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Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 21, 2026
TOPIC: Renew Joint Powers Authority Agreement with Independent Cities Risk
Management Authority (ICRMA), Broker Agreement with Arthur J. Gallagher Risk
Management Services, LLC, and the Citywide Insurance Program and Policies
AGENDA TITLE
Agreements with Independent Cities Risk Management Authority (ICRMA) and Arthur J.
Gallagher Risk Management Services, LLC, Appropriation Adjustment of$695,820, and
Associated Insurance Premiums, Costs, Programs, and Regulatory Fees for Total
Estimated Payments of$14,837,440 (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute the Agreement between the City of Santa Ana
("City") and Arthur J. Gallagher Risk Management Services, LLC, broker of record
from September 1, 2026 to August 31, 2029, for insurance brokerage services
(Agreement Nos. A-2026-XXX and A-2026-XXX).
2. Authorize the City Manager to approve payment of insurance premiums and associated
programs to ICRMA in an amount not to exceed $10,659,925 for the protection of City
assets from July 1, 2026 through June 30, 2027 including but not limited to:
a. Excess Liability Program
b. Excess Workers' Compensation Program
c. Auto Physical Damage Program
d. Property and Equipment Program
e. Crime Program
f. Cyber Program
g. Associated Programs
3. Authorize the City Manager to approve payment of insurance premiums to Arthur J.
Gallagher, Broker, in an amount not to exceed $3,677,515 for ancillary coverages of
City's assets from July 1, 2026 to June 30, 2027 including but not limited to:
a. General Liability Buffer Program
b. Workers' Compensation Buffer Program
c. Earth Movement & Flood and Difference in Coverage (DIC) Program
d. Terrorism Insurance Program
e. Underground Storage Tank and Environmental Program
f. General Liability and Excess Liability Program
Renew Joint Powers Authority Agreement with Independent Cities Risk Management
Authority (ICRMA), Broker Agreement with Arthur J. Gallagher Risk Management
Services, LLC, and the Citywide Insurance Program and Policies
July 21, 2026
Page 2
4. Authorize the City Manager to approve the City's obligation to pay the State of
California DIR estimated assessment in an amount not to exceed $500,000.
5. Approve an Appropriation Adjustment of $585,164 in the General Liability internal
service fund (account No. 08009051-64010) using fund balance. (Requires five
affirmative votes)
6. Approve an Appropriation Adjustment of $110,656 in the Workers Compensation
internal service fund (account No. 08209054-64010) using fund balance. (Requires
five affirmative votes)
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Staff is recommending renewal with ICRMA, a joint powers authority formed in 1980 in
accordance with California Government Code Section 6500. ICRMA's purpose is to
provide: 1) excess and re-insurance to protect member cities from extensive financial
debt due to large claims, settlements, and judgments, 2) group insurance purchasing
power that can offer broader coverage at a lower cost, 3) rate stability, and 4) protect
individual member cities through pooling of losses and self-insurance. ICRMA also offers
to its members actuarial services, appraisal services, loss control assessments and
recommendations, safety trainings, claims audits, contract risk transfer consultation, and
other services and resources.
Santa Ana joined ICRMA in July 2019, after our previous risk pool dissolved. At that time,
ICRMA was comprised of 23 California cities. Currently, there are ten (10) member cities,
seven (7) of which have given notice that they intend to leave at the end of the 26-27
Fiscal Year. The ICRMA members are exploring possible structural changes that will keep
the pool viable for the members and achieve its purpose. One such option may be joining
a larger risk pool. There is also the possibility that ICRMA will dissolve in the next few
years. City of Santa Ana staff is researching options to safeguard the City's assets as well
as working with the ICRMA members for a structure in the best interest of the City. Staff
will provide an update next year with a recommendation for Council to ensure the City
continues to be insured appropriately.
For this renewal period:
• The City's Workers' Compensation premiums experienced an increase of
approximately twenty-five percent (25%).
• The City's Liability and Property premiums increased approximately nine percent
(9%).
Renew Joint Powers Authority Agreement with Independent Cities Risk Management
Authority (ICRMA), Broker Agreement with Arthur J. Gallagher Risk Management
Services, LLC, and the Citywide Insurance Program and Policies
July 21, 2026
Page 3
• The City's Property & Equipment Program premium increased approximately fifty-
nine percent (59%).
• Overall, the City's insurance coverages remain the same with the exception of an
increase in Property and Equipment Breakdown Program insurance by an
additional $150,000,000 Excess for property coverage.
The increase to the cost of insurance is primarily due to the following ongoing reasons:
1. An insurance market with continually decreasing excess carriers willing to quote
municipal government entities in California, especially those with Police
departments;
2. High dollar jury awards of litigated matters against public entities;
3. High dollar settlements of litigated and non-litigated matters;
4. Rising cost of repairs and replacement of damaged vehicles, property, and
equipment;
5. Increased number of claims filed against the City resulting from aging infrastructure
including sidewalks and streets; and
6. Increased number of claims filed against the City resulting from damage caused
by City owned trees.
