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CC - CONSENT ITEM: Approval of Annual Insurance Policy Renewals for the City’s Insurance Portfolio for Fiscal Year 2025 - 2026 with a Premium of Approximately $3,982,989, as Presented by City’s Insurance Broker Alliant Insurance Services, Inc.
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Meeting Date: June 23, 2025
Contact Person/Dept.: Rasheedah Johnson, Risk Manager /Human Resources
Phone Number: (310) 253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/19/2025)
Department Approval: Dana Anderson, Human Resources Director (06/03/2025)
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RECOMMENDATION
Staff recommends the City Council (1) approve the recommended Fiscal Year 2025-2026 Insurance Policy Renewal Program with a premium of approximately $3,982,989, as presented by the City’s insurance broker Alliant Insurance Services, Inc
BACKGROUND
The City of Culver City (City) contracted with Alliant Insurance Services, Inc. (Alliant) to purchase insurance coverage for the City, effective January 1, 2025. The City is self-insured and annually purchases lines of insurance coverage to minimize the adverse effects of accidental losses and claims against the City.
The City is self-insured for major risk programs such as property, liability, excess earthquake/flood liability, general liability, auto, workers' compensation and other lines of insurance. To protect the assets of the City from potential loss, the City purchases various lines of insurance coverage for these risks. To assist in the purchase of various lines of insurance, the City entered into an agreement with Alliant for professional insurance brokerage services.
DISCUSSION
Alliant has marketed the City's insurance program to carriers and has solicited pricing amounting to $3,982,989, which is 8% less costly than the current year while providing the same level of coverage for all policies with the exception of enhanced coverage levels for Flood / Earthquake and Property insurance coverage(s).
It should be noted that the agreement with the City’s prior insurance broker AON was structured so that AON received commissions from the insurance companies. Some of the reductions in the policy renewal amounts reflect the removal of those commissions. Instead, the City’s agreement with Alliant stipulates the annual payment of a direct fee for their services in the amount of $150,000.
The following is premium information for Fiscal Year 2024-2025 and renewal insurance premiums for Fiscal Year 2025/2026:
FY 2024-2025 Policy Information
FY 2025-2026 Policy Information
The purchase of insurance is exempt from formal competitive bidding requirements, pursuant to Culver City Municipal Code Sections 3.07.065.A and C.2, provided the purchase is based upon competitive quotations. Alliant’s marketing of the City's insurance program to carriers, as discussed above, satisfies this requirement.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2025-2026 includes sufficient funding to cover $3,982,989 for the insurance premiums in:
• Account No. 30922220.650100 (Premium/Claims - Insurance Premiums Liability);
• Account No. 30922220.650200 (Premium/Claims - Insurance Premiums Other); and
• Account No. 30922220.650400 (Premium/Claims - Workers Compensation Insurance Premiums).
These accounts can be found in the Human Resources Department section of the budget book under the Premium/Claims expenditures.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve the recommended Fiscal Year 2025 - 2026 insurance renewal program with a premium of approximately $3,982,989, as presented by the City’s insurance broker Alliant Insurance Services, Inc.;
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.