Insurance Certificates 2022 - OTAS - Ins Requirements Inquiry & CJPIA responseMonika Radeva
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Monika Radeva
Monday, November 7, 2022 1:51 PM
Michael Calderon
Christina Calderon; Laurie McGinley; Monika Radeva
Old Town Artisan Studios Insurance
OTAS 2223 Art Prog & Therapy Agreement - FINAL.pdf
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Thank you Michael, we are all available to talk with them if needed. I appreciate your efforts
and reaching out to us.
Monika Radeva, CMC I City Clerk
City of La Quinta
78495 Calle Tampico, La Quinta, CA 92253
Tel: (760) 777-7035
MRadeva@laquintaca.gov
From: Michael Calderon <mcalderon@laquintaca.gov>
Sent: Monday, November 7, 2022 1:02 PM
To: Alex Mellor <amellor@cjpia.org>; Monika Radeva <mradeva@laquintaca.gov>
Cc: Christina Calderon <Ccalderon@laquintaca.gov>; Laurie McGinley <Imcginley@laquintaca.gov>
Subject: RE: RUSH: Old Town Artisan Studios Insurance
Good Afternoon Everyone,
Thank you for your assistance on this. I will relay this information to OTAS's insurance provider
and let you know if they have any questions. Have a great day!
Michael Calderon I Management Analyst
Community Resources Department
City of La Quinta
78495 Calle Tampico I La Quinta, CA 92253
Ph. 760.777.7014
www.Iaquintaca.gov
www.playinlaquinta.com
From: Alex Mellor <amellor@cjpia.org>
Sent: Monday, November 7, 2022 12:43 PM
To: Monika Radeva <mradeva@laquintaca.gov>; Michael Calderon <mcalderon@laquintaca.gov>
Cc: Christina Calderon <Ccalderon@laquintaca.gov>; Laurie McGinley <Imcginley@laquintaca.gov>
Subject: RE: RUSH: Old Town Artisan Studios Insurance
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Hi Monika:
1
I agree. At this point, I don't see a valid reason to waive the PNC requirement. Here is some language you can use to
communicate with OTAS's insurance provider:
City of La Quinta is granting funds for OTAS to provide various art programs to the community. In consideration of the
grant, OTAS is required to maintain certain types and limits of insurance, and to add the City as additional insured to its
general liability policy, to protect the City against third -party claims that might arise out of the programs. OTAS is also
required to endorse its GL policy to ensure that, in the event of a loss, OTAS's GL coverage is primary and the City's
coverage shall not be required to contribute. This is a standard requirement of local government agencies when
providing monetary grants and/or contracting with a service provider.
I am also happy to communicate directly with the insurance provider if that is helpful.
Thanks and let me know if you have any questions.
' I N [ A
•
Alex Mellor, ARM
Senior Risk Manager
California Joint Powers Insurance Authority
8081 Moody Street. La Palma, CA 90623
m 562.681.0B14
arnellor@cjpia.org
cjpia.arg
ojpia,org
0420
Risk Management
Strategies For
Your Agency
Define. Educate. Mitigate.
From: Monika Radeva <mradeva@laquintaca.gov>
Sent: Monday, November 7, 2022 7:46 AM
To: Michael Calderon <mcalderon@laquintaca.gov>; Alex Mellor <amellor@cipia.org>
Cc: Christina Calderon <Ccalderon@laquintaca.gov>; Laurie McGinley <Imcginley@laquintaca.gov>; Monika Radeva
<mradeva@laquintaca.gov>
Subject: RUSH: Old Town Artisan Studios Insurance
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Good morning Alex,
I would like to request your guidance in the request below from City staff to waive the GL
Primary/Non-Contributory (PNC) endorsement required for the attached agreement between the
City of La Quinta and the Old Town Artisan Studio (OTAS) in which the City provides funding to
OTAS for several art programs they coordinate and hold in La Quinta (Michael provides a bit
more information on this in his email below, and the full detail is depicted in Exhibits B & C of
the attached agreement).
2
Per CJPIA's Contractual Risk Transfer manual the statements provided below note that PNC is
necessary to protect the City from any 3rd party claims that could arise due to actions of OTAS,
for which the City bears no responsibility.
If the City waives the PNC requirement, then should such claims occur and are brought against
the City, the City will need to defend itself, instead of being able to tender the claim to OTAS
due to its indemnity from the PNC.
Given the minimal cost associated with obtaining PNC endorsement, along with the fact that
OTAS was aware of the City's insurance requirements when the agreement was signed, I do not
find it prudent to waive the PNC endorsement requirement.
I defer to you for guidance. I do not feel I have the knowledge necessary to
adequately evaluate the City's risk exposure here; so if you, in your professional
opinion, think the risk exposure is minimal and it is reasonable for the City to bear
such risk, then the requirement could be waived. Also, what do schools generally do
with such programs, do they require OTAS to indemnify the school as well or does the
school bear responsibility since it is on school grounds.
Some insurers endorse their policies to require an insured to tender claims to all available sources
of insurance. Since the policy requires compliance with all policy specifications as a condition of
coverage, this tactic puts the additional insured in a difficult position. This is why it is important to
place a condition in the agreement that coverage available to the additional insured shall be
primary and non-contributory.
Primary/non-contributing. Coverage provided by Vendor shall be primary and any insurance
or self-insurance procured or maintained by Agency shall not be required to contribute with it.
The limits of insurance required herein may be satisfied by a combination of primary and
umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to
contain a provision that such coverage shall also apply on a primary and non-contributory basis
for the benefit of Agency before the Agency's own insurance or self- insurance shall be called
upon to protect it as a named insured.
Thank you for your time and assistance.
Monika Radeva, CMC I City Clerk
City of La Quinta
78495 Calle Tampico, La Quinta, CA 92253
Tel: (760) 777-7035
MRadeva@laquintaca.gov
From: Michael Calderon <mcalderon@laquintaca.gov>
Sent: Friday, November 4, 2022 4:04 PM
To: Monika Radeva <mradeva@laquintaca.gov>
Cc: Christina Calderon <Ccalderon@laquintaca.gov>; Laurie McGinley <Imcginley@laquintaca.gov>
Subject: Old Town Artisan Studios Insurance
Good Afternoon Mrs. Radeva,
I requested insurance from Old Town Artisan Studios for an agreement I would like to execute
(see attached), but I am receiving opposition from their insurance provider. Their insurance rep
is asking why they are required to provide the Primary/Non-Contributory endorsement
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considering this agreement is primarily for a monetary sponsorship. When I informed them that
the PNC is part of the City's requirements for all organizations with whom we enter an
agreement, they informed me that that answer is not sufficient. They are requesting a specific
reason as to why OTAS would need to provide PNC.
For some context, for this agreement we are providing OTAS a sponsorship to administer art
programs at the local schools and at OTAS (including Gingerbread Lane). This sponsorship also
goes towards the holiday craft OTAS provides for the City's Tree Lighting Ceremony. Can we
waive the PNC for this agreement since it is primarily a monetary sponsorship and risk is
minimal? If not, can you please provide a specific reason as to why we need PNC from OTAS? Or
perhaps I need to run this by Bill? I look forward for your recommendations on how to proceed.
Thank you!
411i 411
4Qu;dw
Michael Calderon I Management Analyst
Community Resources Department
City of La Quinta
78495 Calle Tampico I La Quinta, CA 92253
Ph. 760.777.7014
www.laquintaca.gov
www.playinlaquinta.com
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