RUMFORD – After looking into insurance on the River Valley Technology Center, administrator Rosie Bradley discovered that the four-story building was underinsured by more than $2 million.
The 64,000-square-foot building was insured for $3.2 million instead of $5.4 million as it should be, she told directors meeting Tuesday afternoon.
Bradley said the center’s insurance company had increased the building insurance premium from $18,000 to $24,000.
Directors OK’d switching insurance companies after Bradley learned the center could get the right amount of insurance for $11,000.
More would be deducted if the building’s sprinkler system gets repaired. That, however, would be very expensive.
“The sprinkler heads were all manufactured prior to 1920, so we don’t qualify,” Bradley said.
She said sprinkler heads on all four floors would have to be replaced.
“I was told that each head costs between $500 and $600, so that would take thousands of dollars,” she said.
Still, Rumford Town Manager Stephen Eldridge, who is also a director of the center, asked her to get a cost quote to replace the fourth floor sprinkler heads.
In other business, Bradley gave directors a draft of policies and procedures for the center’s tenant criteria and application process.
The documents were supposed to be in place from the center’s start, but there is no paperwork on any of the tenants in the building, she said.
Additionally, the center’s business plan is missing. Because it needs to be updated, with a draft ready by the end of December, Bradley said she would create a new plan.
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