The City Council authorized purchase of general-liability insurance during the Oct. 14 meeting, approving the staff-recommended broad coverage option and funding it with revenues identified as Bellafield (restricted community benefit) receipts.

City Manager Chris Lopez briefed the council on four insurance options ranging from multi-year primary coverage with a $5,000,000 self-insured retention to a minimal third-party-claims-administrator arrangement. Lopez described a lack of pool options following the city’s removal from the California Intergovernmental Risk Authority (CIRA) in 2022 and noted that without insurance the city has been effectively self-insured for liability and auto claims.

Council discussed funding choices and coverage scope. Council Member Ron Smith said he opposed using unallocated fund balance and favored use of Bellafield revenues and other designated sources. The mayor and council debated adding a terrorism endorsement; the council declined to add it after discussion of scope and cost.

On a motion to approve the more comprehensive policy (Option 1) and fund it from Bellafield revenues, the council voted unanimously in favor. The motion also included delegation to the city manager to proceed with policy procurement and to bring follow-up items as needed.

Ending: The council adopted the resolution authorizing the purchase of general-liability insurance under the recommended option and directed staff to use Bellafield revenues as funding; the council did not add a terrorism endorsement.