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Home My WebLink AboutMWMC Agenda Packet b. ______________________________________________________________________________ Memo: Property Insurance Renewal June 2, 2022 Page 2 of 3 DISCUSSION Property Asset Values – The total insured value of the MWMC’s assets was $337.55 million in FY 2021-22, representing a net increase of $1.65 million in property and mobile equipment when compared to the prior year. The total insured value of the MWMC’s assets is now $349.56 million in FY 2022-23, representing a net increase of $14.86 million in inflationary adjustments on property asset values. The increase in total asset value takes into consideration increasing inflationary adjustments, added/upgraded and/or removed systems, equipment, infrastructure, and mobile equipment. The current MWMC statement of values includes close to final costs for the Renewable Natural Gas project at $8.65 million with insurance coverage pending final completion. Property Insurance – Due to the $349.56 million in assets and coverage levels for flood and earthquake, many insurance providers do not have the capacity to provide insurance coverage to meet the standard MWMC coverage levels for flood, earthquake, and underground pipes. At this time last year, the Commission approved property insurance renewal with Starr Technical Risks Agency effective July 1, 2021 through June 30, 2022 on a one-year renewal, with a total of $50M in earthquake coverage. It is important to note that Starr Technical Risks Agency property coverage includes earthquake at $50 million. Additional Difference in Conditions (DIC) earthquake coverage is available and can be provided by separate insurance providers to add to the current $50 million in earthquake coverage, if desired. Please note DIC earthquake coverage does not include: (1) underground pipes, (2) extra expense, and (3) course of construction projects -- as they are excluded from the DIC policies. The table below provides the property insurance pricing from Starr Tech with property insurance including a policy limit of $100 million, a flood sublimit of $100 million, an earthquake sublimit of $50 million, and sewer pipes sublimit of $10 million. Property Coverage thru June 30, 2021 July 1, 2022 Expiring Recommended Program Pricing $50M Earthquake $50M Earthquake Starr Tech / ACE America All Risk Property Insurance includes $50M EQ $342,964 $353,640 TOTAL Premium $342,964 $353,640 Cost difference compared to Expiring $15,361 % of cost difference to Expiring 4.5% Property Insurable Values $337,550,791 $349,561,091 The property insurance pricing above does not include agent commissions, as the MWMC agent of record services are based on an annual fee paid directly by the MWMC. ______________________________________________________________________________ • • • • • Digital Signature: Digital Signature: Digital Signature: ______________________________________________________________________________ • • • • Digital Signature: Digital Signature: Digital Signature: ______________________________________________________________________________ • • ➢ ______________________________________________________________________________ ATTACHMENT 1 ATTACHMENT 1 ➢ ar ATTACHMENT 1 1 2 43 5 6 7 A B C D E 29'-0"15'-2 1/2"6'-7"15'-2 1/2"34'-0"37'-0" 137'-0"67'-0"39'-0"18'-0"40'-3 1/2"164'-3 1/2"Break Room, Pantry, Jan Storage Meeting / Hoteling Storage Laundry Mud Room Open OPS Crew Area / Open Office Office Administrative Front / Open Office Lobby + Vestibule N MWMC ADOPS Building Renovate, Option 4A 19,775 SF Conference / Training / Meeting Room Mechanical Room OPS Lab Console Room Restrooms, Shower Locker Rooms, Unisex ADA Restrooms DCS Room, Server Room, Electrical Room + IT Desk Room Primary Effluent Office Office Office Mechanical Room Office Office Office Office Office Office Office Flex-Use Training / Meeting Room JAN Office ADA Restroom ADA Restroom Storage W Restroom M Restroom Administrative Front Office, Flex Space + Copy/Print Area Lobby + Vestibule IT Desk Room DCS Server Electrical Room Storage Flex-Use / Meeting Room Break Room, Pantry OPS Lead Console Room Meeting Room / Emergency ADA Restroom Shower ADA Restroom Shower Mud Room Laundry M OPS Locker W OPS Locker Storage Open OPS Crew Area OPS Supervisor OPS Lab OPEN MEETING / FUTURE EXPANSION Training / Meeting Room Electric Feed Hot Water Water Supply Chilled Water Water Supply Water Supply 60 Break Room, Pantry, Jan Storage Meeting / Hoteling Storage Laundry Mud Room Open OPS Crew Area / Open Office Office Administrative Front / Open Office Lobby + Vestibule N MWMC ADOPS Building Rebuild, Option 3, 19,783 SF Conference / Training / Meeting Room Mechanical Room OPS Lab Console Room Restrooms, Shower Locker Rooms, Unisex ADA Restrooms DCS Room, Server Room, Electrical Room + IT Desk Room Primary Effluent Office Office Office Mechanical Room Office Office Office Office Office Office Office Storage W Restroom M Restroom Office ADA Restroom JANTraining / Meeting Room Storage Flex-Use / Meeting Room Lobby + Vestibule Storage Meeting Room / Emergency Laundry W OPS Locker M OPS Locker Open OPS Crew Area OPS Lab IT Desk Room Electrical DCS Server OPS Lead Console Room ADA Restroom Shower Mud Room Electric Feed Hot Water Water Supply Chilled Water Water Supply 70 Water Supply MWMC Ops Building Development Alternatives Matrix Both:Risk Cat IV w/ IV+ Core Description Qualities/Features Weight Raw Score Wtd Score Raw Score Wtd Score Location 1.5 4 6 5 7.5 Seismic Retrofit & Project Complexity 1.5 3 4.5 5 7.5 Fiber system renovation and SCADA/Network operations 1.4 3 4.2 3.5 4.9 Space Programming and Design Flexibility 1.3 3 3.9 5 6.5 Exterior Design Options 1.1 2 2.2 5 5.5 Temporary Facilities during construction 0.7 4 2.8 4 2.8 Building Sustainability 1.2 4 4.8 3.5 4.2 Long Term vs Short Term 1.3 3 3.9 4 5.2 HVAC Upgrade 1.2 3.5 4.2 4 4.8 TOTAL SCORE RENOVATE TO RC IV/IV+36.5 REBUILD TO RC IV/IV+48.9 MID-RANGE ROM CONSTR COST ROM TOTAL PROJECT COST RANGE (-30% : MID : +50%) ALTERNATIVE 1 RENOVATE ALTERNATIVE 2 REBUILD $11.5 : $16.4M : $24.7 $12.3M : $17.6M : $26.3M $10.9M $11.7M Total SF = 19,760 (~15,230 SF existing, ~3,600 SF RC IV+ Core) -Core consists of console room, SCADA/Network room, multi- purpose meeting room with kitchen area, restroom/shower, electrical room. Total SF = 19,770 (16,670 SF RC IV and ~3,100 SF Risk Cat IV+ Core) -Core consists of console room, SCADA/Network room, multi- purpose meeting room with kitchen area, restroom/shower, electrical room.