Board of Works moves to raise deductible to $5,000 and renew insurance to cut premium

The Special Board of Works on June 23 moved to increase the city's insurance deductible from $1,000 to $5,000 and to renew the insurance policy, a change the board said would reduce the renewal premium by about $25,416 from the amount listed in the materials.

Board members and the city's insurance representative, identified as Kyle, spent much of the meeting reviewing the policy's schedule of locations and insured items. Tim Smith flagged a line listing an "ice rink" at 206 North Belmont; Kyle and others clarified the city does not operate an ice rink at that site and that the insured property is a skateboard park. The group agreed the policy description should be corrected.

The board reviewed premium figures presented during the meeting: the total renewal premium in the packet was listed as $352,281.15; the staff presentation showed moving the deductible to $3,000 would save $17,916, and moving it to $5,000 would save $25,416. Several members said a $5,000 deductible was the prudent choice given recent losses and would keep the renewal near a flat renewal for the city.

Kyle described recent storm-related claims as the primary driver of higher costs in the renewal and characterized the large loss as hail-related, which he said was an event the city did not cause. Legal counsel Sydney Darnell said the city attorney's office had not independently reviewed the renewal document and offered to look at any specific questions referred by the board.

The board directed staff to provide up-to-date drivers, equipment and vehicle lists so the insurer could verify covered individuals and assets. A motion "to increase the deductible of 5,000 and renew the insurance as presented and update it" was made and seconded; the transcript records an expression of opposition during the call for votes but does not include a detailed roll-call or recorded vote tally in the meeting record.

The board scheduled follow-up on hail-damage repairs and associated bids for the July meetings and noted procurement timelines may push some work to September. The meeting then adjourned.