE FIRE PflOTECTN 8 500 51 FWD FIAE TBUCK IPABAOESI 7 501 78 FOAO AERIAL FIHE TRUCK 8 602 74 GMC TANK FIRE TRIICK 8 503 81 INT. PUMPEq (STANDBY) 10 504 BO PIEACE FIAE ;AUCK 11 505 73 GMC TANR FIRE TRUCK 12 508 78 INT. F�RE PUMPER 13 508 BB FOND PUMPEfl 14 509 73 GMC TANK FIRE TAUCK 15 511 BO PIERCE FIAE TAUCK 18 512 80 CHEVROIET EMEAGENCY TAUCK 17 613 B5 MACK Mfl BB6P PUMPER 18 615 85 FAIEGHTLINEp FIRE TAUCK 18 BB FAEIGHTLINEH FIflE TANKEfl 20 B8 FAEIGHTLINEfl FIRE TANKEfl 21 518 BB FAEIGHTIINEN FLBO PUMPEfl 22 614 81 IHT. RESCUE UNIT 27 521 88 CHEV. CAPRICE Y4 627 88 OOUGE PICKUP 26 5Y4 B6 OOOGE VAN 28 526 88 FOAO E%PLOAEH 21 628 87 FORD E)fPIOflER WORKS OEPT YB 825 8� FOA� E%Pl0R0R 28 818 B8 GMC JIMMY 30 820 81, CHEV. BU2Efl 31 821 81 CHEV. BUZEp 32 822 81 CHEV. BUZEp 33 828 88 FOAO ENPlORER 718238 REPI 18,000 552487 BEPL 21,000 185928 AEPL 2J,000 104186 REPL 20,000 4B4B41 AEPI 78,470 KK2838 NO PHYSICAL DAMAGE C15014 REPI 660,000 681248 REPL 168,000 A10027 AEPI 927,000 BD0538 AEFI 508,000 610287 REPL 168,000 A20873 AEPL 321,000 543048 AEPL �21,000 5514J7 AEPL 169,000 800581 AEM 609,000 1A8750 REM 102,000 OOZJ28 REPL 327,000 640731 REPL 306,000 8B05/A REPL 80,000 880550 AEPL 80,000 810.127 REPL 347,0� 315160 REPL 150,000 182188 AEPI 10,000 0024�J REM 21,000 287181 REPL 26,000 C005YB REPI �4,000 095872 AEPI 34,000 812804 REPL 32000 524285 NEPL 31,000 121847 AEPI 32,000 122i;f8 REPL 32.000 111883 REPL 32,000 A81138 REPI 3Z000 i ' i , �, ' � ROAOS DEPT 34 080 �5 081 3B 084 37 022 38 092 3A 078 40 079 41 080 42 021 43 082 44 083 45 OB4 48 OB5 47 O86 48 087 4A O88 50 O88 51 824 PAAKS & FAC. 52 702 63 708 54 108 65 107 58 101 67 728 68 709 58 722 60 140 61 741 82 744 83 745 8/ 748 66 720 ea �ze 87 818 EXHIB�T "B" AIJTOMOBILE FI,EET SCHIEDIlI,E (TaWN) 84 INT. OUMP T811CK 83 FOAD F350 STAKE 88 INT. TANOEM OUMP TAUCK 82 FORO E%PLOAEA 83 f0A0 F250 PICKUP 88 INT, OUIdP 88 INT. OUMP 89 INT. OUMP 88 CHEV. PICNUP Ai INT.OUMP 82 INT. OUMP 82 IHT. TANOEM DUMP 82 FORU PICKUP 83 DOOGETAUCK 83 FOAO TAUCK 93 FOAD iRUCK A3 INT. TRUCK 82 FOAO EXPLOAER A5 GMC PICKUP 88 CMC PICKUP 83 FOAD PICKUP 87 FOAO TRUCK 84 FOAD EXPLOAER 84 CHEV.IRUCK 87 CHEV PICKUP 97 CHEV.OUMP 88 GMC PICKUP 88 f0A0 AEFUSE PACKER 88 FOAD CREWCAB 90 FOP.O CREW CAB PICKUP 90 CHEV. PANEI TAUCI( B6 GAABAGE PACKEfl 84 CUBE VAN 88 GMC VAN 685258 A35232 528289 E15528 A91881 840084 890083 640092 150138 334110 418128 418734 A48845 171050 A97400 A97908 487185 E15258 529475 517J56 818240 810138 C98151 1�1757 21010J 508270 5�I1B7 A78690 �77188 A451J8 118538 A7158� 500775 526218 HEPI pEPI flEPI REPL flEPI pEPI HEPL flEPI flEPL flEPI REPL REPL AEPL flEPI HEPI HEPL pEPL BEPI pEPt flEPI REPL AEPL REPL PEPI REPL AEPL flEPI flEPI PEPI RFPL AEPL pEPt AEPI NEPL 277 114,000 95,000 126,000 3Z000 30,000 114.000 114.000 114,000 3U.000 114,000 114,000 125,000 30,000 35.000 43,000 43,000 114,000 26,000 24,000 24,000 sz000 21,000 28,000 1 i 4,000 24,000 38,000 22,000 114.000 25,000 25,000 25,000 120,000 35,000 25,000 A�MINISTRATION SHOUID C�REFULLY EXAMINE TNIS SCHEOULF TO OETERMINE ACCUIUTE INFORAIATION. ANY CH�NGES OH OISCAEPANCIES SHOULD BE REPOATEO TO US. r, ' I ' � � � ... � i�.� � � � . . �. .. . � . .i �.. . � • � . �. . . . . . . . . . .. i . � . . . . . .i; .. .. . 2�$ EXHISIT "C" AUTOMOBILE ELEET SCHEDIlLE (TRANSIT) 903 830 B18 817 818 810 920 A21 829 822 024 825 828 827 828 H07 829 H14 Hi6 H10 H11 H12 802 801 891 8�2 833 834 895 8J8 837 838 5 FORO ESCOAi 4 OAION BUS 9 OAION PUBLIC BUS 9 OAION PUBIIC BUS 9 ORION PIIBLIC BUS 4 UAION PUBLIC BUS 6 OAION PUBIIC BUS i OAION BUS 3 ORION BUS i OAI�N BUS i OAION BUS i ORION BUS 1 OAION BUS t ORION BUS ! OR�ON BUS i FOAO E950 HAN01. TRANS, I OAION BUS i FORO E950 NAN017AAN5 BIIS I FOAO E350 NAN01 TAANS ISPARE) I FORD E350 SCHOOL BUS : i0A0 ElF lOW F100A HANDbTRANS i f0R0 ElF 124 BUS • HAN�I TRAHS FORU SERVICE TAUCK IGAAAGEI FORO PICKUP OAION N 40' BUS ORION VI 40' BUS ORION VI 40' BUS OAIONVI 40' BUS OAION N 40' BUS OflION VI 40' BUS OAION VI 40' BUS ORION VI 40' BUS 1fi888B 0.11B2A 489868 558888 560888 581892 001137 001858 001871 001870 002244 002245 002745 031130 071133 7899� 031821 78384 40167 14851 000038 A51M2P Ai7b28 81685 600012 600013 600014 600015 800018 600017 600018 600018 AEPL REPI NEPL AEPL flEPI HEPL AEPI NEPL HEPL flEPI flEPL NEPI flEPI REPL HEM AEPI REPL REPI flEPI REPL REPL flEPI flEPI REPI flEPI flEPt BEPL flEPL REPL AEPL AEPI flEPL 14,000 188,000 188,000 188,000 188,000 188,d00 188,000 I88,OU0 188,000 188,000 1A6,000 I8B4O00 188,000 188,OOD 188,000 75,000 186,000 76,000 80,000 75,0� 68,000 BB,000 28,000 18,000 AOMINISTMTIOM SHOULD CAREFULLY EIIAMINE THIS SCHE�ULE TO OETEAMINE ACCURATE INF08MATION. ANY CHANOES OA OISCREPANCIES SHOUI� BE AEPOpTEO TO US. ' `, , : . t � I �� FRANK COWAN COMPANY UMITED 279 9tiY,.k, n� �.,, �, p sr� c,�;�w, p„�.