8.4. SR 02-18-2014 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 8.4
Agenda Section Meeting Date Prepared by
General Business February 19, 2014 T.John Cunningham,Fire Chief
Item Description Reviewed by
Insurance Service Office (ISO) Rating Cal Portner, City Administrator
Reviewed by
Action Requested
None unless directed by the Council.
Background/Discussion
At the February 3, 2014, City Council meeting,Mayor Dietz requested an update on the city's ISO rating.
ISO is a national corporation that provides statistical and other information to insurance agents and
underwriters. ISO's Public Protection Classification (PPC) service is an independent evaluation of a
community's ability to provide fire suppression capabilities,which can be used by insurance underwriters
to develop residential and commercial insurance policies.
The evaluation considers required water flows, dispatch/communications, fire department resources and
water supply. ISO then assigns a PPC from 1 to 10. Class 1 represents the best public protection and
Class 10 represents no recognized fire protection. Most communities have a split classification, such as a
5/10,which takes into consideration a property's distance from a hydrant and a fire station.
Each insurance company ultimately determines the premiums it charges; ISO may or may not be a factor
as part of the underwriting process. Below is a chart that summarizes the PPC's in Minnesota. Note that
there are no 1 or 2 designations.
900 �y
800
700
600
500
400 4 yti°
300 $1 Y4
200
100 O a 99 A
0
Class Class Class Class Class Class Class Class Class Class Class
1 2 3 4 5 5 7 8 88 9 10
Financial Impact
None,presentation only.
Attachments
■ None
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