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 due in the coming fiscal year.  General liability coverage (to cover premises exposures and acts of its employees) is managed under the City’s master General Liability policies and programs.  A spreadsheet detailing the Commercial Property Policy and the Pollution Liability Policy is attached.   

The city continues to work to control losses and limit exposure through the Risk Committee and working with departments to identify potential exposures.

The premium for property coverage in Fiscal 2018 is indicating a maximum increase of no-more-than 3% ($6,348) and can be tied to market conditions in the insurance market.

The premium for Pollution Liability coverage is reduced by 21% ($13,757) from the previous renewal that occurred in Fiscal 2015.  This reduction is due to a change in carriers for the policy.  The change was necessary as the incumbent carrier was no longer offering the coverage sought by the City.

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.

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 2017-2018, but direct the City Manager further.

I move to approve purchase of recommended insurance policies for 2017-2018 and authorize the execution of required policy documents as recommended by the Contracts and Risk Manager.