HomeMy WebLinkAbout2026-07-07; City Council; 03; Purchase of Excess Liability Insurance CoverageCA Review JRT
Meeting Date:
To:
From:
Staff Contact:
sarah.reiswig@carlsbadca.gov, 442-339-2435
Subject:
Districts:
Recommended Action
Adopt a resolution approving the purchase of a maximum of $43 million of excess liability
insurance coverage through California Insurance Pool Authority for fiscal year 2026-2027 for an
amount not to exceed $1,607,186.
Executive Summary
The city is renewing its excess liability insurance coverage of up to $43 million through the
California Insurance Pool Authority for fiscal year 2026-27 in an amount not to exceed
$1,607,186. The California Insurance Pool Authority is a joint powers authority composed of
fourteen member cities.
The policy period will run from July 1, 2026, to June 30, 2027.
This purchase must be approved by the City Council under Carlsbad Municipal Code Section
3.28.040 (D)(1) because the cost exceeds $250,000 per agreement year.
Fiscal Analysis
The estimated premium for fiscal year 2026-27 for California Insurance Pool Authority excess
liability insurance coverage is not to exceed $1,607,186, which represents a $224,788, or
approximately 16.34%, increase over last year’s premium.
While the market continues to show signs of stabilization, this increase is due to an overall
hardening in the insurance marketplace, with higher prices and more difficult-to-obtain
policies. Sufficient funds have been included in the fiscal year 2026-27 budget for this premium.
Next Steps
Staff will obtain a final premium calculation from California Insurance Pool Authority and create
a purchase order for payment.
July 7, 2026 Item #3 Page 1 of 4
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Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act, or
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.
Exhibit
1.City Council resolution
July 7, 2026 Item #3 Page 2 of 4
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Exhibit 1
RESOLUTION NO. 2026-139 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE PURCHASE OF A MAXIMUM OF $43 MILLION
OF EXCESS LIABILITY INSURANCE CO VERAGE THROUGH CALIFORNIA
INSURANCE POOL AUTHORITY FOR FISCAL YEAR 2026-2027 FOR AN
AMOUNT NOT TO EXCEED $1,607,186
WHEREAS, the City Council of the City of Carlsbad, California has determined that it desires to
purchase excess liability insurance coverage through the California Insurance Pool Authority; and
WHEREAS, Aon has negotiated the purchase of a maximum of $43 million of excess liability
insurance coverage through the California Insurance Pool Authority for the next fiscal year beginning
on July 1, 2026, and concluding on June 30, 2027.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows that:
1.That the above recitations are true and correct.
2.That this action is not a “project” as defined by California Environmental Quality Act, or
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 $43 million of excess liability insurance coverage through the
California Insurance Pool Authority effective July 1, 2026, to June 30, 2027, is hereby
approved and the City Manager or designee is authorized to direct the Deputy City
Manager of Administrative Services to issue a warrant in an amount not to exceed
$1,607,186 for payment of the premium to the California Insurance Pool Authority.
July 7, 2026 Item #3 Page 3 of 4
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 7th day of July, 2026, 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)
July 7, 2026 Item #3 Page 4 of 4
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