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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 4, 2026
To: Honorable Mayor and City Council Members
From: Andrea Russell, Director of Human Resources
Department: Human Resources
Subject: Annual Renewal Of The City's Property Insurance For FY 2026/27 In An Amount Not To Exceed $2,540,000
(All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the annual renewal of the City’s property insurance for a premium not to exceed $2,540,000 for the term beginning April 1, 2026, and ending March 31, 2027; and authorizing the City Manager to execute all related documentation.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
Approving the City’s annual property insurance renewal for fiscal year 2026/27 to cover direct physical loss or damage to City property. Coverage includes commercial property, flood, earthquake, auto physical damage, and terrorism & sabotage. Due to the timing of the renewal which commences April 1, 2026, the FY 25/26 Operating Budget includes funding to support expenditures in the current fiscal year (3 months).
The FY 26/27 Operating Budget will include funding for the remaining 9 months.
Background
The City of San Bernardino has a pooled membership within Public Risk Innovation, Solutions, and Management (PRISM) property program. Members within a pooled insurance plan typically experience lower rate increases year over year as opposed to stand-alone coverage. PRISM seeks quotes from both domestic and international markets in order to fill all the program insurance needs; therefore, it is a very intensive marketing process each year due to the size of the program and the number of carriers involved. Once the final quote is selected, PRISM then works internally with actuaries and underwriters to determine the premium allocation of each member based on their individual loss experience and exposure information.
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Discussion
The City purchases commercial property insurance to cover direct physical loss or damage to City property caused by or resulting from a covered cause of loss.
Member rates for 2026 are slightly increasing. The degree of rate increase to each individual member varies within an established range dependent upon claims experience, however, most members will experience up to a 10% increase. Member allocation also considers the unique exposures of each entity including the types of property being insured and exposure to natural catastrophes.
The City's not to exceed premium of $2,540,000 represents a 2.5% increase over last year's not to exceed premium amount of $2,478,000. Below is a breakdown of each type of coverage included in the renewal, through Alliant, with PRISM for the term beginning April 1, 2026, through March 31, 2027.
Commercial Property
The City purchases commercial property insurance to cover direct damage to City property. The policy through PRISM provides a $300,000,000 limit per occurrence with a $100,000 deductible.
Flood
The City purchases flood insurance to cover direct physical loss of or damage to City property caused by or resulting from a flood. The policy through PRISM provides a $200,000,000 limit with a $25,000 deductible.
Earthquake
The City purchases earthquake insurance to cover direct physical loss of or damage to City property caused by or resulting from an earthquake. The policy through PRISM provides a $100,000,000 limit with a $100,000 deductible minimum, or 5% of the total value of the building.
Auto Physical Damage
The City purchases auto physical damage insurance to cover City-owned vehicles against perils such as collision, vandalism, fire and theft. The policy through PRISM provides a replacement cost value or actual cash value of vehicles with a $10,000 deductible.
Terrorism and Sabotage
The City purchases terrorism and sabotage insurance for property damage and business interruption coverage in the event of a terrorist attack. The policy through PRISM provides a $750,000,000 limit with a $100,000 deductible. 2021-2025 Strategic Targets and Goals
Approving the renewal of the City’s property insurance policy aligns with Key Target No. 1b: Improved Operational & Financial Capacity - Minimize risk and litigation exposure. Commercial property insurance protects the City and mitigates risk by covering direct physical loss or damage to City property. 3 2
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Fiscal Impact
The FY 2025/26 Operating Budget includes funding to support expenditures in the current fiscal year. The policy term is April 1, 2026, through March 31, 2027, for a not to exceed premium of $2,540,000. The premium will be expensed across two fiscal years: three (3) months in FY 2025/26 in the amount of $635,000 and nine (9) months in FY 2026/27 in the amount of $1,905,000. Funding will be included in the FY 2026/27 Operating Budget for the portion of the premium expensed in next fiscal year.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the annual renewal of the City’s property insurance for a premium not to exceed $2,540,000 for the term beginning April 1, 2026, and ending March 31, 2027; and authorizing the City Manager to execute all related documentation.
Attachments
Attachment 1 – PRISM 2026/27 Budget Estimates
Attachment 2 – PRISM Property Market Update
Ward:
All Wards
Synopsis of Previous Council Actions:
April 2, 2025 Mayor and City Council approved the annual renewal of the City’s property insurance for a premium not to exceed $2,478,000 for the term beginning April 1, 2025, and ending March 31, 2026.
March 20, 2024 Mayor and City Council approved the annual renewal of the City’s property insurance for a premium not to exceed $2,415,000 for the term beginning April 1, 2024, and ending March 31, 2025.
June 7, 2023 Mayor and City Council approved the annual renewal of the City’s property insurance for a premium not to exceed $1,742,000 for the term beginning April 1, 2023 and ending March 31, 2024.
March 2, 2022 Mayor and City Council adopted Resolution No. 2022-42, approving the annual renewal of the City’s property insurance for a premium not to exceed $1,601,000 for the term beginning April 1, 2022 and ending March 31, 2023.
March 3, 2021 Mayor and City Council adopted Resolution No. 2021-54, approving the annual renewal of the City’s property insurance for a premium not to exceed $1,292,000 for the term beginning April 1, 2021 and ending March 31, 2022.
CC: Eric Levitt, City Manager