TO:Andrew P. Powers, City Manager
FROM:Jeanette D. Green, Human Resources Director
DATE:June 23, 2026
SUBJECT: City Insurance Renewals
RECOMMENDATION:
1. Adopt resolution establishing membership in California Joint Powers Insurance Authority (CJPIA) for excess liability insurance coverage, delegating to and authorizing the City Manager to execute the related Joint Powers Agreement and Memorandum of Understanding, and designating the City Manager or designee as the City’s Authorized Representative for program administration for the term of July 1, 2026, through June 30, 2029.
2. Adopt resolution authorizing pooling of self-insurance through the excess liability protection program of CJPIA.
3. Authorize City Manager or designee to execute Agreement with Athens Administrators in the amount of $55,000 to serve as the City’s liability claims administrator as required by membership with CJPIA, and delegate to and authorize City Manager to execute all other future related agreements, amendments, and administrative documents necessary to implement the Agreement, in a form approved by the City Attorney.
4. Adopt resolution delegating basic tort claim handling of minor claims to Third Party Administrator Athens Administrators and the City Manager.
5. Authorize City Manager or designee to execute Delegation of Claims Handling Response Form to grant CJPIA authority to act on behalf of the City for any claims and litigation against the City.
6. Authorize City Manager or designee to purchase excess liability coverage to include Bodily Injury or Property Damage, including Automobile Liability; Personal Injury; Public Officials Errors and Omissions; Broadcast/Publication Injury; Employment Practices Injury; Employee Benefit Administration Liability; and Cyber Liability, through the CJPIA liability program for the term of July 1, 2026, through June 30, 2027, in the amount not-to-exceed $1,027,000.
City Insurance Renewals
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7. Authorize City Manager or designee to purchase insurance policies for Property; Excess Boiler; Excess Cyber; and Pollution through the Alliant Property Insurance Program for the term of July 1, 2026, through June 30, 2027, in the amount not-to-exceed $1,308,261.
8. Authorize the City Manager or designee to purchase insurance policies for Difference in Conditions/Earthquake and Excess Workers Compensation through Alliant Insurance Services, Inc. for the term of July 1, 2026, through June 30, 2027, in the amount not-to-exceed $552,174.
9. Authorize expenditure in an amount not to exceed $1,082,000 for FY 2026-27 as follows: $1,027,000 from A/C #711-0520-686-6312 (Liability Insurance Internal Service Fund, premiums) for excess liability coverage and $55,000 from A/C #711-0520-686-5640 (Liability Insurance Internal Service Fund, management fees) for associated claims administration fees.
10.Authorize expenditure in an amount not to exceed $116,754 for FY 2026-27 from A/C #712-0520-686-6321 (Workers Compensation Internal Service Fund) for renewal of excess workers’ compensation insurance.
11.Authorize expenditure in an amount not to exceed $1,743,681 for FY 2026-27 from the General Fund, Library Fund, ECTA Fund, Landscape Fund, Water Fund, Wastewater Fund, Transportation Fund, and Solid Waste Fund for renewal of property; excess boiler; excess cyber; and pollution through the Alliant Property Insurance Program in the amount of $1,308,261 and Difference in Conditions (Earthquake) insurance in the amount of $435,420.
12.Designate Mayor Pro Tem Bob Engler as the City’s initial primary voting delegate to the CJPIA Board of Directors and City Manager Andrew Powers as the alternate.
13.Find that the above actions are not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
No Additional Funding Requested. $1,640,136 is included in the Adopted FY 2026-27 Liability Insurance Internal Service Fund, $145,000 is included in the Adopted FY 2026-27 Workers’ Compensation Internal Service Fund, and $2,846,826 (Attachment #8) is included in the Adopted FY 2026-27 General Fund, Library Fund, ECTA Fund, Landscape Fund, Water Fund, Wastewater Fund, Transportation Fund, and Solid Waste Fund, for purchase of City insurance City Insurance Renewals
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policies. Total purchase in FY 2026-27 cost not to exceed $2,942,435 for insurance and liability claims administration.
BACKGROUND:
The Human Resources Department administers the procurement of insurance and liability coverage necessary to manage risks associated with City operations. The purchase and maintenance of appropriate insurance and related liability coverage help protect the City from potential losses arising from claims, litigation, and other actual or potential liabilities. The City’s current insurance and liability program includes multiple lines of coverage. The City’s insurance policies and coverages are typically issued for one-year terms, with most policies renewing effective July 1 of each year.