WORKERS' COMPENSATION FY 2025/26 FY 2026/27
COVERAGES Premiums Premiums
Excess Pool Workers'
Compensation Program
$ 428,629 $ 549,918
Excess Workers' Compensation $ 327,547 $ 392,538
Buffer
Sub-Total $ 756,176 $ 942,456
Percent Change 25%
LIABILITY AND PROPERTY COVERAGES FY 2025/26 FY 2026/27
Premiums Premiums
Excess Pool Liability Program $ 8,202,559 $ 8,924,590
Auto Physical Damage Program $ 188,102 $ 195,771
Property & Equipment Program $ 538,928 $ 858,233
Crime Program $ 18,518 $ 15,215
Cyber Program $ 119,518 $ 111,198
Associated Programs $ 5,000 $ 5,000
Excess Liability Buffer $ 1,676,675 $ 1,793,707
Renew Joint Powers Authority Agreement with Independent Cities Risk Management
Authority (ICRMA), Broker Agreement with Arthur J. Gallagher Risk Management
Services, LLC, and the Citywide Insurance Program and Policies
July 21, 2026
Page 4
General Liability and Excess Liability
Program for Dyer 18 $ 6,216 $ 6,838
DIC Earth Movement & Flood $ 1,492,474 $ 1,460,233
Terrorism $ 14,460 $ 14,920
Underground Storage Tanks-
$ 9,239 $ 9,739
Environmental
Sub-Total $ 12,271,689 $ 13,394,984
Percent Change 9%
FY 2025/26 FY 2026127
State of California DIR $ 500,000 $ 500,000
Total $ 13,527,865 $ $14,837,440
The table below compares the most recent actuarial valuations of claims liabilities and
the City's target reserve policy with the estimated spendable fund balances for both the
Workers' Compensation and General Liability Funds. Recent actuarial valuations have
increased from previous years and indicate that liabilities exceed available fund balances.
The City's target reserve levels—set at 80% of actuarially determined liabilities, as
determined biennially—are $41.8 million for Workers' Compensation and $22.9 million for
General Liability. The increase in the actuarial liabilities is due to a number of factors: our
self-insured amounts have changed over time and the recent valuations reflect our current
levels. The valuations also reflect recent claims, judgements, and settlements. The
Workers Compensation valuation includes employee increases exceeding previous
actuarial estimates.
Workers' Compensation General Liabilit
Actuarial valuation as of June 30, 2027 $52,232,833 $28,622,806
Present Value
Target Reserve 80% of liability) $41,786,266 $22,898,245
Estimated ending fund balance as of $15,954,612 $11,987,670
June 30, 2027
Estimated Target Reserve Shortfall $ 25,831,654 $ 10,910,575
To address this target reserve shortfall, staff will continue to gradually increase overhead
charges during the annual budget process, with the goal of restoring fund balances to
target levels over time.
As one-time monies become available due to expenditure savings or revenues that
exceed estimates, staff may propose contributions to these funds to close the shortfall
between balances and reserve target levels.
Renew Joint Powers Authority Agreement with Independent Cities Risk Management
Authority (ICRMA), Broker Agreement with Arthur J. Gallagher Risk Management
Services, LLC, and the Citywide Insurance Program and Policies
July 21, 2026
Page 5
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
The recommended action includes appropriating $585,164 from the General Liability and
$110,656 from the Workers' Compensation fund balances.
If City Council approves the appropriation adjustment, the following table summarizes the
funds budgeted and available for estimated base premium and administrative costs.
Fiscal Accounting Unit Accounting Unit Account Description Amount
Year —Account Description
2026-27 08209054-64010 Workers Workers Compensation, $ 1,331,800
Compensation Insurance Payment
Liability & Liability & Property $ 12,809,820
2026-27 08009051-64010 Property Insurance, Insurance
Insurance Payment
PROPOSED APPROPRIATION ADJUSTMENTS
2026-27 08209054-64010 Workers Workers Compensation, $ 585,164
Compensation Insurance Payment
2026-27 08009051-64010 Liability & Liability & Property $ 110,656
Property Insurance, Insurance
Insurance Payment
Total: $ 14,837,440
EXHIBIT(S)
1. Agreement with Arthur J. Gallagher Insurance Brokers of California, Inc. For
Insurance Broker Services, Client Service Agreement
2. ICRMA Member Contribution Invoice - Santa Ana
3. Arthur J. Gallagher Ancillary Insurance Coverage Invoices
Submitted By: Lori Schnaider, Executive Director of Human Resources
Approved By: Alvaro Nunez, City Manager
AGREEMENT FOR CONSULTANT SERVICES BETWEEN
CITY OF SANTA ANA AND ARTUR J. GALLAGHER RISK
MANAGEMENT SERVICES LLC.
INSURANCE BROKER SERVICES
THIS AGREEMENT is made and effective as of September 1, 2026 between the City of
Santa Ana, a municipal corporation (hereinafter referred to as"City"), and Arthur J. Gallagher Risk
Management Services LLC, a Delaware limited liability company (hereinafter referred to as
"Consultant"). City and Consultant are also referred to collectively as "the Parties" or singularly
as a "Party." In consideration of the mutual covenants and conditions set forth herein, the Parties
agree as follows:
1. TERM
This Agreement shall commence on September 1, 2026, and shall remain and continue
in effect until tasks described herein are completed, but in no event later than August 31, 2029
unless sooner terminated pursuant to the provisions of this Agreement. This Agreement can be
canceled by either Party with thirty (30) days written notice to the other Party.
