COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

Local Government Property and Liability Insurance

 

SUBJECT/PROPOSAL/REQUEST:

Authorize the County to join the Virginia Association of Counties Group Self Insurance Risk Pool for FY 2006-07

 

STAFF CONTACT(S):

Tucker, White, Davis, Wiggans

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

June 7, 2006

 

ACTION:                             INFORMATION:   

 

CONSENT AGENDA:

  ACTION:    X                     INFORMATION:   

 

ATTACHMENTS:     Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

Albemarle County’s property and liability insurance plan is reviewed and executed on an annual basis.  The effective dates for the plan coincide with the County’s fiscal year (July 1 through June 30).  Since FY 2000–01 the County has participated in an insurance plan sponsored by the Virginia Municipal League (VML) for coverage under the Virginia Municipal Liability Pool.  For FY 2006-07, proposals were received by the County for insurance plans sponsored by both VML and the Virginia Association of Counties (VACo.

 

STRATEGIC PLAN:

4.2:  Fund County services in a fair, efficient manner and improve needed public facilities and infrastructure.

 

DISCUSSION:

The proposed insurance plans from VML and VACo for FY 2006-07 were reviewed by County staff.  The total cost for insurance coverage from VACo is $336,300.  The total cost for comparable coverage from VML is $459,181.  Therefore, VACo’s bid is $122,881 less than VML’s.  Both plans are equivalent to the plan currently in effect with one exception.  The deductible for liability for law enforcement and public officials claims increases from the current deductible of $0 to a $10,000 deductible in FY 2006-07.  Both the VACo and VML plans, compared above, proposed a $10,000 deductible for FY 06-07.  In addition, VML offered a plan with no deductible for an additional cost of $40,000 per year ($499,761).  Because historically the County averages three or less of these claims per year, the deductible will not significantly offset the savings provided by the VACo proposal.

 

BUDGET IMPACT:

In its FY 2006-07 budget, the Board of Supervisors approved $396,832 for the County’s property and liability insurance coverage.  The proposal from VACo is $60,532 under budget.  The VML proposal is $62,349 over budget.

 

RECOMMENDATIONS:

Staff recommends that the Board of Supervisors adopt the attached Resolution to authorize the County to join the Virginia Association of Counties Group Self Insurance Risk Pool to provide for the County’s property and liability insurance coverage for FY 2006-07.

 

ATTACHMENTS

A- Resolution

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