HomeMy WebLinkAbout24919RESOLUTION NO. 24919
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA AUTHORIZING KEENAN AND ASSOCIATES,
AS THE CITY'S BROKER OF RECORD, TO PURCHASE PROPERTY,
EXCESS EARTHQUAKE/FLOOD (DIFFERENCE IN CONDITION),
EXCESS LIABILITY, EXCESS WORKERS COMPENSATION, AIRPORT
OWNERS AND OPERATORS LIABILITY, VILLAGE FEST LIABILITY,
MULTI MEDIA LIABILITY, AIRCRAFT HULL LIABILITY, CRIME/FIDELITY
LIABILITY, VILLAGE FEST, AND CYBER LIABILITY INSURANCE
POLICIES FROM VARIOUS CARRIERS FOR POLICY YEAR 2021-2022,
EFFECTIVE JULY 1, 2021.
The City Council of the City of Palm Springs, California, finds:
A. The City is self -insured for major risk programs, such as property,
general liability, auto liability and workers' compensation.
B. The City annually purchases various lines of insurance coverage to
minimize the adverse effects of accidental losses and claims against the City.
C. The City is located in the vicinity of several known active and potentially
active earthquake faults, including the San Andreas, the San Jacinto and the
Elsinore faults.
D. The topography of the City makes it prone to flooding, especially during
times of heavy rainfall.
E. The City purchases a primary earthquake and flood insurance policy.
F. The City supplements its primary insurance policy with excess
coverage to insure against losses arising from litigation, employee injuries and/or
deaths arising from potential catastrophes, losses arising from the City's Airport, and
to properly protect public facilities from catastrophic loss from earthquake or flood.
G. The City Council appoints a broker of record to purchase insurance
policies for the City, and the city's insurance broker has solicited proposals from
various insurance companies for insurance coverage, and presented proposals to
the City to ensure the best coverage obtainable based upon a reasonable
expenditure of public resources with respect to premiums.
NOW, THEREFORE, the City Council of the City of Palm Springs, California,
resolves:
SECTION 1: The City Council of the City of Palm Springs, California based
upon the true and correct recitals above incorporated herein by this reference as
Resolution No. 24919
Page 2
findings in support of this Resolution, hereby authorizes Keenan & Associates, as
the City's Broker of Record, to purchase the following insurance policies for Fiscal
Year 2021-22:
COVERAGE:
Premium FY 20-21
Proposed FY 21-22
% Change
EXCESS LIABILITY
Premium
SIR
$638,250
$1,123,697
$1 M Law Enf. & Auto,
(Not to exceed)
Limit
$650K all others
$10,000,000 per
occurrence
EXCESS WORKERS' COMP
Premium
SIR
$210,412
$236,101
+12.21%
Limit
$1,000,000
$1,000,000
$50,000,000 per
$50,000 per occurrence
occurrence
PROPERTY — ALL RISK
TIV $554M
TIV $55M
Premium
$315,663
$363,012
+15%
Deductible
$10,000
$10,000
Terrorism and Runway
Terrorism and Runway
coverage included
coverage included
DIC (Earthquake/Flood)
(City + Airport)
Premium
$263,026
$276,173
+5%
SIR
$5M
$5M
Limit
$10M, excess of $5M
$10M, in excess of $5M
SIR
SIR
DIC (Earthquake/Flood)
(City + Airport)
Premium:
$381,509
$392,350
+2.84%
Limit:
$12M, in excess of
$12M, in excess of $15M
$15M
DIC (Earthquake/Flood)
Wastewater Treatment Plant
Premium:
$108,557
$123,900
+13.46%
Limit:
$5M
$5M
DIC (Earthquake/Flood)
Wastewater Treatment Plant
Premium:
$91,005
$103,250
Limit:
$20M, excess of $5M
$20M, excess of $5M
AIRPORT LIABILITY
Premium
$37,584
$43, 222
+15%
Deductible
$1,000
$1,000
Limit
$50,000,000 ann.
$50,000,000 ann.
Resolution No. 24919
Page 3
aggregate
aggregate
Terrorism coverage
Terrorism coverage
included
included
AIRCRAFT HULL Premium
$3,303
$3,794
+14.87%
Deductible
$100 static/$500 in
$100 static/$500 in
Limit
motion
motion
$5,000,000 per
$5,000,000 per
occurrence
occurrence
Terrorism coverage
Terrorism coverage
included
included
CRIME / FIDELITY
Premium
$5,513
$5,855
+6.20%
Deductible
$10,000
$10,000
Limit
$1,000,000 per
$1,000,000 per
occurrence
occurrence
CYBER & DATA BREACH
Premium
$16,815
$26,721
+58.91 %
SIR
$15,000
$25,000
Limit
$1,000,000 annual
$1,000,000
aggregate
MEDIA LIABILITY
Premium
$5,513
$6,029
Deductible
$5,000
$5,000
+9.37%
Limit
$1,000,000 per
$1,000,000 per
occurrence
occurrence
VILLAGE FEST
$12,4851
$12,420
- .52%
Premium
$250
$250
Deductible
$1,000,000 per
$1,000,000 per
Limit
occurrence
occurrence
Total Premiums
$2,077,149
$2,716,524
+30%
SECTION 2. The City Manager is hereby authorized to accordingly
adjust the budget and allocate the insurance expense to the appropriate enterprise
and other funds and may authorize any changes that result in lower premium costs
for the same or better coverage that the broker may present between now and June
30, 2020.
SECTION 3. The City Manager is hereby authorized to execute any
documents necessary to effectuate the authorized actions specified herein.
' This premium was not paid, due to the cancellation of Village Fest during the 2020/21 Fiscal year. This $12,485 is
not included in the "Total' amount, set forth in the accompanying chart.
Resolution No. 24919
Page 4
ADOPTED THIS 24TH DAY OF JUNE, 2021.
�� 4��'
JUSTIN LIFTON, CAP MANAGER
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24919 is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on June 24, 2021, by the following
vote:
AYES: Councilmembers Garner, Kors, Woods, Mayor Pro Tern Middleton, and
Mayor Holstege
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this -74- day of 0 -A , Zo u
6pr hony J. Melia, MMq,-City Clerk
City of Palm S rings, California