2. SERVICES
Consultant shall perform insurance brokerage services for the placement of the City of
Santa Ana's insurance programs as outlined in Exhibit A.
3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of his or her ability,
experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum,
generally accepted standards and practices utilized by persons engaged in providing similar
services as are required of Consultant hereunder in meeting its obligations under this Agreement.
4. PAYMENT
a. The City agrees to pay Consultant for insurance premiums invoiced for
insurance placements.
b. Consultant will submit invoices for insurance premiums. Invoices shall be
submitted once insurance coverage is bound. Payment shall be made within thirty (30) days of
receipt of each invoice as to all non-disputed fees. If the City disputes any of Consultant's fees, it
shall give written notice to Consultant within thirty(30)days of receipt of an invoice of any disputed
fees set forth on the invoice.
C. City shall pay Consultant a commission for the Services and lines of
coverage set forth on Exhibit A. In addition, Consultant may also receive interest or other
investment income on funds temporarily held by it, such as premiums or return premiums. Other
parties, such as excess and surplus lines brokers, wholesalers, reinsurance intermediaries,
underwriting managers, captive managers and similar parties, some of which may be owned in
whole or in part by Consultant's corporate parent, may earn and retain usual and customary
commissions and fees in the course of providing insurance products to clients. Any compensation
that Consultant receives from insurance carriers may differ depending on the market and the
insurance product placed on Client's behalf. Consultant may receive additional compensation
from insurance carriers in the form of contingent and supplemental commissions, bonus
commissions, overrides or expense reimbursements. Any such fees or commission will not
constitute compensation to Consultant per this Section 4.
5. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of all local, State and Federal ordinances, laws
and regulations which in any manner affect those employed by it or in any way affect the
performance of its service pursuant to this Agreement. The Consultant shall at all times observe
and comply with all such ordinances, laws and regulations. The City, and its officers and
employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply
with this section.
6. RELEASE OF INFORMATION
a. All information gained by Consultant in performance of this Agreement shall
be considered confidential and shall not be released by Consultant without City's prior written
authorization. Consultant, its officers, employees, agents or subcontractors, shall not without
written authorization from Risk Management Department or unless requested by the City
Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response
to interrogatories or other information concerning the work performed under this Agreement or
relating to any project or property located within the City. Response to a subpoena or court order
shall not be considered "voluntary" provided Consultant gives City notice of such court order or
subpoena.
b. Consultant shall promptly notify City should Consultant, its officers,
employees, agents or subcontractors be served with any summons, complaint, subpoena, notice
of deposition, request for documents, interrogatories, request for admissions or other discovery
request, court order or subpoena from any party regarding this Agreement and the work
performed there under or with respect to any project or property located within the City. City
retains the right, but has no obligation, to represent Consultant and/or be present at any
deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to
provide City with the opportunity to review any response to discovery requests provided by
Consultant. However, City's right to review any such response does not imply or mean the right
by City to control, direct, or rewrite said response.
7. NOTICES
Any notices which either party may desire to give to the other party under this Agreement
must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable
document delivery service, such as but not limited to, Federal Express, that provides a receipt
showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage
prepaid, return receipt requested, addressed to the address of the party as set forth below or at
any other address as that party may later designate by Notice. Notice shall be effective upon
delivery to the addresses specified below or on the third business day following deposit with the
document delivery service or United States Mail as provided above.
Mailing Address: City of Santa Ana
20 Civic Center Plaza, M-28
Risk Management, 4th Floor
Santa Ana, CA 92701
AND
City Clerk
City of Santa Ana
20 Civic Center Plaza, M-30
Santa Ana, CA 92702
To Consultant: Arthur J. Gallagher Risk Management Services, LLC
Susan J. Blankenburg
595 Market Street
San Francisco, CA 94105
415-536-8417
Susan Blankenburq_(a)ajq com
8. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof,
nor any monies due hereunder, without prior written consent of the City. Upon termination of this
Agreement, Consultant's sole compensation shall be payment for actual services performed up
to, and including, the date of termination or as may be otherwise agreed to in writing between the
City Council and the Consultant.
9. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect,
all licenses required of it by law for the performance of the services described in this Agreement.
10. INSURANCE
Consultant will maintain insurance throughout the duration of this Agreement as specified in the
attached Exhibit B.
11. GOVERNING LAW
The City and Consultant understand and agree that the laws of the State of California shall
govern the rights, obligations, duties and liabilities of the parties to this Agreement and also govern
the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in
the municipal, superior, or federal district court with geographic jurisdiction over the City of Santa
Ana. In the event such litigation is filed by one party against the other to enforce its rights under
this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to
reasonable attorney fees and litigation expenses for the relief granted.
12. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the
obligations of the parties described in this Agreement. All prior or contemporaneous agreements,
understandings, representations and statements, oral or written, are merged into this Agreement
and shall be of no further force or effect. Each party is entering into this Agreement based solely
upon the representations set forth herein and upon each party's own independent investigation of
any and all facts such party deems material.
13. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and
represents that he or she has the authority to execute this Agreement on behalf of the Consultant
and has the authority to bind Consultant to the performance of its obligations hereunder. The Risk
Management Department is authorized to enter into an amendment on behalf of the City to make
the following non-substantive modifications to the agreement: (a) name changes; (b) extension
of time; (c) non-monetary changes in scope of work; (d) agreement termination.
