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Home My WebLink Aboutresolution.council.047-14 RESOLUTION 37 (Series of 2014) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING CONTRACT BETWEEN THE CITY OF ASPEN AND LOCKTON COMPANIES AUTHORIZING THE CITY MANAGER TO EXECUTE SAID CONTRACT AMENDMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a contract for Burlingame Phase IIAii construction insurance coverage between the City of Aspen and Lockton Companies, a true and accurate copy of which is attached hereto as "Exhibit A"; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves the contract for Burlingame Phase IIAii construction insurance coverage between the City of Aspen and Lockton Companies, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Youncil of the City, of Aspen on the 7th day of April 2014. AN Ste en on, Ma I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held April 7, 2014. Kat n S. Koch, City Clerk Exhibit A: Burlingame Phase IIAii Construction Insurance AN INSURANCE PROPOSAL Prepared for City of Aspen for the Burlingame Ranch Phase II Project — Vertical Phase IIAii Lockton Companies tbanksyou for the opportunity to discussyour insurance and risk managementprogram. This summary is a brief overview of thatprogram and is bared on the exposure informationyouprovided. Please refer to thepoluies for complete terms, conditions,k'mitations,definitions,and exclusions. Higher limits may be available upon request. Lockton Companies does notguarantee,or make any representation in regard to,and expressly disclaims rerponsiblldty for,the financial condition of insurance companies with which we place business. Any rating information contained in this document has been obtained by a third par�,rating agency,and we do not represent or warrant its accurate. Lockton®Companies 8110 East Union Avenue,Suite 700 Denver, CO 80237-2966 Phone (303) 414-6000 9 Fax (303) 865-6000 TABLE OF CONTENTS Page AccountManagement Team...................................................................................................................................... 3 ImportantIssues........................................................................................................................................................... 4 Acknowledgement........................................................................................................................................................ 6 Summaryof OCIP Quotes......................................................................................................................................... 7 Lockton Administrative and General Services........................................................................................................ 8 Commercial General Liability 11 Excess Liability 18 Contractors Environmental Impairment Liability.................................................................................................. 20 Builders Risk(including Earthquake and Flood 24 OCIP Financial Summa 28 57221:City of Aspen-CIP\\V-(Phase 3)Budingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-2 ACCOUNT MANAGEMENT TEAM Lockton Companies 8110 East Union Ave.,Suite 700 Denver, CO 80237 Phone (303) 414-6000 W Fax (303) 865-6000 EXECUTIVE VICE PRESIDENT, PRODUCER: Marc Beasley 303 414-6406 E-mail address: marc.beasley @lockton.com VICE PRESIDENT, OCIP ACCOUNT EXECUTIVE: Stacy Pocrass............................................................................................(303) 414-6174 E-mail address: stacy.pocrass @lockton.com OCIP ACCOUNT MANAGER: Matt Goss..................................................................................................(303) 414-6215 E-mail address: matt.goss @lockton.com OCIP ACCOUNT ADMINISTRATOR: Emmy Jennings........................................................................................(303) 414-6483 E-mail address: emmy.jennings @lockton.com OCIP ADMINISTRATOR: Sandy Gibbons.........................................................................................(303) 414-6011 E-mail address: sandy.gibbons @lockton.com OCIP ADMINISTRATOR: Diane Gibbons.........................................................................................(303) 414-6408 E-mail address: diane.gibbons @lockton.com 57221:City of Aspen-CIP\W-(Phase 3)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docs City of Aspen/March 14,2014-3 IMPORTANT ISSUES Lockton Companies thanks you for the opportunity to handle your insurance and risk management program. This insurance proposal provides an overview of that program and is based on the exposure information you provided. Please refer to the policies for complete terms,conditions,limitations,definitions,and exclusions. Higher limits may be available upon request. As part of our commitment to you,the following provides a summary of important information you should know: Broker Disclosure Lockton represents you as an insurance broker in soliciting insurance coverage proposals from insurers and placing insurance contracts on your behalf. Lockton may be eligible to receive the following types of compensation as a result of the sale of insurance to you: ❖ Base commission (may differ depending on the product,insurer,and/or other intermediary) ❖ Additional compensation based upon other factors,such as premium volume placed with a particular insurer or through a particular intermediary and loss or claims experience ❖ Interest or investment income on premiums or return premiums temporarily held by Lockton •3 Service fees or other compensation from premium finance companies for administrative services provided to, or on behalf of,the premium finance companies relative to the financing of client insurance premiums Communication Any