Agenda Item: 20
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 28, 2022
SUBJECT: EARTHQUAKE COVERAGE FOR CERTAIN CITY FACILITIES FOR THE 2022-23 FISCAL YEAR
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams
RECOMMENDED ACTION
City Council:
1. Authorize Alliant Insurance Services, Inc., to bind earthquake coverage on behalf of the City for Fiscal Year 2022-23 for various City facilities with Arrowhead General Insurance Agency, Inc., for a policy limit of $35 million, for a total premium fee of $375,152.
2. Authorize the City Manager or designee to exercise two, one-year renewal options, beginning in Fiscal Year 2022-23, with the City’s earthquake insurance broker Alliant Insurance Services, Inc, in an amount not to exceed $22,500 annually.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita’s (City) current earthquake insurance policy, expiring on July 1, 2022, provides building, structure, and contents coverage for 19 highly-valued City-owned facilities. In preparation for coverage renewal, staff underwent a request for proposals process for earthquake brokerage services. Based on competitive rates, qualifications, and comprehensive services, Alliant Insurance Services, Inc. (Alliant) was selected, and a one-year agreement was executed.
Alliant reviewed the City’s current property schedule and utilized earthquake modeling software to make recommendations to staff regarding which facilities should be considered for coverage.
With the recent additions of the Sheriff Station, the Canyon Country Community Center and the Vista Canyon Metrolink Station, the total number of recommended facilities for inclusion in the renewal policy increased from 19 to 22. In an effort to secure the lowest cost renewal premium,
staff instructed Alliant to solicit bids for coverage. Alliant contacted various carriers within the earthquake marketplace and secured a timely pricing proposal from a single agency: Arrowhead General Insurance Agency, Inc.
Staff evaluated the costs and elements of the proposal received and recommends renewing the City’s earthquake insurance policy for Fiscal Year 2022-23 with Arrowhead General Insurance Agency, Inc., for a total policy amount of $35 million, with a 15 percent deductible for a total premium cost of $375,152.
ALTERNATIVE ACTION
Other direction as determined by the City Council
FISCAL IMPACT
Adequate funds will be available in the Self Insurance Fund (Fund 721), Expenditure Account number 7212304-516101, upon approval of the Fiscal Year 2022-23 budget.