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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As broker representing the Public Transit System, First Mid hetd early discussions on continued coverage and pricing with Lancer/Admirat to ascertain renewal scenarios and conducted a market review with other providers of liability insurance coverage in the public transportation segment. The market review indicated that the coverage, deductible, and subsequent policy price offering from the existing carrier(s) could not and would not be improved upon by other competing carriers. Annual premium $ Expiring Policy Proposed Policy General liability 5,597 ; 6,161 Automobile liability 168,821 191,154 Excess liability 26,735 34,125 Total 201,153 231,440 %change Letter of Credit(LOC)$ $241,627.50 $241,627.50 The policy price renewal with Lancer/Admiral of$231,440 is a 15% premium increase versus the expiring policy price. The increase in premium is the result of market conditions for transit system liability insurance coverage. The LOC security requirement remains unchanged at$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. City Staff recognizes the late timing of this council item,with existing coverage expiration July 1, 2019, and same date request for council approval for new coverage. City Staff requested new coverage requests for pricing in April 2019. Coverage proposals and pricing were received from the existing carrier on June 25, 2019. POTENTIAL OBJECTIONS: None INPUT FROM OTHER SOURCES: First Mid Bank (formally J.L. Hubbard Insurance and Bonds) STAFF REFERENCE: Scot Wrighton, City Manager Gregg D. Zientara, City Treasurer& Director of Finance BUDGETITIME IMPLICATIONS: Monies for policy premiums and out of pocket claim expense are included in the existing and future budgets of the Public Transit System.