14. LIMITATION OF LIABILITY
Consultant's liability to City arising from any acts or omissions of Consultant shall not exceed
$20 million in the aggregate. Without limiting the foregoing, each Party shall only be liable for actual
damages incurred by the other Party, and shall not be liable for any indirect, special, exemplary,
consequential, reliance or punitive damages.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the
day and year first above written.
CITY OF SANTA ANA CONSULTANT
Arthur J. Gallagher Risk Management Services, LLC
Michael Galla er (Jul 6, 2026 14:45:26 PDT)
By:
Alvaro Nunez Michael Gallagher
City Manager
Area President
PM Initials:
ATTEST: Date:
By:
Jennifer L. Hall
City Clerk
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: S-0--Ly1Q-
Laura A. Rossini
Chief Assistant City Attorney
EXHIBIT A
CLIENT SERVICE AGREEMENT
The following outlines Services provided by Gallagher over the term of this Agreement:
• Use its best efforts to secure the following lines of insurance coverage on Client's behalf:
c List of Insurance Placements:
■ Underground Storage Tanks
■ Excess Liability (Buffer)
■ Excess Workers' Compensation (Buffer)
■ Terrorism
■ Difference in Conditions (Earth Movement & Flood)
• Work with Client to prepare comprehensive underwriting data and criteria for insurance carrier
negotiations.
• Formally present coverage submissions to agreed upon insurance carrier(s) and negotiate terms
on behalf of Client.
• Summarize the results of executing the marketing strategy developed with Client and
communicate program recommendations.
• Provide consultation to Client on exposures, existing coverage, and the desirability and/or
feasibility of potential program changes, retention and data analysis as recommended by
Gallagher.
• Request change endorsements, when requested by the Client or when otherwise necessary,
ensuring accuracy and delivery in a timely manner.
• Administration of insurance program (only if applicable), including policy review and issuance,
invoicing, coordination and/ or issuance of required documentation, i.e., certificates of insurance,
and other program administration, as required by the Client.
• Review accounting and billing data; audit information from insurance carriers to ensure accuracy.
• Other Services:
c Risk Control Services
c Loss control consultation and claim advocacy
c Certificate Tracking
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of the agreement, the following insurance coverages:
MINIMUM SCOPE AND LIMIT OF INSURANCE
Consultant shall maintain limits of insurance coverage in the following minimum amounts and shall be at
least as broad as:
• Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on
an "occurrence" basis, including products and completed operations, property damage, bodily injury
and personal &advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000
aggregate.
• Automobile Liability (AL): Insurance Services Office Form CA 00 01 covering Code 1 (any auto),
with combined single limits of $1,000,000. In the event Consultant does not maintain commercial
automobile liability insurance, City will accept evidence of personal automobile insurance, provided
that such policy is endorsed for business use and provides coverage with a minimum limit of
$1,000,000. Required policy limits can be met with primary and umbrella/excess insurance policies.
• Workers' Compensation (WC): as required by the State of California, with statutory limits, and
Employer's Liability Insurance with limit of no less than $1,000,000 per accident, per employee, per
policy for bodily injury or disease. This requirement can be waived if Consultant has no employees.
Consultant attests that its workers' compensation coverage extends to all persons who will be
working with the City under the agreed scope of services.
• Professional Liability (PL): with limits no less than $1,000,000 per occurrence or claim, and
$2,000,000 aggregate.
If Consultant maintains broader coverage and/or higher limits than the minimums shown above, City
requires and shall be entitled to the broader coverage and/or the higher limits maintained by
Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance
and coverage shall be available to City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
1. CGL and AL policies: City of Santa Ana, its City Council, its officers, officials, employees,
agents, and volunteers are to be covered as additional insureds with respect to liability arising
out of work or operations performed by or on behalf of the Consultant including materials,
parts, equipment, and personnel furnished in connection with such work or operations.
2. CGL, AL, and WC policies: Insurance company(ies) agrees to waive all rights of subrogation
against City, its City Council, its officers, officials, employees, agents, and volunteers for losses
paid under the terms of any policy which arise from work performed by Consultant for City.
3. All required insurance policies: For any claims related to this contract, Consultant's insurance
coverage shall be primary and any insurance maintained by City, its City Council, its officers,
officials, employees, agents, or volunteers shall not contribute with it.
4. All required insurance policies: A severability of interest provision must apply for all the
additional insureds, ensuring that Consultant's insurance shall apply separately to each insured
against whom a claim is made or suit is brought, except with respect to the insurer's limits of
liability.
5. Each insurance policy required herein shall provide that coverage shall not be canceled,
suspended, voided, reduced in coverage or in limits, non-renewed by the carrier, or materially
changed except after thirty (30) days prior written notice has been given to City. Ten (10) days
prior written notice shall be provided to City for policy cancellation or non-renewal due to non-
payment.
6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana,
Attention: Julie Hoang, Human Resources Agency, 20 Civic Center Plaza M-24, P.O. Box
1988, Santa Ana, CA 92701. The name and location of the project or event should be included
in the Description of Operations section of each certificate.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. City may require Consultant to
purchase coverage with a lower retention or provide proof of ability to pay losses and related
investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state of California with a
current A.M. Best rating of no less than ANII, unless otherwise acceptable to City.
