McKesson Bldg Loading Dock License
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MEMORANDUM
October 27,2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: McKesson Building - Loading Dock
Irrevocable License
A request has been received from McKesson Corporation, 700 Locust, to reconstruct an
existing loadin~ dock in the City's public right-of-way alley between Locust Street and
Main Street, yt Street and 8th Street.
City Engineer Gus Psihoyos recommends City Council approval of an Irrevocable
License for McKesson Corporation to reconstruct the dock loading area on City right-of-
way alley.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(ltj ~1 /22L
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
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MEMORANDUM
October 27, 2005
FROM:
Michael C. Van Milligen, City Managepr..
( .
Gus Psihoyos, City Engineer_Y/ . . ..~
TO:
SUBJECT: McKesson Building - Loading Dock
Irrevocable License
INTRODUCTION
This is in response to a request from McKesson Corporation, 700 Locust, to
reconstruct an existing loading dock in the City's public right-of-way alley between
Locust Street and Main Street, yth Street and 8th Street.
DISCUSSION
McKesson Corporation has an existing dock located in the alley between Locust and
Main, yth and 8th Streets to accommodate loading and unloading of semi-truck
deliveries and shipping needs. The current loading dock is 6'7" x 70'. The normal
width of semi-trucks of 10' is not accommodated by the present dock. It is proposed
the dock length be reduced from 70' to 40', but the width be extended from current
6'7" to 10'. This additional width would extend in a cantilever design. The existing
permanent waste receptacle is placed at the southerly end of the dock and would
remain, as shown on the attached drawings.
The City's alley right-of-way is 30'. Other amenities and encroachments of the alley
include utility poles and waste collection receptacles. With the other approved
encroachments of the alley and the proposed loading dock, there would still remain a
driving lane clearance of 10 feet or more for vehicles, pedestrians, deliveries and pick-
ups, as well as emergency vehicles. Scott Neyens, Assistance Chief/Fire Marshal
confirmed the clearance required.
All documents required have been received which include the License Application,
signed Acceptance of Terms, Certificate of Insurance, letter of request and drawing of
proposed dock area. The Engineering Department and Building Services has
reviewed the material and have found them all to be in accordance with City
standards.
ACTION TO BE TAKEN
The requested action is for approval and signature of the Irrevocable License for
McKesson Corporation to reconstruct the dock loading area on City right-of-way alley
between Locust and Main, yth and 8th Streets.
Prepared by: Jane Smith
cc: Rich Russell, Building Services
Dan Brown, Fire Chief
IC(C(<
KLAUEB
CONSTBUCTION
COMPANY
October 6, 2005
City of Dubuque Engineering
Attn: Jane Smith
50 West 13th Street
Dubuque, IA 52001-4864
RE: Irrevocable License for Construction on Public Right-of-Way
McKesson Corporation 700 Locust Street
Dock modification and expansion in alley between 7th & 8th Street
Dear Jane,
Klauer Construction Company, on behalf of the McKesson Corporation, is making a request for
an "Irrevocable License authorizing construction on the Public Right-of-Way" in the 700-block
alley between Locust and Main Streets.
The McKesson Corporation has requested our assistance in improving the freight access to their
facility located at 700 Locust Street in Dubuque. The existing 10-story fucility has zero setbacks
on the North, South, East and West lot lines and occupies the full footprint of the property.
Expansion to the existing facility within their property lines to achieve this goal is not possible.
In order to provide any improved access to meet their request, it would be necessary to provide
modification and expansion of the existing loading dock in the alley behind the fucility.
The existing dock is already an encroachment into the alley. We have not been able to obtain any
documentation of the existing dock encroachment into the Public Right-of-Way and believe the
current encroachment was approved prior to the current City of Dubuque methods of approval,
issuance and recording of irrevocable and/or revocable encroachments.
