Issue - meetings

Procurement of Commercial Property Owner’s Insurance Cover

Meeting: 24/09/2020 - Executive (Item 26)

26 Procurement of Commercial Property Owner’s Insurance Cover pdf icon PDF 289 KB

Additional documents:

Decision:

That:

 

1)        the procurement (by way of open competitive tender) of the insurance cover be approved;

 

2)        the design of the contract specification be delegated to the Deputy Chief Executive;

 

3)        the Deputy Chief Executive, in consultation with the Executive Member for Finance and Housing, be delegated authority to award the contract(s) to the successful bidder(s) following completion of the evaluation process.

Minutes:

The Executive considered a report setting out a proposal to retender the Council Commercial Property Owner’s Insurance.

 

The Executive Member for Finance and Housing advised that currently the Council’s insurance cover was placed with a number of insurers and the intention was to seek to utilise the size and variety of the whole portfolio of assets that the Council owns in order to secure high quality cover at a competitive price with a single insurer.

 

In relation to the properties bought utilising the  Councillor Murray queried that as the insurance applied to many buildings that the Council had bought as part of its investment fund asked how much borrowing the Council has and how much income it generates?  Councillor Kaiser confirmed that the Council’s net general fund external debt was at March 21st was £121m.  The Council also had £84m which was money borrowed to buy social housing which actually generates £15m worth of rental income per year.  In addition we have £134m of internal debt, which was money that the Council lent to itself, and there was also £180m on deposit, some of which was with other councils and invested in secure bonds.  All this equates to net borrowing of £121m.  The cost of financing debt falling on the taxpayer for 2020/2021 would actually be around about £7.50 per band D property which was 0.4 of a percent.  The total assets of the Council was about £1,000m which more than covers the borrowing. 

 

RESOLVED that:

 

1)        the procurement (by way of open competitive tender) of the insurance cover be approved;

 

2)        the design of the contract specification be delegated to the Deputy Chief Executive;

 

3)        the Deputy Chief Executive, in consultation with the Executive Member for Finance and Housing, be delegated authority to award the contract(s) to the successful bidder(s) following completion of the evaluation process.