�., O�r..a �OMPREHENSIVE INSIIRANCE PROGRAM FOR ICORPORATION OF THE TOWN OF PICKERIWG ■ PREPAItED BY: DATE: 1999 MR. DAVID W. REED, A.I.I,C., MP.. RANDY FISHER, B.A., F.I.I.C., C.R.M., VICE•PRESIDENT, VICE•� RESIDENT, FRANK COWAN COMPANY LIMITED, FRANK COWAN COMPANY LIMITED, PRINCETON, ONTARIO. PRINCETON, ONTARIO M�y 17, 1999 THIS IS A CONDENSED REPORT OF YOUR INSURANCE COVERAGES WHICH ARE OFFERED AS A COMPLETE INSURANCE PROGRAM. ANY CHANGES TO THE OVERALL PROGRAM ARE TO DE AGREED TO AS PART OF THE REVIEW PROCESS. NOTHING HEREIN ALTERS THE TERMS, CONDITIONS AND EXUUSIONS CONTAINED IN THE PRINTED INiURANCE CONTRACT. ur� eons.u+ua TNep�dr 1519) �SHlil TW !m I•lODIbS1000 !n (519) �SH]dA � . . �� . � . � � . � � . � 2.80 FRANK COWAN COMPANY LIMITED CORPORAI'E PROFILE Frank Cowan Company Limiced has been meeting the general insurance needs of Municipalldes, Hosplyls, School Boards and other public endtles slnce 1932. Our operatlons are centred in Princeton, Onwrio; a communiry convenlendy located near the 401 and 403 Highways in Southwestem Onwrlo. The Fronk Cowan Company dedicates its efforu solely to cllents In the publlc sector and has developed the experctse to meec their speclalized needs. We pride ourselves on being "Insurance Managers for Public Entides", where we manage the public sector ponfolio for a group of select Insurers whose repuwtion and flnanciai swblliry are second to none. in th(s un�que relationship, we have been able to create and oversee the Implementation of entire insurance program, wll4red to the speciflc needs of our cllents at premlum levels commensurate with the risks involved. Our Insurance and risk management services are provided to more chan 500 Municipalities and In addltlon to a large number of Hospiwls and to many School Boards, Public Utilities, Tronslt Operotions, Non•Proflt Housing Corporotions, Associacions for Communfry Living, Famlly 6t Children's Services, Communiry Colleges, Prlvate Schools and other public enticies. We are the leading insurance manager in Onwrio and have over the past 5 years expanded to Adandc Canada where we now provide our services to over 80 Municipal Cllents. ._. � . , i INSURANCE PROGRAM 281 I In developing our specialized Insuronce programs, we have found Ic necessary to develop our own manuscrlpt policles which meet the unique needs of our publlc sector clients. At Franic Cowan Company, we package our pollcies Inco a complete insurance program �hat provides protection for che Indivldual, protectlon against Ilablliry clalms and protecdon of assets. By providing our insuronce program as a complete package, we are able to eliminate che possibiliry of ovetlapp(ng or gaps In coverage. The rypes of broad coverages conwined In these areas include: PROTECTION FOR THE INDIVIDUAL ■ Accident Insurance for Councli Members ■ Accident Insurance for Fire•Fighters ■ Conflicc of Interest Insuronce • ■ Legal Expense Insurance • Broad Deflnition of Insured on ali poUcles to include Council Members, Employees and Volunteers PROTECTION AGAINST LIABILITY CLAIMS ■ Comprehensive Municipal Llablliry Insurance ■ EROrs and Omisslons Llabilicy Insurance • Environmenwl Impalrment Llablliry Insurance ■ Owned and Non•Owned Automobi:e Liablliry Insurance ■ Dlrectors and Offlcers Endorsemenes PROTECTION OF ASSETS ■ Replacement Cost Insurance for Assecs ■ Gime Insuronce ■ Physical Damage Insurance for Automob�les and Equipment ■ Boiler and Machlnery Insurance ■ Electronic Daw Processing Insuronce e i i FINANUAL STA6ILITY OF INSl1RERS The Frank Ccwan Company has managed the Publlc Endry portfollos far the following General insuronce Companles for many years thereby creadng a very stable market for your insurance requirementt. ■ THE GUARANTEE COMPANY OF NORTN AMERIG ■ LOMBARD GENERAL INSURANCE COMPANY OF CANADA ■ CGU GENERAL INSURANCE COMPANY OF CANADA • INSURANCE EFFECTED AT LLOYD'S LONDON ■ THE BOILER INSPECTION 8t INSURANCE COMPANY OF GNADA In the purchase of an Insurance program, it Is very Imponant that it be placed with flnanctaliy swble Insurance Companles. You want to have comfort that thoce Insurers wlll remafn in buslness and that they will have the capaciry to pay your clalms when they occur. Our three main Insurers are the Guarontee Company of North America, Lombard General Insurance Company of Canada and the CGU Insuronce Company of Gnada, as shown abave, These th;ee Companies are very svong and very swble. •4• . . . � � � � .. � . . . . � ( ,... - � . - . � . � � - � � . . . . , �� .� . . . � . � . . . - . . . .. . �'� . . . . . .. ...i: . . }j 28�1 VALUE - ADDED SERVICES The Fronk Cowan Company provides a wide array of services to complemenc che �nsuronce program. M of dxse servkes are Included at no addidorul coat to the dien4 RISK MANAGEMENT SERVICES This is one of the most important servtces that ls provlded to our cllencs. As a pioneer of many r(sk management concepts in the publlc sector, the Frank Cowan Company offers support and assiswnce to our clients in their expanded lnteresc and commitment to the development of rlsk management programs within thelr )urlsdicdon. Some of our key services in this area include the following� SEMINARS • We will make presenwtions to your board members, managers and employees, on the topiu of Insurance and Rlsk Management. These are wllored to meet the Individual needs of our cllents. ■ We wlll undertake period(c dewlled inspectlons of your properties and buiidin�. A formal report wlll follow which includes a photographic Inventory af your property and estlmated replacement values. Any haurds discovered wlll also be Identlfled and our suggested cortective actlon provided. COWAN NEWS ■ Newsletters wrltten by us containing articles of interest to our public sector clicnts are produced and dls;ributed throughouc the year. INFORMATION PACKAGES ■ These are available for yaur reference and are deslgned to deal wtth the popular issues and toplu uiat our publlc sector cliencs face. I.IABILITY ASSESSMENTS ■ We wlil asslst our clientt in analyiing thelr potendal to Ilabiliry In any number of sltuadons or activldes and provide suggested rlsk conaol measures to