HomeMy WebLinkAbout2023-06-27 - AGENDA REPORTS - EARTHQUAKE COVERAGE FY 23 24O
Agenda Item: 9
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: TAA,/�
DATE: June 27, 2023
SUBJECT: EARTHQUAKE COVERAGE FOR CITY FACILITIES FOR THE
2023-24 FISCAL YEAR
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams
RECOMMENDED ACTION
City Council:
Authorize Alliant Insurance Services, Inc., to bind earthquake coverage on behalf of the City
of Santa Clarita for Fiscal Year 2023-24 for various City facilities with Arrowhead General
Insurance Agency, Inc., for a policy limit of $35 million, for a total premium fee of
$503,420.
2. Authorize an ongoing budget appropriation from Self Insurance Fund (Fund 721) to
expenditure account 7212306-516101 for $71,762 for ongoing earthquake coverage renewals
commencing in Fiscal Year 2023-24.
3. Authorize an ongoing budget appropriation from Vista Canyon Wastewater Standby Fund
(Fund 368) to expenditure account 3687418-516101 for $25,000 for ongoing earthquake
coverage renewals commencing in Fiscal Year 2023-24.
4. Authorize an ongoing budget appropriation from Cooper Street Parking Structure Fund
(Fund 369) to expenditure account 3697409-516101 for $1,635 for ongoing earthquake
coverage renewals commencing in Fiscal Year 2023-24.
5. 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, 2023,
provides building, structure, and contents coverage for multiple highly -valued, City -owned
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facilities.
In preparation for the Fiscal Year 2023-24 renewal, staff worked with the City's earthquake
insurance broker, Alliant Insurance Services, Inc. (Alliant), to analyze the City's current property
schedule and determine which facilities should be considered for coverage. Various factors
contribute to the decision -making process, including facility replacement value, operational
importance, and location. In an effort to secure the lowest cost renewal premium, Alliant
solicited bids from the earthquake insurance marketplace. Following correspondence with
multiple carriers, Arrowhead General Insurance Agency, Inc., the City's incumbent carrier,
provided a competitive proposal.
Staff evaluated the costs and elements of the proposal and recommends renewing the City's
earthquake insurance policy for Fiscal Year 2023-24 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 $503,420. The coverage will ensure that 17 of the City's critical facilities, including the
Sheriff's Station, City Hall, The CUBE, Transit Maintenance Center, Vista Canyon Parking
Structure and Water Factory, Libraries, and Community Centers, are protected in the event of a
significant earthquake.
ALTERNATIVE ACTION
Other direction as determined by the City Council
FISCAL IMPACT
Upon approval of the recommended action, ongoing appropriations commencing in Fiscal Year
2023-24 will include: $71,762 from the Self Insurance Fund (Fund 721) to expenditure account
7212306-516101; $25,000 from the Vista Canyon Wastewater Standby Fund (Fund 368) to
expenditure account 3687418-516101; and $1,635 from the Cooper Street Parking Structure
Fund (Fund 369) to expenditure account 3697409-516101. Contingent upon the approval of the
Fiscal Year 2023-24 annual budget, adequate funds will be available to support this action.
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