Report Prepared by: Maggie Lemos, Risk Analyst
Title
SUBJECT: Approval of Property, Boiler and Machinery Insurance Renewal Through Alliant Property Insurance Program in the Amount of $1,308,544.63 for Program Year 2026/2027
REPORT IN BRIEF
Considers approving the renewal of the City's policy through Alliant Property Insurance Programs (APIP) at -2.83% premium decrease, amounting to $1,308,544.63 for program year 2026/2027.
RECOMMENDATION
City Council - Adopt a motion:
A. Ratifying the renewal of the property and boiler and machinery insurance through the Alliant Property Insurance Programs (APIP), administered by Alliant Insurance Services for the period of July 1, 2026, through June 30, 2027; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Refer to staff for further study; or,
3. Take no action.
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
The City of Merced joined the Public Entity Property Insurance Program (PEPIP), a group purchasing program, as authorized by the City Council in 1993. Following its merger with two other Alliant insurance purchasing pools, PEPIP was renamed to Alliant Property Insurance Programs (APIP). APIP now insures approximately 10,000 members with a total insurance value of $500 billion. Participation in APIP allows the City to benefit from the purchasing power of a large pool and access competitive pricing and broader coverage terms.
After several years of challenging market conditions, the property market has continued to soften in 2026, creating opportunities for improved pricing and coverage terms. As part of the renewal process, Alliant marketed the City's coverage to the broader insurance market and used the resulting market feedback as leverage in negotiations with APIP.
Despite improved market conditio...
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