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HomeMy WebLinkAbout2018-06-26; City Council; ; The Purchase of $1 billion of Property Insurance Coverage through Alliant Insurance Services lnc.'s Alliant Property Insurance Program (APIP) for Fiscal Year 2018-2019 inCAReview ~ ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: June 26, 2018 Mayor and City Council Kevin Crawford, City Manager Ed Garbo, Risk Manager ed.garbo@carlsbadca.gov or 760-602-2471 The Purchase of $1 billion of Property Insurance Coverage through Alliant Insurance Services lnc.'s Alliant Property Insurance Program (APIP) for Fiscal Year 2018-2019 in an Amount not to Exceed $185,843.78 Recommended Action Adopt a Resolution authorizing the purchase of $1 billion of property insurance through Alliant Insurance Services, lnc.'s Alliant Property Insurance Program (APIP) for fiscal year 2018-19 in an amount not to exceed $185,843.78. Executive Summary The City is renewing its annual property insurance coverage, in the amount of $1 billion through Alliant Property Insurance Program for fiscal year 2018-19 in an amount not to exceed $185,843.78. Pursuant to Carlsbad Municipal Code, the City Council shall be the awarding authority for any procurement of goods, services and/or professional services costing more than $100,000,00 per agreement year. Discussion The city participates in the Alliant Insurance Services joint purchase program known as APIP - Alliant Property Insurance Program. 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. For FY 2018-19 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 with some specific enhancements to cyber coverage. This represents an approximate 18 percent increase over last year's premium. This is due to an increase of total insured values of approximately 10 percent and an overall hardening of the property insurance market due to a large increase in catastrophic losses nationwide. The policy period will run July 1, 2018 to June 30, 2019 and the estimated premium will not exceed $185,843.78. Fiscal Analysis Fiscal year 2018-19 premium for APIP property insurance coverage will not exceed $185,843.78. This represents a $28,322.33 increase over last year. The premiums will be paid with funds from the FY 2018-19 Liability Fund. The Carlsbad Municipal Water District is also insured under this coverage and contributes to the premium through the budget process. June 26, 2018 Item #9 Page 1 of 4 Next Steps Create a purchase order for payment. 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, and therefore, does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing at least 72 hours prior to the meeting date. Exhibits 1. City Council Resolution 2. 2018/2019 Property Premium invoice June 26, 2018 Item #9 Page 2 of 4 RESOLUTION NO. 2018-109 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 2018- 2019 IN AN AMOUNT NOT TO EXCEED $185,843.78 EXHIBIT 1 WHEREAS, the City Council of the City of Carlsbad, California has a desire to renew its annual property insurance through Alliant Insurance Services, lnc.'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, 2018 and concluding on June 30, 2019 for an annual premium in an amount not to exceed $185,843.78; 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, 2018 to June 30, 2019, is hereby approved and the Administrative Services Director is authorized to issue a warrant in an amount not to exceed $185,843.78 for payment of the premium to Alliant Insurance Services. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council ofthe City of Carlsbad on the 26th day of June, 2018, by the following vote, to wit: AVES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. June 26, 2018 Item #9 Page 3 of 4 NAMED INSURED: City of Carlsbad INSURANCE CO: POLICY NUMBER: INSURANCE CO: POLICY NUMBER: INVOICE Alliant Insurance Services Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 Various PPROP1819 ' INVOICE DATE: CUSTOMER NUMBER: May 25, 2018 CARLSBA-01 EFFECTIVE DATE: July 1, 2018 : INVOICE NUMBER: 1048184 Total Property Premium: $174,126.00 ABS Fee: $3,445.00 Estimated SL T&F's $5,655.78 Broker Fee: $ 0.00 ALL RISK PROPERTY SUBTOTAL $ 183,226.78 Various : INVOICE NUMBER: 2048184 PBOILER1819 EXCESS BOILER & MACHINERY SUBTOTAL $2,617.00 TOTAL DUE ATTHIS TIME I $ 185,843.781 Tola! Due includes Premiums, Taxes and Fees where applicable. The Cyber Enhancement premium, should you have elected lo purchase /his coverage, is not included as part of/his invoice. Please re/um a copy of the invoice w!lh your payment Premiums are due and payable upon receipt of this invoice bu/ no la/er than July 20, 2018 If payment is not received by /he due dale, policies may be subject to cancellation. Alliant embraces a policy of transparency with respect lo its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our webs!le al www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also con/act us at· Alliant Insurance Services, At/en/ion: General Counsel, 701 B Street, 6/h Floor, San Diego, CA 92101. June 26, 2018 Item #9 Page 4 of 4