Loading...
HomeMy WebLinkAbout1986-04-04 Min - Board SPECIAL MEETING April 4, 1986 The special meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order by President Maass at 4:04 P.M. in the TDPUD Board room. ROLL CALL: Directors Cooley, Corbett, Sutton and Maass were present. Director Hamilton was unavailable because of a job commitment in Reno. EMPLOYEES PRESENT: Mary Chapman, Peter L. Holzmeister and Susan Craig. CONSULTANTS PRESENT: Counsel John M. Phelps. OTHERS PRESENT: Gerry McCarthy of Frank B. Hall of California. CONSIDERATION OF INSURANCE PROPOSAL AND POSSIBLE ACTION Manager Holzmeister advised that the District's insurance is due to expire at 12-01 A.M. on April 7 , 1986. At his request , Office Manager Chapman explained that she has been in close contact with Mort Levinson of Levinson Brothers since the PUD received notice of non-renewal. She was also in touch with the Northwest Public Power Association and California Special District Association with regard to the status of their joint power insurance programs. These programs will most likely be available to the District as options in 1987 , but are not available at this time. Mrs. Chapman noted that she contacted Gerry McCarthy of Frank B. Hall of California, who uses Nationwide Insurance Company as their underwriter. Nationwide has the best rating that an insurance company can have, and writes policies for many electric utilities. Some of their California clients are Plumas Sierra Electric Cooperative, Surprise Valley Electric Cooperative and Anza Electric. As authorized by the Board, Bernie Scalisi of Coopers and Lybrand reviewed the proposals from Frank B. Hall and the one put together by Levinson. Mr. Levinson reported to the Office Manager that District property can be insured, but the only liability program he could find was through Aegis , who insures many of the larger electric utilities. The proposal was priced at $160,000, is for liability coverage only and has a $200,000 deductible. Frank B. Hall was able to qualify the District for the NRECA Directors and Officers liability program with a limit of $2,000 ,000. The cost of this coverage is $3,600 plus membership in the NRECA ($4,335) and annual dues. Director Sutton expressed concern as to whether the National Rural Electrification Cooperative Association is an appropriate organization for the District to join since the PUD is a governmental agency rather than a cooperative. Mrs. Chapman explained errors and omissions policies; she noted it is possible to obtain a one-year extension to cover incidents that happen during the term of the policy but are not known to the District until after expiration of the policy. After some discussion as to the difficulty in obtaining adequate insurance -1- 100- coverage at a reasonable cost , the Office Manager suggested that a risk management audit be conducted. She stated she felt it would be beneficial to the District to have an insurance expert available to answer questions , and noted she is satisfied with Mr. Scalisi's knowledge. Mr. McCarthy advised that , if the proposal of Frank B. Hall is approved this date, the coverage will take effect at 12:01 A.M. on Monday, April 7th; there will be no lapse in coverage. Director Corbett moved that the Board authorize placing into effect with Frank B. Hall the primary insurance package , which includes property coverage , comprehensive auto and general liability and blanket crime with a limit of $2 ,000,000 on liability at a cost of $61 ,134; the EDP floater at a cost of $896; an umbrella policy with a limit of $4 ,000,000 at a cost of $8 ,204; and a second layer of umbrella liability with a $5,000,000 limit at a cost of $15,000. The motion was seconded by Director Cooley. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. Director Cooley moved that the District join the NRECA at a cost of $4,335, and obtain their directors and officers liability coverage with a $2,000,000 limit at a cost of $3.600; seconded by Director Corbett. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED, Director Corbett moved , and Director Cooley seconded , that the Board authorize extending the directors and officers coverage through Levinson Brothers at a cost of $3,150, pending review and approval by Coopers and Lybrand. ROLL CALL: Hamilton, absent; all other Directors, aye. SO MOVED. Director Sutton asked that , since the District is joining the NRECA, we check to see what other benefits are available. The Manager noted that the Office Manager,, Mary Chapman, performed the entire insurance review and prepared the recommendation for Board review. President Maass stated he was very impressed with the thoroughness of Mrs. Chapman's work and thanked her for her efforts. ADJOURNMENT There being no further business before the Board, Director Corbett moved, and Director Cooley seconded, that the meeting be adjourned. All Directors, aye, by voice. SO MOVED. The meeting was adjourned at 4:38 P.M, TRUCKEE DONNER PUBLIC UTILITY DISTRICT J es A. Maass , President Prepared by Susan M. Craig Deputy District Clerk -2-