HomeMy WebLinkAbout2025-06-10; City Council; 02; Purchase of Property Insurance CoverageCA Review JRT
Meeting Date: June 10, 2025
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Sarah Reiswig, Risk Manager
sarah.reiswig@carlsbadca.gov, 442-339-2435
Subject: Purchase of Property Insurance Coverage
Districts: All
Recommended Action
Adopt a resolution approving the purchase of $100 million of property insurance coverage
through AON for fiscal year 2025-2026 for an amount not to exceed $719,305.
Executive Summary
The city is purchasing its annual property insurance coverage of $100 million through AON for
fiscal year 2025-26 for an amount not to exceed $719,305.
The policy period will run from July 1, 2025, to June 30, 2026.
This purchase must be approved by the City Council under Carlsbad Municipal Code Section
3.28.040 (D)(1) because the cost exceeds $100,000 per agreement year.
Fiscal Analysis
The fiscal year 2025-26 premium for Aon property insurance coverage is not to exceed
$719,305. This represents a $111,464, or approximately 18.3%, increase over last year’s actual
cost. The premium will be paid with funds from the fiscal year 2025-26 Risk Management
Internal Service Fund. Sufficient funds have been included in the fiscal year 2025-26 budget for
this premium.
Next Steps
Staff will create a purchase order for Aon’s payment.
Environmental Evaluation
This action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section
15378(b)(4) and does not require environmental review under CEQA Guidelines Section
15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any
specific project which may result in a potentially significant physical impact on the
environment.
Exhibits
1. City Council resolution
June 10, 2025 Item #2 Page 1 of 3
Docusign Envelope ID: 2E395E45-310C-43D1-A4B6-0F7CC6CE6910
Exhibit 1
RESOLUTION NO. 2025-117
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE PURCHASE OF $100 MILLION OF PROPERTY
INSURANCE COVERAGE THROUGH AON FOR FISCAL YEAR 2025-2026 FOR
AN AMOUNT NOT TO EXCEED $719,305
WHEREAS, the City Council of the City of Carlsbad, California has determined that it has a desire
to renew its annual property insurance through Aon; and
WHEREAS, Aon has negotiated a renewal of $100 million of property coverage for the next fiscal
year beginning July 1, 2025, and concluding on June 30, 2026, for an annual premium in an amount not
to exceed $719,305.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the proposed action is not a “project” as defined by CEQA Section 21065 and CEQA
Guidelines Section 15378(b)(4) and does not require environmental review under CEQA
Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve
any commitment to any specific project which may result in a potentially significant
physical impact on the environment.
3.That the purchase of $100 million of property coverage through Aon, effective July 1,
2025, to June 30, 2026, is hereby approved and the City Manager or designee is
authorized to direct the Deputy City Manager of Administrative Services to issue
payment in an amount not to exceed $719,305 for payment of the property insurance
premium.
June 10, 2025 Item #2 Page 2 of 3
Docusign Envelope ID: 2E395E45-310C-43D1-A4B6-0F7CC6CE6910
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 10th day of June, 2025, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
June 10, 2025 Item #2 Page 3 of 3
Docusign Envelope ID: 2E395E45-310C-43D1-A4B6-0F7CC6CE6910