R2019-95 Resolution Authorizing City Manager to Execute Insurance Coverage for General Liability, Automobile Liability and Excess Liability for Decatur, Illinois Public Transit System for the Policy Period July 1, 2019 to July 1, 2020

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LETTER to the DECATUR CITY COUNCIL Financial Management Department Letter#2019-05 DATE: June 25, 2019 TO: Honorable Mayor Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Gregg Zientara, City Treasurer&Director of Finance SUBJECT: Resolution Authorizing City Manager to Execute Insurance Coverage for General Liability,Automobile Liability and Excess Liability for Decatur Public Transit System for the period July 1,2019 to July 1,2020 SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Resolution, authorizing the City Manager to execute insurance coverage for general liability, automobile liability, and excess liability for the Decatur Public Transit System for the policy period July 1, 2019 to July 1, 2020. BACKGROUND: The risk management liability program of the Decatur Public Transit System includes a series of high deductible fully insured and excess coverage policies securing the general liability, automobile liability and excess umbrella risks of the organization. The Decatur Public Transit System has an insurance broker and advisory relationship with First Mid Bank (formally known as J.L. Hubbard Insurance & Bonds, a part of Soy Capital Bank & Trust). Under this arrangement,First Mid Bank provides broker services including the shopping for liability insurance offerings and pricing, liability claims management support and advisory services including evaluation and recommendation of coverage levels and insurance products. This arrangement has been in place since 2013. The Public Transit System liability insurance program includes: General liability—fully insured coverage limit of$5,000,000 per occurrence with a$100,000 deductible, Automobile liability—fully insured coverage limit of$5,000,000 per occurrence with a$100,000 deductible, Excess liability—fully insured overage limit of$5,000,000 each on general liability and automobile liability thereby providing aggregate coverage to$10,000,000 on general liability and $10,000,000 on automobile liability. The insurance program prepared by City Risk Management and recommended herewith for City Council authorization to proceed forward to bind coverage for the insurance period commencing July 1, 2019 and ending July 1, 2020, includes coverage limits and deductibles the same as the expiring coverage. The liability insurance coverage has been written by Lancer/Admiral since 2013. Lancer/Admiral remain one of the leading providers of liability insurance coverage in the public transportation segment.