Council approves $680,983 insurance invoice after staff details expanded equipment inventory

The City of Aberdeen approved an invoice for $680,983.04 to the South Dakota Public Assurance Alliance after staff described changes to how the city tracks mobile equipment and outlined options for expanding fleet insurance.

A representative of the South Dakota Public Assurance Alliance told the council staff had standardized inventories across departments and reclassified "mobile equipment" (items over $5,000 not permanently attached to a location). The more-complete inventory increased the number of listed items and contributed to a higher insurance bill this year.

The representative said the city currently carries liability coverage but not comprehensive physical-damage coverage for its own vehicles; adding that kind of coverage (replacement-cost vs. depreciated-value options) could raise annual premiums by as much as $125,000 depending on coverages and deductibles. Staff emphasized they are running scenarios with several deductible levels and will return with clear options that balance cost and risk.

Council members asked whether the change would have altered earlier handling of an ambulance crash; finance staff said replacement cost for that vehicle had been covered from contingency and reserves, and that the vote before the council would not change handling of that past loss.

A motion to approve the invoice as presented passed on roll call. Staff said any further decisions about adding physical-damage coverage would come back to the council with cost/deductible options.