minlmize thelr expozure. CONTRACTUAL REVIEW ■ We are avallable to comment on the suiwbllity and effectiveness of Ilablliry and Insurance clauses contained within the varlous convaccs thac our cilencs enter Into. �.n CLAIMS MANAGfMENT We manage our cliena' clalms on behalf of our Insurance companies. This ensures prompt, effeccive, and efflclent response. Dewlled claims progress repores arP produced and can be organi�ed by rype of lou or department to suic the needs of our cilent. Our sophisticated claims management system offers our cllentc the following beneflts: ■ excremely close worfcing reladonship ■ clatms dealt with expedidously • extensive experlence In public sector insurance ■ selectlon and monitoring of experienced adJusdng and legal servlces TOLL-FREE TELFPHONE'HELP LINE' - i•800�265-9000 Our toll•free telephone number can be called from anywhere (n Canada. Our suff are experienced and trained co respond to your quesdons on publlc endry insurance and risk management matters. CU51'OMIZED SERVICE • We will wo�k wtth our cllena indivldually to produce dauments that are customi:ed;to reflect your individual :;eeds. na example of this servlce is the premlum breakdowns t'nat :oinclde wlth y��r organizational suucture. ; i i: ; _ /� I; ,:,; ,,, � . ; �. PROGRAM ENHANCEMENTS ■ vROreRTM All properry sub�limlts such as Valuable Papers, Accounts Receivable and Renc or Renwl Value increased to f 500,000. The Data Proceuing Insuronce coverage forms parc of the Property Insurance pollcy. ■ BOILER AND MACHINERY The Ilmics wl�h respect to Exva Fxpense, Wacer Damage, Ammonla Conwminadon, Ha�ardous Subswnce and Profeulonal Fees have been increued to S 500,000. ■ Y2K CONTINGENT LIABILITY INSURAN�E We are pleased to announce chac we have developed speclflc Y2K Condngenc Insurance for Municipalldes In respect co Third Parry UabIIIry Gaims for Bodlly In�ury and Properry Damage. A sepante letter of explanadon and an applladon for coveraQe will be malled to you shortly. 1�� ).� � l.,i . ,. , ; .. e . � . j j ; � 286 HIGHLIGHTS OF COVERAGE CI Att AC IWSIIQANf C SUMMARY OF COVERAGES LIMITS/AMOUNTS r�x�;-'c�sw�;rir , Munlcipal Llabiiity Umlt of Protecdon S I 5,000,000. Deductlble S 10,000. Etrort �nd Omiulons Llmit of Protectlon S 15,000,000• Deductib(e S 10,000. Non•Owned Automoblle Llmit of Procecdon S 15,000,000. Deducdble S 10,000. Envlronmen�ai Llablliry Llmi[ af Llablliry f 1,000,000• A¢areWtc S 2,000,000. Self•Insured Re[endon S I0,000. Comprehenslve Crlme Commerclal Blanket Bond S I,000,000. Money and Securldes - Blanket any Laadon S 100,000. Excess on Securldes S 100,000. Caunterfelc P�per and S Included Deposicors' For�ery f Included Audit Expense (Sub�limic S 100,000.) f Included Counclilors' Accident Accldennl De��h a[ Dismembermen[ f 100,000. Weekly Income • Tonl Diublliry S 500. Weekly Income • Partlal Dis�biliry f 250. Munlclpal Con8lct Reimbursement of LeQal Fees of Incerest md Fxpenses S 100,000• LeQal Expense Reimburument of Le¢�I Fees f 100,000• Mnual ABareWU S 250,000. ,e• , "' i HIGHLIGHTS OF COVERAGE CLASS OF INSURANCE SUMMARY OF COVER�GES LIMITti�r.tntiNTt 287 ' PART e � pROpERTY Properry Insunnce Tanl Sum Insured S 98,818,100. Deducdble f 500./ 10,000. Dat� Praeuina Insurance Refer co Rlder No. 2 Boiler and Machlnery Llmit per Accidenc • Comprehensive f 25,000,000. Deductlble f 10,000. PART C � AUTOMOBiLE Owned Au[omoblle (Town) Owned Aucomobile (Translt) Excess Automoblle (Town ond Tnnslt) Primary Llmlt S 10,000,000. Secdon 3 (nura v+ml Deducdble f 10,000. • Reimbursement Aareement Sectlon 6 (D�recc [omnem,donl Deducdble S 10,000. No Physlcal Damage - 195I FWD Flre Truck (Pandes) All Perlls Deducdble • 1998 Bulck Les�bre f 500. - All Other Vchlcles f 10,000, Prtmary Llmit S 10,000,000, Section 3 �TH� P�m1 Deducdble S 10,000. - Relmbursement Aareement SecHon 6 (DU�s canoero,donl Deductlble f 10,000. All Perils Deduccible S 10,000. Excess of Prim�ry Limlt S S,OOO,OOU. S 15,000,000. Any One Clalm Nu�E: Rlsk ManaQement SeMces (PropeRy Inspectlons, Llabltlry Haard Revlews and Loss Control Seminars u requlred) arc included In che toal premlum shown. 9• ( � 1 28� CORPORATION OF THE TOWN OP PICKERING COST ANALYSIS P�1K[A.»�GLWI�'�1� MUNIGPAL LIABILITY ERRORS AND OMISSIONS NON-0WNED AUTQMOBILE ENVIRONMENTAL LIABILITY COMP0.EHENSIVE CRIME COUNGLLORS' ACGDENT MUNIGPAL CONFLICT OF INTEREST LEGAL EXPENSE PARY 6`- PROPEl17 PROPERTY Includlna DATA PROCESSING INSURANCE BOIGER AND MACHINERY PART,G:�:AU�OMO¢RF, OWNED AUTOMOBILE (TGWN) OWNED AUTOMOBILE (TRANSin EXCESS AUTOMOBILE (TOWN) EXCESS AUTOMOBILE `� i (TRANSI'� RENEWALPROGRAM I999•2000 TERM f 67,487. I5,706. 269. 8,180. 3,423. I,J66. 800. 3,618. 47,290. 7,257. 24,3�8, 63,450. 200. 2,091. ANNUAL PREMIUM f 145.485. PLUS APPLICJIOLE TAXFS •lo• . � . � � � ` I i , CORPORATION OF THE TOWN OF PICKERING 28� 1999-2000 GENERAL INSIIRANCE RENEWAL COST ANALYSIS ANNUAL PREMIUMS (SAVINGS) ANNUAL PREMIUMS (SAVINGS) 1997•1998 5374,708. THREE YEAR RATE GUARANTEE 1999•2000 5245,485. (574,378.) 1000•2001 5245,485. (574,378.) r .11• �'i' � { 1998 • 1999 f319,863. (554,845.) 2001•2002 5245,485. (574,378.) 