Lafayette Tackles Insurance Crisis, Backs Five State Bills as Fair Plan Policies Surge 91%

Lafayette's City Council turned its attention to the state's worsening homeowner insurance crisis and positioned itself behind a battery of state legislation, while also celebrating the community institutions — a 20-year-old senior transit program, a thriving library, and a cooperative garden — that define daily life in this East Bay city.

• Fair Plan policies in Lafayette's 94549 ZIP code jumped 91% in a single year, with roughly 1,773 policies now enforced; state insurance analyst briefed Council on three reform bills

• Council unanimously backs five state bills on e-bike registration, fire-zone mapping, e-bike speed limits, portable solar access, and penalties for insurers who deny coverage to fire-hardened homes

• Lamorinda Spirit Van celebrates 20 years, secures federal grant for operating assistance and two replacement vehicles expected by 2027

• $46.7M in federal funding advanced by Congressman DeSaulnier, including $2.8M for the Lafayette aqueduct pathway and $2M for Sunflower Hill supportive housing

• Lafayette Library hits 221,000 annual visitors, leads Contra Costa County in per capita ebook use; Council proclaims National Library Week

Insurance Crisis Hits Home: 91% Fair Plan Surge

Why it matters: Lafayette homeowners are losing access to private insurance at an accelerating rate, and three bills pending in Sacramento aim to overhaul how the state handles wildfire-era coverage, claims, and smoke damage.

Where things stand: Sharon Smith, Outreach Analyst for the California Department of Insurance, told the Council that Lafayette's 94549 ZIP code saw a 91% year-over-year increase in Fair Plan policies — roughly 1,773 enforced — following a 200% increase the year before. The numbers reflect a statewide pattern driven by private insurers pulling back from fire-prone communities.

Smith outlined three bills the department is sponsoring in response to the 2025 Los Angeles fires:

• AB 1680 (Make It FAIR Act) would mandate Fair Plan compliance with the Insurance Commissioner's recommendations, expand Fair Plan to comprehensive homeowner coverage — eliminating the need for separate liability and water damage policies — and create a clearinghouse to auction Fair Plan policies back to private insurers. "The Fair Plan itself is auctioning off these policies to the private market. This isn't a taxpayer plan," said Smith.

• SB 876 (Disaster Recovery Reform Act) would require insurers to file disaster recovery plans, double penalties for unfair claims practices, mandate direct restitution to policyholders, expand living expense coverage to 100% of policy limits (from 60%), and require replacement cost options on new and renewal policies — targeting the widespread underinsurance problem. Smith described an Altadena loophole where insurers refuse to cover building code upgrades because a home's fire severity zone designation changed after a loss: "Insurance companies aren't covering the building code upgrades for a high severity zone because they're saying at the time of the loss it was in a lower severity zone."

• SB 1795 (Smoke Damage Recovery Act) would establish science-based health standards for smoke damage inspection and create uniform claims handling. Smith recounted cases where insurers told homeowners that without visible smoke damage, "they weren't going to cover it — even if their home was testing positive for arsenic, lead, whatever it might be."

The other side: Councilmember Susan Candell questioned the apparent tension between expanding Fair Plan and the stated goal of moving policyholders off it:

"Expanding the Fair Plan to be outside of the fire damage — it just seems like that's the opposite direction."

Councilmember John McCormick cautioned against over-regulating the industry:

"It's really tempting to kind of bang on the insurance companies. But we also need to hold them into account and get more of them here."

Smith acknowledged the tension, noting the department's sustainable insurance strategy is designed to entice private carriers back into the California market.

What's next: All three bills are pending in the state Legislature. The Council took no formal action but signaled clear interest — Candell noted Lafayette's Legislation Committee is already tracking related insurance legislation.

Council Goes Five for Five on State Bills

Why it matters: In a single agenda item, Lafayette took official positions on five pieces of state legislation spanning e-bike safety, wildfire preparedness, renter energy access, and insurance reform — all issues with direct local impact.

Councilmember Susan Candell, who chairs the Legislation Committee with the absent Councilmember Jim Cervantes, walked the Council through each bill. All five passed 3-0 (For: Anduri, Candell, McCormick; Absent: Cervantes, Wotherspoon).

E-Bike Registration and Speed

AB 1942 (E-bike Accountability Act) requires Class 2 and 3 e-bikes to register with the DMV and display a license plate. The committee initially placed the bill on watch but moved to support after receiving an assessment from Emergency Services Coordinator Andy Comley.

"This report helped convince us to simply endorse AB 1942 cleanly, as it'll be very helpful for our police if these faster bikes had license plates," Candell said.

Councilmember John McCormick raised funding concerns; Candell confirmed the program would be self-funding through registration fees.

AB 1557 (Vehicles: electric bicycles) reduces e-bike power-assist maximum speed from 20 mph to 16 mph for Class 1 and 2 bikes and prohibits manufacturer power upgrades, with significant fines for violations.

Fire Zone Mapping

AB 2517 (Fire safety: fire hazard severity zones) requires the State Fire Marshal to update fire hazard severity zone maps every five years instead of the current irregular schedule — a straightforward change with major implications for insurance pricing and building code requirements in communities like Lafayette.

