Department of Finance City of Pasadena Insurance Renewal Presented by David Serrano, Claims Coordinator July 8, 2013

Department of Finance Rationale for Insurance Reasons for Multi-line Property & Casualty Insurance:  Protect against catastrophic loss  Protect financial interest in City’s property  Protect cash flow  Protects the City’s collateral for Bond purposes 2

Department of Finance Multi-line Property and Casualty Insurance  Crime Coverage  Liability  Property, and Boiler and Machinery  Heliport and Aircraft (liability and hull coverage)  Cyber policy  Auto Physical Damage  Paseo Garage (Property)  Special Events/Tenant User 3

Department of Finance Newly recommended coverages:  Pollution with Storage Tank liability  Medical Malpractice  Property NCRB Terrorism  Cyber Policy 4

Department of Finance FY 14 Total Premium $3,603,234  Prior year cost $1,964,500 Cost increase due to:  Increased property valuations, from $890 million to $1.3 billion (including Rose Bowl renovations)  Claims: loss experience at Power Plant  Coverage enhancements, reduced SIR’s Premiums are included in the FY 14 budget 5

Department of Finance Recommendations Recommendations:  Authorize binding of the City’s property and casualty insurance coverage effective July 1, 2013 for the coverages outlined in the staff report  Find proposed insurance coverages are exempt from competitive bidding, pursuant to City Charter Section 1002 (f)  Grant and exempt from competitive selection pursuant to City Municipal Code Section (B) contracts which the City’s best interest are served. 6