Staff has previously worked with Alliant Insurance Services, Inc. (Alliant), to evaluate the City’s insurance coverage needs, market the City’s insurance program, obtain coverage options, and place various lines of insurance. Alliant also provided underwriting and invoice billing support in connection with these services.
From time to time, staff may also recommend changes to the structure of the City’s insurance program, including participation in insurance pools when such participation is determined to be in the City’s best interest. For FY 2025-26, the City’s excess liability program is placed through Public Risk Innovation Solutions and Management (PRISM) risk pool.
DISCUSSION/ANALYSIS:
Staff requests authorization for the City Manager, or designee, as necessary to purchase insurance and ensure timely binding of insurance coverage prior to the expiration of the City’s existing policies at the end of the fiscal year. For FY 2026- 27, staff recommends approval of the proposed insurance purchases associated with the City’s insurance and liability program, including the coverage updates described below.
Excess Liability Insurance
The City currently maintains a self-insured retention of $2.0 million per occurrence for liability claims. For claims exceeding that amount, the City maintains $25.0 million in excess liability coverage through membership in the PRISM risk pool, of which the City has been a member for the past five years.
In 2025, staff began evaluating a potential transition from PRISM to the California Joint Powers Insurance Authority (CJPIA) for excess liability coverage. CJPIA is a California public-agency risk pool that provides insurance and risk-management services to cities, special districts, and other government entities. Based on staff review, CJPIA offers a risk management model that places a strong emphasis on proactive loss prevention, including its Loss Control Action Plan (LossCAP) City Insurance Renewals
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program and comprehensive member training. Under this model, each member agency is assigned an area Risk Manager who works collaboratively with the agency to develop a LossCAP plan tailored to its operational needs and to support achievement of identified risk management goals.
CJPIA also emphasizes a hands-on, collaborative approach to claims administration intended to assist member agencies in mitigating losses and reducing the administrative burden associated with claims investigation and resolution. As the City continues to strengthen and mature its risk management program, staff believes the additional services and support available through CJPIA would enhance the City’s ability to take a more proactive and strategic approach to risk management.
CJPIA’s liability program provides coverage for bodily injury and property damage, including automobile liability; personal injury; public officials’ errors and omissions; broadcast/publication injury; employment practices injury; employee benefit administration liability; and cyber liability.
Staff has received preliminary cost indication in the amount of $1,082,000 from CJPIA for FY 2026-27, inclusive of membership contribution and claims administration fees. Membership in CJPIA would require an increase to the City’s excess liability coverage limit from the current $25.0 million to $50.0 million, thereby providing significantly greater protection against catastrophic claims exposure. By comparison, the projected cost for a $50.0 million coverage limit through PRISM for the same policy term is $975,000. Although CJPIA’s projected cost is slightly higher, staff believe the additional cost is justified by the enhanced risk management and claims support services provided through the program.
One notable distinction between the CJPIA and PRISM programs relates to litigation and settlement authority. Under CJPIA’s program structure, CJPIA has broad discretion to settle claims and litigation in accordance with program provisions, including the authority to settle claims and litigation within a member agency’s self-insured retention (SIR) when CJPIA determines there is potential exposure to the pooled program (exceeding the City’s SIR). This includes claim and litigation investigation and handling, the selection of defense counsel, settlement authority, and the decision on whether to appeal any negative ruling.
Settlement decisions rendered by the CJPIA are not appealable. Although ultimate control over the claims and litigation in the above-described categories is vested in CJPIA, it is committed to a collaborative approach with the City and each member and is focused on providing excellent service to its members.
Where CJPIA has not yet made a determination that a claim/lawsuit has a reasonable possibility of exceeding the SIR, the City retains settlement authority, may select defense counsel from CJPIA’s list of pre-approved firms, and will receive reports and recommendations from the assigned defense counsel and City Insurance Renewals
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third-party administrator. Where settlement authority is required, the City Attorney’s Office will seek settlement authority from City Council consistent with current practice.
Excess coverage under CJPIA is largely similar to the coverage provided by PRISM. However, there are a few key distinctions. CJPIA’s excess coverage program does not cover Conejo Open Space Conservation Agency (COSCA), TOArts, or the City’s transit system. This coverage was provided under the excess policy with PRISM. COSCA and TOArts are not covered because they are separate legal entities which are not controlled by the City. Staff is currently working with those entities to evaluate their existing insurance policies to determine areas of potential duplication that can be eliminated and to determine if additional excess coverage is necessary. Staff is seeking quotes for alternative excess coverage for COSCA, TOArts, and the City’s transit system in case it is needed. If this alternative coverage is needed and exceeds staff’s purchasing authority, these policies will be brought to City Council at a future time.
