Report to Carson Reclamation Authority
Monday, October 03, 2022
Discussion
SUBJECT:
Title
CONSIDER RENEWAL OF A PROPERTY INSURANCE POLICY WITH STARR TECHNICAL RISKS AGENCY, INC. WITH A LIMIT OF $39,599,519 AND WITH A $5,000,000 EARTHQUAKE SUBLIMIT AT A PREMIUM NOT TO EXCEED $304,678 PROCURED THROUGH MARSH USA, INC.; AND AUTHORIZE THE EXECUTIVE DIRECTOR TO BIND THE POLICY
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I. SUMMARY
This action is the renewal of the Property Insurance Policy (PIP) previously acquired by the CRA in October 2021 and authorizes the Executive Director of the CRA to approve and bind a renewal of the PIP on behalf of the CRA.
The proposal contained herein for the CRA Board's approval is for the full requested limit of $39,599,519. The insurance carrier proposed is Starr Technical Risks Agency, Inc. and the premium is approximately $304,678, which will provide for coverage for a year commencing on placement of the renewed PIP. This is about 9.2% higher than last year's policy premium of $276,980 for the same insurance policy.
However, pursuant to the Amendment to Option Agreement, between Carson Goose Owner, LLC (CGO) and the CRA, proposed for approval by the CRA Board concurrently herewith, CGO will be obligated to pay for the CRA's costs of the PIP premium (whatever the actual costs of the PIP are, up to $330,000).
II. RECOMMENDATION
Recommendation
1. APPROVE A PROPERTY INSURANCE POLICY WITH STARR TECHNICAL RISKS AGENCY, INC. WITH A LIMIT OF $39,599,519 WITH A $5,000,000 EARTHQUAKE SUBLIMIT AT A PREMIUM NOT TO EXCEED $305,000 PROCURED AND PAYABLE THROUGH MARSH USA, INC.
2. AUTHORIZE the Executive Director of the CRA to bind the PIP.
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III. ALTERNATIVES
1. TAKE another action the Board deems appropriate.
IV. BACKGROUND
In 2017 the CRA procured Comprehensive General Liability (GL) and Builder's Risk (BR) insurance policies for the former Cal Compact Landfill site (Site). These policies differ from the Pollution Legal Liability and Contractor's Po...
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