Our proposal and request includes the reduction of the length of the current dock and overhead
shelter by removing 30 lineal feet from the North end, and the expansion of the remaining 40'
dock section in width to the East into the alley. The proposed change increases the dock width by
approximately 3'-6" to a 10'-0" width. The proposed construction method is in the form ofa
cantilever platform that will not affect utilities, drainage, or hinder traffic flow. The new design
does not require any new excavations or footings. The proposed design does not impede traffic
flow because the proposed 10' width will not encroach on the 10' minimum traffic lane as
required by engineering (Please see site diagram). The current alley width at this location is over
30', therefore, a 10' wide parking lane will still be open on the adjacent side of the alley at this
location for vehicles to make deliveries to adjacent businesses.
Klauer Construction is a Division of Klauer Development Corp.
2755 Dodge Street Dubuque, IA 52003
Phone (563) 588-0247 Fax (563) 588-0370
IC(C(<
KLAUEB
CONSTBUCTION
COMPANY
This change actually yields a reduction of encroachment by 61 square feet. The existing dock
encroachment is 461 square feet; the new encroachment proposed will only be 400 square feet.
An alteration of the existing roof overhang is also requested as a shelter for the new proposed
dock, but will not extend beyond any plane of the new dock area.
The alteration will allow McKesson Corporation to install a full width dock leveler on the new
North end of the dock, and will actually improve the flow through the alley. Currently, trucks
delivering and picking up loads have to "skew" their vehicles off the comer of the existing dock
to maneuver past the existing utility poles. This method often inhibits traffic flow.
McKesson Corporation has indicated that they had reviewed other sites for relocation oftheir
current operations. One of the reasons stated was specifically: Accessibility conflicts due to the
numerous services required through shipping and receiving. The current operation has pick-up
and delivery services from approximately 15-25 trucks on a daily hasis including government
mail trucks 5 times daily, as well as numerous other vendors.
Each vendor picks up freight by means of carts and/or palletized items that need to be loaded to a
raised bed and the option of a fork truck maneuvering the alley with traffic has been reviewed
and deemed impractical and not at all feasible.
Please review the documents attached and approve the License for an Irrevocable Encroachment
in the Public Right-of-Way in order to provide one of Dubuque's largest downtown employers
better accessibility to their growing operations, retain downtown jobs and tax revenue, and
actually provide a better flow and accessibility through this alley.
Thank you for your co ideration,
Cc: Mike Van Milligan, City Manager
Jerry Parks, Trammell Crow, Senior Project Manager
Jerry Hammel, Building Operations Supervisor
Diana Smith, Facilities Coordinator
Klauer Construction is a Division of Klauer Development Corp.
2755 Dodge Street Dubuque, IA 52003
Phone (563) 588-0247 Fax (563) 588-0370
10/26/2005 12:20 FAX 415 9S3 8414
MCKESSON
141001
LICENSE AUTHORIZING Mr'Y".~~o" rO,.pM,.Hnn TO
CONSTRUCTION Of,'lB Loadim> Dpck
ON PUBLIC RIGHT OF WAY
Section 1. McKesson Corporation as the owner of the
premises, (Licensee), known as Th1hnqlle Rllil di,,'i I in Dubuque,
Iowa, and legally described as I,o~~ II HI. 1l.? .1l.~ -'1Je 'ilnd IS hereby ''1 ,IW, {'II'~
gra~ted an Irrevocable License and authority to construct a~d Pa~l.. PZS;>PV-/
maintain R lORding dock in ~h" Rll "Y ,(Encro~chment) (see
attachment for location) under the terms and conditions set forth in this
License.
Section 2. The permission herein granted is expressly conditionid on
Licensee's agreement to: I
a. Assume any and all liability for damages to persons or prope~y which
may result from the existence, location, installation, construction or
maintenance of said Encroachment; and I
Procure and maintain in force during the term 10f this License al policy of
liability insurance as set forth in the attached Ilnsurance schedJle; and
Pay on behalf of the City of Dubuque. all, sums which thl City of
Dubuque shall become obligated to pay by reason of thb liability
imposed upon the City of Oubuque for dam~ges of any kindl resulting
from the location, installation, existence, con!\~ruction or maintenance of
said Encroachment sustained by any persor or persons, c~used by
accident or otherwise to defend at its own I:,xpense and on I behalf of
said City any c;;laim against the City of Dubuque arising o~t of the
location, installation, existence. construction or mainteliance of
Encroachment and to pay reasonable attorneyi fees therefor; arid
I
Indemnify, defend and hold the City of Dubuque free and harrmless from
any and all claims, loss, liability and expen~e Ifor death and/or linjuries to
thltd persons or damages to property of thltd persons, or for damage to
any property of the City of Dubuque which may occur as a r~sult of or
in connection with the location, installation, existence, co I struction,
maintenance and repair of Encroachment_ :
b.
