HomeMy WebLinkAbout2018-06-26; City Council; ; The Purchase of $25 million of Excess Liability Coverage through County Supervisors Association of California d.b.a. California State Association of Counties Excess InsurCA Review 1)-V
~ 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 $25 million of Excess Liability Coverage through County
Supervisors Association of California d.b.a. California State Association of
Counties Excess Insurance Authority (CSAC EIA} for Fiscal Year 2018-2019
in an Amount not to Exceed $418,000
Recommended Action
Adopt a Resolution authorizing the purchase of $25 million of excess liability coverage through
County Supervisors Association of California d.b.a. California State Association of Counties
Excess Insurance Authority (CSAC EIA} for fiscal year 2018-19 in an amount not to exceed
$418,000.
Executive Summary
The City is renewing its annual excess liability insurance protection, in the amount of $25
million, through CSAC EIA for fiscal year 2018-19 in an amount not to exceed $418,000.
Pursuant to Chapter 3.28 of 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
Three years ago, the city began purchasing $25 million of excess liability coverage through CSAC
EIA, one of the largest risk sharing pools in the country, after many years of purchasing
traditional insurance on the open market. This change allowed the city to obtain higher policy
limits, a lower self-insured retention (SIR}, and significantly lower annual premiums. The level of
service received from CSAC EIA has been very good to date. The policy period will run July 1,
2018 to June 30, 2019 and the estimated premium will not exceed $418,000.00.
Fiscal Analysis
Fiscal year 2018-19 estimated premium for CSAC EIA excess liability coverage is not to exceed
$418,000; which represents a $25,141.00 (approximately 6.4 percent} increase over last year's
premium.
Next Steps
Obtain a final premium calculation from CSAC EIA and create a purchase order for payment.
June 26, 2018 Item #8 Page 1 of 4
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. 2018/19 Excess Liability Estimated Premium which will not exceed $418,000.00.
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June 26, 2018 Item #8 Page 2 of 4
EXHIBIT 1
RESOLUTION NO. 2018-108
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE PURCHASE OF $25 MILLION OF EXCESS
LIABILITY COVERAGE THROUGH COUNTY SUPERVISORS ASSOCIATION OF
CALIFORNIA D.B.A CALIFORNIA STATE ASSOCIATION OF COUNTIES EXCESS
INSURANCE AUTHORITY (CSAC EIA) FOR FISCAL YEAR 2018-2019 IN AN
AMOUNT NOT TO EXCEED $418,000.00
WHEREAS, the City Council of the City of Carlsbad, California has a desire 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 $25 million of excess
liability coverage through CSAC EIA for the next fiscal year beginning on July 1, 2018 and concluding on
June 30, 2019; 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 $25 million of excess liability coverage through the CSAC EIA,
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 $418,000
for payment of the premium to CSAC EIA.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 26th day of June, 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None. 1ttdtlll
MATT HALL, Mayor
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~ARBARA ENGLESON, City Clerk, 1,
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