To facilitate the City’s participation in CJPIA, City Council approval of several documents is required (Attachments #1 through 5). These documents establish the City’s membership in CJPIA, authorize participation in the pooled excess liability program, and provide for the administration and handling of liability claims.
The required documents include: (1) a Resolution establishing membership in CJPIA (Attachment #1); (2) a Resolution authorizing participation in CJPIA’s excess liability program (Attachment #2); (3) a Resolution delegating authority for basic tort claim handling to the third party administrator and the City Manager (Attachment #3); (4) an Agreement with Athens Administrators to serve as the City’s third-party administrator for claims administration services (Attachment #4); and (5) a Delegation of Claims Handling Response Form authorizing CJPIA to act on the City’s behalf with respect to claims asserted against the City (Attachment #5).
Staff requests authorization to execute the required CJPIA membership and program participation documents for the purpose of obtaining excess liability coverage, to include bodily injury and property damage, including automobile liability; personal injury; public officials’ errors and omissions; broadcast/publication injury; employment practices injury; employee benefit administration liability; and cyber liability. Staff further requests expenditure authority in an amount not to exceed $1,082,000 for this coverage and claims administration fees associated with Athens Administrators.
If City Council approves staff’s recommendation, the City would join CJPIA for the minimum three-year term, effective July 1, 2026, through June 30, 2029. Eligible claims and litigation with a date of loss prior to July 1, 2026, transition will continue to be covered under the prior excess insurance policy and handled by City staff augmented by outside counsel as authorized by City Council.
City Insurance Renewals
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Pursuant to CJPIA’s Joint Powers Agreement and bylaws, the governing body of each member agency must designate one voting delegate and at least one alternate upon joining. The voting delegate must be a member of the governing body, while the alternate may be either a member of the governing body or a staff representative. Staff recommends that the City Council designate Mayor Pro Tem Bob Engler as the City’s primary voting delegate and City Manager Andrew Powers as the alternate. Designating a non-elected alternate helps avoid conflicts between the City Council and CJPIA board schedules. In January 2027, when the Mayor makes appointments for City Council Committees, this position will be included for re-appointment.
Excess Workers Compensation
The City maintains excess workers’ compensation insurance coverage for losses exceeding its $0.5 million self-insured retention. Alliant placed the City’s excess workers’ compensation policy with Arch Insurance Company for the policy term of July 1, 2025, through July 1, 2027. The policy provides coverage, up to the limits prescribed by statute, for workers’ compensation costs that exceed the City’s self- insured retention.
The premium for FY 2026-27, in the amount of $116,754, was established and guaranteed at the time the policy was placed. Staff requests expenditure authority in an amount not to exceed $116,754 to pay the second and final premium installment for this coverage.
“All Risk" Property Insurance
The City’s property insurance is currently placed with Alliant Property Insurance Program (APIP), which currently includes property, pollution, excess cyber, and boiler and machinery. APIP is a municipal joint purchasing group that combines cities/agencies under one insurance program to provide a broad level of coverage with the benefit of premium discounts. Staff recommends property insurance for FY 2026-27 in the amount not to exceed $1,308,261 to be purchased through the APIP program with a standard deductible of $10,000 and a deductible of $25,000 for vehicles.
"Earthquake" Property Insurance
A "differences in conditions" policy covers earthquake damage to property. Alliant placed the City’s earthquake insurance with Arrowhead, and it is distributed amongst three carriers. It is recommended that the City maintain this separate policy for $50.0 million in earthquake coverage outside of the APIP program. Staff recommends earthquake property insurance for FY 2026-27 in the amount not to exceed $435,420 to be purchased with Alliant.
Other Insurances
Under department head-level purchasing authority, the City also procures other insurance coverages, including deadly weapon and crisis response, contractual City Insurance Renewals
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liability excess insurance, aircraft (drone), government crime, and special liability insurance program. Staff estimates total costs of approximately $44,730 to purchase these additional coverages for FY 2026-27.
LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
Attachments:
Attachment #1 – Resolution Joining CJPIA
Attachment #2 – Resolution For Pool Excess
Attachment #3 – Resolution Delegating Claim Handling
Attachment #4 – Athens Administrators Third Party Claims Administration Agreement
Attachment #5 – Delegation of Claims Handling Response Form Attachment #6 – CJPIA Joint Powers Agreement
Attachment #7 – CJPIA Bylaws
Attachment #8 – Budget and Expenditure Amount
HRD:180-30\lq\H:\COMMON\StaffReports\2025\06102025 Staff Report Insurance Renewals.docx