CITY COUNCIL: Resolution Authorizing City Administrator to Execute Documents to Bind Coverage for City's Liability & Property Insurance Programs for FY 2011/12

Meeting Date: June 7, 2011
Prepared by: John Goss

City Council
Agenda Item Summary

Name: Consideration of a Resolution authorizing the City Administrator to execute the necessary documents to bind coverage for the City’s liability and property insurance programs for fiscal year 2011/12.

Description: The City is insured for property and liability coverage through an insurance package, provided by Alliant Insurance Services, Inc. Alliant has provided insurance coverage to the City for several years. The insurance package includes coverage for the City’s entire property and liability exposures in the following general categories:
• Primary Tort Liability through CSAC-EIA
• Excess Liability through CSAC-EIA
• Boiler and Machinery Insurance
• Crime and Dishonesty Bonds including property, vehicles, contractor equipment and fine arts
• Public Officials bonds
• Pollution Liability (underground gasoline storage tanks)
They also provide Primary and Excess Workers Comp through CSAC-EIA.
The renewal premium for fiscal year 2011/2012 for the above coverages including primary and excess workers’ compensation, is $497,606. Excluding workers’ compensation, the insurance cost is $251,437. This is $30,503 over the $220,934 charged for 2010-2011, primarily because of an increase in primary and excess liability coverage. These charges may be diminished after funds are reviewed at the June CSAC board meeting. In any case,
there are sufficient funds in the proposed 2011-12 budget to cover these costs.

As you may know, the City has obtained this coverage for through the California Association of Counties Excess Insurance Authority (CSAC – EIA), which is a member-directed risk sharing pool of public agencies committed to providing risk coverage programs and risk management services. The EIA membership consists of a number of counties as well as numerous other public agencies and provides workers’ compensation coverage to approximately 80% of the cities in California.

Because the City is a member of CSAC-EIA, it has access to the services of the CSAC broker, Alliant Insurance, which solicits quotes on behalf of its members for all coverages needed by the City.

Overall Cost:
City Funds: Liability and Workers’ Compensation Insurance will cost $493,606 in 2011-12.
Grant Funds: N/A

Staff Recommendation: Approve the Resolution.

Decision Record: Resolution 2007-2 authorized the City Administrator to execute the JPA agreement and MOU with CSAC-EIA.

Reviewed:

________________________________ ________________
John Goss, Interim City Administrator Date

CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
RESOLUTION 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE THE NECESSARY
DOCUMENTS TO BIND COVERAGE FOR THE CITY’S LIABILITY AND
PROPERTY INSURANCE PROGRAMS FOR FISCAL YEAR 2011/12
WHEREAS, the City of Carmel-by-the-Sea, as a public entity, has excess workers’
compensation coverage through the California State Association of Counties Excess Insurance
Authority (CSAC-EIA) for fiscal year 2011/2012; and
WHEREAS, the CSAC-EIA broker is Alliant Insurance Services, Inc., and
WHEREAS, Alliant Insurance Services, Inc., has provided property and liability
insurance in the areas of Primary Tort Liability and Excess Liability through CSAC-EIA,
Primary and Excess Worker Comp Insurance through CSAC-EIA, Boiler and Machinery
Insurance, Crime and Dishonesty Bonds, Public Official Bonds, and Pollution Liability
Insurance.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF CARMEL-BY-THE-SEA DOES:
1. Authorize the execution of the amended Primary and Excess Workers’
Compensation Program MOU effective July 1, 2011.
2. Authorize the execution of agreement for property and liability insurance and
bonds effective July 1, 2011.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-
THE-SEA the day of June 2011, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED:

ATTEST:
_______________________
SUE McCLOUD, MAYOR
_____________________
Heidi Burch, City Clerk