290 DllRHAM MUNICIPAL INSliRA1�CE GROUP CORPORATION OF THE TOWN OF PICKERING 3 YEAR RATE GllARANTEE Aher lenp[hy neQodadons wlth our Insurers we have been succeuful in obtalnina a three year Quarantee that rates wlll not exceed your current level sub�ett to your commicmenc to renew with the Frank Cowan Campany for chree succeutve one year [ertns. This rote puarantee must be subject to cettaln condiuons for your procecclon and �hat of the Insurers: They are: I. a reasonable claims experlence on your ovenll Insurance pro�ram. (6096 ar leu over a 5 year period) 2. any material chanae in rtsk, addidons ot physlal assets or increued responslbll(ry assumed by or auiQned w your Munic'paliry (Premlums tor chese chanae shall be charqed for sepantety). 3. no dramadc chanae In markecplace condldons. 4. condnued support from Fnnk Cowan Company's Insurers. This Is a�a g Quanncee only. We cannot, however, Quanncee that covenae and Ilmics out of Frank Cowan Company's concrol wlli remaln unchan¢ed �c next yar's renewal. If the Munlcipaliry, withln the three year pedod, conducts a maricet search for Insurance and Risk ManaQe�nent Servlces, the Fnnk Cowan Company reserves the rlaht to wlthdnw the three year rate Quanncee, aQain, wlthout flnmclol penalry to che Munldpaliry. It f, _ l , � . ..�. lL . . � . . � <�. - . RECOMMENDATIONS 2�1 I. ENVIRONMENTAL LIABILITY We h�ve �wtl�ble hl¢her Ilmlcs wl�h respect to Envlronmenal Llablliry Insunnce. We set ouc below the addidon�l annual coscs to increue the S I,000,000. Ilmit of Il�bliiry for any one clalm wlth an a�rc�te , Ilmlt of f 2,000,000. In any one policy perlod sub�ecc to a m�nduory sclt•insured retendon ot f I0,000. Oodonal Limits Addidonal Mnual Coscs f 2,000,000./4,000,000. f 3,954. S 3,000,OOOJ5,000,000. S 12,680. 2, FOLLOW FORM EXCE55 LIABILITY Consideradon should be ¢iven to increulna �he f I 5,OU0,000. Limlc of llablliry wi�h respect co �he Municipal Llabillty, Errors a� Omlsslons Llabillry, Owned Au�omobile (Town and Translt) and Non•Owned Automoblle pollcla. We set out below �he addidonal annu�l premlums required for opdonal Ilmlts: j�imit of Llabilicv Annual Premium s zo,000,000. s t,000. f 25,000,000. f 1,500. r Is• t' I 1 COMPRE�lENSIVE INSIlRANCE PROGRAM S[lMMARY OF INSURANCE COVERAGES 1999 - 2000 .,,. I � ; �; � , 293 j,, : ,, ,,� i; ; ` PART � COr�61NED CASUALTY POLOCY . �,: � .. �: �: , � 29Q MtJNICIPAL LIABII,ITY INSURANCE ■ Llmit - f I 5,000,000. ■ S 10,000. Thlyd Party Galms Deductible (IncludlnQ expenses) applies to each clalm. ■ Bodlly InJury, Properry DamaQe, Personal InJury and Employe�s' Ll�biliry. ■ insures the Town agalnst Ilabliiry Imposed by I�w I'ar dama�es beause of bodlly in�ury or dea�h to any person resuldna from the operadons of the Town and for damaQes to or destrucdon of property of o�hers caused by an accldent. ■ Insures the Town aQalnst Ilablliry Imposed by law for damaQa because of Personal In;ury sustalned by any person caused by false arresc, detendon or Imprtsonment, mallcious prosecudon, Iibei, slander, deFamadon of charatter, humlliadon, invulon of privacy, wrongful evlcdon, wronaful entry and dlscdminadon. ■ IncludedaslnsuredsareMembersofCouncll,Employees,5atutory0flicers,Fire•FI¢htersandVolunteers whlle pertotmin¢ thely dudes as such. Bwrds, Commissions and Commlttees including �heir Officers, Employees and Volunceers, are aiso Included as Insureds while performina their dudes. ■ Includes reimbursement oF le¢al fees to defend wron¢ful dismissal acdons sub�ecc to a Ilmit for any one clalm ot f 250,000. wl�h an annual aa¢reQate for all cialms of S 250,000., sub�ect to f 5,000. Deducdbie. ■ Blanket Tenanu' LeQal Llabillry Included. ■ Volunnry Properry DamaQe (P.U.C.) Included. ■ Volunwry Compensadon tor Employees or Volunteer Workers (f50. Weekly Indemnlry) Included. ■ Municlpal Marina Llablllry Included, ■ Malpracdce Covenae Included. ■ Llqunr Llcence Act of Onarto Included. ■ Environmennl Llabillry Excluslon. ■ The DeBnldon of Insured Is extended ta Include. ■ Swdent Workers of my Insurcd. � Indivlduals recrulred by the Insuced for the purpou of Instrucdna paNcipantt In varlous programs made �valubk by the Insured. ■ M�Inrerpreadon of D�te Excluslon Endorsement �pptla. i . �d. i _ � ERRORS AND OMISSION3 LIABILITY INSURANCE 295 ■ Limlt • S 15,000,000. ■ insures the Town agalnst Ilablliry imposed upon Ic by a court of Uvll Law for compensatory damages because of a wronaful att. ■ Covers claims made during �he Policy period a�isina from wrongful aca acurting durin¢ that pollcy perlod. Ic also covers clalms madc during the tertn of our Policy arlsing from wr. naful acts acurting prior to incepdon of our Policy, provided the Town had no knowledae of such wrongful accs when the policy was wken out. ■ WIII pay compenutory damages �mposed upon the Town u a result ot a negligent act, eROr or omlulon, In the adminlstra�lon of the Town's employee beneflc pro�rams. ■ The S 10,000. Deducdble applies only to the Insured Corporadon. All other Indivldual Insureds are covered f�om the flrst dollar of any lou. ■ Some excluslons apply such as clalms arisina out of breach ot convact, or negodadon/selecdon/awarding of a conaatt, or any claim arlslnp from Environmental Im�alrmenG ■ The DeBnidon of Insured ls extended to Include any swdent worker of any Insured. ■ Mlsintcrprendon ot Dace Excluslon Endorsement appiles. ,��, i ; , 2SB NON-OWNED AIJTOMOBILE lNSURANCE ■ Llmit • f I 5,000,000. ■ b 10,000. Thlyd Party Galms Deducdble (includina expenses) applies to each clalm, ■ Provldes leQal Ilabillry pratecdon agalnst tlaims a�sing out of accidents Involving vehltles no[ owned by the Insured but being operated on ics behalf. ■ Physlcal Damage insures the legal Ilablliry of �he Insured for damage to vehicles not owned by them to a ilmit of S 500,U00. wlch all perlls clalms be�na