I make a motion.

Motion to approve.

Now second.

All in favor say aye.

Minutes approved.

Okay, Mr.

Holmes.

Good afternoon, Council.

We are here on the rarest of council committees for you.

As you recall, this committee meets every fifth Tuesday, which there appears to be no rhyme or reason for when the fifth Tuesday of the month falls.

It tends to happen about four times a year.

I'm offended.

And we knew that there wasn't going to be another one until I mean May or June, except for one in I think of December that was canceled because of another holiday.

And so at that time, uh Mr.

Tiner, I believe you and Mr.

Busby asked if we would schedule a specially called.

We'd initially intended to do it kind of towards the middle of January, but we know that the our biggest insurance policy, our our general liability coverage and property insurance renews the end of February.

It seemed as though if we were going to have a specially called insurance litigation committee, we should we should have the big policy uh appear on it.

So we moved it back uh back to this week.

Sure.

Um the first item is that that big policy, and this covers our fleet, our uh our various assets, our property, our buildings, um, our general liability and is a beast of a policy.

Um this policy to quote takes probably somewhere in the neighborhood of a hundred uh staff hours between uh between our staff and other city staff members in Mr.

Mesco's time.

Um Hudson Cheshire has led this in OCA the last couple of years, and so I'm gonna let him uh take over here in a second, but this is something that goes through every department.

We've had great success with having our departments participate.

Um it's hard for us and for Mr.

Menesco to know when departments have bought new assets or disposed of assets that we're insuring without sitting down and going through them.

Um and so I will let uh I'll let Hudson kind of walk you through this.

Okay, Mr.

Manasco is is here, so if there's anything that that Hudson leaves out that you would like Mr.

Minesco to answer for you, then he's available to do that as well.

Thank you, Mr.

Chair.

Thank you, Scott.

Afternoon, council.

Afternoon.

Um as Scott said, this is the big policy.

It's fleet property liability and and a handful of other things.

Last year the premium was 1.95 million dollars.

This year it is 2.39.

So it's gone up.

I'm sorry.

Give me those numbers again.

Last it's in there.

Oh, okay.

The the change is 457,000 or 457, 581 dollars.

Um I don't want to get too far down into the weeds, but I did want to point out some big contributors to the to the uh increase in the premium.

The first is property value.

So in short, one of the big reasons the premium is up is because our property values are up.

There's a couple reasons for that.

One is that every year um we do what's called what we call the three percent inflationary adjustment.

So we take all of the properties that we're currently insuring and increase the property value by three percent to uh try to keep up with inflation.

The second is that we have added 28.4 million dollars in property to um to uh the city in the past year.

So you think about the improvements that we've made, Mr.

Tyner, to the tennis center.

Um think about the new warehouse that we just bought, fire station six, uh, all these add up and are reflected in the in the property schedule.

Um the second reason is that our general uh liability policy has gone up a little bit.

Um general liability is calculated by expenditures that the city makes.

And I'm I'm talking out of my depth here, but uh the more the money the more the city spends in certain areas, you're gonna see an increase in general liability uh in the premium.

So we were up by 5.6 million this year compared to the year before, and you're gonna see um uh a premium adjustment there.