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