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HomeMy WebLinkAbout2016-06-28; City Council; 22326; RENEWAL OF EXCESS LIABILITY COVERAGE THROUGH COUNTY SUPERVISORS ASSOCIATION OF CALIFORNIA DBA CALIFORNIA STATE ASSOCIATION OF COUNTIES EXCESS INSURANCE AUTHORITY FOR FY 2016-17 IN AN AMOUNT NOT TO EXCEED $394,000CITY OF CARLSBAD -AGENDA BILL 4 AB# 22,326 RENEWAL OF EXCESS LIABILITY COVERAGE DEPT. DIRECTOR f1AA- MTG. 6/28/16 THROUGH COUNTY SUPERVISORS CITY ATTORNEY ~ DEPT. ASD/RISK ASSOCIATION OF CALIFORNIA DBA CALIFORNIA CITY MANAGER STATE ASSOCIATION OF COUNTIES EXCESS tiL- INSURANCE AUTHORITY (CSAC EIA) FOR FISCAL YEAR 2016-17 IN AN AMOUNT NOT TO EXCEED $394,000 RECOMMENDED ACTION: Adopt~ resolution.ap.proving th~ pu~chase offi~cal y~ar 2016-17 excess liability coverage through County Supervisors Assoc1at1on of California dba Cal1forn1a State Association of Counties Excess Insurance Authority (CSAC EIA} in an amount not to exceed $394,000. ITEM EXPLANATION: The city previously participated in the Alliant Insurance Services, Inc. joint purchase program known as CAMEL (California Municipal Excess Liability}. Last year, with the assistance of our broker Alliant, the city joined CSAC-EIA which resulted in a substantial decrease in costs and an increase in excess liability coverage limits. The fiscal year 2016-17 annual premium indication from CSAC-EIA is down slightly resulting in a modest cost savings to the city. The coverage summary is shown in Exhibit 2. FISCAL IMPACT: Fiscal year 2016-17 estimated premium for CSAC EIA excess liability coverage is not to exceed $394,000; which represents a $4,158.00 (approximately 1 percent} decrease over last year's premium. ENVIRONMENTAL IMPACT: This action is not a "project" within the definition of the California Environmental Quality Act in that it does not have a direct or indirect impact on the physical environment under California Code of Regulations, Title 14, Chapter 3, section 15378. DEPARTMENT CONTACT: Ed Garbo, (760} 602-2471, ed.garbo@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED ~ CONTINUED TO DATE SPECIFIC 0 DENIED 0 CONTINUED TO DATE UNKNOWN 0 CONTINUED 0 RETURNED TO STAFF 0 WITHDRAWN 0 OTHER-SEE MINUTES 0 AMENDED 0 Item No. 4-AB #22,326 June 28, 2016 Page 1 of 5 Page 2 EXHIBITS: 1. A resolution approving the purchase of excess liability coverage through County Supervisors Association of California dba California State Association of Counties Excess Insurance Authority (CSAC EIA) for fiscal year 2016-17 in an amount not to exceed $394,000 2. Insurance Proposal Item No. 4-AB #22,326 June 28, 2016 Page 2 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2016-121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE PURCHASE OF EXCESS LIABILITY COVERAGE THROUGH COUNTY SUPERVISORS ASSOCIATION OF CALIFORNIA DBA CALIFORNIA STATE ASSOCIATION OF COUNTIES EXCESS INSURANCE AUTHORITY (CSAC EIA) FOR FISCAL YEAR 2016117 IN AN AMOUNT NOT TO EXCEED $394,000 EXHIBIT 1 WHEREAS, the City desires to purchase excess liability coverage through County Supervisors Association of California dba California State Association of Counties Excess Insurance Authority (CSAC EIA); and WHEREAS, Alliant Insurance Services has negotiated the purchase of excess liability coverage through CSAC EIA for the next fiscal year beginning on July 1, 2016 and concluding on June 30, 2017 for an annual premium in an amount not to exceed$ 394,000; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows that: 1. The above recitations are true and correct. 2. That the purchase of excess liability coverage through the CSAC EIA, effective July 1, 2016 to June 30, 2017, is hereby approved and the Administrative Services Director is authorized to issue a warrant in the amount of $394,000 for the payment of the premium to CSAC EIA. II II II II II Item No. 4-AB #22,326 June 28, 2016 Page 3 of 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 28th day of June, 2016, by the following vote to wit: AYES: Halt Wood, Schumacher, Blackburn, Packard. NOES: None. ABSENT: None. MATI HALL, Mayor (SEAL) Item No. 4-AB #22,326 June 28, 2016 Page 4 of 5 EXHIBIT 2 CSAC Excess Insurance Authority 2016/17 Early Budget Estimates March 2016 City of Carlsbad This final round of early estimates have been prepared to further aid you in budgeting for the 2016/17 fiscal year. At this time updated estimates are being provided for all major programs. The estimates provided are preliminary figures which are intended to be conservative. Until the all of the premiums for the upcoming program year have been finalized these estimates are subject to change. Premium 14/15 Premium: N/A Estimated Payroll/ADA: $66,328,439 15/16 Premium: $398,158 16/17 Estimated Premium: $394,000 The GLI premium projections have been updated to reflect your entity's estimated 2016/17 exposure, provided on your renewal application, as well as losses based on the June 30, 2015 data collection. Since the December estimate, we have updated the projected Program Administrative costs, and received and updated the pool rates. We have also updated all carrier premiums based on quotes eceived. Pool rates have changed from last year as follows: • County/Other rates are down 1.8% on average • School rates are up 10.8% on average Reinsurance Premiums changed from last year as follows: • Great American ($5M xs $5M Pool) - Flat • AmTrust ($5M xs $10M) - Up 3.89% • Markel/Alteris ($10M xs $15M) - up 2.82% At their March meeting, the Board will consider approval of the carrier proposals. The Board will also consider declaring a $3M dividend. Your entity's portion of the proposed dividend has been included in this estimate. If you expect to apply the dividend as a credit to your 2016/17 premium, the total collectible shown above would be your payable premium. We do not anticipate significant changes to the estimates from this point forward. Item No. 4-AB #22,326 June 28, 2016 Page 5 of 5