requests that you make to confirm,bind,or alter your insurance program through e-mail,voice mail,or other automated systems will not take effect until you receive written communication from your Lockton representative. Claim Reporting Requirements Changing market conditions have had an adverse effect on many carriers'claim reporting terms and conditions. Many policy forms now include verbiage that severely restricts or negates coverage should a carrier not be immediately notified of a claim or potential claim. Refer to your policies for a more complete explanation of your carrier's reporting requirements. FEMA Flood Zone Information This proposal is based on information regarding the FEMA flood zone determination for your property that is currently available to Lockton. Such determinations are subject to change at any time and Lockton cannot be held responsible for any changes in the flood zone determination reflected herein subsequent to the date of this proposal. State Assessments and Surcharges Your policy may be subject to state assessments and surcharges that may alter your base premium. Although we routinely try to gather this information in the quotation process,it is not always available. 57221:City of Aspen-CIP\\C'-(Phase 3)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2011-4 IMPORTANT ISSUES Nonadmitted Carriers (Surplus Lines) This is to inform you that some of your policies may have been placed with a nonadmitted carrier. If all or part of your coverage is written through a nonadmitted carrier,it will be so indicated in the individual coverage section. Nonadmitted carriers are neither licensed by nor under the supervision of the state department of insurance. If a nonadmitted carrier becomes insolvent,it is unlikely that the State Guaranty Fund will respond (State Guaranty Funds typically only apply to admitted carriers and provide limited,if any,coverage). For an overview of each state's provisions,go to: http://ncigf.org/GF-laws-and-surnmaries-by-state 57221:City of Aspen-CIP\\C7-(Phase 3)Burlingame Ranch Bldgs 5-7\1'rops and Sums\prop 0314.docx City of Aspen/March 14,2014-5 ACKNOWLEDGEMENT Proposal Acknowledgement Please let us know if you have any questions concerning any definitions,terms, conditions,or exclusions contained in this proposal. I have read the proposal and acknowledge that the terms,limits of liability, and exposures are accurate. This proposal must be accepted by April 1,2014 otherwise it may be subject to renegotiation and may result in different terms or conditions for which Lockton Companies cannot be responsible. Acknowledge e Signed Title Company 57221:City of Aspen-CIP\\C'-(Phase 3)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-6 SUMMARY OF OCIP QUOTES Name of Premium Policy Insurer Policy Number Policy Term Limits Type of Coverage incl.taxes,fees, terrorism Specific Project Wrap- Houston Casualty HIZPC30065-00 48 Months $2,000,000 Policy Limit—Each Occurrence Up Liability Company— Phase IIAii $2,000,000 General Aggregate Non Admitted $2,000,000 Products Aggregate/Completed Operations Rating:A+XIV $2,000,000 Personal Injury/Advertising Injury $50,000 Fire Legal Liability Excluded Medical Payments $64,272 $25,000 Deductible—Per Occurrence 25%Minimum Earned Premium at Inception Wrap-Up Excess Ironshore Specialty 001346600 48 Months $10,000,000 Each Occurrence Liability Ins.Co.Company— Phase IIAii $10,000,000 Aggregate Non Admitted and IIAii Excess of the Limits shown in Underlying Limits Section. $0 Rating:A-XIII Contractor's Pollution Chartis Specialty CP018426844 60 Months $3,000,000 Policy Limit—Each Occurrence Liability Insurance Company— (effective $3,000,000 Aggregate Non Admitted 4/30/2012) Deductibles: Rating:A XV $25,000 Each Loss $0 Property/Builders Risk ACE American TBD 15.5 Months $13,297,114 Per job-site limit —Course of Insurance Company— Phase IIAii $13,297,114 Flood sublimit Construction Non Admitted $13,297,114 Earthquake sublimit Rating:A+XV $13,297,114 Water Damage sublimit(other the flood) $13,297,114 Windstorm sublimit(other than Named) $1,000,000 Transit limit Deductibles: $46,869 $10,000 All Other Perils $25,000 Flood $25,000 Earthquake $25,000 Water Damage 15-Day Waiting Period Soft Costs OCIP Administration Lockton 48 Months OCIP Administration and Phase IIAi 3rd Party QA/QC(Estimated at$500/door) $0 3rd Party QA/QC and IIAii TBD by GC TOTAL 52494:City o£Aspen-CIP\W-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314,d„cx Ciry of Aspen/Match 14,2013 7 LOCKTON ADMINISTRATIVE AND GENERAL SERVICES General Services Burlingame Ranch Phase II Project Services for which Lockton receives commission I. Program Marketing/Management A. Market the (General Liability,Excess Liability,Builders Risk and Contractor Pollution Liability) coverage based on the project's needs in conjunction with Client Risk Management parameters. 1. Prepare insurance coverage specifications. 2. Compile underwriting data and prepare market submission 3. Analyze carrier proposals and present recommendations 4. Bind coverage as directed by Client 5. Review policies for compliance with terms and conditions bound B. Process changes,endorsements and premium invoices. C. Issue required certificates of insurance in a timely manner. D. Review premium audits for accuracy and correctness. E. Conduct Client meetings as necessary. F. Provide periodic reports relative to the bound program including a description of open items. G. Provide research and advice in response to Client questions as needed. II. Claims Management Services A. Act as client claims advocate for all claims. B. Establish claims service standards with carrier(s). C. Review loss runs for accuracy and resolve any incorrectness with carrier. D. Review denied claims for correct application of coverage. E. Process claim notifications to appropriate insurance carriers. III. Loss Control Services A. Provide Loss Control consulting as needed. 