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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Increase in insurance coverage for the City’s property and other coverages for the Grayson Repowering Project.
1.Motion Authorizing an increase to the insurance premiums for property, general liability, workers’ compensation, cyber liability, and other miscellaneous coverages for the 2025-26 fiscal year, as outlined in the Report to Council dated December 2, 2025 to add $1,965,740 for contractually required builders risk and related insurance policies for the Grayson Repowering Project, for a new total authorized premiums in the amount of $11,172,260 for Fiscal Year 2025-26.
COUNCIL ACTION
Item Type: Consent Item
Approved for December 2, 2025 calendar
EXECUTIVE SUMMARY
Staff request authorization to increase the $9,206,520 amount of premiums authorized by the City Council on July 1, 2025 for Fiscal Year 2025-26 by $1,965,740, in order for the City, through Glendale Water & Power Department (GWP) to procure the contractually required builders risk and related insurance policies for the Grayson Repowering Project, for a new total premiums amount of $11,172,260 for Fiscal Year 2025-26.
RECOMMENDATION
That the City Council authorize an increase to the amount of premiums previously authorized by the City Council on July 1, 2025, for Fiscal Year 2025-26 by $1,965,740 to procure the contractually required builder’s risk and related insurance policies for the Grayson Repowering Project.
ANALYSIS
The City is self-insured for various losses, with self-insured retention (SIR) amounts ranging from $10,000 to $2 million. The various lines of insurance coverages maintained and renewed by the City annually are as follows:
Property
Property insurance covers loss, theft, or damage to City-owned property. An example of 24f
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this type of loss includes damages caused by fire, wind, vandalism, etc.
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, employment claims etc.
Workers’ Compensation
This coverage pays costs for Worker’s Compensation claims that exceed the City’s SIR.
On July 1, 2025, the City Council adopted a Motion whereby it authorized and ratified the annual renewal of excess insurance policies for the City’s property, general liability, worker’s compensation, cyber liability and other miscellaneous coverages for the 2025- 26 Fiscal Year, in the total premiums amount of $9,206,520.
Contractually Required Insurance for the Grayson Repowering Project Separate and in addition to the above, the Grayson Repowering Project, pursuant to contractual requirements requires specific insurance coverages such as builder’s risk, to provide coverage for potential losses during the construction and commissioning phases of the project such as fire. Providing such coverage is a requirement for both the Wartsila EP contract and the ARB EPC contract. The required coverages for the Grayson Repowering Project are listed in Exhibit 1.
GWP, in anticipation of the insurance requirements for the Grayson Repowering Project, has budgeted for and as such has the funds necessary to pay for the required premiums for the Grayson Repowering Project.
STAKEHOLDERS/OUTREACH
Not applicable.
FISCAL IMPACT
The increase in insurance premiums of $1,965,740 will be absorbed within the FY 2025- 26 Grayson Repowering Project budget. No new appropriation is being requested at this time.
The City Council approved funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$1,965,740 GL:46012-5830-GWP-0020
PL:GWP00171BN
Electric
Depreciation Fund
Department Cost Center Program
Glendale Water and Power Projects
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ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action requested herein does not constitute a “project” within the meaning of the CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment or a reasonable foreseeable indirect physical change in the environment. Even if it is a project, it is exempt pursuant to 14 C.C.R. § 15061(b)(3).
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Not authorize the premiums increase, but in such event the City would be without the contractually required insurance for the Grayson Repowering Project.
2. Council can choose an alternative not identified by staff.
ADMINISTRATIVE ACTION
Submitted by:
Michael J. Garcia, City Attorney
Prepared by:
Dorine Martirosian, Principal Assistant City Attorney
Veronika Padron, Risk & Insurance Service Analyst
Scott K. Mellon, General Manager – GWP
Approved by:
Roubik Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1 – Table of Coverages for the Grayson Repowering Project