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Insurance Renewals <br />June 18, 2012 <br />Page 2 <br />The Public Entity Property Insurance Program (PEPIP) was established in May 1993 with <br />seventeen public agencies including the City of Santa Ana. The purpose of PEPIP is to provide <br />public agencies with group purchasing strength. Since 1993, PEPIP has grown to include over <br />6,400 members in 45 states, which has allowed the group to purchase property insurance at <br />affordable premiums. The estimated $415,000 premium will provide $1,000,000,000 of coverage <br />for insured City properties. PEPIP will provide the City with $100,000,000 for boiler and machinery <br />damage and $82,500,000 in coverage for flood damage (coverage is in limited to $50,000,000 in <br />Flood Zone A.) Due to the excessive premium cost of earthquake insurance, the City will not seek <br />this coverage. <br />Insurance deductibles will be as follows: <br />Coverage Deductible <br />Flood $100,000 except $250,000 for Flood Zone A <br />locations <br />Vehicles $25,000 <br />All other occurrences $10,000 <br />Boiler & Machinery $2,500 to $350,000, depending on the pieces <br />of equipment involved <br />The City joined the California State Association of Counties - Excess Insurance Authority (CSAC- <br />EIA) Crime Bond Program on April 1, 2004. The estimated renewal premium from July 1, 2012 to <br />July 1, 2013 is $11,500. <br />The Crime Bond Program limit is $10,000,000 with a $25,000 per occurrence deductible and <br />covers the following: <br />1. Employee dishonesty with faithful performance coverage <br />2. Forgery and alteration <br />3. Theft, disappearance and destruction <br />4. Robbery and safe burglary <br />5. Computer fraud including funds transfer coverage <br />6. Money orders and counterfeit paper currency <br />The City Manager will review the quotations and make the final decision to secure the coverages. <br />FISCAL IMPACT <br />Funds are budgeted in the proposed 2012-13 Liability & Property Insurance account (account no. <br />08009051-64010) and Workers' Compensation account (account no. 08209054-64010). <br /> <br />Edward Raya <br />Executive Director <br />Personnel Services <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez <br />Executive Director ?i <br />Finance & Management Services Agency <br />29A-2