57221:City of Aspen-CIP\\C%-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City'of Aspen/March 14,2014-8 LOCKTON ADMINISTRATIVE AND GENERAL SERVICES OCIP Services Burlingame Ranch Phase II Project Project Specific Lockton shall serve as the OCIP Administrator for the project known as"Burlingame Ranch Phase II Project" I. OCIP Administration A. Provide sample OCIP contract language to the Client and assist the Client's legal counsel in finalizing the contract document. B. Prepare an OCIP Manual that includes claims reporting procedures and enrollment procedures and support the project team in the preparation of all bid packages as relates to the OCIP. C. Provide copies of the OCIP policies upon request by a contractor/subcontractor for review with the approval of the client. D. Ensure enrollment by all contractor and subcontractors required to participate in the OCIP,and verify compliance with the OCIP requirements. E. Obtain (on Acord Form 27) certificates of insurance from enrolled contractors evidencing required coverages and provide certificates of insurance to enrolled contractors evidencing OCIP coverage. F. Maintain Project documentation related to the OCIP. G. Provide reports to Clients summarizing OCIP activities,progress and costs. II. Program Closeout A. Coordinated the insurance carrier(s) audit review. B. Additional close-out activities as dictated by actual program design. 57221:City of Aspen-CIP\NX'-(Phase IIAu)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.doc_c City of Aspen/March 14,2014-9 LOCKTON ADMINISTRATIVE AND GENERAL SERVICES Fees Burlingame Ranch Phase II Project FEE FOR SERVICES General Services Lockton will be compensated via commissions that will be a part of the premiums paid for those coverages.All commissions are earned at the inception of the program. OCIP Services General Liability Program Administration and Close-Out $ 0 All fees are earned at the inception of the program. Third-Parry QA/QC (estimated$500/door) $TBD by GC 57221:Ciry of Aspen-CIP\AX'-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docs City of Aspen/March 14,2014-10 COMMERCIAL GENERAL LIABILITY INSURER: Houston Casualty Co. (Best's Rating: A+XIV) ❑ Admitted Carrier 0 Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: H12PC30065-00 POLICY TERM: 48 months (Effective binding of Phase IIAii and term will include Phase IIAii) LIMITS OF LIABILITY: General Aggregate limit(other than Products aggregate)..............$ 2,000,000 Products—Completed Operations aggregate limit.........................$ 2,000,000 Personal and Advertising Injury limit................................................$ 2,000,000 Bodily Injury and Property Damage occurrence limit....................$ 2,000,000 Damages to premises rented to you.................................................. See Fire Legal Fire Legal Liability limit(any one fire)..............................................$ 50,000 Medical Expense limit(any one person)........................................... Excluded DEDUCTIBLE(S): ❑ No deductible applies ❑ Per claim......................................................................................... Not Applicable 0 Per occurrence...............................................................................$ 25,000 ❑ Aggregate........................................................................................ Not Applicable 0 Defense: ❑ Deductible applies to damages only 0 Deductible applies to damages and defense costs 0 Deductible applies to: 0 Bodily Injury only ❑ Both 0 Property Damage only ❑ Other: 0 Deductible reduces policy limit DEFENSE: 0 Inside the limit of liability ❑ Outside the limit of liability PROJECT: Project: Burlingame Ranch Phase II Address: Aspen,Colorado 81611 Sponsor: City of Aspen Description: Vertical Phase IIAii including buildings #5-7, 34 units,and parking Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\A\ -(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314,docx City of Aspen/March 14,2014-11 COMMERCIAL GENERAL LIABILITY FORM EXTENDED TO INCLUDE: 0 Wrap-up program change endorsement 2 Extend products/completed operations period–statute of limitations or repose,or ten years,whichever is less 0 Exclusion j,k,and 1 are deleted from CG0001 • Who is an insured includes your enrolled contractors while performing duties related to the covered project • Limits apply for the policy period including the extended completed operations period and do not reinstate Q Per project endorsement ❑ Per location endorsement ❑ Blanket additional insured (as required by written contract) • Primary and noncontributory wording applies • Completed operations included;length: not applicable 0 Additional insureds: ❑ Club members ❑ Volunteers ❑ Users of golfmobiles ❑ Church members ❑ Lessors of leased equipment ❑ Elected and/or appointed officers 21 State of Politic Subdivisions Permits 0 Mortgagee,assignee, or receivee • Blanket vendors (as required by written contract) • Fellow employee exclusion deleted ❑ Limited to key personnel—Who: • Pollution exclusion amended to cover: ❑ Building heating equipment ❑ Contractor's site (limited coverage—refer to the policy form) ❑ Hostile fire ❑ Products ❑ Other: • Employee benefit liability: ❑ Claims made ❑ Claims made and reported #of days to report claim: N A Limit: El ❑ Per claim ❑ Per employee ❑ Retroactive date: ❑ Aggregate Deductible: ❑ Per claim ❑ Per employee Coverage does not apply unless a"✓" appears in the box. 57321:City of Aspen-(,IP\\\'-(Phase IIA i)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.doc City of Aspen/March 