sub�ect to a f 500. deductlble. ■ Excess o( personal automoblle IIablliry Insuronce for Counclllors, Administracors, Swtutory Offlcers, Employees, Volunteer Fire•FI¢hten and o�her Volunceen �Qalnsc clalms arlsing out of an accident acurrina when such person Is drlvina on che busfneu ot the Town Includina drlvin¢ to and from work. Thls covenge applles when convutu�ily auumed by the Town, and Is only In exceu o( the Insurance on the �utomoblle d�lven by such person and In no event less than the le¢al minimum Ilmlt of S 200,000, and Is sub�ect co �he poilcy Ilmlt of che Town's Non•0•rmed Automoblle Pollcy. .ia• i_ " . , . I, � ENVIRONMENTAL LIABILITY INSURANCE z97 Limit ot Liablllry My One Galm Mnuol A¢�eQate Seif•Insured Retendon f I,000,000. S 2,000,000. S 10,000. ■ This poilcy protects the Insured agalnst Ilabillry caused by Em,lronrnenal Impalrment arlsin¢ out of their opendons for claims because of bodlly In�ury, property da�naQe or Envlronmenwl Impairt►ient. ■ Munlcipal Corporadons are exposed to thlyd party clalms (or et+vlronmenwl dama¢es adsing from, but not ilmlted to, such risks as the ownenhlp and/or operadon of: ■ waste dlsposal sites ■ grovel pics cr rak quarrles ■ salt and salt treated sand Including che appllcadon �hereof ■ weed and brush spnying ■ sewage systems • water syscems • underground fuel wnks ■ unlicensed equipment (e.g. road �raden) ■ The Envlronmenwl Liablllry poliry is w�itten on a Galms•Made form whlch means that [he policy wlll respond co a clalm FIRST made agalnst the Insured durina the pollcy period. ■ The self insured retendon applies to the to�al amount ot each cialm Including all costs and expenses. ■ The Environmenul pollcy Is a Liablliry conaact which provides protection (or �hird party clalms and, therefore, some expenses are excluded, Including, but noi Iimited to the followln¢: (a) Expenses incurred to clean•up, or repair, the Insured's own properry ar property rented to the Insured; (b) Flnes, penaldes and punitive d�m�¢es; (c) Llabilicy auumed by che Insured under any concract or apreement except any agreement wlth Her Ma�esty che Queen In Rlght of Onnrio as represented by the Minlster of the Envlronment. ■ Misinterprewdon of Date Exclusian Endorsemenc applles. .19• . . � � . ' I • � ' . . . � . ,� l. �. . �9g CRIMEINSURANCE Umlcs �re u follows: Commerclal Blanket Bond PuwQe whlch Includes:• f I,000,000, ■ Money Orders and Councerfeit Paper Cumency ■ For�ery � � ■ Audlt Expense (SufrLimit S 100,000.) Broad Fortn Money and Securitles • Inslde and Outside the Premises 100,000. Encess on Secuddes 100,000. � The bond Insures che loss of money, securides or ocher propercy susnlned through the fnudulent or dishonest acu of any of the Town's Employees, Members of Council, and Members of all Bwrds, Commisslons and Committees appolnced by and under the �urisdicdon of Councll, and Indivlduals who �re temporarlly hired for the wie purpose of coilecdn¢ revenues. Individuals to include balliffs appointed, conaac[ed or otherwBe cnaaQed. ■ Broad Form Money Insuros loss of monles and securldes sustained by the Town by �he actual desuucdon, disappearance or wronaful abstncdon thercof. ■ The audlt expense covenae provldes for the relmbursemen[ of reuonable expenses Incurred by the Insured to prepare proot of a va�id loss under �he poticy and Is In addidon w[he ovenll bond Iimit. ■ Mlslnterprepdon of Due Exclusion Endorsemenc applies. •=o• • . . � : ' l; ' j COUNCILLORS' ACCIDENT 299 Beneflts Pavabk are u follows: Principal Sum for Loss ot lih S 100,000, Caplal Sum for Dlsmembermenc 1 100,000. Weekly Indemnlry • Tonl Loss af Time f 500. (Payable for Ufe) Weekly Indemniry • PaNal loss of Time S 250. (Payable for One Year) Funeral Expenses S 10,000. Blanke� Accident Expenses f 10,000. ■ This pollcy insu�es one Town Mayor/Reglonal Counclllor, three Regional Counclllors (Durham)/Town Counr,lllor and three Town Counclllon and nine Libnry Board Members on a twenry•four hour a day basis whether engaged in Councll dudes or ochenvlse. ■ Benefla are payable, as descrlbe0 in che evenc o( accidenwl In�ury. Death from nauiral causes Is excluded. ■ A schedule of Dismembertnent Beneflcc Is set out In �he policy and payments are made in accordance wlth thls uhedule. ■ Weekiy Indemnides are payable in full and are not sub�ect to pro nra paymencs or eamed Income res[ricdons. ■ Blanket Accldent expenses Include Denal, Chlropncdc, Re¢istered Nurse, PodlaMst, Ambulance, Dru�s, Guuhes, eu. THESE BENEFITS ARE PAYABLE REGARDLESS OF WHETHER OR NOT THE INJURED PERSON IS IN RECEIPT OF OTHER BENEf1T5. •ti• - � � . � ' �i ; 300 MtJNICIP/LL CONFLICT OP INTERES'f INSURANCE ■ This form of Insunnce provldes tor the relmbutsement of k�l fees md expenses incurred by elected or oppointed membeis ot Councll who are char�ed under �he Munlcloal ConAltt of Inceren Att provlded that a court flnds: (1) there hu been no convavendon; or (2) conaavendon has acurred by reasoo of Inadvertence, remoteneu, or tnsl¢niflance; or (3) concrovendon has acurred by reawn of a bona flde error In �udgemenG ■ CoveraQe is provlded For 9096 of IncuRed expenses up to a maximum Iimlt of f 100,000. In respett of each Indlvidual Insured's clalm. ■ This insurance also applles to any member of a Board, Commission or Commlttee ot the Insured as de8ned In The Munlclpal Conflict of Interest Acc. .