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Glendale Water & Power
Wildfire Prevention and Mitigation Plan
22. GWP Accomplishments during calendar year 2022
During calendar year 2022, GWP completed the following projects to mitigate the risk of wildfire.
The approved budget for Wildfire Mitigation for the fiscal year 2022 -23 is $200,000. GWP’s contractor trimmed 8016 trees within Tier 2 and Tier 3. Vegetation management has been expanded to exceed minimum clearance requirements as described in GO 95, by trimming trees down to the telecommunications level. In fiscal year 22-23, we spent $780 thousand on tree trimming and vegetation management.
GWP construction crew replaced 14 power poles in Tier 2 and 10 power poles in Tier 3. Replaced 6 overhead transformers in Tier 2 and Tier 3. Replaced 6 underground transformers in Tier 2 and Tier 3. Installed 223 feet of covered conductor wires in Tier 2. Installed 1107 feet of underground conduits within Tier 2 and Tier 3. Most new installations are underground, unless doing so would be cost-prohibitive or is otherwise unfeasible. Procured 30 composite crossarms to install in the high risk. Inspected 71 power poles within the Glendale Service territory to identify any possible electrical equipment at the verge failure.
Inspected 674 Street Lights within the City.
Inspected 5 vaults within the City.
Inspected 71 pull boxes within the City
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Glendale Water & Power
Wildfire Prevention and Mitigation Plan
23. GWP Accomplishments during calendar year 2023
During calendar year 2023, GWP completed the following projects to mitigate the risk of wildfire.
The approved budget for Wildfire Mitigation for the fiscal year 2023 -24 is $200,000. GWP’s contractor trimmed 8016 trees within Tier 2 and Tier 3. Vegetation management has been expanded to exceed minimum clearance requirements as described in GO 95, by trimming trees down to the telecommunications level. In fiscal year 22-23, we spent $1.642 Million on tree trimming and vegetation management.
GWP construction crew replaced 5 power poles in Tier 2 and 1 power pole in Tier 3. Replaced 5 overhead transformers in Tier 2 and Tier 3. Replaced 2 underground transformers in Tier 2 and Tier 3. Installed 96 feet of underground conduits within Tier 2 and Tier 3. Most new installations are underground, unless doing so would be cost-prohibitive or is otherwise unfeasible. Inspected 2567 power poles within the Glendale Service territory to identify any possible electrical equipment at the verge failure.
Inspected 8631 Street Light and pull boxes within the City. Inspected 1458 primary pull boxes and vaults within the City. Inspected 2521 secondary pull boxes within the City.
Glendale’s longest sub-transmission line is the one connecting Bel Aire Substation in Northwest Glendale to Montrose Substation in Montrose. This 34.5kV line passes through both tier 2 and tier 3 fire-threat zones. Portions of the line lies in the mountainous area and accessing it can be difficult. The line which is mostly overhead has three conductors. These conductors can break due to aging, corrosion, lighting strikes and other reasons. If a downed energized conductor causes fire to break out due to generated heat and sparking, it would be difficult for emergency personnel to response quickly. GWP is currently implementing SEL’s broken conductor detection scheme. This scheme will detect any broken conductor that may be under way to fall on the ground and de-energizes the line before the conductor hits the ground. A factory acceptance tests has been completed successfully and the project would be commissioned in the upcoming months.
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Glendale Water & Power
Wildfire Prevention and Mitigation Plan
24. Third-Party Independent Assessment
Exhibit D
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3 CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: 2024-25 Insurance Renewals
1. Motion authorizing the annual renewal of insurance policies for the City's property, excess liability, workers' compensation, cyber liability, and other miscellaneous coverages for 2024-25 fiscal year, in an amount not-to-exceed $9,098,134.00.
COUNCIL ACTION
Item Type: Action Item
Approved for June 25, 2024 calendar
EXECUTIVE SUMMARY
Staff seeks Council approval for annual renewal of excess insurance policies for general liability, property, workers’ compensation, employment practices and other miscellaneous policies.
RECOMMENDATION
Staff recommends that the City Council authorize the renewal of the excess insurance policies for the City’s general liability, property, Workers’ Compensation, employment practices and other miscellaneous coverages for a total “not-to-exceed” amount of $9,098,134.00.
ANALYSIS
The City is self-insured for various losses, with self-insured retention amounts ranging from $10,000 to $2 million. Last year, in light of ever-rising insurance costs, the City entered into a risk-sharing pool (PRISM). Joining the pool brought down the City’s self- insured retention for liability claims from $5 million to $2 million.
The following is a brief description of the various lines of insurance coverages the City currently has and intends to renew:
Property
Property insurance covers loss, theft, or damage to City-owned property. An example of 142 of 147
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7 this type of loss includes damages caused by fire, wind, vandalism, etc. In order to secure the most advantageous rates for this insurance, the City purchases two separate policies. The first policy covers property owned by Glendale Water & Power because of the nature of the property and equipment. The broker for this policy specializes in utility operations and can obtain a lower price for this insurance. The second policy provides coverage for all other City property.
Excess Liability
The excess liability policy provides coverage for damages for a loss as a result of an act, or failure to act, by a City of Glendale employee. Examples of this type of loss include automobile accidents, dangerous conditions of public property, police liability, etc.