Verification of Coverage
Consultant shall furnish City with original Certificates of Insurance including all required amendatory
endorsements (or copies of the applicable policy language effecting coverage required by this clause)
and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy
endorsements to Entity before work begins. However, failure to obtain the required documents prior to
the work beginning shall not waive the Consultant's obligation to provide them. City reserves the right
to require complete, certified copies of all required insurance policies, including endorsements
required by these specifications, at any time.
Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:
1. The retroactive date must be shown and must be before the date of the contract or the beginning of
work.
2. Insurance must be maintained and evidence of insurance must be provided for at least three (3)
years after completion of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a retroactive date prior to the contract effective date, Consultant must purchase "extended
reporting" coverage for a minimum of three (3) years after completion of work.
Subcontractors
Consultant shall require and verify that all sub-contractors maintain insurance meeting all the
requirements stated herein, and Consultant shall ensure that City is an additional insured on
insurance required from sub-contractors.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk,
prior experience, insurer, coverage, or other special circumstances.
INVOICE
Y a INDEPENDENT CITIES
RISK MANAGEMENT AUTHORITY
rA Joint Powers Authority
Bill To: Customer#: Invoice#:
CITY OF SANTA ANA CUS 1047 4466
20 Civic Center Plaza Invoice Date: Due Date:
4th Floor(Risk Management) 07/01/2026 07/31/2026
Santa Ana,CA 92701 Total Due: $ 10,659,925.00
Description Amount
LiabilitV Program 2026/2027 8,924,590.00
Workers'Compensation Program 2026/2027 549,918.00
Property&Equipment Breakdown Program 2026/2027 743,587.00
Property&Equipment Breakdown Program $150M Excess 2026/2027 114,646.00
Auto Physical Damage APD Program 2026/2027 195,771.00
Crime Program 2026/2027 15,215.00
C ber Program 2026/2027 111,198.00
2026/2027 Risk Management Fund Contribution-OPTIONAL 5,000.00
TOTAL AMOUNT DUE $10,659,925.00
Payment Instructions
Wire (ACH)pgMents:
Bank Name: California Bank&Trust
Bank Address: 520 Capitol Mall, Suite 380, Sacramento, CA 95814
Routing Number: 121002042
Account Number: 1030068561
For credit to: Independent Cities Risk Management Authority
Checks: * ICRMA Finance Department mailing address has changed
Please mail payments to: ICRMA
c/o Eide Bailly LLP
Attn: Jessica Andersen
901 Via Piemonte, Ste. 450
Ontario, CA 91764
In accordance with Article V Section D.1-3 of the ICRMA Bylaws,unless other arrangements for payment have been approved by the Governing Board,
Members with delinquent amounts due shall be assessed a penalty which shall be one percent of the unpaid amount due and payable to the Authority 30
days after the initial invoice due date.A penalty of another one percent shall accrue after an additional 45 days.
Interest shall accrue on all delinquent amounts due and payable to the Authority at the applicable rate of 10%per annum from the due date of the billing
until the date finally posted by the designated financial institution.
A member may appeal any surcharge assessed in accordance with Article X11 of the ICRMA Bylaws.
17SO Creekside Oaks Drive,Suite 200,Sacramento,CA 9S833 Phone:916-244-1188 Questions:ICRMA-Payments@eidebailly.com
Arthur J. Gallagher Risk Management Services, LLC BATM11
San Francisco,CA 94111
Phone: (415)546-9300 Invoice # 6195417 1 of4
ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
City of Santa Ana
1
20 Civic Center Plaza, M-24i
Santa Ana,CA 92701 Gallagher
Insurance I Risk Management I Consulting
Excess Workers Comp PolicyNumber: ABL1000008-07 Company: Response Indemnity Company of California Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44168682 7/1/2026 7/1/2026 RENB WC Buffer-$500K xs$1.5M SIR-IDC Issued $392,538.00
Terrorism Standalone PolicyNumber: D27DO7260801 Company: Beazley Excess and Surplus Insurance,Inc. Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44182259 7/1/2026 7/1/2026 RENB $10M Prop/Liability Combined Terrorism $14,460.00
Difference in Conditions PolicyNumber: ESP30001763406 Company: Endurance American Specialty Ins Co Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44167940 7/1/2026 7/1/2026 RENB Primary EM/EMSL/Flood-$5M part of$1 OM $331,615.00
44167946 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $9,948.45
44167949 7/1/2026 7/1/2026 STFX Stamping Fees $596.91
Difference in Conditions PolicyNumber: INP-00633-26 Company: Palms Insurance Company,Limited Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44168182 7/1/2026 7/1/2026 RENB Primary EM/EMSL/Flood-$2.5M part of$10M $165,807.00
Please return this portion with your payment. Include your invoice number on your remittance to expedite processing.