__. ' ~ :, ; � � ' . i ,:: LEGAL EXPENSE INSURANCE ■ This form otlnsunnce provldes for the reimbursement of le¢al fees Inciudlna disbursemencs Incurnd by Munlcip�l Corporadons, elecced or appolnted members, employees and volunuers, for char�es under any Sracute of che Province of Onvdo (excepc for the Hiahway TraHic Act and �he Municlpol Con81a ot Interest Aa). ■ Examples of the more comntun Swcutes where such exposure exists are: ■ Envlronmenwl Protection Att ■ Freedom of Infortnadon and Procecdon of Pdvacy Aa • Occupadonal Healch and Safery Act ■ Onwtlo Water Resources Act ■ Pesticides Att ■ Munlclpal Elecdons Ac[ ■ Covenae is provided for 90% of leQal fees �nd disbursements up to S 100,000• sub�ect to an annual ��reQace for all claims of S 250,000. ■ Covera¢e �pplles to both Gullry md Not Gullry outcomes. •27• � � , � . 1 � �.... . 302 PART B .:,: i1 ' jr .. � � ( � t i PROPER7"Y INSURAKC� 303 Toai Amount of Insurance u per schedule of covenae: S 98,818, I00. Deducdble: S 500./10,000. HI¢hllahts o� the Cover orovided are: ■ Blanket Amount on insured Property ■ Replacement Cost on assets unless speclflally tlmlted or excluded ■ All Rlsk Coven¢e ■ Replacement on same site not requlred but senlement cost shall be based on replacing properry on same slce ■ CovenQe provlded for increued cost of repalrs ar replacement to the damaged portlon of the properry due to enforcement of any ByLaw, ReQuladon, Ordlnance or Law ■ Pertnisslon B�rmted to m�ke �ddidons, �Iteradons and repalrs, for properry to remain vacant, for unrestrlaed use of the property and to keep and use such materlals as are usual to the Insured's business ■ 60 Day nodce of cancelladon � Some property �nd perlls �rc excluded from cover�Qe (see pollcy for all such excluslons) unleu speciflalty Included and ciced in che pollcy. ■ Misinterpreqdon of D�te Ezclusion Endorsement �pplies. .2s. . ' � , � � f �: , �. j � i , . 304 ❑ DATA PROCESSING INSl1RANCE - RIDER NO. 2 Dan Processina Systems and Equlpment S 1,424,900. Tn�� Inciuded D�a Processina Medla Limlc 34,b00. Tnnsit Included Da� Processlna F�ctra Expense Umit 50,000. TOTAL f 1,509,500. Deductlbte 10,060. Svstems and Eauloment • Insures a¢alnst All Risks of direa physlcal loss or damage to Dan Proceuing Systems and Equlpment, Includina loss or damaQe while In vansit or cemporadly removed from che premises. Covers loss or damaQe caused by mechanlal fallure, faulry construcdon, deslan errors, dryness or dampness in atmosphere, corroslon, rust, short circulc, blow-ouc or acher electrical disturbances; dlshonett, fraudulent or crlminal accs of employees, earthquake and flood damaQe. ■ Daw Proceulna Medla • Insures aQalnst All Rlsks of dirett physlcal loss or damaQe to daw processing medla Includln¢ loxs or damaQe whlle in aansit or cemporarliy removed from the premises. ■ Extra Excense • Idsures the neceuary Ex[n Expenu incurred by che Insured In order ro condnue as neuly as pncdcable the nortn�l operadon of ics busineu, Immedi��ely tollowina damaQe to or destructlon of che Insured dan praeuina system Includina equipment, u a direct result of all tlsks of physlcal lou or damaQe. ■ Properry newty acqulrcd wlll be �utom�dc�lly covered providinQ nodce Is �iven to the Insurer promptly. In addidon, the Insured shall revlew the �bove v�lues annually and report any such changes to �he Inaurcr. ■ The deducdble will appy to � cl�im under my of �he Insurina Aareements or a combinadon thereof and wlll be walved It a ciaim �Iso presented under m Automobile pollcy whlch Includes damage to Insured ProPenY• ■ Malntenance aQreement on equlpment not requlrcd but, If not awllable, a deducdble (minimum ot i 1,000.) wlll appty to losses due to bre�kdown or dlsturbance unleu the pollcy deducdble stated abave is areacer In which case the policy deducdbte sh�ll �pply. ■ Mislncerpretadon of Date Excluslon Endorsemen[ �pplies. •16• r � I : I 1 SCtiEDULE OF COVERAGE e�sis or �oss SET�I.EMENT � DESC0.IPTION APPUCAlLE RIDER NO• I . I� 6Anket Amaunt m Pmperry Imuredt PeWcemenc Cat (euludlnt hemt �DKllkalty Imured) 2. SpeclAc Llmh of Ircu�nce on �he fdbwlnp (+) Fln FI�U, Brou�fum 14pl�cemmt Con (6) P�Ac StonR �ndln�, CemennUl hR Repluement Ca[t lc) Sanp �nd P.A. Bulldln� Klromen P�Ac Repl+ctment Cat (d) Stonp BulWlnp N/S Denan Rwd Rep4cement Cat (e) CANJ�n Flawe, S/S Whhmk Rwd Mwl Cnh Vilw 3. Umh on Vitwbk P�pen� �. UmltonAccana 0.aeMbki S. Llmh ot Fwn Fap�me Irourtd u My One louUon� 6. Businett Inump�bn • Grmt Revenue: 7� Rent a Rennl V�lue Fortni 8. Q�akraom L4blllryt • On NWlhy Impaed by bw upon d�e Imurtd fur bu a Mm�{e to penaul poperty ol odun Includln� confwbn of �oam onry whik iuch piopem b In che cuswdy ol du Imurtd u Wike or ahenvlse in the coune ol the Imurtd4 �McMroom opentlon. 9. It b undenwod +nd apeed d��i •QiDANR IFASWG GNADA lD1IiFD , B Incbded a m Addhb�ul �MUrtd wIU� rtipett a rAe Model 211 E OR kt Reu wiM Accessak�. It b Nrthe� understood md �peed thn W1a nakt olpnceM�tion s1uA be 11ven to dtlWnk Lenln{ llmhed. 10. It b undentood �nd �peed tlut whh mprtt to troupum Communky Gnue, Mw�lum flrt F1�tl �nd l�br+ry md Altau Canmunhy H+tl, the ImuRd dutl nid: fler M�ktry du Queen M 0.1�t of Un�d� rtWeimud by �he Mlnbtry of PuNk Worlu md Capon�lon of �he Town of PkkeAn�. ID I. D+n Ramint Irou�nce RIDER NO• 7 I. flnt Ms Fami 2� Lon If inY� wbh roP� tn Ne hem� u Der bt on Ak, b NY+�k m•ROYAL OHT/WO MIISEIM', a �helr InuRn mry �ppeu. .21• � � 4� ( ��t I � .,t� :�fr, . ;, ; , 305 LIMIT 00. AMOUNT OF MSURANCE f 9t,190,I00. J0,000. 7,000, I0,000. 10,000. �0,000. 500,000. 500,000. I,000,000. 2,SS1,500. 500,000. 5,000. 