CA Review JRT
Meeting Date: June 18, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Ed Garbo, Risk Manager
[email protected] or 442-339-2471
Subject: Purchase of Property Insurance Coverage
Districts: All
Recommended Action
Adopt a resolution approving the purchase of $100 million of property insurance coverage through AON for fiscal year 2024-2025 for an amount not to exceed $647,396.
Executive Summary
The city is purchasing its annual property insurance coverage of $100 million through AON for fiscal year 2024-25 for an amount not to exceed $647,396.
The city moved its property insurance coverage to Aon three years ago because it was able to provide higher limits and broader coverage than previous brokers and programs.
The policy period will run July 1, 2024, to June 30, 2025.
This purchase must be approved by the City Council under Carlsbad Municipal Code Section
3.28.040 (D)(1) because the cost exceeds $100,000 per agreement year.
Fiscal Analysis
The fiscal year 2024-25 premium for Aon property insurance coverage is not to exceed $647,396. This represents a $127,048, or approximately 19.6%, increase over last year’s actual cost. The premium will be paid with funds from the FY 2024-25 Risk Management Internal Service Fund. Sufficient funds have been included in the FY 2024-25 Budget for this premium.
Next Steps
Staff will create a purchase order for Aon’s payment.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
June 18, 2024 Item #3 Page 1 of 2
RESOLUTION NO. 2024-133
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE PURCHASE OF $100 MILLION OF PROPERTY INSURANCE COVERAGE THROUGH AON FOR FISCAL YEAR 2024-2025 FOR AN AMOUNT NOT TO EXCEED $647,396
WHEREAS, the City Council of the City of Carlsbad, California has determined that it has a desire to renew its annual property insurance through Aon; and WHEREAS, Aon has negotiated a renewal of $100 million of property coverage for the next fiscal year beginning July 1, 2024, and concluding on June 30, 2025, for an annual premium in an amount not to exceed $647,396.
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 $100 million of property coverage through Aon, effective July 1, 2024, to June 30, 2025, is hereby approved and the City Manager or designee is authorized to direct the Deputy City Manager of Administrative Services to issue payment in an amount not to exceed $647,396 for payment of the property insurance premium.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th day of June, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
Exhibit 1
June 18, 2024 Item #3 Page 2 of 2