BATM 11
City of Santa Ana Invoice # 6195417
20 Civic Center Plaza, M-24
Santa Ana,CA 92701 ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
AMOUNT PAID
Please send your remittance to:
Arthur J. Gallagher Risk Management Services, LLC
PO Box 39735
Chicago,IL 60694-9700
Gallagher
PAY ONLINE AT: www.ajg.com/ezpay Insurance I Risk Management I Consulting
Arthur J.Gallagher Risk Management Services, LLC BATM11
San Francisco,CA 94111
Phone: (415)546-9300 Invoice # 6195417 2 of 4
ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
City of Santa Ana
1
20 Civic Center Plaza, M-24i
Santa Ana,CA 92701 Gallagher
Insurance I Risk Management I Consulting
44168187 7/1/2026 7/1/2026 CFEE Carrier Policy Fee $1,500.00
44168192 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $5,019.21
44168196 7/1/2026 7/1/2026 STFX Stamping Fees $301.15
Difference in Conditions PolicyNumber: LHD958795 Company: Landmark American Insurance Company Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44168300 7/1/2026 7/1/2026 RENB Primary EM/EMSL/Flood-$2.5M part of$10M $165,807.00
44168337 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $4,974.21
44168342 7/1/2026 7/1/2026 STFX Stamping Fees $298.45
Excess Difference in Conditi PolicyNumber: MCQ0101601 Company: Mt Hawley Insurance Company Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44168267 7/1/2026 7/1/2026 RENB XS EM/EMSL/FL-$5M xs$10M $205,000.00
44168272 7/1/2026 7/1/2026 CFEE Catastrophe Analysis Fee $900.00
44168274 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $6,177.00
44168277 7/1/2026 7/1/2026 STFX Stamping Fees $370.62
Excess Liability PolicyNumber: N1-A3-RL-0000163-01 Company: Princeton Excess&Surplus Lines Ins Co Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44167759 7/1/2026 7/1/2026 RENB 26-27 Excess Liability Buffer-$3M $1,738,425.00
Please return this portion with your payment. Include your invoice number on your remittance to expedite processing.
BATM 11
City of Santa Ana Invoice # 6195417
20 Civic Center Plaza, M-24
Santa Ana,CA 92701 ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
AMOUNT PAID
Please send your remittance to:
Arthur J. Gallagher Risk Management Services, LLC
PO Box 39735
Chicago,IL 60694-9700
Gallagher
PAY ONLINE AT: www.ajg.com/ezpay Insurance I Risk Management I Consulting
Arthur J.Gallagher Risk Management Services, LLC BATM11
San Francisco,CA 94111
Phone: (415)546-9300 Invoice # 6195417 3 of 4
ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
City of Santa Ana
1
20 Civic Center Plaza, M-24i
Santa Ana,CA 92701 Gallagher
Insurance I Risk Management I Consulting
44167793 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $52,152.75
44167798 7/1/2026 7/1/2026 STFX Stamping Fees $3,129.17
Excess Difference in Conditi PolicyNumber: PE708734 Company: Palomar Excess and Surplus Insurance Compan Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44168428 7/1/2026 7/1/2026 RENB XS EM/EMSL-$10M xs$15M $303,500.00
44168474 7/1/2026 7/1/2026 CFEE Catastrophe Analysis Fee $800.00
44168479 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $9,129.00
44168568 7/1/2026 7/1/2026 STFX Stamping Fees $547.74
Excess Difference in Conditi PolicyNumber: TSAHDC0003285-01 Company: MS Transverse Specialty Insurance Company Effective: 7/1/2026 to 7/1/2027
Item# Trans Eff Date Due Date Trans Description Amount
44181917 7/1/2026 7/1/2026 RENB XS EM/EMSL-$15M xs$25M $239,500.00
44181922 7/1/2026 7/1/2026 CFEE Catastrophe Analysis Fee $800.00
44181923 7/1/2026 7/1/2026 SLTX Surplus Lines Taxes $7,209.00
44181932 7/1/2026 7/1/2026 STFX Stamping Fees $432.54
Please return this portion with your payment. Include your invoice number on your remittance to expedite processing.
BATM 11
City of Santa Ana Invoice # 6195417
20 Civic Center Plaza, M-24
Santa Ana,CA 92701 ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
AMOUNT PAID
Please send your remittance to:
Arthur J. Gallagher Risk Management Services, LLC
PO Box 39735
Chicago,IL 60694-9700
Gallagher
PAY ONLINE AT: www.ajg.com/ezpay Insurance I Risk Management I Consulting
Arthur J.Gallagher Risk Management Services, LLC BATM11
San Francisco,CA 94111
Phone: (415)546-9300 Invoice # 6195417 4 of 4
ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
City of Santa Ana
20 Civic Center Plaza, M-24 tui
Santa Ana,CA 92701 Gallagher
Insurance I Risk Management I Consulting
Total Invoice Balance: $3,660,938.20
Please return this portion with your payment. Include your invoice number on your remittance to expedite processing.
BATM 11
City of Santa Ana Invoice # 6195417
20 Civic Center Plaza, M-24
Santa Ana,CA 92701 ACCOUNT NUMBER DATE
SANTAANA-1 7/6/2026
BALANCE DUE ON AMOUNT DUE
7/1/2026 $3,660,938.20
AMOUNT PAID
Please send your remittance to:
Arthur J. Gallagher Risk Management Services, LLC
PO Box 39735
Chicago,IL 60694-9700
Gallagher
PAY ONLINE AT: www.ajg.com/ezpay Insurance I Risk Management I Consulting
C H U B Bn TankSafe@ Storage Tank
Chubb INA Excess and Surplus Insurance Services,Inc. Liability Insurance Policy
436 Walnut Street
Philadelphia,PA 19106
PA License#24194 (claims-made coverage)
Coverage Quotation
CHUBB ENVIRONMENTAL
DATE: 06/16/2026
TO: Tay Gonzalez
Arthur J Gallagher Risk Management Services Llc
50 California St Ste 12
San Francisco, California 94111
Tay_Gonzalez@ajg.com
QUOTATION #1
INSURER: Illinois Union Insurance Company
A.M. BEST RATING: A++ XV
FIRST NAMED INSURED: Santa Ana, City of
ADDRESS: 20 Civic Center Plaza
Santa Ana, California 92701
RENEWAL OF: G72534153 005
HOME STATE: California
FOR POLICIES EFFECTIVE JULY21,2011 AND SUBSEQUENT, WE REQUIRE THE PRODUCER TO PROVIDE THE"HOME
STATE"AS DEFINED IN THE NONADMITTED AND REINSURANCE REFORMACT(NRRA) UPON THE BINDING OF THIS
PLACEMENT.
