R2017-116 Liability Insurance Coverage for Transit System

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Item Coversheet Page 2 of 2 Automobile liability Excess liability 21,518 23,644 18,267 Total 162,809 172,195 133,098 %change 5.8% Coverage period September 22, September 22, September 22, 2016 to 2017 to 2017 to September 22, September 22, July 1,2018(1) 2017 2018 Letter of Credit$ $200,000.00 $241,627.50 $241,627.50 The policy period will shift from September 22 to July 1 at the request of the City of Decatur.Date change is to achieve standardization of public transit system business insurance policy periods. The policy price renewal with Lancer/Admiral of$172,195 is a 5.8% premium increase versus the expiring policy price. The policy price increase is acceptable given marketplace conditions and a flat price change in the previous policy renewal period 2015 to 2016. The resolution presented for council approval is for the prorated policy period from September 22, 2017 to July 1, 2018, and reflects a policy premium of$133,098,prorated by the number of policy days in the proposed policy to the July 1,2018 policy end date. In addition, the LOC security requirement will increase from $200,000 to $241,627.50. This is a non-cash requirement of the policy and only played in the event the transit system would fail to make claim payments. POTENTIAL OBJECTIONS: None INPUT FROM OTHER SOURCES: J.L.Hubbard Insurance and Bonds STAFF REFERENCE: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance BUDGET/TIME IMPLICATIONS: Current policy expires September 22, 2017. Monies for policy premiums and out of pocket claim expense are included in the existing and future budgets of the Public Transit System. ATTACHMENTS: Description Type Resolution 1ZeSOI Util ll I.cttcr Proposal Backup\latcrial https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=1272 9/15/2017