TO: AC Transit Board of Directors
FROM: Jill A. Sprague, General Counsel/Chief Legal Officer
SUBJECT: 2023-2024 District Commercial Property Insurance Program Renewal
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to bind the District's 2023-2024 Commercial Property Insurance and Deadly Weapons Response insurance programs.
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 commercial property and Deadly Weapons Response insurance programs will allow the District to maintain its risk retention and risk transfer programs at the current optimum levels for the 2023-2024 policy period.
BUDGETARY/FISCAL IMPACT:
The total budgetary impact of binding the proposed insurance coverages as recommended by staff will not exceed $2,249,278.57 if the Board authorizes the binding of the recommended renewal proposals for both the expiring commercial property and the deadly weapons response insurance programs.
BACKGROUND/RATIONALE:
During the April 12, 2023, Board meeting, the Board authorized the General Manager to bind the 2023-2024 Excess Commercial Liability, Excess Workers' Compensation, Cyber-Liability, Fiduciary Liability, and Commercial Crime components of the District's Transit Operations Insurance Program.
The District's 2022-2023 commercial property (APIP) and deadly weapons response insurance (ADWRP) programs will expire at 12:01 a.m. on July 1, 2023. Staff is requesting that the Board authorize the General Manager to bind both the renewal of the commercial property insurance program and the deadly weapons response insurance program as recommended in this report.
The commercial property insurance market continues to be adversely impacted by a confluence of factors, including, but not limi...
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