INCEPTION DATE: 07/02/2026
EXPIRATION DATE: 07/02/2027
RETROACTIVE DATE: AS PER PF-31164 SCHEDULE OF COVERED STORAGE TANKS
LIMITS OF LIABILITY DEDUCTIBLE TERM PREMIUM TRIA
AMOUNT (YEARS) PREMIUM*
$1,000,000 Per Storage Tank Incident Limit of Liability $25,000 Per Storage 1 $9,439 $472
(Claims and Remediation Costs) Tank Incident
$2,000,000 Aggregate Limit of Limit of Liability (Claims
and Remediation Costs)for all Storage Tank Incidents
$1,000,000 Aggregate Limit of Limit of Liability for all
Legal Defense Expenses for all Storage Tank Incidents
$3,000,000 Total Policy Aggregate Limit of Liability for
all Storage Tank Incidents
The premium in this quote includes commission in an amount equal to 15.00% of such premium.
COMMISSION: 15.00%
Page 1 of 4
*THE OPTIONAL TERRORISM RISK INSURANCE ACT(TRIA)PREMIUM AS QUOTED ABOVE IS THE ADDITIONAL PREMIUM THAT WILL BE
INCLUDED IN THE TOTAL PREMIUM FOR THIS POLICY IF TRIA COVERAGE IS ELECTED. THIS CHARGE IS FOR TRIA COVERAGE PER THE
ATTACHED DISCLOSURE LETTER. WE MUST RECEIVE A SIGNED COPY OF THE ATTACHED DISCLOSURE LETTER INDICATING THAT TRIA
COVERAGE HAS BEEN ACCEPTED OR DECLINED.
TERMS & CONDITIONS
Covered Storage Tanks: As Per PF-31164 Schedule of Covered Storage Tanks
Policy Form: PF-31181 (10/10)Tanksafe Policy Form (US) 10.2010
As per policy form, known conditions under this policy are not covered.
Additional Terms and 1. Premium is 100% Minimum-Earned as of inception of the Policy
Conditions: 2. PF-34075 (07/11) Closure, Removal Or Replacement Amendatory
3. PF-47058 (10/15) Exposure-Specific Deductible (Schedule Storage Tanks)
Endorsement
4. PF-54022 (02/20) Extended Reporting Period Scope Confirmation (First-Party
Discovery) Endorsement
5. PF-31172 (09/10) Financial Responsibility Condition
6. PF-31174 (09/10) Loading And Unloading Coverage (Time Element)
7. PF-57403 (10/22) Other Insurance Amendatory Endorsement
8. PF-31164 (09/10) Schedule of Covered Storage Tanks
9. PF-31185 (09/10) UST Specific Sublimits of Liability
10. SL-34255b (04/23) Service Of Suit Endorsement
11. ALL-21101 (11/06) Trade Or Economic Sanctions Endorsement
12. LD-5S231 (10/24) Signatures
13. SL-17888 (01/20) California Surplus Lines Notification
14. ALL-20887a (03/16) Chubb Producer Compensation Practices & Policies
15. ILP 001 01 04 U. S. Treasury Department's Office of Foreign Assets Control
("OFAC")Advisory Notice to Policyholders
TRIA Forms: IF THE INSURED ELECTS TO PURCHASE TERRORISM COVERAGE PER THEATTACHED DISCLOSURE LETTER
FOR THE ADDITIONAL PREMIUM NOTED ABOVE, THE FOLLOWING ENDORSEMENTS WILL APPLY.
1.PF-23728b (02/20)Terrorism Risk Insurance Act Endorsement
2.TRIA11e (08/20) Disclosure Pursuant To Terrorism Risk Insurance Act
IF THE INSURED ELECTS TO DECLINE TERRORISM COVERAGE PER THE ATTACHED DISCLOSURE LETTER,
THE FOLLOWING ENDORSEMENTS WILL APPLY.
1.TRIA24a (08/20) Policyholder Disclosure Notice of Terrorism Insurance Coverage
Value-Added Services Chubb Environmental is committed to developing long-term relationships with our valued
insureds. It is our philosophy to partner with our insureds and become an extension of their risk
management team, in an effort to enhance the environmental risk management culture within
their organization. Working with our insured's risk management team, Chubb Environmental
will utilize Environmental Incident Alert, in addition to Chubb Risk Engineering, a Chubb loss
control subsidiary, to customize and deliver quality environmental engineering risk control
services focused on helping them minimize potential loss exposures. Environmental Incident
Alert is a complimentary program developed to assist Chubb Environmental clients find and
dispatch qualified incident response contractors, monitor cleanup costs (in real time) and
mitigate potential liabilities associated with environmental releases.