14,2014-12 COMMERCIAL GENERAL LIABILITY FORM EXTENDED TO INCLUDE: CONTINUED ❑ Broad form named insured (#of days N/A) ❑ Worldwide territory ❑ Broad knowledge of occurrence ❑ Unintentional errors and omissions 0 Host liquor ❑ Personal injury—contractual exclusion deleted ❑ Discrimination (non-employment-related only) ❑ Definition of bodily injury includes resultant mental anguish,etc. ❑ Waiver of subrogation (as per written contract and where allowed by law) ❑ Preloss wording ❑ Blanket wording EXPOSURES: State Description Basis I Rate I Premium CO I Units I u) 341 Flat $ 62,400 Basis a) Area C) Cost e) Each 0 Frontage P) Payroll m) Admissions r) Receipts S) Sales n) Number U) Unit ADDITIONAL INTERESTS/ CERTIFICATE RECIPIENTS: (See attached schedule on file with the company.) NOTES: Higher limits may be available on request. Coverage does not apply unless a"✓" appears in the box. 57221:Ciq,of Aspen-C1P\NV-(Phase 11 Aii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-13 COMMERCIAL GENERAL LIABILITY TERM PREMIUM: $ 62,400 Flat premium $ 1,872 CO surplus lines tax $ 64,272 Total R] Minimum and deposit apply—100% 0 Minimum earned premium applies—25% 0 Optional TRIA quote—$2,622 OPTIONAL QUOTE FOR VERTICAL CONSTRUCTION: Upon notification from the Insured and prior to the beginning of construction other than what is listed above,we will endorse the policy with the following: ❖ Increase the policy term no longer than five years in total. ❖ Amend Description of Operations and form HPC 040 09 01 12 to include the following wording: Construction of 82 rent-to-own townhomes within seven frame buildings (three stories of frame over concrete pads) for deed restricted city workers. IMPORTANT: Certain contracts that are entered into contain an indemnity or hold-harmless agreement. The contractual liability created by the hold-harmless agreement is the assumption,by contract,of another's liability. The contractual liability coverage part of the Commercial General Liability policy has limitations and exclusions that may apply to portions of the hold-harmless agreement. MONTROSE WORDING: Most Commercial General Liability policies now contain what is referred to as "Montrose"wording. Essentially,coverage is precluded if any owner,partner, director,officer,or employee authorized by an insured to give or receive notice of an"occurrence"knew of an occurrence involving`Bodily Injury"or "Property-Damage"prior to the policy period. Refer to your policy for complete terms and conditions. Generally,these losses are not covered if they are the subject of"Prior or Claims Litigation." Some"Montrose"endorsements preclude coverage for continuing losses where the per"occurrence" first happened prior to the policy period, regardless of when there was knowledge that the occurrence had taken place or whether a claim or litigation was already pending. Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\\\'-(Phase IIAii)Burbngamc Ranch Bldgs 5-7\Props-and Sums\prop 0314.docs City of Aspen/March 14,2014-14 COMMERCIAL GENERAL LIABILITY SUBJECT TO: These terms are subject to review of additional documentation at which time pricing is subject to change or quote may be pulled: 1. An updated and signed ACORD and Wrap Application—required within 15 days of binding. 2. Signed terrorism selection form prior to binding. 3. Trades not allowed to be enrolled: environmental remediation contractors and architects and engineers. At Binding: 1. Prior to the start of construction the insured must contract with an approved provider for third-party engineering services to be performed during the course of construction.We require 100%inspection for all condo or townhome construction and at least 50%inspection for single family homes. Prior to binding,we must review and approve the proposal for third-party engineering services.The cost of the service is paid by the insured.As a condition of coverage,we require receipt of the complete third-party documentation upon completion of the project.Approved providers include: 2. LJP (LaJolla Pacific):M-L McKinley de Vance 949-336-8903 3. Builders Protective Group:Adam Shaw 310-356-4840 4. Or other agreed firm MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) Bodily Injury/Property Damage ❖ Expected or intended acts Liquor liability (exclusion applies only if you are in the business of manufacturing,distributing,selling, servicing,or furnishing alcoholic beverages) ❖ Any obligation under a workers'compensation,disability benefits,or unemployment law or similar law ❖ Bodily injury to any employee (including a spouse,child,parent,brother,or sister of that employee as a consequence of the above,but does not apply to an insured contract) ❖ Pollution ❖ Bodily injury/property damage arising out of ownership,maintenance,use, or entrustment of any aircraft, automobile,or watercraft owned or operated by or rented or loaned to any insured (except nonowned watercraft under 26 feet) ❖ War ❖ Property damage to property that you: ❖ Own,rent,or occupy(except property damage to premises rented to you for less than seven F] days—excluding fire damage) ❖ Sold,gave away,or abandoned Have loaned to you ❖ Have in your care, custody,or control Coverage does not apply unless a"✓"appears in the box. 57221:City of Aspen-CIP\W-(Phase IIAn)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-15 COMMERCIAL GENERAL LIABILITY MAJOR EXCLUSIONS: CONTINUED Bodily Injury/Property Damage Continued ❖ Property damage to your product or your work arising out of or any part of it(except coverage is excess for work performed for you by subcontractors) ❖ Property damage to impaired property arising from a defect,deficiency, inadequacy,or dangerous condition in"your product or work" or a delay ❖ Withdrawal,recall,etc. ❖ Contractual(except as provided below): ❖ Lease of premises Sidetrack agreement Any other easement except in connection with construction or demolition operations of or within 50 feet of railroad ❖ Indemnification of a municipality as required by ordinance,except in connection with work for municipality ❖ Elevator maintenance agreement ❖ (TORT LIABILITY coverage will apply for liability assumed in a contract for a third party. Tort liability is a civil wrong. Personal Injury and Advertising Injury ❖ By or at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict personal and advertising injury ❖ Oral and/or written publication—known falsity ❖ Prior publication(prior to inception date) ❖ Criminal act committed by or at the direction of the insured ❖ Willful violation of statute ❖ Contractual except tort liability ❖ Breach of contract except an implied contract to use another's advertising ideas in your advertisement ❖ Failure to conform to advertised quality and/or performance ❖ Wrong description of price and/or goods,etc. ❖ Any offense if the insured is in the business of advertising,broadcasting,or telecasting Medical Payments ❖ Bodily injury to insured ❖ Bodily injury to person hired to work for the insured ❖ Bodily injury to a person injured on that part of premises you own or rent that the person normally occupies ❖ Workers' compensation ❖ Taking place in athletics ❖ Exclusions as shown in bodily injury/property damage ❖ War ❖ In products and/or completed operations hazard Coverage does not apply unless a"✓' appears in the box. 57221:City of Aspen-CIP\W-(Phase HAii)Burlinp,me Ranch Bldgs 5-7\1'rops and Sums\prop 0314.docx City of Aspen/March 14,2014-16 COMMERCIAL GENERAL LIABILITY MAJOR EXCLUSIONS: CONTINUED Other Terrorism Mold, fungi,etc. Exterior insulation finishing systems (EIFS) ❖ Silica ❖ Subsidence ❖ Violation of economic and trade sanctions ❖ Violation of statutes in connection with sending,transmitting,or communicating any material or information (unless otherwise provided) Asbestos Arsenic ❖ Wrap-up cross suits ❖ Lead ❖ Sulfates ❖ Coverage C—medical payments Employment-related practices ❖ Total pollution ❖ Designated exclusion: any vertical construction ❖ Construction management errors and omissions ❖ Engineers,architects,or surveyors professional liability ❖ Real estate errors or omissions The above narrative is intended only as a guideline. Policy provisions determine coverage. Coverage does not apply unless a"✓' appears in the box. 57221:City of Aspen-CI P\W-(Phase IIAi)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-17 EXCESS LIABILITY INSURER: Ironshore Specialty Insurance Co. (Best's Rating: A-XIII) ❑ Admitted Carrier 2 Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: 001346600 POLICY TERM: 48 Months (Effective binding of Phase IIAii and term will include Phase IIAii) LIMITS: Combined bodily injury and property damage Each occurrence............................................................................$ 10,000,000 Annual aggregate (single general and products/completed operations aggregate—no aggregate reinstatements)..............$ 10,000,000 UNDERLYING LIMITS: Combined bodily injury and property damage Each occurrence............................................................................$ 2,000,000 Aggregates......................................................................................$ 2,000,000 UNDERLYING INSURER: Houston Casualty Co. DEFENSE: 0 Inside the limit of liability ❑ Outside the limit of liability FORM: R1 Pay on behalf ❑ Indemnity ❑ Follow form of primary general liability ❑ "Per job"aggregate applies ❑ "Per location"aggregate applies MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) ❖ Nuclear energy liability ❖ Pollution ❖ Asbestos ❖ Terrorism (unless otherwise provided) ❖ Mold,fungi,etc. ❖ Exclusions listed in underlying policies Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\W-(Phase 11Ai)13urhngame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,201+-18 EXCESS LIABILITY MAJOR EXCLUSIONS: CONTINUED Crisis management exclusion ❖ War or military ❖ Other laws NOTE: Higher limits may be available on request. TERM PREMIUM: $ 0 Premium $ 0 CO surplus lines tax $ 0 Total 0 Minimum and deposit apply— 100% 0 Minimum earned premium applies—25% Q Optional TRIA quote—$0 VERTICAL CONSTRUCTION: Vertical construction of 82 rent-to-own townhomes within seven frame buildings (three stories of frame over concrete pads) for deed restricted city workers. Policy term to be increased to a maximum of five years total. SUBJECT TO: Due at time of binding: ❖ Signed TRIA form ❖ Details of quality assurance/quality control ❖ Applicable tax forms if bound Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\W-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums-\prop 0314.docx City of Aspen/March 14,2014-19 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY INSURER: Chartis Specialty Insurance Co. (Best's Rating: A XV) ❑ Admitted Carrier 0 Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: Five years (Effective April 30,2012 to April 30,2017) COVERAGE: Covers loss that an insured is legally obligated to pay as a result of an environmental impairment from a covered operation and includes,if so indicated,completed operations. FORM: ❑ Claims made ❑ Claims made and reported 2 Occurrence El Pay on behalf 0 Project-specific ❑ Indemnity DEFENSE: 0 Inside the limit of liability—after claim expenses reach$750,000 2 Outside the limit of liability—until claim expenses reach 25%of aggregate (or$750,000) DEDUCTIBLE(S): $ 25,000 El LAE*inside the deductible—after claim expenses reach$750,000 0 LAE*outside the deductible until claim expenses reach 25%of aggregate (or $750,000) *Loss-adjustment expenses RETROACTIVE DATE: Not Applicable COVERED OPERATIONS: ':• Burlingame Ranch Phase II 130 S. Galena St.,Aspen,CO 81611 ❖ Construction of townhomes Seven buildings, 82 units Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\AC'-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 031 I.docs City of Aspen/March 14,2014-20 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY LIMITS OF LIABILITY*: Per loss...................................................................................................