1,509,500, t,OW. 3 76 saEUUt� oF c.ov�ucE e�su or �oss fETfLEMENT IIMITORAMOUNT J� pESC0.1PTI0N � � /�PPI.IGAALE QF MSUMNCE RIDER N0, � I. Eddbhbn Fam� /u Per Wu MoNded DEDUCTIBLESi AppIk�DN m Alder Na I�nd 2 j1QQQQ, � dKCkioomN�U�Ephy ' f 500• Mak+bk w Rider Na. S s 4 �O�s In no event ilup �ht twl deducsibk euad f 10,000. �n +iry ont acurtence. TOiAL AMOUNT OF MSURANCE f 98,81B,I00. .�,: , "` 1 � �e . �. . �:��;� r��'-' . , � � . i �� ,; -- BOILER AND 1rfACHINERY INSURANCE Limit per Accidenc • Comprchensive Exv� Ezpense Wacer DamaQe Ammonio Conpmin��on Expedldng Expenses Huardous Subsrance (Includln¢ PCB Connminadon) SpollaQe • Goods under Re�tQendon Gross Revenue 307 S 25,000,000. 500,000. 500,000. 500,000. Included 500,000. 50,000. • Atl BulWinp md Fxllida, creenwooe Muse�un, P�ctntnr 94,500. • Don Bev Ardu, W/S Blilindum Rwd, Pkkd1N 600,000. • Swlmmin� Pool, Reu of Dimb�rton Hl�h khooi, Whln SWe Rwd u Sheppud Ave+we, Pkkatn� 100,000. • Pkkerin` Recreubn Complac, 1867 Villty hrtn Rwd, Pkkerin/ I�740,000. Profeulonal Fees 500,000. Dan and Medi� 10,000. ByLaw Caver Included Deduccible 10,000• ■ Comprehensive Blanket Covenae provided (Blanket all Laadons) Excludina Unlisted SufrSndons. ■ Insures For sudden and accidenol bre�kdown to pressurc veuels, mechanial ob�ecct and miscellaneous electrfal appantus. ■ Breakdowns Insured would include crocklnQ, bul¢Ina, bumina, exploslon, mechanical breakdown and eleccrlcal bumout. ■ Insures both damaQe to equipment ud to other properry, resuldna from these rypes ot breakdowns. Sepante Boller and Machinery Insur�nce ls neceuuy, bec�use Property pollcies nortnally exclude chese rypes of loss. ■ The bazis of recoveiy from m Insured lou B ropalr or repluemen[ cost. This ellmina[es the deprecladon faaor. ■ Bro�d Fnrm Deflnidon of Accident proNded. ■ New laadons �utomadcally covered Excfudlna Sub�Sadons. ■ Newly Insnikd obJects oro covered ExcludinQ Sub�Sadons. ■ Inspactlon and Certlfladon Service ls provlded u requlred by I�w. ■ Compuur Conunl Equipment • covenae Is provlded for breakdown of equlpment whenever It Is used solely to control or operate an Insurcd ob�ect. 29 • � '. ` _ ! t ; 3Q$ 8016ER AND MACHINERY INSIJRAi�➢CE ■ WAITING PERIOD • Gross Revenue • First 24 houts �her the Commencemenc of Lt�blllry with rcspK� w ail Insured ob�eccs. ■ Llmiced Cover. All Balier md Su�m En�lnes wl�h rcspea to Steam 8om, Greenwood Museum, Pickerina only. ■ Ekctronic Date Reco¢nidon Wordlna �pptla. ,. \, ,� •JO• t I 1 PART C , :,,. . , i � .; 309 �10 AIITOM081�E FLEET INSURANC@ (TOWM) ■ Prfmary Limit - f 10,000,000, zny one II�bIIiry clalm. • ■ f IO,OOO.Sectlon3Thl�dParcyDeducdble•RelmbursemcncA¢reement(Includlnaexpenses)applles :o each culm. ■ Thlyd Pury Ll�biliry Insures che Ilabltlryof the Town for Bodily In�ury or Properry DamaQe adsinQ from the use or aperadon of all Iicensed vehicla owned by the Town. ■ Sectlon 6• Direct Compens�don Deducdble � Property Damage (to the extent not at•fault) for damaQe to own vehlcles provided u per S�a[ute sub�ect to a S 10,000. Deducdble. ■ Compulwry Sptutory Accident Beneflcs provlded u per Swtute. ■ Phvsial Damaae: No Physical DamaQe Deducdble applicable to 1951 FWD Flre Tru:k (Pandes). f 500. All Perils Deducdble appliable to 1998 Bulck Lesabre. f 10,000. All Perlis Deductible appllcable w All Other Vehlcles ■ Insures all iicenscd vehlcles owned by �he Town for physlcal damaQe as indicated above. ■ Replacement Con covenae proNded on all rcqulred vehlcles (Thus no deducdon for deprecladon for repalrs or replacemenc of vehlcles). ■ Newly acqulred vehicies :rc aucom�daliy covercd. • CoveraQe Is extended co Include: ■ Inapproprl�uly Iicenud drtvets. • Permlsslon to arty explosives. ■ Pertnisslon to rcnt or leue. ■ Dama¢e auud by frce�lna of Flrc•Flahdna ApWntus. � Permiulon to arty passenaers tor compens�don. . 7t . , , I ' ; AUTOMOBILE fLEET INSURANCE � � �� (TRANSIT) ■ Prlmary Llmlt • S 10,000,000. any one Iiablliry clalm. ■ S 10,000.SeNon3ThlydPartyDeducdble•ReimbursementAgreement(Includingexpenses)applles to each clalm. ■• Third Party Llabiliry Insures the Ilablliry of the Tnnslt for Bodily Injury or Properry Damage arlsinQ from the use or oper�don of ail Iicensed vehicles owned by the Translc. ■ Section 6• Direa Compensadon Deducclble • Property Damage (to the extent no[ at•fault) for damage to own vehlcles provided as per Stacute sub�ect to a S 10,000. Deducdble. ■ Compulsory Swcutory Accldent Beneflcs provided az per Statute. ■ Phvslcal Damaae S t0.000. Ail Perlls Deduccible ■ Insures all Iicensed vehlcles owned by the Transic for physical damage as Indicaced above. ■ Replacemenc Cost coverage provided on ail vehicles (Thus no deducdon For deprecladon for repairs or replacement of vehlcies). ■ Newly cqulred vehlcles are automadcally covered, ■ Coveroge is extended to include: ■ Inappropriately Ilcensed drivers. ■ Permlulon to carty exploslves. ■ Pertnluion to renc or lease. ■ Pertnlulon to carty passenQers for compensadon. .37. I : 1' 312 EXCESS AUTOMOBII,E POLICY ■ S 5,000,000. Exceu of Pr1m�ry Umit f 10,000,000. ■ Follow form of pdmary covera¢es: Owned Automobile Fleec (Town and Tnnsit) . � � .. . . , �-; F . �:+ /• � ,j ]� E. t t t �F �" . � - �' ,y-.�� . . � . ` � ,��-�. - . ��, { � �: � . . � �� ; L�� . �. =if 3 ! ,. 5}' `�n�l- "�t e !_ - t�' �," - < �_ ,i L �� , , t:' -iz- ' ��:ll � �:` ,at ,'F tf z i � , `;' f. �r �< `'�" �fiz , 1i. r � JI• Y' :�� ' � � L ` !,� .G ` 3 r �._ , � i� � '., lr^, t n '. � , ��.a � �.. �� . � i 4 Lt .