ALL TERMS, CONDITIONS, AND PRICING ARE SUBJECT TO RECEIPT, REVIEW, AND APPROVAL OF THE
FOLLOWING, PRIOR TO BINDING:
Page 2 of 4
1 Completed, signed Policyholder Disclosure Notice of Terrorism Insurance Coverage form, prior to binding -only required if
declininq TRIA coverage attached
2 The Named insured's "Home State" as defined in the Nonadmitted and Reinsurance Reform Act(NRRA)
Surplus Lines Information Surplus Lines Insurer: ILLINOIS UNION INSURANCE COMPANY
Coverage will be provided on a surplus lines basis. Collection and filing of all taxes and fees is the responsibility of
the producing surplus lines broker, as is inclusion of state-mandated surplus lines disclaimer language on or in the
policy. Please forward a copy of your surplus lines license for our records.
Please advise your client that Chubb INA Excess and Surplus Insurance Services,Inc.(CESIS)is offering this
quote as representative of its affiliated surplus lines insurance company,Illinois Union Insurance Company.
CESIS is not acting on behalf of your client and does not seek placements in other surplus lines markets.
Policy Form PF-31181 (10/10)Tanksafe Policy Form (US) 10.2010
This quotation contemplates the use of Chubb forms, issued on the paper indicated above in this document. All
terms and conditions are per those forms and endorsements unless otherwise noted herein.
OFAC OFAC NOTICE: The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on
Presidential declarations of"national emergency." OFAC has identified and listed numerous Foreign agents, Front
organizations, Terrorists, Terrorist organizations, and Narcotics traffickers as "Specially Designated Nationals and
Blocked Persons."This list can be located on the United States Treasury's web site—http://www.treas.aov/ofac. In
accordance with OFAC regulations,if it is determined that you or any other proposed named insured has violated U.S.
sanctions law or is a Specially Designated National or Blocked Person,as identified by OFAC,we reserve the right to
withdraw this quote at any time prior to binding.
TRIA TRIA NOTICE:Presently,the Terrorism Risk Insurance Act("TRIA")expires on 12131/27.The premium quoted
above includes a separate premium charge for terrorism coverage over the entire Policy Period. In the
unlikely event that you elect to receive TRIA coverage and it is not renewed before 12/31/27,or TRIA otherwise
expires at some point during the Policy Period,we will refund the unearned portion of our TRIA premium to
you on a pro-rata basis. In the event that new legislation is enacted requiring the Insurer to offer coverage
for terrorism that is materially different than the coverage requirements included in the current version of
TRIA that expires on 12/31127,the Chubb Companies reserve the right to re-price and tailor TRIA coverage to
conform with the statutory requirements and risks presented in the new legislation.
Disclaimer Please read this quotation carefully,as the limits,coverage and other terms and conditions may vary
significantly from those requested in your submission and/or from the expiring policy. Terms and
conditions that are not specifically mentioned in this quotation are not included. The terms and conditions
of this quotation supersede the submitted insurance specifications and all prior proposals and binders.
Actual coverage will be provided by and in accordance with the policy as issued.
The insurer is not bound by any statements made in the submission purporting to bind the insurer unless
such statement is reflected in the policy or in an agreement signed by someone authorized to bind the
insurer.
This quotation has been constructed on reliance of the data provided in the submission. A material change
or misrepresentation of that data voids this quotation.
Premium Payment IN THE EVENT COVERAGE IS BOUND, THE PREMIUM INDICATED ABOVE MUST BE REMITTED TO US
WITHIN THIRTY(30)DAYS FROM THE DATE OF THE INVOICE AS OUTLINED ON YOUR AGENCY'S MONTHLY
STATEMENT BILL.
eDelivery Acceptance of this quote indicates the insured's consent to accept delivery of the policy by electronic means,
including delivery of the policy as an e-mail attachment.We will deliver the policy to the email address shown
above. If the insured would like to withdraw their consent to electronic delivery and exclusively receive a
printed paper copy of the policy,please contact the undersigned.
Quotation Expiration THIS BINDABLE QUOTATION SHALL EXPIRE AT 5:00 pm E.S.T. on: 07/02/2026
Thank you for the opportunity to quote on this risk. For underwriting questions or concerns, please contact Patrick Cassidy at
2676054135 (phone) or pat.cassidy@chubb.com (email).
Chubb Environmental
Gerald J. Rojewski
Chubb INA Excess and Surplus Insurance Services, Inc.
Page 3 of 4
PA Surplus Lines Broker License#467816
Page 4 of 4
MEMORANDUM
To: Alex Trinidad, Executive Director of FMS Date: 7/1/2026
From: Lori Schnaider, Executive Director of HR
Subject: Invoice Clarification — Insurance for Underground Storage Tanks
The invoice from CHUBB Environmental / Arthur J. Gallagher Risk Management
Services for the insurance premium to provide insurance to cover the underground
storage tanks does not include the following taxes and fees. These will need to be paid
with the invoice for the premium.
• Surplus lines tax of $283.17
• Stamping fee of $16.99
• TRIA premium of $472
cc: Accounts Payable