$ 3,000,000 Perpolicy................................................................................................$ 3,000,000 Emergency response costs..................................................................$ 250,000 * Limits do not reinstate on an annual basis for multi-year policy terms unless specifically stated. TERRITORY: The United States,its territories or possessions,or Canada,its provinces or territories MAJOR EXCLUSIONS: (Refer to the policy for a complete list.) ❖ Prior impairment,if any officer,director,partner,or employee responsible for environmental affairs knew or could have reasonably foreseen ❖ Claims seeking injunctive or equitable relief ❖ Arising out of the ownership or operation of an offshore facility ❖ Workers'compensation,etc. ❖ Bodily injury to any employee or spouse,etc. ❖ Contractual(except when indicated below) Cleanup costs (except when indicated below) Ownership,maintenance,use,operation,loading,and/or unloading of any automobile,aircraft,watercraft,or rolling stock (covers mobile equipment) ❖ Nuclear •3 Arising out of goods and/or products manufactured,sold,etc. ❖ Bodily injury and/or property damage to products manufactured, sold,etc. ❖ Intentional noncompliance with any statute,regulation,etc. ❖ Acid rain ❖ War ❖ Asbestos (except when indicated below) ❖ Disposal,transportation,etc. (except when indicated below) ❖ Underground storage tanks,including repair and maintenance ❖ Taxes,assessments,punitive damages,etc. ❖ Rendering or failing to render professional services ❖ Sites deemed as "superfund"or that are on the National Priorities List ❖ Terrorism (unless otherwise provided) ❖ Mold, fungi,etc. (unless specifically covered) ❖ Lead-based paint (except when indicated below) Coverage does not apply unless a"✓"appears in the box. 57221:City of Aspen-CIP\w-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-21 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY EXTENDED REPORTING CONDITIONS: Number of days to purchase............................................................. Not Applicable Lengthof"tail"................................................................................... Not Applicable Additionalpremium........................................................................... ❑ Yes ❑ No Limitreinstated................................................................................... ❑ Yes ❑ No Premium fully earned......................................................................... ❑ Yes ❑ No Insured can purchase irrespective of who cancels or nonrenews.................................................................................... ❑ Yes ❑ No FORM EXTENDED TO INCLUDE: 0 Contractual exclusion amended to cover: ❑ Scheduled contracts ❑ Blanket contractual when required by written contract 0 Limited to contracts between named insured and their clients 0 Definition of bodily injury includes mental anguish, shock,and emotional distress 0 Natural resource damage ❑ Definition of bodily injury includes medical monitoring 0 Definition of pollutant includes mold,fungi,and bacteria (microbial matter) ❑ Claims made ❑ Retro date: 0 Occurrence 0 Definition of pollutant includes legionella 0 Definition of pollutant includes electromagnetic fields 0 Nonowned disposal sites for three years after expiration 0 Blanket ❑ Scheduled 0 Transportation 0 First party • Contingent third party • Including illicit abandonment 0 Includes insured locations—first-party clean up 0 Waiver of subrogation 0 Covers punitive damages,fines,and penalties (silent) 0 Additional defense costs outside of the limit ❑ Limited asbestos/lead coverage clean-up in soil/ groundwater ❑ Third-party bodily injury for asbestos/lead 0 Owner Controlled Insurance Program Endorsement 0 Covers contractor and subs 0 Covers owned property 0 Project Protect Project Owner Controlled Endorsement 0 Completed operations–eight years Coverage does not apply unless a"✓"appears in the box. 57221:City of Aspen-CIP\V`;'-(Phase IIAii)Burhngame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-22 CONTRACTORS ENVIRONMENTAL IMPAIRMENT LIABILITY NOTE: Higher limits may be available on request. TERM PREMIUM: $ 0 Premium(last installment of two installments) $ 0 3% CO surplus lines tax (paid during first installment) $ 0 Total ❑ Minimum and deposit apply ❑ Minimum earned premium applies ❑ Subject to audit Rate: ❑ Surplus lines tax Coverage does not apply unless a"✓"appears in the box. 57221:City of Aspen-CIP\\r'-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-23 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) INSURER: ACE American Insurance Co. (Best's Rating: A+XV) 10 Admitted Carrier ❑ Nonadmitted Carrier Surplus Lines Tax POLICY NUMBER: To Be Determined POLICY TERM: 15.5 Months COVERAGE: 0 Builders Risk: Covers buildings, structures,or projects under construction and,if so indicated,extends to include property that will become a permanent part of the building while in transit or at a temporary location. PERILS INSURED: 0 Special form TERRITORY: Fifty states of the United States of America,including the District of Columbia and Canada.Property in transit from Hawaii or Alaska is not covered. WARNING: (Refer to your policy for complete terms and conditions.) Policy language dictates "when coverage ceases"on a per project basis. MAJOR EXCLUSIONS: (Refer to the policy for complete terms and conditions.) ❖ Increased cost of construction ❖ Wear and tear ❖ Dishonest acts ❖ Inadequate or defective planning or design Delay Freezing ❖ Testing ❖ Mechanical breakdown ❖ Existing structures ❖ Occupancy ❖ Flood and earthquake unless shown as covered above ❖ Terrorism (unless otherwise provided) ❖ Mold,fungi,etc. (unless specifically covered) ❖ Exterior Insulation Finishing Systems (EIFS) (unless specifically covered) Coverage does not apply unless a"✓'appears in the box. 57221:City of Aspen-CI P\NX'-(Phase IIAn)Budingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspcn/March 14,2014-24 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) LIMITS OF LIABILITY: Per job-site limit....................................................................................$ 13,297,114 Flood sublimit(annual aggregate) (except Zone A)........................$ 13,297,114 Earthquake sublimit(annual aggregate)............................................$ 13,297,114 Water damage (other than flood) sublimit........................................$ 13,297,114 Windstorm(other than named) sublimit..........................................$ 13,297,114 Transit limit............................................................................................$ 1,000,000 Temporary location limit.....................................................................$ 1,000,000 DESCRIPTION: Remaining infrastructure work,retaining walls, and Vertical Phase IIAii for planned townhome community, Burlingame Ranch Phase II,Aspen,CO DEDUCTIBLES: All other perils.......................................................................................$ 10,000 Flood.......................................................................................................$ 25,000 Earthquake.............................................................................................$ 25,000 Waterdamage........................................................................................$ 25,000 Soft costs/rental income.....................................................................# of days 15 COINSURANCE: None VALUATION: ❑ Actual cash value 0 Replacement cost FORM: 2 Completed value ❑ Reporting form ❑ Monthly ❑ Quarterly (Reports must be submitted within days of the last day of the month. Failure to do so may result in a coinsurance penalty.) OPTIONAL COVERAGES: 2 Waiver of subrogation (as per written contract and where allowed by law)................................................................... Covered 0 Definition of flood includes: Z Backup of sewer and drain 2 Standard deductible ❑ Flood deductible 0 Surface water ❑ Standard deductible 0 Flood deductible ❑ Mudflow Coverage does not apply unless a"v"' appears in the box. 57221:City of Aspen-CIP\%r'-(Phase IIArt)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 011+.docx City of Aspen/March 14,2014-25 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) OPTIONAL COVERAGES: CONTINUED 0 Definition of earthquake includes: 0 Subsidence 0 Mudflow 0 Volcanic activity 0 Glass................................................................................................ Covered 0 Testing—cold testing only........................................................... Covered 0 Freezing(except damage to landscaping).................................. Covered 0 Soft costs........................................................................................$ 1,000,000 Describe: 0 Covers interest of owners,subs,and sub's subs ❑ Loss of income/rents................................................................... Not Covered ❑ Riggers............................................................................................. Not Covered ❑ No legal liability requirement 0 Partial occupancy allowed for purposes intended for this project 0 Scaffolding,form, falsework........................................................ Included 0 Land exclusion deleted (excavation cost covered) ❑ Waterborne coverage.................................................................... Not Covered ❑ Property located underground.................................................... Not Covered ❑ Increased cost of construction.................................................... Not Covered 0 Debris removal.............................................................................. 25%of Loss, $1,000,000 max. 0 Pollution..........................................................................................$ 100,000 0 Faulty design and/or workmanship exclusion amended to cover resultant damage by a covered peril 0 Artificial current exclusion amended to cover resultant damage by a covered peril 0 Rust,corrosion, etc.,exclusion modified to cover resultant damage by a covered peril ❑ Mechanical breakdown exclusion modified to cover resultant damage by covered peril................................... Not Covered ❑ Covers building material after it has become part of the building (installation floater only)................................... Not Covered ❑ "When interest ceases"section modified to: 0 When financial interest ceases 0 You abandon with no intent to complete ❑ 90 days after completion NOTE: Higher limits may be available on request. Coverage does not apply unless a"v"' appears in the box. 5722E City of Aspen-CIP\\C (Phase IIAii)Burlingame Ranch Bldgs 5-7\1'rops and Sums\prop 0314.docx City of Aspen/March 14,2014-26 BUILDERS RISK (INCLUDING EARTHQUAKE AND FLOOD) ESTIMATED ANNUAL PREMIUM: $ 46,869 (($12,297,114 HC x.25) + $1,000,000 SC x$.312))/100 Q Minimum and deposit apply—100% 0 Minimum earned premium applies—25% Q Subject to audit—$0.25 annual rate HC;$312 