Board to hear emergency ordinance regarding city's insurance - NWAOnline

sulionjaka.blogspot.com

City board members will hear an ordinance relating to the city's property insurance policy and approving a competitive bidding waiver during Tuesday's city board meeting, as well as voting to approve an emergency clause which would adopt the ordinance with only one reading.

After reviewing the coverage of Moss Insurance Agency and the Arkansas Municipal League (AML), city staff has chosen to remain with Moss because AML does not cover general liability, only physical damage to property, according to a staff report submitted by Adrienne Barr on June 10. The city's current property insurance policy expires on June 30, Barr said. Due to this reason, staff is asking the board to also approve the emergency clause, Barr said.

Both AML and Moss provide insurance through Alliant, which is the city's current carrier through Moss, Barr said. Alliant has added a $250,000 wind/hail deductible and a catastrophic loss deductible of $250,000, as a result of catastrophic losses the insurance industry has suffered nationwide, Barr said.

Due to the increase in deductibles, the city chose to go with Moss because they offer a buy-down policy to bridge the large insurance deductible, while AML does not presently offer a buy-down policy, Barr said. City staff recommends buying two buy-down policies to pay $200,000 of the $250,000 deductible, Barr said.

A buy-down policy allows the an insured party to buy a separate policy to reduce the deductible amount the insured would have to pay if a claim was made, according to Holland Hayden, communications manager. In this case, if the city suffers hail damage, the buy-down policy would cover $200,000 of the $250,00, and the city would only have to pay $50,000, Hayden said.

Other significant differences include Moss covering up to $ 2.5 million to reproduce valuable papers or cash lost while AML does not cover this; AML requires newly added property to be added to the coverage immediately upon occupancy and to a pay a pro-rated premium to the end of the policy year, while Moss will cover newly added property until the next renewal and not affect the city's current annual budget, Barr said.

The fiscal impact will be $148,235 plus the buy-down premium of $34,632, which brings the total to $182,867, Barr said. AML's quote was $114,782, but because they do not offer the buy-down policies and the differences listed above, an exception exists where competitive bidding is not feasible pursuant to §14-48-129 of the Arkansas State Statutes and §2-223 of the City Code, Barr said.

Other business to be discussed and voted on include:

• Dedication of utility easements for 2100 U.S. Hwy. 412 E.

• A budget amendment regarding upgrading the self-serve fuel terminal at the airport for $26,500.

• A budget amendment to the capitol budget concerning the purchase of a police canine for $13,500.

• Placing Ordinance 20-10 regarding net-metering on its third reading.

• Placing Ordinance 20-11 concerning property maintenance code amendments 0n its third reading.

• Placing Ordinance 20-12 regarding amending the Northwest Arkansas Regional Airport Authority Agreement on its second reading.

• Placing Ordinance 20-13 concerning rezoning the 4200 to 4300 block of U.S. Highway 412 East from A-1 (Agriculture) to C-2 (Roadway Commercial) on its second reading.

• Placing Ordinance 20-15 regarding the vacation of unnamed right-of-way at 2100 U.S. Hwy. 412 E. on its first reading.

• Tabling Resolution 32-20 concerning the final plat development permit for the 100 block of North Lincoln Street and 106 N. Country Club Rd.

Let's block ads! (Why?)

"hear" - Google News
June 14, 2020 at 04:06PM
https://ift.tt/30Hg1So

Board to hear emergency ordinance regarding city's insurance - NWAOnline
"hear" - Google News
https://ift.tt/2KTiH6k
https://ift.tt/2Wh3f9n

Bagikan Berita Ini