15-G
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Dana Hang, Human Resources and Risk Manager
SUBJECT: Consideration and possible action to adopt Resolution No. 26-09 – A Resolution updating the City’s insurance requirements for contracts and aligning the City’s Insurance Matrix with the California Joint Powers Insurance Authority (CJPIA) Guidelines; and superseding Resolution No. 20-69.
Date: March 23, 2026
EXECUTIVE SUMMARY
Attached for City Council consideration is an updated resolution establishing revised insurance requirements for the City’s ongoing insurance policies regarding risk transfer of agreements. The proposed Resolution No. 26-09 incorporates the California Joint Powers Insurance Authority’s (“CJPIA”) current insurance policy limits, coverage forms, and risk categories. If adopted, the updated resolution will supersede Resolution No. 20-69 (approved on October 12, 2020). The updated insurance matrix included in the resolution has been reviewed by the City’s insurance provider – CJPIA and the City Attorney.
Resolution No. 26-09 strengthens the City’s risk-transfer practices, ensures consistency with CJPIA’s Risk Management Manual, and supports Strategic Plan Goal 3.7 : Review and update Citywide insurance requirements and review procedures . The proposed resolution continues to delegate authority to the City Manager, or designee , to determine insurance requirements for specific contracts in consultation with the City Attorney.
RECOMMENDATION TO CITY COUNCIL
1) Adopt Resolution No. 26-09; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None
1 Staff Report – Resolution No. 26-09
March 23, 2026
DISCUSSION
On October 12, 2020, the City Council adopted Resolution No. 20-69, establishing the City’s first comprehensive insurance requirements for agreements. That resolution defined risk categories, created the City’s Insurance Matrix, and delegated authority for determining insurance requirements to the City Manager or designee.
As a CJPIA member agency, the City benefits from aligning its insurance requirements with the Authority’s current Risk Management Manual . The proposed resolution and updated insurance matrix includes the following key changes:
• Standardized insurance limits consistent with CJPIA’s current guidelines • Updated ISO form requirements (CG 00 01, CG 20 10, CG 20 37) to reflect current editions
• Clarified requirements for additional insured status, primary/non-contributory coverage, and waivers of subrogation
• Clarified when the City must be named as loss payee (leases and property -related agreements)
• Updates A.M. Best rating requirement to “A-:VII”
• Strengthened cancellation-notice requirements and identified cancellation without notice as a breach of contract
• Updated auto liability standards (CA 00 01, Symbol 1) Under all circumstances where insurance is required, the proposed resolution requires:
• A Certificate of Insurance;
• An additional insured endorsement naming the City, its elected and appointed officials, employees, and volunteers as additional insureds;
• A.M. Best Company Rating equivalent to at least “A-:VII.”
• Insurance must provide that the policy is in effect as of the project start date and cannot be canceled for the duration of the project. In case the insurer seeks to cancel, it must notify the City not less than thirty days before cancellation, except for non-payment of the insurance premium where cancellation may occur following a ten day notification. Policies cancelled without notification or a reduction in required limits are considered a breach of contract.
• The City must be named as loss payee where applicable for leases of property.
2 Staff Report – Resolution No. 26-09
March 23, 2026
DISCUSSION – Continued
• All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers.
• General Liability Coverage to be per occurrence and Auto Liability to be combined single limit for each accident; and
• The contractor’s insurance must be primary and non -contributory.
These requirements reflect standard insurance requirements recommended by the City’s insurance provider – the California Joint Powers Insurance Authority (“CJPIA”). Updating the City’s insurance requirements ensures City agreements remain consistent with current CJPIA standards, strengthen risk-transfer protections, and support efficient contract processing. To maintain consistency with CJPIA’s risk management expectations and ensure defensible contract administration, staff recommends adoption of the updated Resolution and Insurance Matrix.
ATTACHMENTS
Resolution 26-09………………………………………………………………………………4
Exhibit A – Insurance Matrix…………………………………………………………..……..9 3
CITY OF BELLFLOWER
RESOLUTION NO. 26-09
A RESOLUTION UPDATING THE CITY’S INSURANCE
REQUIREMENTS FOR CONTRACTS AND ALIGINING
THE CITY’S INSURANCE MATRIX WITH THE
CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
(CJPIA) GUIDELINES; AND SUPERSEDING
RESOLUTION NO. 20-69
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1: Findings. The City Council finds and declares that:
A. The City Council wishes to establish certain requirements relating to liability insurance;
B. It is in the public interest for the City Council to provide fair and consistent policies for establishing insurance limits; requiring certain coverage documents; and taking additional actions to ensure that the City and its residents are adequately protected; and
C. The City Council recognizes that it cannot legislate a “bright line” for all circumstances requiring insurance. Accordingly, it is in the public interest to delegate authority to the City Manager, or designee, to determine – based upon the criteria set forth in this Resolution – the level, type, and extent of any insurance required by the City for its contracts including, without limitation, permits issued in accordance with the Bellflower Municipal Code (“BMC”).
