TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: 2023-2024 District Transit Operations Insurance Program Renewal
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to approve and execute the renewal of the District's 2023-2024 Transit Operations Insurance Program under the terms and conditions recommended by Staff.
Staff Contact:
Jill A. Sprague, General Counsel/Chief Legal Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Authorizing the General Manager to bind the proposed Transit Operations Insurance Program will allow the District to continue to maintain its risk transfer and risk retention program at optimum levels for the 2023-2024 policy period.
BUDGETARY/FISCAL IMPACT:
The current estimated increase for the 2023-2024 insurance program represents a 4.25% increase over the last policy period. This year's budgetary impact will not exceed $13,735,567 if the Board authorizes binding the 2023-2024 insurance program as recommended by staff at the current self-insured retentions (SIR) in the automobile and general liability coverage lines and elects to include terrorism coverage. If the Board chooses to decline the terrorism coverage the total budgetary impact will not exceed $13,627,987.
BACKGROUND/RATIONALE:
The District's insurance program is renewed on an annual basis. The District's current insurance program, except for the commercial property and deadly weapons response lines of coverage, will expire at 12:01 a.m., April 26, 2023. Staff requests that the Board authorize the General Manager to bind the District's policies as recommended below.
Staff recommends the following options for the 2023-2024 Transit Operations Insurance Program renewal to the Board for consideration:
Excess Automobile and General Liability: Liability Insurance...
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