County to purchase $1 million ADOT surety bond for self-insured vehicle fleet; annual cost $7,000
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Summary
County risk management told the board it will purchase a surety bond required by ADOT for self-insured entities' vehicle programs; the bond will cost $7,000 per year and the funding is available within the department's budget.
Maricopa County's director of risk management told the Board of Supervisors on April 9 that the county will purchase a $1 million surety bond that the Arizona Department of Transportation will require of self-insured entities for vehicle insurance renewals effective June 1, 2025.
Christopher Capels, director of risk management, said ADOT's statutory or regulatory renewal requirement will require a $1,000,000 surety bond as part of the county's self-insured renewal information. Capels said the cost to the county is $7,000 annually and that the department has the funds budgeted. He told the board the item was placed on the agenda because staff wanted board-level confirmation that the director has authority to sign the indemnity agreement required by the bond under the county's self-insurance program.
Capels said the county self-insures about 3,400 vehicles and that the bond is part of the renewal package; the intent is to streamline future renewals and satisfy ADOT requirements. Supervisors approved the agenda item as presented during the consent/addendum portion of the meeting.
Risk management staff said no additional county appropriation was required for the bond purchase and that the request is administrative — guaranteeing compliance with ADOT renewal requirements for the county's fleet program.
