HomeMy WebLinkAbout2019-06-11; 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 2019-2020 inCAReview ~
~ CITY COUNCIL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
June 11, 2019
Mayor and City Council
Scott Chadwick, 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 2019-2020 in the Amount not to Exceed $233,014.
Recommended Action
Adopt a Resolution authorizing the purchase of $1 billion of property insurance through Alliant
Insurance Service lnc.'s Alliant Property Insurance Program (APIP) for fiscal year 2019-20 in an
amount not to exceed $233,014.
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 2019-20 in an amount not to exceed
$233,014. Pursuant to Section 3.28.040 {D){l) ofthe 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 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 2019-20 Alliant negotiates 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. This represents an approximate 25 percent increase over last year's
premium. This is due to a slight increase in total insured values of approximately 5 percent and
an overall hardening of the property insurance market due to continued large increases in
catastrophic losses nationwide. The policy period will run July 1, 2019 to June 30, 2020 and the
estimated premium will not exceed $233,014.
Fiscal Analysis
Fiscal year 2019-20 premiums for APIP property insurance coverage will not exceed $233,014.
June 11, 2019 Item #2 Page 1 of 4
This represents a $47,170.22 increase over last year. The premiums will be paid with funds from
the FY 2019-20 Liability Fund. The Carlsbad Municipal Water District is also insured under this
coverage and contributes to the premium through the budget process.
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 to the environment, or a reasonably foreseeable indirect change in the environment,
and therefore, does not require environmental review.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours pr:ior to the meeting.
Exhibits
1. City Council Resolution.
June 11, 2019 Item #2 Page 2 of 4
RESOLUTION NO. 2019-075
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE PURCHASE OF $1 BILLION OF PROPERTY
INSURANCE COVERAGE THROUGH ALLIANT INSURANCE SERVICES INC.'S
ALLIANT PROPERTY INSURANCE PROGRAM (APIP) FOR FISCAL YEAR 2019-
2020 IN AN AMOUNT NOT TO EXCEED $233,014.
Exhibit 1
WHEREAS, the City Council of the City of Carlsbad, California has determined that it 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
coverage for the next fiscal year beginning July 1, 2019 and concluding on June 30, 2020 for an annual
premium in an amount not to exceed $233,014.
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, 2019 to June 30, 2020, is hereby approved and the Deputy City
Manager of Administrative Services is authorized to issue a warrant in the amount not
to exceed $233,014 for payment of the premium to Alliant Insurance Services
(Attachment A).
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
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BARBARA ENGLESON, City Clerk
(SEAL)
June 11, 2019 Item #2 Page 3 of 4
INVOICE
Alliant Insurance Services Inc.
1301 Dove Street Suite 200 Newport Beach, CA 92660
NAMED INSURED:
City of Carlsbad
INVOICE DATE: May 31, 2019
CUSTOMER NUMBER: CARLSBA-01
EFFECTIVE DATE: July 1, 2019
INSURANCE CO: Various INVOICE NUMBER: 1060355 POLICY NUMBER: PPROP1920
Total Property Premium:
ABS Fee:
Estimated SLT&F’s
Broker Fee:
$ 214,535.00
$ 3,466.00
$ 6,952.57
$ 0.00
ALL RISK PROPERTY SUBTOTAL $ 224,953.57
INSURANCE CO: Various INVOICE NUMBER: 2060355 POLICY NUMBER: PBOILER1920
EXCESS BOILER & MACHINERY SUBTOTAL $ 2,733.00
TOTAL DUE AT THIS TIME $ 227,686.57
Total Due includes Premiums, Taxes and Fees where applicable. The Cyber Enhancement premium,
should you have elected to purchase this coverage, is not included as part of this invoice.
Please return a copy of the invoice with your payment. Premiums are due and payable upon receipt of this
invoice but no later than July 20, 2019. If payment is not received by the due date, policies may be subject
to cancellation.
Alliant embraces a policy of transparency with respect to 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 website at www.alliant.com. For a copy of our policy or for any inquiries regarding
compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services,
Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.
June 11, 2019 Item #2 Page 4 of 4