CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 3 Section Name: CONSENT CALENDAR Account Number: 10-1711 File ID: 26-10802 TO: City Council
FROM: Prasanna W. Rasiah, City Attorney
PREPARED BY: City Attorney's Office
MEETING DATE: January 12, 2026
SUBJECT:
Fiscal Year 2025-26 Wastewater Treatment Plant Property Insurance — Purchase Authorization RECOMMENDATION:
Authorize the City Attorney to purchase property insurance for the Wastewater Treatment Plant for the remainder of fiscal year 2025-26, in an amount not to exceed $237,394.02.
BACKGROUND:
The City is presently enrolled in an organization called Public Risk Innovations, Solutions, and Management (PRISM), formerly known as the California State Association of Counties (CSAC) Excess Insurance Authority. PRISM is a joint powers authority comprised of dozens of government agencies that provides coverage up to $25 million above a $1 million Self- Insured Retention (SIR) per occurrence, and a $1 million Individual Member Corridor Deductible (IMCD) that erodes over the course of the fiscal year in exchange for a premium discount for the excess liability insurance policy.
For the past five years, the City Council has authorized a staff committee comprised of the City Manager, the Finance Director, and the City Attorney to select the most cost-effective program to insure the City’s general liability and property risks and authorized the City Attorney to execute all required documents to purchase the selected insurance. Most recently, on June 16, 2025, the City Council authorized the selection of such insurance for fiscal year 2025-26.
The Wastewater Treatment Plant (WWTP) was until recently covered by a builder’s risk insurance policy during the period of construction. With construction nearing final completion, coverage for the WWTP was transferred to the City’s Property, Boiler & Machinery, Environmental & Cyber (APIP) insurance policy on December 17, 2025.
This transfer requires an additional insurance premium payment in the amount of $237,393.02 for the remainder of fiscal year 2025-26.
The APIP premium for the current fiscal year is $1,099,777. While the City Council authorization on June 16, 2025 provided broad authority to select and purchase insurance, given the significant additional premium for the WWTP, staff is seeking specific authority for this payment in an abundance of caution.
For fiscal year 2026-27, the APIP insurance policy premium for the WWTP is currently estimated at $406,804.02. This will be accounted for in a forthcoming staff report seeking authority to select and purchase insurance for fiscal year 2026-27, most likely in June 2026.
BUDGET IMPACT:
The fiscal year 2025-26 budget accounted for $4.1 million for insurance premiums. Insurance premium payments in the amount of $3.5 million were made, leaving a balance of $600k which is sufficient for the proposed payment of
CITY OF SAN MATEO
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$237,394.02. Therefore, no modifications to appropriations are required.
ENVIRONMENTAL DETERMINATION:
This item is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
None
STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7020