Council Chambers, Legislative Bldg, 745 4th St., Sparks
General Business: 6.4
Background: TMWRF purchases commercial property coverage to protect against losses relating to its property and contents (including boiler and machinery exposures). Additionally, a Pollution Liability policy is carried at the facility and renewed on a 3-year cycle where that premium comes due in Fiscal 2015. General liability (to cover premises exposures and acts of its employees) is covered under the City’s master General Liability policies and programs. General liability claims over $100,000 are handled via the City’s master general liability policy; claims under that amount are managed by Risk Management under the City’s self-funded liability program and the City Risk Management Committee. A spreadsheet detailing the Commercial Property Policy and Pollution Liability policy is attached. This policy is renewed annually.
The city continues to work to control losses and limit exposure through the Risk Committee and working with departments to identify potential exposures. In marketing the City policies this year, staff was challenged with an insurance market that had predicted increased premium rates of as much as 10%. In the case of City policies, we were able to negotiate increases that are below the market average and in the case of TMWRF, premium costs have actually been reduced due to shifts in insured values and changes in the proposed carrier for Pollution Liability. A spreadsheet detailing those commercial policies is attached. In Summary, premium changes from the previous policy period are as follows: Property/Boiler: Down 2% ($5,116) Pollution Liability: Down 22% ($18,449) The total estimated premium depicted on the attached spreadsheet may be adjusted upward or downward, depending on variations in actual exposures throughout the course of the policy year.
COVERAGE CHANGES: There are no coverage level changes proposed for this policy period.
Alternatives: 1. The City Council may approve the item as recommended. 2. The City Council may reject the recommendation of staff. 3. The City Council may choose not to approve the purchase of insurance policies for 2014-2015, but direct the City Manager further.
Recommended Motion: I move to approve purchase of recommended insurance policies for 2014-2015 for TMWRF and authorize the execution of required policy documents as recommended by the Contracts and Risk Manager.
Ins Cost Grid-Combined Fiscal 2015.pdf