MEMORANDUM UJ N

Mayor and Council March 4th, 1976 MAR 8 1976

L.D. Pollock
City Administrator

Re: Fleet Insurance

Mayor Campbell briefly mentioned the Fleet Insurance coverage through Z.C.B.C.
on the City-owned vehicles at the last regular meeting of Council. He
referred to the fact that some revisions had been made in the insurance

programme .

I have attached a list of the City vehicles showing the coverage that we have
placed on these vehicles for 1976. The main points that we have changed are:

Z Public Liability has been increased to $1 ‘Million from £500,000.

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2. The collision coverage has been deleted on many vehicles, except those
which might be driven outside of the municipality or in the case of high-risk
vehicles. Most of the fire vehicles, including the inhalators, have been
insured for collision as well as the garbage trucks, the sweeper and the
Hiab crane, :

3. Comprehensive coverage, which includes fire and theft, has been left on
ail vehicles except the trailers.

On the last page of the summary, you will note that the total premiums for
1976 (after the fleet discount) comes to $16,038.00. Last year the similar
figure, including the fleet discount, came to $9,216.00.

Some minicipalities have taken similar action to ourselves in removing

collision coverage and have set up a fund, by setting aside an amount equivalent
to the amount saved through reduced premiums. Zr: our own case, the equipment
rental rates have been set at a level that will produce adequate contributions
to an Equipment Replacement Fund. It is the opinion of the City Engineer and
myself that as long as contributions to this Equipment Replacement Fund are
kept at an appropriate level, there should not be any necessity to start another
self-insurance fund. Contributions to this Fund can be discussed with the
Finance Committee and with Council during Budget discussions.

For Council's information, our loss experience has not been high; e.g. our claims
to I.C.B.C. in 1975 involved less that $1,000. in damage to City vehicles. I
would hope that this favourable experience would continue.

4s the foregoing represents a major change in our coverage, I would appreciate
a resolution of Council to confirm that the change in coverage is acceptable,

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