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McKesson Bldg Loading Dock License D~~%duE ~ck.~ 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 Ci Dt;~%duE ~ck.~ 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 ~ MCKESSON '1J :;cJ m' 0', II I.~ I- ~;i :? ,;, ,7, :::::.., rfl'.~ _ "[;2 '):::> ::.U -< ---v;- " ' " ' j Iii ~: i \1, ! i I:' I " \:\: ! i ::: ; , 'I I I I,.' ',\ "~-: \,'1' 1::: ", ,," . ",", '" " : : ...'......\ ... ":.... ~..:n I '~ ! '" WT1ir "Ii,! I '" II ! I'll I I! '0' I -Ii II! II! . ? !Il~ I!I, l!! 1111 Ijli 'Ii Ii . 'J" 'j:' I' i:. : ~i~ ,',! h~ lUst )..,.~ C/J ! !llj~ !PI en! II!" o II. 'j (.0) , ~ ~ II I ~ ~m"I~' Ij1ih I 'r.I q , ,;Wi ~005 I DU~UQUE BUILDING 2005 STRUpTURAL IMPROVEfv1ENTS 700 l..OCUST S'l'RS.ET I I DUBUQUE, I<:NYA I , , . .J " 7TH STREET \ EXIS TING ALLEY PLAN SCALE 1" = 30' EXIS TING MCKESSON ~ BUILDING EXISTING PLAZA AREA ~/// TTH STREET ~ PROPOSED ALLEY PLAN SCALE 1" = 30' ~~" '" ' ,- -"--",,,-,,+ ,+,+ 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 i 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