SECTION 2: Definitions. Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter:
A. “Contracts” means both a contract as defined by applicable law and permits issued in accordance with the BMC for particular activities including, without limitation, encroachments, special events, and temporary uses.
B. “Bellflower Insurance Policies” means this Resolution.
C. “Insurance Matrix” means attached Exhibit “A,” which is incorporated by reference.
D. “Bellflower Insurance FAQs” means attached Exhibit “B,” which is incorporated by reference.
E. “Public Works Contracts” means a contract issued in accordance with the Public Contracts Code or the BMC.
4 City of Bellflower
Resolution No. 26-09
F. “CJPIA Guidelines” means the California Joint Powers Insurance Authority’s current insurance requirements and risk management standards. The City is a member of CJPIA.
SECTION 3: Authority. The City Manager or designee is authorized to implement this Resolution; make insurance coverage determinations for contracts in consultation with the City Attorney; and promulgate administrative policies and procedures that may be desirable to implement this Resolution.
SECTION 4: Waiver Authority. Waiving insurance is strongly discouraged.
However, there may be certain instances where the City Manager or designee may determine that the public benefit provided by a person or entity outweighs any potential risk to the City of liability. To waive insurance, the City Manager or designee must:
A. Consult with the City Attorney for a full assessment of the City’s risk;
B. If the City Attorney concurs that the risk is low (using this Resolution as a reference), then the City Manager or designee may waive the City’s insurance requirements;
C. If the City Attorney opines that the City may have a medium risk of liability, then the Designee must obtain the City Manager’s approval for an insurance waiver;
D. If the City Attorney opines that the City may have a high risk of liability, then the City Manager or designee must obtain the City Council’s approval for an insurance waiver.
SECTION 5: Insurance Matrix. The Insurance Matrix sets forth the City’s general requirements as to insurance coverage and limits. It also generally identifies the City’s standard contracts that should be used for each category of activity. The City Manager or designee should first utilize the City’s Insurance Matrix and California Joint Powers Insurance Authority (CJPIA) coverage guidelines , contract templates, and standards in all instances where the City requires insurance.
SECTION 6: General Requirements.
A. The following criteria are set forth for purposes of determining liability coverage for the City of Bellflower. However, the City may require more or less in the way of insurance coverage, or other requirements, as needed for a particular contract.
B. For all contracts, the Bellflower Insurance Policies require
1. A Certificate of Insurance;
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Resolution No. 26-09
2. An additional insured endorsement naming the City, its elected and appointed officials, employees, and volunteers as additional insureds;
3. A.M. Best Company Rating equivalent to at least “A-:VII.”
4. Insurance must provide that the policy is in effect as of the project start date and cannot be canceled for the duration of the project. In case the insurer seeks to cancel, it must notify the City not less than thirty days before cancellation, except for non-payment of the insurance premium where cancellation may occur following a ten day notification. Policies cancelled without notification or a reduction in required limits are considered a breach of contract.
5. The City must be named as loss payee where applicable for leases of property.
6. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers.
7. General Liability Coverage to be per occurrence and Auto Liability to be combined single limit for each accident; and
8. The contractor’s insurance must be primary and non-contributory.
C. Where auto insurance is required, p rimary coverage must be written on ISO Business Auto Coverage form CA 00 01 including symbol 1 (Any Auto). If the contractor does not own autos, a non -owned auto endorsement to the General Liability policy is acceptable.
D. Workers’ Compensation/Employer’s Liability must be written on a policy form providing workers’ compensation statutory benefits as required by law. Employer’s liability limits cannot be less than $1,000,000 (one million dollars) per accident or disease. A Waiver of Subrogation Endorsement must be issued in favor of City, its officers, agents, employees, and volunteers.
SECTION 7: Low risk. Contracts that are “low risk” are characterized by:
A. Controlled setting.
B. Little or no public exposure to bodily injury or property damage.
C. No City property exposure.
D. No highly hazardous materials.
6 City of Bellflower
Resolution No. 26-09
E. No significant excavation or confined spaces.
F. No significant activity in the public street.
G. No overhead hazards.
H. No alcohol consumption
SECTION 8: Medium risk. Contracts that are “medium risk” are characterized by:
A. Limited public exposure to bodily injury or property damage;
B. Project of less than 1 month in duration and under 1/4 mile area;
C. Excavation, construction, confined spaces or overhead hazard;
D. Special events;
E. In-street activities -Consumption of alcohol;
F. Filming activities;
G. Commercial leaseholds of City property;
H. Project cost of $500,000 or less; and/or
I. Professional Services with high exposure to result and/or unique construction or design.
SECTION 9: High risk. Contracts that are “high risk” are characterized by:
A. High public exposure to bodily injury or property damage;
B. Projects of more than one month in duration;
C. Projects of more than 1/4 mile in area;
D. Hazardous materials involved;
E. Excavation, construction, confined spaces, overhead hazard;
F. Carnivals, fireworks, inflatables; and/or
G. Special events.
SECTION 10: Public Works Contracts. In addition to the general requirements for all contracts, Public Works Contracts must adhere to the following:
A. Commercial general liability insurance must be provided on ISO Form No. CG 00 01.
7 City of Bellflower
Resolution No. 26-09
B. Endorsements must be supplied on ISO Form No. CG 20 10 and CG 20 37, or their exact equivalents.
C. All subcontractors must meet the same insurance requirements as the general contractor.
SECTION 11: Environmental Determination. This Resolution is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.; “CEQA Guidelines”) in that it is not a “project” for purposes of CEQA, as that term is defined by CEQA Guidelines § 15378. Specifically, this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment (CEQA Guidelines § 15378(b)(5)).