c.
d.
10i31/2005 04:53
5&35880370
KLAUER CONSTRUCTION
PAGE 02/04
...,
Section 3. That said Encroachment shall be maintained in accordance
with all applicable state and federal laws and regulations, and the Ordinances of the
City of Dubuque.
Section 4. Licensee covenants and agrees that the Irrevocable License herein
granted does not constitute an approval of the design. erection. location,
construction, repair or maintenance of said Encroachment and Licensee hereby
covenants and agrees not to assert such claim or defense against the City of
Dubuque in the event of claim asserted for death, personal injuries and/or property
damage against Licensee arising out of or in any way connected with the location,
installation. construction. design, repair and maintenance of the Encroachment.
Section 5. This Irrevocable license shall become effective and the
rights hereunder accrue to Licensee when this License has been approved by the City
Council and the terms and conditions thereof accepted by Licensee by acceptance
endorsed on this License.
Section 6. That the City Clerk be and she is authorized and directed to file at
Licensees' expense a copy of this License in the Office of the Recorder in and for
Dubuque County, Iowa.
Section 7. Iowa One-Call registration may be required by the Code of
Iowa. When applicable, Licensee shalf submit documentation to the City Engineer of
the Iowa One-Call membership.
Signed this 7th day of November, .2005.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
.
ACCEPTANCE OF TERMS AND CONDITIONS OF LICENSE
The undersigned, being duly authorized to execute this Acceptance on
behalf of HcKesson Corporation ,and having read and being familiar
with the terms and conditions of the Irrevocable license, hereby, for themselves, its
successors or assigns, as owners of the abutting property, accepts the same and
agree to be bound by the terms and conditions therein contained to be performed by
Klau('ft Construction.
LICENSEE: I. /
Signature: Jerry Parks
By: .Jerry Parks
,
Title: Project Manager
Dated: 10/26/05
f .
10/26/2005 12:21 FAX 415 98J 8414
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DU~UQUE BUILDING
2005 STRUpTURAL IMPROVEfv1ENTS
700 l..OCUST S'l'RS.ET I
I DUBUQUE, I<:NYA I
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7TH STREET
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EXIS TING ALLEY PLAN
SCALE 1" = 30'
EXIS TING MCKESSON
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EXISTING PLAZA AREA
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TTH STREET
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PROPOSED ALLEY PLAN
SCALE 1" = 30'
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CERJ1l!=ICATE OF INSURANCE
MARSH
PRODUCER
MARSH RISK & INSURANCE SERVICES
THREE EMBARCADERO CENTER
p, 0, BOX 193880
SAN FRANCISCO, CA 94119-3880
CALIFORNIA LICENSE NO, 0437153
CERTIFICATE NUMBER
SEA-000914055-01
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOtDER OTHER THAN THOSE PROVIDED IN THE
POUCY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE
AFFORDED BY THE POUCIES DESCRIBED HEREIN.
COMPANIES AFFORDING COVERAGE
COMPANY
A GOLDEN STATE INSURANCE COMPANY, LIMITED
0053 -GL-ALL-05-06
GL
INSURED
COMPANY
B N/A
McKESSON CORPORATION
ONE POST STREET
SAN FRANCISCO, CA 94104
COMPANY
C
COMPANY
o
COVERAGES certJfi",OC~"s and repjj~f1.",r~\libusly issuedq!rtificate for the policy penod noted. below.
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED.
