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Insurance Renewals with Big Independent Cities Excess Pool, <br />Public Entity Property Insurance Program and California State Association of Counties <br />August 2, 2016 <br />Page 2 <br />The current workers' compensation insurance policies expired on July 1, 2016. The BICEP <br />workers' compensation insurance premium for the July 1, 2016 to July 1, 2017 period will not <br />exceed $347,200. The workers' compensation program provides statutory excess workers' <br />compensation insurance coverage with a $1,000,000 SIR. <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 $696,000 premium will provide $1,000,000,000 of coverage <br />for insured City properties from July 1, 2016 to July 1, 2017. PEPIP will provide the City with <br />$100,000,000 for boiler and machinery damage and $82,500,000 in coverage for flood damage <br />(coverage is limited to $50,000,000 in Flood Zone A.) This cost includes the purchase of <br />earthquake insurance. The earthquake coverage provides coverage up to $25,000,000 per <br />occurrence and annual aggregate with a deductible of 5% per unit ($100,000 Minimum). <br />The City joined the California State Association of Counties — Excess Insurance Authority <br />(CSAC -EIA) Crime Bond Program on April 1, 2004. The estimated renewal premium from July 1, <br />2016 to July 1, 2017 is $11,400. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1 <br />(Maintain a stable, efficient and transparent financial environment). <br />FISCAL IMPACT <br />Funds are budgeted in the proposed 2016 -17 Liability & Property Insurance account (account no. <br />08009051 - 64010) for an estimated premium cost not to exceed $2,223,900 and Workers' <br />Compensation account (account no. 08209054 - 64010) for an estimated premium cost not to <br />exceed $347,200. <br />Edward Raya <br />Executive Director <br />Personnel Services <br />ESR:bbm <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Francisco Gutierrez �j® <br />Executive Director <br />Finance & Management Services Agency <br />29B -2 <br />