Further, even if this Resolution was deemed a “project,” and therefore subject to CEQA, the Resolution would be exempt as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)).
SECTION 12: Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 13: Supersession. Except as required by incorporation into existing agreements or permits, this Resolution supersedes all previous resolutions establish ing insurance requirements including, without limitation, Resolution No. 20-69 (adopted October 12, 2020).
SECTION 14: The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto.
SECTION 15: Effective Date of this Resolution. This resolution will become effective immediately upon adoption.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 23rd DAY OF MARCH 2026.
_________________________________
Sonny Santa Ines, Mayor
ATTEST:
______
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
____________________________
Karl H. Berger, City Attorney
Attachments
Exhibit A - Bellflower Insurance Requirement Matrix……………………………………..6 8 CITY OF BELLFLOWER
INSURANCE REQUIREMENTS MATRIX
CONTRACTS*
TYPE OF AGREEMENT
RANGE
OF RISK
INSURANCE COVERAGE/
LIMITS STANDARDS
NOTES TO CURRENT STANDARDS
TYPE RANGE LIMIT
Construction/Public Works. Includes construction, remodeling.
High
REQUIRES GEN LIABILITY (ISO
CG20 10 & CG 20 37), AUTO,
W/COMP, & POLLUTION (if
applicable).
GEN LIABILITY - $2M / $4M Agg
Completed Operations
AUTO - $1 Million
W/CO STATUTORY
CPL $1-$2 M
ENTIRE CATEGORY
Range Limits may vary based
on project assignment
Pollution Liability is required for
excavation, grading, demolition,
and work involving hazardous
materials.
General services contracts. Includes janitorial services, movers, on-site equipment maintenance, tree maintenance, road maintenance.
High -
Med
REQUIRES GEN LIABILITY, AUTO
& W/COMP.
GEN LIABILITY $1M/$2M
AUTO - $1 M
WK/CO STATUTORY
Construction Administration.
High REQUIRES GEN LIABILITY, E&O,
AUTO & W/COMP.
GEN LIABILITY - $2M / $4M Agg
E&O - $1 M
AUTO - $1 M
W/CO STATUTORY
Professional services. Includes architects, engineers, consultants, counselors, medical professionals, hospitals, clinics, and accountants.
High REQUIRES GEN LIABILITY, E&O,
AUTO, W/COMP
GEN LIABILITY - $2-$3 M
E & O - $500,000-$2 M
AUTO - $500,000-$1 M
W/CO STATUTORY
GEN LIABILITY - $1 - $2 M
Tech E&O - $1 M Cyber Liability -
$1 - $2 M
Special Review- Evaluation of
risk to determine limit
Computer Maintenance – Hardware and Software
Med
Special. Examples: fireworks display, parades, large assemblies on public property. High - Med
REQUIRES GEN LIABILITY AND
AUTO
GL - $2-$5 M
Range Limits may vary based
on event.
Tenants and concessionaires. Includes food and beverage concessions, gift shops, office space tenants, senior centers and other space rental to lessees who have full - time or part-time employees.
Med-
Low REQUIRES GEN LIABILITY AND
PROPERTY INSURANCE
GL - $300,000-2 M
Property Insurance: full
replacement cost
W/CO Statutory
Waiver subject to review
General Management Consultant
(No specific training or expertise)
Low
Vendors Includes equipment suppliers who do not perform additional functions such as installation or maintenance.
Med-
Low REQUIRES GEN LIABILITY AND
AUTO (if applicable) GL - $2 Million
Requires Auto Liability - $1
Million for Delivery vendors or
equipment suppliers
transporting goods
Training-Sedentary
Social Services Grantees
Low
Low
Low
May require insurance
GL - $1 Million
Consultant lectures/Student Sit
No specific performance
requirement by City
No installation or performance
on City property
*IF COMPANY HAS ANY EMPLOYEES, WORKERS’ COMPENSATION INSURANCE COVERAGE IS REQUIRED TO THE STATUTORY LIMIT. *IF SOLE PROPRIETOR – WORKERS’ COMPENSATION INSURANCE COVERAGE IS NOT REQUIRED. STATEMENT OF SOLE PROPRIETOR STATUS SHOULD BE INCLUDED IN SCOPE OF WORK Exhibit A
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