NOlWlTHSTANDlNG ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO 'vVHICH THE CERTIFICATE MAY BE ISSUED OR MAY
PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE
LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
co
LTR
POLICY NUMBER
POUCY EFFECTIVE POLICY EXPIRATION
DATE (MMIDDIYVI DATE (MMIDD/YY)
TYPE OF INSURANCE
A GENERAL L1ABIUTY
X COMMERCIAL GENERAL LIABILITY
X CLAIMS MADE D OCCUR
OWNER'S & CONTRACTOR'S PROT
07/01/05
GENERAL AGGREGATE
PRODUCTS - COMP/OP AGG
PERSONAL & ADV INJURY
EACH OCCURRENCE
FIRE DAMAGE (Anyone fire)
MED EXP An one ersOfl
07101/06
064-1-80101-2005
X
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON-QWNED AUTOS
BODILY INJURY
(Per person)
BODILY INJURY
(Per accident)
PROPERTY DAMAGE
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT
OTHER THAN AUTO ONLY:
ANY AUTO
A EXCESS UABILlTY
UMBRELLA FORM
X OTHER THAN UMBRELLA FORM
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
EACH ACCIDENT $
$
$
$
$
064-1-90101-2005
07/01/06
AGGREGATE
EACH OCCURRENCE
07/01/05
AGGREGATE
THE PROPRIETOR!
PARTNERs/EXECUTIVE
OFFICERS ARE:
THER
INCL
EXCL
EL DISEASE-POLICY LIMIT
EL DISEASE-EACH EMPLOYEE $
LIMITS
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$ 1,000,000
$
$
$
$
$
1,000,000
1,000,000
DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLESISPECIAL ITEMS
THE CITY OF DUBUQUE, INCLUDING ALL ITS ELECTED AND APPOINTED OFFICIALS, ALL ITS EMPLOYEES AND VOLUNTEERS, ALL ITS BOARDS,
COMMISSIONS AND/OR AUTHORITIES AND THEIR BOARD MEMBERS, EMPLOYEES, AND VOLUNTEERS ARE INCLUDED AS ADDITIONAL iNSURED
PROVIDED, HOWEVER, THAT A WRITTEN CONTRACT REQUIRING THAT THE CERTIFICATE HOLDER BE AN ADDITIONAL INSURED EXISTS,
SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF.
THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL -3.Q DAYS WRITTEN NOTICE TO THE
CITY OF DUBUQUE
A TTN: JAME SMiTH
50 WEST 13TH STREET
DUBUQUE, IA 52001-4805
ISSUER OF THIS CERTIFICATE
CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR
LIABILITY OF ANY KIND UPON THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE
MARSH USA INC.
BY: Chris 0 Ambra
~~~~
VALID AS OF: 10/07/05
~D
........... ............................. ................
ON~~JNFORMAtION
DATE (MM/DDIYY)
10/07/05
COMPANIES AFFORDING COVERAGE
PRODUCER
MARSH RISK & INSURANCE SERVICES
THREE EMBARCADERO CENTER
p, 0, BOX 193880
SAN FRANCISCO, CA 94119-3880
CALIFORNIA LICENSE NO, 0437153
COMPANY
E
COMPANY
F
00053 -GL-ALL-05-06
GL
INSURED
McKESSON CORPORATION
ONE POST STREET
SAN FRANCISCO, CA 94104
COMPANY
G
COMPANY
H
GOLDEN STATE INSURANCE POLICIES:
THE GENERAL LIABILITY (POLICY #064-1-80101-2004) AND THE XS GENERAL LIABILITY (POLICY) #064-1-90101-2004) PLACEMENTS WERE MADE
BY MARSH MANAGEMENT SERVICES (BERMUDA) LTD, MARSH USA INC, HAS ONLY ACTED IN THE ROLE OF A CONSULTANT TO THIS CLIENT
WITH RESPECT TO THESE PLACEMENTS, WHICH ARE INDICATED HERE FOR YOUR CONVENIENCE,
~l;IFlyA;.EHOLD.ER
- ~ CiTY OF DUBUQUE
ATTN: JAME SMITH
50 WEST 13TH STREET
DUBUQUE, IA 52001-4805
MARSH USA INC. BY
Chris DAmbra
&a..~..__
pa
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GOLDEN STATE INSURANCE CO:tv1PANY
V1c;torkl Hall. VielMa Stfl~.,t
P.O. Box HM 1826
Hamtaon HM H~ BermUda
Tel: (441) 292-4<lO2 Tor..: 3276 Kero BA
Fax: (441) 2092-1563
iti:CiEiVEO
AU6 2 6 1999
ENDORSEMENT 21
MARSH & McLENNAN
SAN FRANCISCO
Additional Insured - Designated Person or Organization
COmmercial General Liability Coverage Part
It is hereby understood and agrced that with effect from July 1, 1998 that the following wording
is endorsed onto Policy 28-0101-00-1998.
