5.3. SR 09-22-1997~..~ty of
iver
MEMORANDUM
Item # 5.3.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Lori Johnson, Asst. City Administrator/
Finance Director
September 22, 1997
Consider City Insurance Renewals
The city's liability, property, inland marine, and other related policies are up
for renewal on October 1. Each year the city works with its agent of record,
Dan Greene of First National Insurance, on renewing the city's policies.
This renewal process includes several components, the first of which is
updating all of our equipment and property schedules to ensure that values
are correct and all of the equipment is insured. Second, we review all of the
deductibles to determine whether or not it would be cost effective to increase
the deductibles on various items. Next, quotes are requested from all
insurance companies doing business in the State of Minnesota who insure
cities. As you know from the past, that group is very limited due mainly to
the League of Minnesota Cities Insurance Trust's aggressive rates and broad
claims interpretations.
At this time none of the renewal information is available. Dan Greene and I
will both be at the Council meeting to present the renewal information in
detail. In addition we will update the Council on our Worker's Compensation
deductible and managed care programs. We will also be available to answer
any questions you may have regarding any of our policies.
\\elkriver\sys\shrdoc\councilkinsrenew.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
University A~venu~ ~r~s~, St. P~ul. ~LN 55103-20~4
P~toae: (612) 281-1200 · (800) 925.1122
Fax: (612) 25L1299 · TDD (612) 281.1290
First National Insurance
ARm Dan or Sandy Greene
716 Main Street #107
Elk River, MN 55330
Date: Septemlx:r 15, 1997
Re: Ci~ of Elk River
Eft. Date: 10/1/97
RENEWAL PREMIUM SUMMARY AND BINDER : ANNUAL PREMIUMS
97-98 96-97 95-96
PROPERTY
MOBILE EQUIPMENT
'MUNICIPAL LIABILITY
AUTOMOBILE LIABILITY
AUTO PHYSICAL DAMAGE
MONEY & THEFT
EMPLOYEE DISHONESTY
OPEN MEETING LAW
PETROFUND REIMBURSEMENT
BOILER & MACHINERY
TOTALS
$18,027. $18,876. $20,060.
2,782. 3,308. 2,757.
93,482. 117,734. 110,450.
12,Sgg. 10,169. 8,410.
15,299. 15,160. 15,923.
190. 162. 162.
1,579. 1,194. 1,194.
1,402. 1,766. 1,837.
551. 696. 696.
28,250. 31,461. 27,871.
$174,106.
$200,526. $189,360.
League of Minnesota Cities Insurance Trust*
Group Self-Insured Workers' Compensation Plan
Workers' Compensation and Employers' Uability Agreement
Berkley Administrators
, m~mber of U,, Berkley Risk Management Services Group
P.O. Box 59143 Minneapolis, MN 55459-0143 Phone (612) 544-0311
'I~e 'City'
ELK R I VER
PO BOX 490,
ELK RIVER
ELK RIVER UTILITIES~ HRA & EDA
13065 ORONO PARKWAY MN 55330-0490
A~'e~test No. OE-OOO~I3-1E
AGREEMENT PERIOD FROM: DO/OI/I?9?
TO: 10/01/1998
CONTINUATION SCHEDULE FOR QUOTATION PAGE
REMUNERATION RATE CODE
290800. 4.62 11.39 5506
84200. 3.67 ~.o~ 7520
657320. 3.80 ~.~o 7539
159100. 3.76 ~.~5 7580
5B430. 4.53 4,0 ~ 7706
POP 15300. 41.97 &5.96 7708
1117480. 3.36 4,3o 7720
197950. 1.44 /,~ 8017
51780. 4.40 ~.&l 8227
863300. 0.42 ~G BBIO
159530. 2.62 g,~o 9102
378300. 1.19 D,p~ 9410
30300. 0.45 /u.'L ~411
DESCRIPTION
STREET CONSTRUCTION & MAINTENANCE
WATERWORKS
ELECTRIC & STEAM PLANT
SEWAGE DISPOSAL PLANT
FIREFIGHTERS (NOT VOLUNTEER)
FIREFIGHTERS (VOLUNTEER)
POLICE
OFF SALE LIQUOR STORE
CITY SHOP & YARD
CLERICAL
PARKS
MUNICIPAL EMPLOYEES
ELECTED OR APPOINTED OFFICIALS
Manual
Pr em i um
EST. PREM.
13435.
3090.
24978.
5982.
2647.
6421.
37547.
2850.
2278.
3626.
4180.
4502.
136.
11167B.
F-416021790
FIRST NATL INS AGCY
716 MAIN ST STE ~07
ELK RIVER~MN
55330
League of Minnesota Cities Insurance 'Trust
Group Self-Insured Workers' Compensation Plan
Administrator
Berkley Administrators
a member of the Berkley Risk Management Services Group
P.O. Box 59143 Minneapolis, MN 55459-0143 Phone (612) 544-0311
Self-Insured Workers' Compensation Ouotation
(RENEWAL of Agreement No. 02-000513-11)
ELK RIVER, ELK RIVER UTILITIES, HRA & EDA
10/01/1997 10/01/1998
ESTIMATED DEPOSIT
CODE RATE PAYROLL PREMIUM
SEE ATTACHED SCHEDULE FOR DETAILS
LMC
Manual Premium
Experience Modification 0.78 .~
Standard Premium 87104.
Managed Care Credit IO.OOX ~c 8710.
Deductible Credit OX O.
Premium Discount 7800.
Discounted Standard Premium 7059~.
Insurance Trust Discount OX O.
Net Deposit Premidm
lll&7~.
The foregoing quotation is for a deposit premium based on your estimate of payroll. Your f'mal actual
premium will be computed after an audit of payroll subsequent to the close of your agreement year and
will be subject to revisions in rates, payrolls and experience modification. While you are a member of
the LMCIT Workers' Compensation Plan, ),ou will be eligible to participate in distributions from the
Trust based upon claims experience and earmngs of the Trust.
If you desire the coverage offered above, please complete the enclosed "Application for Coverage" and
return it and your check for the deposit premium (made payable to the LMC Insurance TrusO to the Plan
Administrator, Berkley Administrators.