That the City Council:
a.General Liability. Authorize the renewal of the City’s excess general liability insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026 with an estimated maximum premium amount of up to $2,916,000, coverage of $25M per occurrence, and a self-insured retention of $1M per occurrence.
b. Workers’ Compensation. Authorize the renewal of the City’s excess workers’ compensation insurance policy through the Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $700,000. Coverage is equal to the statutory requirements for workers’ compensation and $5M per occurrence for employer’s liability, and an SIR of $1M per occurrence. The premium is based on estimated payroll and is subject to adjustment based on actual payroll.
c.Property. Authorize the renewal of the City’s property insurance with Alliant’s Property Insurance Program for Fiscal Year 2026, with an estimated maximum premium amount of up to $1,544,047, coverage for both real and personal property valued at approximately $807,192,830 (up from $760,215,998 last year), a coverage limit of $1B per occurrence (subject to policy exclusions and other sub-limits, including a $50K all-risk deductible for most buildings and facilities, a $10K deductible for vehicles off-premises and on-premises, a $500K deductible for wildfires, and a $5M deductible for the biosolids facility), continuation of coverage for vehicles at actual cash value (as opposed to replacement value), and continuation of coverage off-premises only for vehicles with a value of $100,000 or more.
d. Crime. Authorize the renewal of the City’s Master Government Crime insurance through the Public Risk Innovation, Solutions and Management JPA with the National Union Fire Insurance Company of Pittsburgh, PA, also known as AIG (“AIG”) for Fiscal Year 2026, with an estimated maximum premium amount of up to $19,000, coverage of $10M per occurrence, and a deductible of $2,500 per occurrence.
e.Airport. Authorize the renewal of the City’s Airport Liability insurance with the Starr Indemnity & Liability Company for Fiscal Year 2026, with an estimated maximum premium amount of up to $5,359, coverage of $25M per occurrence, and no deductible or SIR.
f. Enhanced Pollution. Authorize the renewal of the City’s enhanced pollution liability insurance with Ironshore Specialty Insurance Company for Fiscal Year 2026, with an estimated premium of $122,491, coverage of $10M per pollution condition, and an SIR of $250,000 per pollution condition.
g. Deadly Weapon Response Program. Authorize the renewal of Alliant’s Deadly Weapon Response Program coverage, underwritten by Lloyd’s of London, for Fiscal Year 2026, with an estimated maximum premium amount of up to $9,133 and coverage of $500,000 and sub-limit coverage of $250,000 for various incident related services and coverages.
h.Cyber Liability. Authorize the purchase of enhanced cyber liability coverage with Public Risk Innovation, Solutions and Management JPA for Fiscal Year 2026, with an estimated maximum premium amount of up to $187,000 and coverage of $18M (policy limit/aggregate subject to the pool aggregate of $115M), including various sublimits (most notable of which are now much larger $7.75M extortion and data recovery cost sublimits). For several years, the cost of enhanced cyber liability insurance had been cost prohibitive, so we relied on the coverage provided under Alliant’s Property Insurance Program. However, last year the cost and quality of cyber liability coverage improved, and the City once again purchased a standalone cyber coverage policy.
i.Marketing Process. Pursuant to Corona Municipal Code Section 3.08.140(E), find that it is in the best interest of the City and its administrative operations to dispense with the City’s normal formal competitive bidding process and authorize the above purchases using Alliant’s competitive process, since the City’s competitive bidding process is not amenable to the purchase of these insurance policies and Alliant’s competitive process is a thorough and competitive which is an appropriate alternative to the City’s formal public competitive bidding procedures.
j.Earthquake & Flood. Concur with staff recommendation not to purchase earthquake and flood insurance because it is not available at a reasonable cost.
k.Implementation Actions. Authorize staff to take all other actions and execute all documents necessary to implement these recommendations, including any minor adjustments which are consistent with these recommendations and within the finally adopted Fiscal Year 2026 budgets for the Workers Compensation Fund 683 and the General Liability Fund 687.
That the Corona Utility Authority review, ratify and to the extent necessary, direct the City Council to take the above actions.