Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Central Subway Insurance topic
No spam. Unsubscribe anytime.
Committee approves SFMTA insurance amendment to contain Central Subway costs
Summary
The committee approved an amendment authorizing the SFMTA to obtain an additional $150 million excess liability layer through Aon to lower contractor insurance costs for Central Subway station contracts; budget analyst reported estimated SFMTA expenditures of about $8.28 million for the coverage.
The Budget and Finance Committee recommended approval of an amendment to the SFMTA's insurance arrangements for the Central Subway project that will add a centrally procured $150 million excess liability layer, reducing the insurance burden contractors would otherwise carry.
Arthur Wong, SFMTA construction manager for Central Subway, said bidders for station contracts flagged insurance pricing as unusually high; SFMTA and broker Aon proposed that SFMTA procure a $150 million excess layer while contractors provide a $50 million layer. An Aon representative said central procurement leverages the city's marketplace position and can reduce duplication and cost.
The budget analyst reported the SFMTA's estimated cost for the additional $150 million layer is approximately $8.28 million and recommended resolved language to reflect expected expenditures ($17,000,005.51 in one clause as discussed in the report) to avoid delaying procurement. A public commenter urged caution, describing the project as high risk, and supervisors emphasized funds for Central Subway cannot be reallocated to other Muni needs because federal funding is restricted.
The committee adopted the analyst's recommended language and moved the amendment forward with recommendation to the Board.
