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Insurance Renewals with Big Independent Cities Excess Pool, Public Entity Property Insurance <br />Program and California State Association of Counties <br />July 5, 2017 <br />Page 2 <br />The BICEP workers' compensation insurance premium for the July 1, 2017 to July 1, 2018 period <br />will not exceed $404,000, which is a slight increase over last year's premium of $350,000. The <br />workers' compensation program provides statutory excess workers' compensation insurance <br />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 $650,000 premium, a decrease from last year's premium of <br />$668,535, will provide $1,000,000,000 of coverage for insured City properties from July 1, 2017 <br />to July 1, 2018. PEPIP will provide the City with $100,000,000 for boiler and machinery damage <br />and $82,500,000 in coverage for flood damage (coverage is limited to $50,000,000 in Flood Zone <br />A.) This cost includes the purchase of earthquake insurance. The earthquake coverage provides <br />coverage up to $25,000,000 per occurrence and annual aggregate with a deductible of 5% per <br />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 renewal premium from July 1, 2017 to <br />July 1, 2018 remains at $12,000. <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 2017-18 Liability & Property Insurance account (account no. <br />08009051-64010) for an estimated premium cost not to exceed $3,962,000 and Workers' <br />Compensation account (account no. 08209054-64010) for an estimated premium cost not to <br />exceed $404,000. <br />L <br />EcNvard Raya <br />Executive Director <br />Personnel Services <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />`a\Is �L �M0 1 <br />Francisco Gutierrezy�j <br />Executive Director <br />Finance & Management Services Agency <br />29A-2 <br />