HomeMy WebLinkAbout2017-06-13; City Council; ; Adopt a Resolution authorizing the Purchase of $1 billion of Property Insurance Coverage through Alliant Insurance Services Inc.'s Alliant Property Insurance Program (APIPage 195
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8 CI TY COUN CIL
Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
June 13, 2017
Mayor and City Council • J
Kevin Crawford, City Manage~
ED GARBO, RISK MANAGER
ed.garbo@carlsbadca .gov or 760-602-2471
Adopt a Resolution authorizing the Purchase of $1 billion of Property
Insurance Coverage through Alliant Insurance Services Inc.'s Alliant
Property Insurance Program (APIP) for Fiscal Year 2017-2018 in an Amount
not to Exceed $164,051.04
Recommended Action
Adopt a Reso lution authorizing the purchase of $1 billion of property insurance through Alii ant
Insurance Services, Inc.'s Alliant Property Insurance Program (APIP) for fiscal year 2017-18 in an
amount not to exceed $164,051.04. The one billion dollar limit is per occurrence, and is shared
with approximately 47 other entities. None of the other entities reside within San Diego
County.
Executive Summary
The City is renewing its property insurance coverage, in the amount of $1 billion through Alliant
Property Insurance Program for fiscal year 2017-18 in an amount not to exceed $164,051.04.
Discussion
The city participates in the Alliant Insurance Services joint purchase program known as APIP-
Alliant Property Insurance Program. For FY 2017-18 Alliant negotiated the city's property
insurance renewal with APIP. A summary of property coverage is shown in Exhibit 2 and this
coverage is similar to coverage in the current policy. The account rate used for valuing city
property is expected to fall in the range of 0-5 percent once final negotiations conclude with
the underlying carrier(s).
Fiscal Analysis
Fiscal year 2017-18 estimated premium for APIP property insurance coverage will not exceed
$164,051.04. This represents a $7,442.66 increase over last year. The premiums will be paid
with funds from the FY 2017-18 Liability Fund. The Carlsbad Municipal Water District is also
insured under this coverage and contributes to the premium through the budget process.
Next Steps
Obtain a final premium calculation from Alliant Insu rance Services, Inc., and create a purchase order for
payment.
Page 196
Environmental Evaluation (CEQA)
Pursuant to the Public Resources Code Section 21065, this action does not constitute a
"project" within the meaning of CEQA in that it has no potential to cause either direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, an therefore, does not require environmental review.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. Resolution authorizing the purchase of $1 billion of property insurance coverage through
Alii ant Insurance Services Inc.'s Alliant Property Insurance Program (APIP) for fiscal year 2017-
2018 in an amount not to exceed $164,051.04
2. 2017/2018 Property Premium Budget Estimates
RESOLUTION NO. 2017-102
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE PURCHASE OF $1 BILLION OF PROPERTY
INSURANCE COVERAGE THROUGH ALLIANT INSURANCE SERVICES INC'S
ALLIANT PROPERTY INSURANCE PROGRAM (APIP) FOR FISCAL YEAR 2017-
2018 IN AN AMOUNT NOT TO EXCEED $164,051.04
EXHIBIT 1
WHEREAS, the City Council ofthe City of Carlsbad, California has a desire to renew its property
insurance through Alliant Insurance Services, Inc.'s Alliant Property Insurance Program (APIP); and
WHEREAS, Alliant Insurance Services has negotiated a renewal of $1 billion of property
insurance coverage for the next fiscal year beginning July 1, 2017 and concluding on June 30, 2018 for
an annual premium in an amount not to exceed $164,051.04; and
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 purchase of $1 billion of property coverage through Alliant Property Insurance
Program, effective July 1, 2017 to June 30, 2018, is hereby approved and the
Administrative Services Director is authorized to issue a warrant in an amount not to
exceed $165,051.04 for payment of the premium to Alliant Insurance Services.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 13th day of June, 2017, by the following vote, to wit:
AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard
NOES: None.
ABSENT: None.
(SEAL)
Page 198EXHIBIT 2
CITY OF CARLSBAD
2017/2018 BUDGET ESTIMATES
AS OF 5/4/2017
TYPE OF COVERAGE TERM CARRIER NUMBER LIMITS DEDUCTIBLE/SELF-CURRENT PREMIUM BUDGET ESTIMATES
INSURED RETENTION 2016/17 2017/18
APIP (Alliant Property Insurance 7/1116 to 7/1/17 Various 017471589/03 $1,000,000,000 $25,000 All Risk $156,608.38 Flat-5%
Program) Per Occurrence/ All Perils $100,000 for Wildfire
(Excluding Flood and EQ) losses per Occurrence (Includes Taxes and Fees) $156,608.38-
Total Insurable Values: $164,051.04
$242,616,642 as ofJuly 1, 2016
APIP -Boiler and Machinery 7/1/16 to 7/1117 Various 017471589/03 $100,000,00 $2,500 Included Above Cost included in the
Various deductible increases Property Premiums above
(See policy for various sub-limits) based on size of equipment
APIP -Cyber Liability 7/1116to 7/1/17 Lloyd's of London -Beazley PH1633938 $2,000,000 Per Member $50,000 Per Cyber Claim Included Above Cost included in the
Syndicate $25,000,000 Annual Policy & Program Property Premiums above
aggregate for all members combined
(See policy for various sub-limits and
retentions)
APIP-Pollution Liability 711116 to 7/1/17 Illinois Union Insurance Co PLG24544837006 $2,000,000 Per Member/Aggregate $75,000 Per Pollution Inclu}led Above Cost included in the
$25,000,000 Annual Policy & Program Condition Property Premiums above
aggregate for all members combined
(See policy for various sub-limits and
I retentions)
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