Sparks City Council Meeting 6/8/2015 2:00:00 PMMonday, June 8, 2015 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks
General Business: 9.3
Total Costs: $221,574.00
Fund: Joint Treatment Plant Account: 603065
Program: TMWRF Administration (131500)
Amount: $221,574.00 Budget Status: Over Budget (See Budget Correction Plan)
A Business Impact Statement is not required because this is not a rule.
There is no General Fund impact associated with this item. This is the annual renewal of insurance policies purchased for TMWRF to protect its financial interest relating to potential accidental losses. This staff report covers the periodic renewal of policies specific to Property/Contents. This agenda item also seeks to authorize the Contracts and Risk Manager to execute the necessary paperwork associated with those policies.
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 which is not under consideration at this time as the next renewal will occur in Fiscal 2018. 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 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 remained flat. A spreadsheet detailing those commercial policies is attached.
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.
There are no coverage level changes proposed for this policy period.
- The City Council may approve the item as recommended.
- The City Council may reject the recommendation of staff.
- The City Council may choose not to approve the purchase of insurance policies for 2015-2016, but direct the City Manager further.
I move to approve purchase of recommended insurance policies for 2015-2016 and authorize the execution of required policy documents as recommended by the Contracts and Risk Manager.
Ins Cost Grid-Combined Fiscal 2016.pdf