29A - INSURANCE RENEWALS - Laserfiche WebLink

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Insurance Renewals July 18, 2011 Page 2 The Public Entity Property Insurance Program (PEPIP) was established in May 1993 with seventeen public agencies including the City of Santa Ana. The purpose of PEPIP is to provide public agencies with group purchasing strength. Since 1993, PEPIP has grown to include over 6,400 members in 45 states, which has allowed the group to purchase property insurance at affordable premiums. The estimated $360,500 premium will provide $1,000,000,000 of coverage for insured City properties. PEPIP will provide the City with $100,000,000 for boiler and machinery damage and $82,500,000 in coverage for flood damage (coverage is in limited to $50,000,000 in Flood Zone A.) Due to the excessive premium cost of earthquake insurance, the City will not seek this coverage. Insurance deductibles will be as follows: Coverage Deductible Flood $100,000 except $250,000 for Flood Zone A locations Vehicles Fire Fighting $50,000 Vehicles All other $25,000 All other occurrences $10,000 Boiler & Machinery $2,500 to $350,000, depending on the pieces of equipment involved The City joined the California State Association of Counties - Excess Insurance Authority (CSAC- EIA) Crime Bond Program on April 1, 2004. The estimated two year pre-paid renewal premium from July 1, 2011 to July 1, 2013 is $17,500. The Crime Bond Program limit is $10,000,000 with a $25,000 per occurrence deductible and covers the following: 1. Employee dishonesty with faithful performance coverage 2. Forgery and alteration 3. Theft, disappearance and destruction 4. Robbery and safe burglary 5. Computer fraud including funds transfer coverage 6. Money orders and counterfeit paper currency The City Manager will review the quotations and make the final decision to secure the coverages. 29A-2