City Council

22. BID & PURCHASE - CITY LIABILITY, PROPERTY, AND WORKERS’ COMPENSATION\nINSURANCE POLICIES FOR FISCAL YEAR 2025\nThat the City Council:\na. General Liability. Authorize the renewal of the City’s excess general liability\ninsurance policy through the Public Risk Innovation, Solutions, and Management\nJPA for Fiscal Year 2025, with an estimated maximum premium amount of up to\n$2,185,000, coverage of $25M per occurrence, and an increase in our\nself-insured retention from $500,000 to $1M per occurrence.\nb. Workers’ Compensation. Authorize the renewal of the City’s excess workers’\ncompensation insurance policy through the Public Risk Innovation, Solutions and\nManagement JPA for Fiscal Year 2025, with an estimated maximum premium\namount of up to $539,749. Coverage is equal to the statutory requirements for\nworkers’ compensation and $5M per occurrence for employer’s liability, and an\nSIR of $1M per occurrence. The premium is based on estimated payroll and is\nsubject to adjustment based on actual payroll.\nc. Property. Authorize the renewal of the City’s property insurance with Alliant’s\nProperty Insurance Program for Fiscal Year 2025, with an estimated maximum\npremium amount of up to $1,384,940, coverage for both real and personal\nproperty valued at approximately $760,215,998 (up from $721,129,664 last\nyear), a coverage limit of $1B per occurrence (subject to policy exclusions and\nother sub-limits, including a $500K deductible for wildfires and $5M deductible\nfor the biosolids facility), continuation of coverage for vehicles at actual cash\nvalue (as opposed to replacement value), continuation of coverage off-premises\nonly for vehicles with a value of $100,000 or more, primary SIR levels set at\n$10,000 per occurrence for vehicles off-premises and on-premises, $50,000 for\nbuildings and facilities. This year we will decline the cyber liability coverage\npreviously provided under the APIP policy and purchase a standalone cyber\nliability coverage policy as discussed below.\nd. Crime. Authorize the renewal of the City’s Master Government Crime insurance\nthrough the Public Risk Innovation, Solutions, and Management JPA with the\nNational Union Fire Insurance Company of Pittsburgh, PA, also known as AIG\n(“AIG”) for Fiscal Year 2025, with an annual premium of $13,333, coverage of\n$10M per occurrence, and a deductible of $2,500 per occurrence.\ne. Airport. Authorize the renewal of the City’s Airport Liability insurance with the\nStarr Indemnity & Liability Company for Fiscal Year 2025, with a premium of\n$4,872, coverage of $25M per occurrence, and no deductible or SIR. There is\nno change in premiums from last fiscal year.\nf. Enhanced Pollution. Authorize the renewal of the City’s enhanced pollution\nliability insurance with Ironshore Specialty Insurance Company for Fiscal Year\n2025, with a premium of $121,554, coverage of $10M per pollution condition,\nand an SIR of $250,000 per pollution condition.\ng. Deadly Weapon Response Program. Authorize the renewal of Alliant’s Deadly\nWeapon Response Program coverage, underwritten by Lloyd’s of London, for\nFiscal Year 2025, with an annual premium of $8,303 and coverage of $500,000\nand sub-limit coverage of $250,000 for various incident related services and\ncoverages.\nh. Cyber Liability. Authorize the purchase of enhanced cyber liability coverage with\nPublic Risk Innovation, Solutions, and Management JPA for Fiscal Year 2025,\nwith a premium of $143,832 and coverage of $18M (policy limit/aggregate\nsubject to the pool aggregate of $115M), including various sublimits (most\nnotable of which are now much larger $7.75M extortion and data recovery cost\nsublimits). In the past few years, the cost of enhanced cyber liability insurance\nhas been cost prohibitive, so we’ve relied on the coverage provided under the\nAlliant’s Property Insurance Program. The cost and quality of cyber liability\ncoverage has improved, and we believe it’s a good time to once again purchase a\nstandalone cyber coverage policy. We will continue to evaluate other alternatives\nin the market.\ni. Marketing Process. Pursuant to Corona Municipal Code Section 3.08.140(E), find\nthat it is in the best interest of the City and its administrative operations to\ndispense with the City’s normal formal competitive bidding process and authorize\nthe above purchases using Alliant’s competitive process, since the City’s\ncompetitive bidding process is not amenable to the purchase of these insurance\npolicies and Alliant’s competitive process is a thorough and competitive which is\nan appropriate alternative to the City’s formal public competitive bidding\nprocedures.\nAgenda\nj. Earthquake & Flood. Concur with staff recommendation not to purchase\nearthquake and flood insurance because it is not available at a reasonable cost.\nk. Implementation Actions. Authorize staff to take all other actions and execute all\ndocuments necessary to implement these recommendations, including any minor\nadjustments which are consistent with these recommendations and within the\nfinally adopted Fiscal Year 2025 budgets for the Workers Compensation Fund\n683 and the General Liability Fund 687.\nThat the Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.