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HomeMy WebLinkAboutAPT 02/01 AJAX/PICKERING TRANSIT AUTHORITY REPORT TO BOARD FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: September 12,2001 REPORT NUMBER: APT 02-01 SUBJECT: Liability Insurance RECOMMENDATION: That the Board: 1. confirm and approve the actions of the Treasurer in regards to the purchase of insurance as outlined in this report; 2. authorize the General Manager and the Director, Corporate Services & Treasurer to purchase any other insurance, make arrangements and settle and pay claims; and, 3. the appropriate officials be given authority to give effect thereto. - ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: The Municipal Act, R.S.O. 1990, as amended, and Regulations FINANCIAL IMPLICATIONS: The annual premium for all coverages mentioned in this report is $12,219 plus applicable taxes. Since these policies are being purchases at this time the cost will be shared equally by Ajax and Pickering. EXECUTIVE SUMMARY: Not applicable REPORT: - While the City of Pickering and the Town of Ajax each provide their own insurance in regards to liability and the property of their respective Transit operations and will continue to do so until the end of the year, it was felt to be in the. best interest of all concerned if additional liability insurance was purchased to provide protection to the Board and it's employees. While the current insurance put in place by each of the respective municipalities should be sufficient in the interim in regards to the assets and liabilities of their respective transit operations, given the amalgamation, the formation of a new board, the "transition period" from September 4 to January 1, 2001 and the hiring of administrative staff thereunder, it was felt to be in the best Report to Ajax/Pickering Transit Authority Date: September 12, 2001 Subject: Liability Insurance Page 2 - interest of all concerned if additional insurance was purchased to provide protection to the members of the board, management and staff of the new amalgamation Transit Authority. These coverages will be in place until a new consolidated and comprehensive package of insurance coverages can be put in place for the new authority, currently anticipated to be January 1, 2002. The coverages purchased are as follows: .- Class of Insurance Summary of Coveral!es Limits/Amounts General Liability Limit of Protection $10,000,000 Third Party Claims Deductible Nil Errors and Omissions Limit of Protection $10,000,000 Deductible 2,500 Non-Owned Automobile Limit of Protection $10,000,000 Physical Damage Limit 250,000 Physical Damage Deductible 500 Comprehensive. Crime Commercial Blanket Bond $1,000,000 Monev - Blanket any Location 50,000 Counterfeit Paper Included And Depositors' Forgery Included Audit Expense (Sub-Limit $100,000) Included 2001 - 2002 Total Annual Premium $11,719 (plus taxes) In addition, Legal Expense Insurance was purchased at an annual cost of $500, plus taxes as Municipalities and other public entities are continually faced with increased exposure and responsibility under various statutes enacted by senior levels of government. Among other things, the Occupational Health and Safety Act provides for individual duties upon officers and management of a Transit Authority to ensure that the statute is compiled with, and there are significant penalties for failing to follow the statute. Examples of the more common Statutes are: . Environmental Protection Act . Freedom of Information and Protection of Privacy Act . Occupational Health and Safety At . Ontario Water Resources Act . Pesticides Act . Municipal Elections Act Legal Expense Insurance provide for the reimbursement of legal fees (defence costs) including disbursements incurred by elected or appointed members, employees and volunteers in defence of charges laid for an alleged offence under any Statute of the Province of Ontario (except for the Highway Traffic Act and the Municipal Conflict of Interest Act). Coverage is provided for 90% of legal fees and disbursements up to $100,000 subject to an roIDUal aggregate for all claims of$250,000. The annual premium for this coverage will be $250. - Optional coverage was also purchased to provide for reimbursement of defence costs even when the outcome of the statutory charge is guilty. The additional premium for this coverage is $250. Environmental liability was not purchased at this time as existing policies should be sufficient. Also, Accident Insurance for Board Members was not purchased as they are covered under their respective municipal policies. Report to Ajax/Pickering Transit Authority Date: September 12, 2001 Subject: Liability Insurance Page 3 - ATTACHMENTS: Not applicable Prepared I Approved I Endorsed By: ~~q~~ Gillis A. P~terson Director, Corporate Services & Treasurer GAP:vw Copy: T.1. Quinn, Chief Administrative Officer R. Parisotto, Chief Administrative Officer, Town of Ajax 1. Galinis, General Manager, AjaxlPickering Transit Authority .- -