Portable Solar for Renters

SB 868 (Electricity: portable solar generation devices) defines portable solar generation devices, allows residential use, prohibits grid feed-in during outages, and bars utilities from controlling or charging fees on the devices. McCormick praised it as filling a gap:

"We all talk about electric vehicles and how great they are, and we kind of ignore the fact that a lot of these things are not practical for people that live in apartments. And this is like, hey, let's kind of address it."

Insurance Penalties for Denying Coverage

SB 1076 (Admitted insurers: residential property insurance) prohibits insurers from denying coverage to homes with proven fire safety mitigations and penalizes non-compliant insurers by barring them from selling home and auto policies in California for five years. Candell acknowledged the penalty is designed as leverage:

"It penalizes insurers who still deny insurance — the ability to sell home and auto insurance in the state for five years."

Spirit Van Marks 20 Years, Wins Federal Grant

Why it matters: Lafayette's senior transportation lifeline secured its financial footing for the next several years as the city's population continues to age.

Senior Transportation Coordinator Riki Juster celebrated the Lamorinda Spirit Van's 20th anniversary — its first ride was June 6, 2006 — and thanked Lafayette for holding a special public hearing that enabled its Section 5310 federal grant application.

"I'm very pleased to share that we were awarded funding for operating assistance along with two new replacement vehicles that will hopefully arrive by 2027," Juster said.

Moraga continues to contribute $20,000 annually to the program.

Two public commenters spoke in support. Suzy Pak, representing Lamorinda Village, praised the program's role in preserving senior independence and called for more volunteer drivers — just three to four hours a month. Rick, a volunteer driver, described the community-building impact beyond just providing rides.

Mayor Carl Anduri framed the van as essential to Lafayette's future:

"This program is going to become even more important in the next few years, and we need to think about how we can expand it because we are demonstrably an aging community."

Lafayette Library Leads County in Ebook Use

Why it matters: The Lafayette Library now draws 221,000 annual visitors — up from 204,000 — and has become a de facto remote-work hub, a trend that may shape future facility planning.

Senior Community Library Manager Rob Tygett reported that system-wide circulation rose 9%, with digital circulation up 39%. Lafayette hosted 390 program instances reaching 7,700 patrons and saw 834 summer reading finishers — a 16% increase outpacing the county's 14% average. Lafayette ranks second per capita in summer reading (behind Pleasant Hill) and first across the entire Contra Costa County system in ebook and e-audiobook circulation.

Asked by Councilmember John McCormick what is driving increased physical visits, Tygett pointed to shifting work patterns:

"We've seen a lot of people coming in for remote work. They're using the library as a space to come and work remotely."

Friends of the Lafayette Library donated roughly $40,000 for materials and programming.

Decisions: Council unanimously approved a proclamation recognizing National Library Week (For: 3, Against: 0; Absent: Cervantes, Wotherspoon).

$46.7M in Federal Funding Headed to Contra Costa

Niroop Srivatsa, City Manager, reported that Congressman Mark DeSaulnier has advanced $46.7 million in federal funding for 20 projects across Contra Costa and Alameda counties. Lafayette-specific investments include $2.8 million for the aqueduct pathway and $2 million for supportive housing at Sunflower Hill.

Srivatsa also announced that planning staff will release an RFP for pre-approved ADU plans — funded by a grant from State Senator Steve Glazer's office — in partnership with the town of Moraga. The 2026 pavement project is out to bid with openings April 23, and the 2027 capital improvement program and five-year roadmap will go before the Citizens' Public Advisory Committee on April 16.

Cal Cities Pivots on Sales Tax Reform

Councilmember John McCormick reported that Cal Cities rejected an in-state Bradley Burns sales tax constitutional amendment proposed by a city managers task force, which would have split revenue 50/50 between warehouse locations and delivery destinations. The more impactful legislative path targets out-of-state distribution centers, where roughly $1 billion in collectible revenue dwarfs the $400 million available from in-state reform. Cal Cities leadership indicated willingness to hear a revised proposal next year. For cities like Lafayette that see little benefit from online sales routed through distant warehouses, the out-of-state approach could deliver more meaningful revenue.

Minor Items

• Consent calendar approved 3-0: Core Area Landscaping & Lighting District assessment (Res. 2026-29), Residential Lighting District assessment (Res. 2026-25), and purchase and sale agreement for 986-990 Moraga Road with net proceeds returning to Fund 75.

• March 23 minutes approved as amended to clarify the applicant — not the Mayor — confirmed the 8.5-foot sidewalk commitment on Mt. Diablo Boulevard.

• Resolution 2026-28 adopted approving a Golden Gate Way street closure for the Rotary Club's Keep On Truckin event on Oct. 3, 2026.

• Planning Commissioner Roger Deming resigned; Council accepted the departure and praised his thoroughness. Councilmember McCormick noted Deming "really dug into the weeds" on applications. The vacancy will need to be filled by appointment.

• Lafayette Community Garden founder Janet Thomas presented the cooperative garden's 15-year growth from 30 volunteers to 111 member families with a 20-person waiting list, operating on East Bay MUD land for $2,500 annual rent. The garden hosts all Lafayette third graders for a two-week field trip program featuring simulated Miwok dwellings. A Republic Services talk on food waste and green bins is scheduled for May 14.

• Meeting adjourned in memory of former Councilmember and Mayor Norm Tuttle, who was elected in 1976 and served as mayor in 1979.

Lafayette City Council met April 14, 2026. Councilmembers Cervantes and Wotherspoon were absent. All votes passed 3-0.