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Council approves $2.22 million in city insurance premiums, increases Truckee Meadows deductible
Summary
Sparks City Council unanimously approved renewal of property, casualty, cyber and workers' compensation policies with estimated premiums of $2,222,404 plus $30,000 for cybersecurity services and agreed to raise the Truckee Meadows Water Reclamation Facility deductible to $100,000 to reduce premiums.
The Sparks City Council on July 6 authorized the city manager to execute renewal insurance policies covering property, casualty, cyber liability and excess workers’ compensation with an estimated total premium of $2,222,404 plus $30,000 for cybersecurity services, to be charged to the IT security budget.
Risk Manager Mike Payne presented the renewal, outlining coverage types — property and contents including boiler and machinery, auto physical damage, flood, cyber liability, public-agency liability, employee dishonesty and excess workers compensation — and a two-percent year-to-year estimated premium increase overall. He said the cyber liability premium declined and coverage limits increased from $2 million to $3 million following the city’s cybersecurity investments.
Payne recommended increasing the Truckee Meadows Water Reclamation Facility deductible from $50,000 to $100,000, a change the facility’s director also supported; staff estimated that change would reduce the facility’s premium by about $43,008 per year and was fiscally responsible given no losses in five years. The excess workers’ compensation insurer provided a two-year rate guarantee. Payne noted the city is no longer required to use a third-party administrator beginning FY26, removing those costs.
Member Abbott moved and Member Bybee seconded approval of the purchase; the council voted unanimously to authorize the city manager to execute policy documents.