� � f {Y, ' t i k {� „ � t� a i Y�AR 2000 "MILLENNIIlM Bll�°' MISINTERPRETATION OF DATE EXCLIlSION ENDORSEMENT Effective with your renewal documenu a MISINTERPRETATION OF DAYE EXCUlSION ENDORSEMENTwill beattached tospeciflc policies. Insurers have deemed it necessary to include this endorsement in order to ciartfy coverage under all poltctes of Liabildty (including Errvtronmental Liablliry and Errors et Omtssions), Crime, Boiler 8t Machinery, Property and Electronlc Daw. Witt� respect to the Property and ELectronic Data policies this exclusion will not apply to losses resulting directly fpom certain Named Perlls Iisted tn the endorsemerit. •as• ' ; � , i , .� � A HTTACHhIEh �;: _� i:�r�1T a f�f! ��9 �' FRANK COWAN COMPANY LIMITED Insurance Managers For Pub�ic Enflties 4 COWAN STREET EAST PRINCETON•ONTARIO NOJ 1V0 RECEIVF� T�wni pp air,Kcp � 25, 1999 Corporution of the Town af Pickcring MAY 2 8 1999 One The Esplanade FI NAiV CE Pickering, ON LI V 6K7 Adendar. Gll Palerso�h C.�1I.A., Direcmr of Flnance / Trrasurer RE: Y1X Contingent Liabiliq� lnsurance ls now avaifabfe: We are pleased to mmounce that «�e ha��e developed specific Y2K Contingent Liability Insurance for municipaliHes in respect to third purty liability claims for bodily injury and praperq� Jamage. During the summer of 1998, most insurcrs and their advison� organi�ations look the posilion that thcy would not covcr Y?K liability claims and bccausc of ihat posilion. it bccamc mundatory fur us lo add thc "Misinicmrctalion of Datc C:xclusion" endorsement lo ali policics. Although wc ��cre unablc �o prevent ihe uddiiion ol'thc exclasion w thc palicy. ��e lxgan working «•ith our insurcrs to tinJ a aay to prucide a ti�nn of 1'?K co�cr ��ilh rcasonablc rates and dcducliMles. A1 �hc same lime, ihrough bulletins anJ scminars, «c cncouragcd you to managc ihc Y?K risk hy ia�;ing all nccessaq• s�eps to cnsurc that your oExrations nrc campliunt. Like us, you have probably received o lot of infunnation on insurnnce nnd Y?K nnd huve found much of it to bc confusing or nmbiguous. Our gua� has txcn io providc you with uscful, casy lo wdcrotand infomiation and to crcatc a prcxluct that cicarly states a�hat it does and docsn't do. We believe thnt much of the CannJinn public scctor has �aken a responsible position by committing considemble re ,ources to resolving its Y2K probicros, Mnny municipalities hnve established and implemem:J formal Ycar 2000 Action Plans, including th� development of fotmnl contingency plans. I3ecause of this, we nre able to offer specific Y2K Contingent Liabiliry Insurance which will pro�•idc you with protection against accidental and unexpected claims. To our knowlcdge, therc is no olher comparable Y2K coverage presently available in the insurance market for public entities. Telephone (519) 458-4331 . Facslmile (519) 458•4366 . I � This wver, which is exclusively uvailnble ro Cowun municipal nnd hospiwl clients; is yet another exwnple of ow continucd commitment to responding to your changing needs by offering you the best ovuilable insurance program and risk mnnugement udvicc, [ am enclosing a Y2K Rating Applicution. Please complele and retum to my uttention. We will then be in a position to provide you wilh a cost quotation for the coveragc ns oudined. for more infortnation or details rcgarding this policy, ple�se contact me, or call our direct help linc at I-800-?65-�000. Sin ercly, FRA\K CO A� 0\IPANY LI�IITED David V. Reed, AIfC �'� Vic PresiJent ,� ;� � � �� , `• F-�:;. 1 h„; ; :�� . " - I . , �.� � I i 315 FRANI� COWAI�I COMPANY LIMITED APPLlCATTON FOR MUMC/PAL Y1K CONTlNGENf LlAB!lJTI' POLICY THIS IS A CLAIMS MADE POLICY ANL IS LIIvIITED TO CLAU4S FIRST MADE AGAIIJST TKE INSURED DURING THE POLiCY PERIOD NAME OF APPLICANT: ADDRESS: IN ORDER FOR THIS COVER TO APPLY CERTAIN PROVISIONS MUST BE MET INCLUDING THE FOLLOWING: You have carried out the steps in the following Year 2000 Action Plan, i. Assfgned appropriate senfor menagement to be responsible for the project. 2. Complled an inventory oi all herdware, sohware, embedded systems and devices. 3. Assessed the remedles needed to bring the systems into correct dete compliance. 4. Developed an action plan to make the changes, with set priorities and a timetable. S. Ailoceted the sources and (undfng required to complote the schedule as planned. 6, Implemented and monitored the plan, ensuring that the critical milestonas were mat, 7. Tested all revisiona, upgrades and replacements before placing them into production. 8. Teken all practicable stepa to ensure all key auppliers' systems were in complience. 9. Developed a contingency plan, COVERAGE UNDER THIS POLICY MAY NOT APPLY IF ALL OF THE ABOVE PROVIS(ONS ARE NOT MET. The total limit of liability available, is S 3,000,000. per claim/S 6,000,000. Annual Aggrcgate and wUl be subjcct to the sazne Ikductible u carried under your Municipal Liability policy or a minimum mandatory deducdble of S 5,000. whichever is greater. MMI ' � i CAUTION: Tlils policy contains strict provisions rcgazding Y2K prcparedness. Failun W be compliant with these provisions can nsult in no coverage being affbrded or denial of coverage. (PLEASE PRIN7� NAME OF INSURED/APPLiCANT: NAME OF INDMDUAL VJITH SIGMNG AUTHORITY: POSITION/TITLE: SIGNATURE; DATE: The individual compledng and signing this epplication verifies that he/she hu rhe au�horiry to bind the applicaat to the ternu, provisions and conditionc contained hercin. ,' I , , i .,