HomeMy WebLinkAbout2026-07-07; City Council; 04; Purchase of Property Insurance CoverageCA Review JRT
Meeting Date:
To:
From:
Staff Contact:
sarah.reiswig@carlsbadca.gov or 442-339-2435
Subject:
All
Recommended Action
Adopt a resolution approving the purchase of $100 million of property insurance coverage
through AON for fiscal year 2026-2027 for an amount not to exceed $731,827.
Executive Summary
The city is purchasing its annual property insurance coverage of $100 million through AON for
fiscal year 2026-27 for an amount not to exceed $731,827.
The city moved its property insurance coverage to Aon three years ago because Aon could
provide higher limits and broader coverage than its previous brokers and programs.
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 fiscal year 2026-27 premium for Aon property insurance coverage is not to exceed
$731,827. This represents a $49,066, or approximately 7.2%, increase over last year’s actual
cost. The premium will be paid with funds from the FY 2026-27 Risk Management Internal
Service Fund. Sufficient funds have been included in the FY 2026-27 Budget for this premium.
Next Steps
Staff will create a purchase order for Aon’s payment.
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.
July 7, 2026 Item #4 Page 1 of 4
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Exhibit
1.City Council resolution
July 7, 2026 Item #4 Page 2 of 4
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Exhibit 1
RESOLUTION NO. 2026-140 .
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 2026-2027 FOR
AN AMOUNT NOT TO EXCEED $731,827
WHEREAS, the City Council of the City of Carlsbad, California has determined that it desires 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, 2026, and concluding on June 30, 2027, for an annual premium in an amount not
to exceed $731,827.
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 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 $100 million of property coverage through Aon, 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
payment in an amount not to exceed $731,827 for payment of the property insurance
premium.
July 7, 2026 Item #4 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 #4 Page 4 of 4
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