REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 07/21/21
TO: Honorable Mayor and City Council Members
Honorable President and Board
FROM: Legal & Risk Management
SUBJECT:
Title
City Council and Corona Utility Authority consideration and ratification of slight changes in Enhanced Pollution Liability and Excess Cyber Liability Insurance Policies approved on July 16, 2021 for Fiscal Year 2022.
End
EXECUTIVE SUMMARY:
Each year the City purchases at least eight insurance policies/programs to help mitigate the more common risks associated with the operation of the municipal organization. On June 16, 2021, the City Council approved the purchase of the needed insurance policies for Fiscal Year (FY) 2022 (Please See Exhibit "1" Attached Hereto) ("06-16-21 Agenda Report"). As discussed in the 06-16-21 Agenda Report, due to the very difficult nature of the insurance market this year, the City's broker, Alliant, was unable to secure final, binding quotes for a few City policies, including the Enhanced Pollution Liability and Excess Cyber Liability policies. To address this, staff provided estimated not to exceed amounts for such policies, and the City Council delegated authority to staff to review the final quotes and bind the City as appropriate. However, although staff could have secured Enhanced Pollution Liability and Excess Cyber Liability insurance within the estimated amounts, the policies themselves changed due to uncontrollable market forces, and staff chose to bind the City to policies different than those described. While the Enhanced Pollution Liability policy is more expensive than previously estimated, it is a much better policy in critical ways. With respect to the Excess Cyber Liability insurance, it will now be carried through a pool and will be less expensive than previously estimated. Tonight, staff is returning to the City Council to discuss the differences and to seek the Council's ratification of the Enhanced...
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