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Resolution No. 12-115
RESOLUTION
ACCEPTING THE PROPOSAL OF PUBLIC ENTITY PROPERTY INSURANCE PROGRAM
FOR THE CITY OF ELGIN'S PROPERTY, INLAND MARINE
AND CYBER LIABILITY INSURANCE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
pursuant to Elgin Municipal Code Section 5.02.020B(9) the City Council hereby finds that an
exception to the requirements of the procurement ordinance is necessary and in the best interest of
the city; and
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS,that the City of Elgin hereby accepts Public Entity Property Insurance Program's renewal
proposal for the City of Elgin's property, inland marine and cyber liability insurance commencing
July 1, 2012 through June 30, 2013, for an annual premium of$210,197.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Sean R. Stegall, City Manager,be and is hereby authorized and directed to execute
all documents necessary and incident to such proposal of Public Entity Property Insurance Program
for the City of Elgin's property, inland marine and cyber liability insurance program.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: June 27, 2012
Adopted: June 27, 2012
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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,SPORT TO MAYOP &. MEMBERS S OF CITY COUNCIL E Lc 1 N
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I THE CITY IN THE SUBURBS
AGENDA ITEM: I V
MEETING DATE: June 13, 2012
ITEM:
Renewal of a Property Insurance Program for the Period July 1, 2012 through June 30, 2013
($210,197)
OBJECTIVE:
Protect the city's financial resources and provide business interruption insurance.
RECOMMENDATION:
Accept Public Entity Property Insurance Program's proposal for renewal of property, inland
marine and cyber liability insurance for an annual premium of$210,197.
BACKGROUND
row On October 1, 2011, Public Entity Property Insurance Program (PEPIP) began writing the
property and business interruption insurance for the city. The new program offered additional
property coverages, higher policy limits and more competitive pricing than the previous
coverage that was written by Travelers Insurance. The policy term of the PEPIP program was
July 1, 2011 through June 30, 2012 and the city joined the property insurance program effective
October 1, 2011. Coverage was placed for a nine month period (October 1, 2011 through June
30, 2012). On December 16, 2011, the city purchased an additional $3,000,000 of dedicated
flood insurance for the Festival Park location. The sublimit under the policy was $1,000,000 for
locations in Flood Zones A and V. By purchasing the additional $3,000,000 of flood coverage,
the city increased the flood limit from $1,000,000 to $4,000,000. The replacement value of
Festival Park is $7,600,000.
OPERATIONAL ANALYSIS
PEPIP was formed in 1993 to meet the unique property insurance needs faced by public
entities. Currently, PEPIP has almost 5,000 members in over 30 states. In 2011,the city enrolled
in the joint purchasing group, becoming a member and gaining access to highly competitive
terms and comprehensive coverage, without assuming any liability for the other members in
the group. The members are separated by their geographical location in order to spread the
amount of risk and share program limits. The initial policy term of the PEPIP program was
October 1, 2011 through June 30, 2012 and the policy term of the renewal program is July 1,
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NEXT STEPS
1. Review revised premium quotation.
2. Grant binding authority to insurance agent.
3. Confirm coverage is bound before 12:01 am on July 1, 2012.
Originator: Kelly Wasilewski, Risk Management Assistant
Final Review: Colleen Lavery, Chief Financial Officer
William A. Cogley, Corporation Counsel/Chief Development Officer
Richard G. Kozal, Assistant City Manager/Chief Operating Officer
Sean R. Stegall, City Manager
ATTACHMENTS
None.
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