Schedule
Name of Person or Organization:
Any person or organization with whoDl you have agreed through a written contract or with .
whom you have agreed by issuing a purchase order number to provide "the insurance afforded
hereunder "
~;,(.
WHO IS AN INSURED (section II) is amended to include as an insured the person or
organization shown in the Schedule as an insured but only with respect to liability arising out of
your operations or premises owned by or rented to you"
All other "terms, conditions and exceptions ie~~"I1~hal1ged.
~~<9q"'l.
Date
N~\CT.JlO:N'T'S\OiS4\l'OIlCmS\1999\E.'N'Dl:2.I'2m.DOC 1-30101..00
MARSH
Kathleen Hurney
Client Representative
Marsh Risk & Insurance Services
Three Embarcadero Center
San Francisco, CA 94111
California License # 0437153
4157438188 Fax 4157438071
Kathleen.T .Hurney@Marsh.com
www.marsh.oom
October 7, 2005
City of Dubuque
Attn: Jane Smith
50 West 13th Street
Dubuque, IA 52001-4805
Subject:
McKesson Corporation/McKesson Health Solutions, LLC
Certificate of Insurance
Indemnification and Waivers of Subrogation Clauses
Dear Jane:
It is the corporate policy not to accept a waiver of subrogation or indemnification clause in any
contract agreement. It is our belief that any injuries or damages caused by parties' negligence
should be the sole responsibility of the negligent party. McKesson carries general liability
coverage with Golden State Insurance Co. LTD, a captive insurer. As you may know, a captive
insurer is a company formed and capitalized by the insured entity or entities. In this case,
Golden State Insurance Co. LTD is a wholly owned subsidiary of McKesson, thus McKesson
ultimately is responsible for and pays any claims submitted to Golden State. McKesson carries
excess insurance on an occurrence basis for $25 million excess of $5 million.
McKesson's decision to use a captive insurer and purchase excess insurance at the levels
indicated above is consistent with the majority of other Fortune 100 companies. This is further
supported by the fact that we have been able to successfully satisfy insurance requests from a
multitude oflandlords and vendors for the past 25 years in which this program has been in
existence. McKesson sales for Fiscal 2003 exceeded $50 billion with net worth of over $4
billion. In insurance terms, McKesson's net worth is comparable to Class XV in Best's Rating
Guide, which is the highest class in terms of financial size and reserves for only the largest 7% of
insurance companies in the world.
Theinformalioo cOrltained in Ihisdocumenllsconfidential,may be privilege d,andlslntendedfortheuseollhe
individual or enlily rtamed above, If you, the reader of lhis document, are nol the intended recipient, lheage nt,or
employee responsible for delivering lhisdocumenltothe intendedreci pient,youareexpresslyprohibiledfrom
copying, disseminating, distributing, orin any other way using an yoflhell1formation cOfltained in this documen1.
g Marsh & McLennan Companies
MARSH
Page 2
If you should need any further information or have any other questions, please feel free to call
me at 415-743-8188.
Best Regards,
cf( a:dt/.Le1~ ~L--
Kathleen Hurney 0
Client Rep
Copy:
Rick Verlanic, McKesson w/enclosure
Enclosure