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Sparks City Council Meeting 6/11/2012 2:00:00 PM
Monday, June 11, 2012 2:00 PM745 4th Street, Sparks, NV 89431
General Business: 6.3
Title: Consideration and possible approval to purchase various commercial insurance policies to protect the financial interests of the Truckee Meadows Water Reclamation Facility for the next policy periods and authorization for the Contracts and Risk Manager to execute agreements for those policies.
Petitioner/Presenter: Shaun D. Carey, City Manager/Dan Marran, CPPO, C.P.M. – Contracts and Risk Manager
Recommendation: Recommend approval to purchase commercial insurance policies to protect the financial interests of the Truckee Meadows Water Reclamation Facility for the next policy periods.
Financial Impact: $204,410.00
Total Costs: $204,410.00
Total Costs: $204,410.00|
Fund: Joint Treatment Plant Account: 603065 Program: TMWRF Administration (131500) Amount: $204,410.00 Budget Status: Budget Exists |
Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.
A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief: 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.
Background: TMWRF purchases commercial property coverage to protect against losses relating to its property and contents (including boiler and machinery exposures). 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 also carries a Pollution Legal Liability Policy that is renewed on a 3-year cycle with the next renewal not due until Fiscal 2015.
Analysis: Working with the City’s Broker (Wells Fargo Insurance Services, USA) and the Property Insurer, the City analyzes the risks associated with the operation of the treatment plant on a continuing basis. Further analysis of building values may take place over the next year that may affect the insured value of the facility for the next renewal cycle, and therefore potentially affect future premiums. The renewal under consideration with this item reflects a total premium cost of $204,410, representing an increase of $1,227.00 (.6%) over the current year. This minor increase is well below the market average seen in the insurance market over the current renewal period, where increases of 8-15% (year-to-year) have been quoted to be the average, due to market conditions in the insurance industry.
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 2010-2011, but direct the City Manager further.
Recommended Motion: I move to approve purchase of insurance policies for 2012-2013 and authorize the execution of required policy documents as recommended by the Contracts and Risk Manager.
Attached Files:
Ins Cost Grid-TMWRF Fiscal 2013.pdf