Employment Practices
This insurance covers losses from claims made by employees for alleged violations of employment laws such as, discrimination, sexual harassment, retaliation, etc.
Fine Arts
The fine art insurance covers losses to artwork owned by the City, as well as the periodic art exhibitions held at the Brand Library and Art Center.
Aviation
Aviation coverage provides protection for the City's liability due to the Police Department’s Helicopter Operations.
Crime
This policy covers losses associated with employee theft, fraudulent activity, and other criminal acts.
Verdugo Crime Lab
This insurance covers losses from a claim in the event an error or omission was made by an employee working at the Verdugo Crime Lab.
Cyber Liability
The cyber liability policy is designed to cover the costs associated with a compromise of electronic data. Examples of this could include unauthorized access to sensitive data, information released as a result of human error or equipment malfunction, intentional theft of data, etc. Recoverable costs include the costs to retrieve lost or stolen data as well costs associated with assessments and training to prevent future losses. 143 of 147
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7 Workers’ Compensation
This coverage pays costs for Workers’ Compensation claims that exceed the City’s SIR.
The City’s insurance brokers have been working with PRISM and other carriers to secure the best rates for the City (a copy of the proposed rates is attached hereto). A majority of the policy rates have remained steady (Fine Arts, Aviation, Verdugo Crime Lab) with one even slightly going down (Crime). The worker’s compensation coverage had a slight increase, but only due to an increase in payroll, not due to claims or other factors. The property insurance also had an increase due to a recent re-evaluation done on the values of City properties. That assessment was last done in 2005 and some properties have increased in value since then. Finally, as expected, the excess liability policy has the greatest increase, due in part to claims, but mostly due to market conditions.
The premium amounts listed are “not to exceed amounts” and the final cost may be less than the maximum amount of $9,098,134.00. One variable is the employment practices coverage currently estimated at a not-to exceed amount of $252,942 (increased from $163,457). This policy provides coverage for employment claims against the City and has a SIR of $350,000 for general employees and $500,000 for police and fire employees.
The City is considering either not renewing this coverage at all (and having only excess coverage above our $2 million SIR as the City has done previously) or obtaining coverage with a higher SIR (i.e. 1 million). This would result in lower premiums and more operational flexibility. However, staff requests authority to purchase the employment practices renewal at the not to exceed amount while it awaits final quotes.
Funding for the insurance premiums is currently budgeted for in the Liability, Workers’ Compensation and Department budgets. Additional appropriation of funds is not necessary. GWP property insurance will be charged to GWP via a journal entry and is budgeted for in the Electric Works Revenue Fund and the Water Works Revenue Fund.
Aviation insurance will be directly charged to Police and is budgeted for in the Joint Air Support Fund.
STAKEHOLDERS/OUTREACH
N/A
FISCAL IMPACT
The insurance premiums will cost no more than $9,098,134.00, which was requested as a part of the FY 2024-25 budget, as outlined below. No new appropriation is being requested at this time.
Proposed Appropriation
Amount Account String Funding Source
$63,363 46012-6020-GPD-7004-P0000 Joint Air Support Fund $714,517 45630-6140-HRD-5004-P0000 Workers’ Compensation Insurance Fund
$8,320,254 45630-6120-CAD-1004-P0000 Liability Fund
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7 ENVIRONMENTAL REVIEW (CEQA/NEPA)
The purchase of excess insurance policies is a governmental fiscal and administrative activity that is not a project under CEQA. CEQA Guidelines §15378.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Choose not to authorize renewals, but in such event the City would be without insurance which is not recommended.
2. The Council can choose an alternative not identified by staff.
ADMINISTRATIVE ACTION
Submitted by:
Michael J. Garcia, City Attorney
Prepared by:
Veronika Padron, Risk & Insurance Service Analyst
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Table of coverages.
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7 Broker Coverage SIR Amount Policy Limits
Existing
Premiums
Proposed
Premiums
Alliant
Insurance
Services
Property
(Non-GWP)
$25K $400M $566,121 $635,589
Excess
Liability
(Includes Law
Enforcement
Liability)
$2M $25M various
layers
$4,684,456 $6,090,000
Public
Officials &
Employment
Practice
$350K (Non
Safety)
$500K (Safety)
$2M $163,457 $252,942
Fine Arts $1K $3M $8,760 $8,760
Aviation $26K $50M $63,363 $63,363
Crime $25K $5M $60,800 $57,756
Verdugo
Crime Lab
$10K $2M $24,918 $24,918
Cyber Liability $100K $3M $112,544 $99,289
Excess
Workers'
Compensation
$2M $2M $677,092 $714,517
Optional
Excess
Program (OEL)
N/A $10M $464,310 $651,000
Arthur J.
Gallagher
Insurance
Brokers
GWP Property $250K $400M $429,734 $500,000
Total $7,255,555 $9,098,134
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MOTION
Moved by Council Member ____________________________, seconded by Council Member ___________________________, that the Council authorizes the annual renewal of excess insurance policies for the City’s property, general liability, workers’ compensation, cyber liability, employment practices and other miscellaneous coverages for the 2024-25 fiscal year, as outlined in the Report to Council dated June 25, 2024. The total amount of premiums authorized by this motion shall not exceed $9,098,134.00.
Vote as follows:
Ayes:
Noes:
Absent:
Abstain:
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