SC 21 Optional TRIA—3%or$1,365 SU BJ ECTIVITIES AND CONDITIONS: •i• Fire protection class 5 with working fire hydrants at project site ❖ Agreed protective safeguards and site fenced and locked Coverage does not apply unless a"✓" appears in the box. 57221:City of Aspen-CIP\\\'-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docs City of Aspen/March 14,2014-27 OCIP FINANCIAL SUMMARY Burlingame Ranch Phase II Insurance Program Financial Estimate As of: 3/13/2014 Proiect Address: Aspen,CO 81611(at the end of Harmony Rd and immediately to the west of the Burlingame Ranch Phase I) Proiect Rating Base Construction of Townhomes Total Construction Value for Infrastructure: $4,063,637 Total Construction Value for 2013&2014(Bldgs 1-4,48 units,and parking)-Phase IIAi: $19,116,676 Total Construction Value for 2015(Bldgs 5-7,34 units,and parking)-Phase IIAii: $12,297,114 Soft Costs $2,500,000 Total Construction Values: $37,977,427 Construction/Coverage Term for Infrastructure: 8 Months(4/15/2012 to 12/15/2012) Total Construction Value for 2013&2014(Bldgs 1-4,48 units,and parking)-Phase IIAi: 14.5 Months(4/1/2013 to 6/15/2014) Total Construction Value for 2015(Bldgs 5-7,34 units,and parking)-Phase IIAii: 15.5 Months(3/17/2014 to 7/1/2015) No.of Units: 82 Insurance Cost Summary Coverage Description Insurance Program Vertical Phase ILAI --7vertolPh Primary General Liability(Optional Terrorism $96,408 $149,968 $64,272 Excess Liability $104,030 $78,023 0 Contractor's Pollution Liability(Optional Terrorism $37,699 $34,972 0 Other Insurance Program Costs $8,000 $61,000 0 Builders Risk 0 tional Terrorism $51047 52 974 46 869 Subtotals-includes taxes,fees and Terrorism $251,184 $376,936 $111,141 Program Premium Total(1)-includes taxes,fees and Terrorism $739,261 Cost Breakdown by Line of Coverage Houston Casualty General Liability Primary Limits $2M/$2M/$2M Policy Term 12 Months 48 Additional Months Deductible $25,000 Hard Costs $4,063,637 $19,116,676 $12,297,114 Rate-Term Flat Rate Fixed Costs(premium) 90 000 $140,000 $62,400 Fees&Taxes 12,700 $4,200 $1,872 TRIPRA 0 tional Terrorism) $3,601 Subtotal 0. $149,968 $64,272 Total Premium,Fees and Taxes including Terrorism $310,648 25%minimum earned at inception,100%after 12 months/100%minimum and deposit Houston Casualty agreed to breakout the vertical premium requirements by phase 57221:City of Aspen-CIP\kX'-(Please IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0314.docx City of Aspen/March 14,2014-28 OCIP FINANCIAL SUMMARY Ironshore Specialty Excess Limits $10,000,000 Policy Term 12 Months 48 Additional Months Fixed Costs(premium) $100,000 75,000 0 Fees&Taxes $3,000 $2,250 0 TRIPRA Terrorism 1030 V73 0 Subtotal $104,030 r r Total Premium,Fees and Taxes including Terrorism r Option to endorse vertical work and increase term up to 5 years total for$75,000 AP,notification must be given prior to 4/15/2013 25%minimum earned at inception, 100%after 12 months/100%minimum and deposit Subject to signed application and details of Risk Management and Quality Assurance Chartis Contractors Pollution Liability Vertical CPL Limits $3,000,000 Policy Term 60 Months Deductible $25,000 Completed Operations Period 8 Years Rate-Term $2.17 Fixed Costs(premium) $34,972 $34,972 0 Fees&Taxes $2,098 0 0 TRIPRA 0 tional Terrorism $629 0 $0 Subtotal $37,699 $34,972 r Total Premium,Fees and Taxes including Terrorism r Full policy premium has been paid from Infrastructure and Phase IIAi,no additional premium required for Phase IIAii Lockton Vertical Phase IlAi Vertical Phase IlAil Other Insurance Costs Carrier Pro'ect Risk Review 3 000 0 $0 Lockton Administrative Fees 3 -Term:48 months $5,000 $20,000 0 3rd Pa A/ C 2 Not a Lockton Fee 0 $41,000 TBD b RA Nelson Total Other Insurance Program Costs : rrr rrr r 57221:Gw of Aspen-CIP\kX'-(Phase IIAii)Burlingame Ranch Bldgs 5-7\Props and Sums\prop 0313.docx Citv of Aspen/March 14,2014-29 OCIP FINANCIAL SUMMARY ACE Policy for Each Phase/3 Total Builders Risk i 7:_A7 Vertical Phase IpW', Policy Term 12 Months 12 Months 15.5 Months Hard Costs $7,000,000 $18,700,377 $12,297,114 Soft Costs Included $1,500,000 $1,000,000 Total Limit $7,000,000 $20,200,377 $13,297,114 Earthquake Limit $7,000,000 $20,200,377 $13,297,114 Flood Limit $7,000,000 $20,2OOr377 $13,297,114 Water Damage Limit $7,000,000 $20,200,377 $13,297,114 Deductibles Physical Damage All Other Losses $10,000 $10,000 $10,000 Water Damage $25,000 $25,000 $25,000 Earthquake $50,000 $25,000 $25,000 Flood $50,000 $25,000 $25,000 Delay in Completion Soft Costs 15 Days 15 Days 15 Days Rate-Annual Blended $0.07 $0.2S $0.26 Fixed Costs(premium $4,900 $S1,431 45 504 Deposit Premium $4,900 $51,431 $45,504 Fees&Taxes 0 0 0 TRIPRA(Optional Terrorism 147 $1,543 $1,365 Subtotal $5,047 $52,974 $46,869 Total Premium,Fees and Taxes including Terrorism $104,890 ACE-Quoted Phase IIAii 25%minimum earned premium Subject to completed buildings being placed on a Permanent Property Policy Require Security fence and locked site Quote based on Fire Protection Class 5 with working Fire Hydrants at project site Notes: 1.Does not include estimated losses paid within the deductible. 2.QC is required;an estimate of the cost for condos would be$500 per door. Owner required to contract with 3rd Party directly. 3.Lockton has been approved to provide administration on wrap-ups.Lockton will provide an Administrative Fee for Services Agreement for signature by the Owner. 4.A favorable Loss Control Survey is required within 45 days of binding. *Note:Lockton will receive commission from the carrier on any issued policy.This is in addition to our Administrative Fee for Service. 57221:City of Aspen-CIP\\\-(Phase IIAu)Burlingame Ranch Bldgs 5-7\1)rops and Sums\prop 0314.docx City of Aspen/March 14,2014-30