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Committee approves renewal of city insurance package at roughly $3.96 million after restructuring
Summary
The Public Works and Utilities Committee approved renewal of the city’s comprehensive insurance program for plan year 2025–26, a package staff said is about 9.4% lower than the previous year after restructuring excess liability coverage and securing multiple carrier quotes.
The Public Works and Utilities Committee voted June 30 to approve the city’s renewal of its comprehensive insurance program for plan year 2025–26, a package the city’s staff and broker said amounts to $3,959,968.57.
Andrea Phillips, appearing as the staff presenter for risk management, said the overall premium package is roughly 9.4% lower than last year. “Overall, our premiums are about 9.4% reduced from this latest plan year,” Phillips said, and she attributed the decline to risk‑management work and obtaining competitive carrier quotes.
John Chino of Arthur J. Gallagher, the city’s insurance broker, told the committee the renewal did not reduce stated coverage limits but did change the city’s structure to obtain premium savings and lower the self‑insured retention (SIR). Chino said the SIR has been reduced from $1.5 million to $1,000,000 while the excess liability limit remains $3,000,000. Chino said restructuring law‑enforcement coverage onto a separate carrier (Lexington) produced savings compared with a single‑carrier approach.
Committee members asked whether any coverage was being reduced and whether premiums could increase during the fiscal year. Phillips and the broker said coverage limits were maintained and that staff does not anticipate mid‑year premium changes, though claim experience could affect future budgeting. Committee members also raised process questions: multiple councilors said the timing of the renewal process fell at the fiscal‑year end and recommended realigning renewal and contracting schedules to avoid last‑minute approvals. Phillips said staff plans to put the renewals on an earlier timeline in future years and noted the professional‑services agreements with the broker and third‑party administrator were only recently put in place.
The committee voted by roll call to approve the renewal. The recorded roll call on the motion showed yes votes from Councilor Castro, Councilor Lee Garcia, Councilor Romero Worth and Councilor Michael Garcia; the motion passed.
