Agenda Item: 6
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: June 23, 2026
SUBJECT: GENERAL LIABILITY, PROPERTY LIABILITY, WORKERS’
COMPENSATION, AND EARTHQUAKE COVERAGE
DEPARTMENT: Administrative Services
PRESENTER: Melody Bartlette
RECOMMENDED ACTION
City Council:
1. Authorize a one-year renewal of the City of Santa Clarita’s general liability, property liability, and workers’ compensation insurance coverage through the California Joint Powers Insurance Authority at a total premium cost of $3,301,121.
2. Authorize Alliant Insurance Services, Inc., to bind earthquake coverage on behalf of the City of Santa Clarita for Fiscal Year 2026-27 for various City of Santa Clarita facilities, securing coverage through Amwins Special Risk Underwriters, for a total premium fee of $594,007.
3. Authorize an ongoing budget appropriation from Self Insurance Fund (Fund 721) to expenditure account 7212306-516101 for $72,838 to support ongoing insurance program renewals commencing in Fiscal Year 2026-27.
4. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney review.
BACKGROUND
The City of Santa Clarita (City) has been a member of the California Joint Powers Insurance Authority (CJPIA) for general liability, workers’ compensation, property liability, and other various lines of coverage since 2021. The CJPIA was established in 1978 for the purpose of providing liability protection for its members. Today, CJPIA is one of the largest municipal self- insurance pools in the state of California, with over 120 member cities and other governmental agencies. Insurance pools, also known as Joint Powers Authorities, provide several advantages related to insurance coverage and risk management practices that traditional insurance coverage
does not offer, such as policy review, employee training, and facility and risk assessments. Risk pools help reduce individual members' financial exposure by distributing potential losses amongst its members.
For the upcoming Fiscal Year (FY) 2026-27 renewal term, the City’s premium is expected to rise approximately 2.2 percent, for a not-to-exceed cost of $3,301,121. The increase is primarily attributable to rising payroll, increased claim activity, and continued increases in liability insurance costs. As part of the renewal, the City will also increase its General Liability Self- Insured Retention (SIR) from $100,000 to $250,000 per occurrence. Under the revised structure, the City will be responsible for the first $250,000 of covered claim costs before excess liability coverage provided through CJPIA applies. Staff evaluated the City's historical claims experience and determined that increasing the SIR represents an acceptable level of risk. The increased retention is expected to help stabilize future insurance costs and better align the City's retention level more closely with those maintained by similarly situated public agencies.
In addition to the aforementioned program, staff worked with the City’s earthquake insurance broker, Alliant Insurance Services, Inc. (Alliant), to review the City’s property schedule and evaluate facilities for earthquake coverage. Factors considered during this review included facility replacement value, operational importance, and location. Alliant solicited proposals from the earthquake insurance marketplace and evaluated available coverage options on behalf of the City.
Staff evaluated the proposed coverage and recommends renewing the City’s earthquake insurance program for FY 2026-27 through Amwins Special Risk Underwriters, maintaining a policy limit of $45 million while reducing the deductible from 15 percent to 5 percent. The proposed premium is $594,007, representing a decrease of approximately $59,609, or 9.1 percent, compared to the current program premium of $653,616. The proposed coverage provides protection for 22 critical City facilities, including the Sheriff’s Station, City Hall, The Cube, William S. Hart Regional Park, Transit Maintenance Facility, Vista Canyon Parking Structure and Water Factory, libraries, and community centers, in the event of a significant earthquake.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The recommended actions require an ongoing appropriation of $72,838 from the Self Insurance Fund (Fund 721) to expenditure account 7212306-516101, beginning in FY 2026-27, to support the City's annual insurance coverage renewals.