2.4. ERMUSR 07-15-2014 �/
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski, Finance and Office Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
July 15, 2014 2,4
SUBJECT:
Renewal Premium for LMCIT Property/Casualty Insurance
BACKGROUND: Our annual renewal for Property and Casualty Insurance is effective 7/1/2014
through 7/1/2015.
DISCUSSION: We have received our renewal premium from the LMCIT for the 2014/2015
year. The 2014/2015 premium is $147,559 with a$20,000 per occurrence/$40,000 annual
aggregate deductible, except the Equipment Breakdown has a separate $20,000 per accident
deductible. This is a reduction from the prior year of$4,914.
We have a reduction in premium this year in the municipal/auto liability due to the new LMCIT
rating process transition where we benefit in not having the Land Use, Police, Sewer Back-up
and Employment Related exposures. Our dollar value of coverages increased due to the LMCIT
Replacement Cost Inflation Factor, and our Experience Factor increased 3.6% from .878 to .910.
I have attached the Renewal Premium Summary for your review, which lists the various
coverages and related premiums of the prior and current year.
Given we have a reduced premium for 2014/2015; our agents are not recommending any changes
to our current occurrence and aggregate deductibles. If the Commission desires to make any
such changes, we would need to let the LMCIT know as soon as possible.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission approve the submitted
insurance policy with the renewal premiums of$147,559 and no changes.
ATTACHMENTS:
• Renewal Premium Summary
rrWERED R Y P Page 1 of 1 ATURE
Reliable Public
Power Provider P O W E R E D T O S v E
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ELK"RIVER MUNIC`IPALETlLITIE�; :,` X'
RENEWAL PREMIUM SUMMARY-t 07/ 014 TO 07/01/2015
It
COVERAGES PREMIUMS I PREMIUMS '
I2013-2014 I 2014-2015
Property $ 24,565 $24,995
Mobile Property $ 3,982 I $4,124
Equipment Breakdown $ 54,798 1 $61,741
If . Crime
Included 1 Included
Faithful Performance Bond I $ 328 $ 328
Municipal Liability I $ 61,802 I I
$49,442
Auto Liability and Physical Damage I $ 6,998 I $6,929 1
I Open Meeting Law
Included I Included
II Petrofund Included I Included
Fireworks I Not Covered I Not Covered
No Fault Sewer Back Up I Not Covered ;I Not Covered
11 TOTAL PROPERTY/CASUALTY $152,473 $147,559
, PACKAGE
I ' Liquor Liability I Not Covered I Not Covered
I Excess Liability
Not Covered I Not Covered
I TOTAL P/C PREMIUM I I $152,473 I $147,559
Note:
1. Property premium increase factors:
f a. Coverage increase from$51,084,670 to$54,305,868 due to the LMCIT Inflation
Replacement Cost Factor.
1 2. Municipal/Auto Liability Premiums:
a. Favorably impacted by new LMCIT rating process transition emphasizing Land
Use,Police,Sewer Back-up and Employment Related exposures. •
b. Experience Modifier factor increased about 3.6%from.878 to.910(1.00 average).
3. Employee Dishonesty Option at$1,000 deductible,$467 premium($139 additional).
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