2.4. ERMUSR 07-14-2015 4*--
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 14, 2015 2.4
SUBJECT:
Renewal Premium for LMCIT Property/Casualty Insurance
BACKGROUND: Our annual renewal for Property and Casualty Insurance is effective 7/1/2015
through 7/1/2016.
DISCUSSION: We have received our renewal premium from the LMCIT for the 2015/2016
year. The 2015/2016 premium is 140 506 with a 20 000 per occurrence/ 40 000 annual
Y p $140,506 $ P $ ,
aggregate deductible, except the Equipment Breakdown has a separate $20,000 per accident
deductible. This is a reduction from the prior year of$7,053.
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 decreased 3% from .910 to .880. I
have attached the Renewal Premium Summary for your review, which lists the various coverages
and related premiums of the prior and current year.
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$140,506 and no changes.
ATTACHMENTS:
• Renewal Premium Summary
riIIIIED DY Page 1 of 1 ATURE
Reliable Public
Power Provider P O W E R E D T 0 S E R V E
49
(r i.1!I II I l:f1„,.1 Ir r 1 3 1'a i ilr!7. ,1 �i IA I I w :ry7a f1 i aN GI 'I�1 i 14 t,*,11,11 ;J I l i t
1 r II i I II�tI rg(j r,I Ii !, 1 I I II,P,i t I i rru a I r r i, ,
rl r �I i '1,l r r s ' It a ''Ip \ r d l 1 ,.,„ f r, IT,T ilk ti }i r 1;',, 11 al ' i i I
11 li r ai r I I r if I r a I t l 1Ir I li,i X111 wriit,0 1 1 1: ri ter r, a m j C I relit}„-j f l t S I %aL. I I Hai k Oi Sr I I ;r
(l i I � I a i ''ill,' ! tl! I j c ( i 7 r� ;r I s (i y r i --It r t a ;.!,!::,1 I � ! I � I
I I r� I i I l tIif+ f la ( i nnn I �II t r r
I r III ,,, }1 'l17{ �1'i(Ilr I� I I Ir ,. Qi: It( c l". t'% I1 'i
I I i I !�r 1 � 1�1': 11 All�r al;�al���i 1 i ,r r r, ,( rG s�', a r �°rat � f t ' -.■A i r�r t i li 'I ,.r 1 I i
(r 1 r iT 1, s � ra�!� 1 i1 II r i j i ' t, r I'1 I it � I I..
l i 111 �)rr 14 hurl ar' t a� a ra
1' i1 (1 1{0it.1 1 r' 83 � rl��l� � I�a rl+ 11 I (rl
,,i.l'I ,,.;,,,;13,,,,,„,,,,;I „s,1,1,l�. Al vsi i ,tn4ir(,rtl r�i.ui•. d,ni' ,�e rr �, ,,rh: f11 ID L.. .d` ,'�[�.� .. . 'l .,
COVERAGES PREMIUMS PREMIUMS
2014-15 2015-16
Property $ 24,995 $ 24,207
Mobile Property $ 4,124 $ 4,420
Equipment Breakdown j $ 61,741 $ 62,428
Crime ( Included ! Included `
Faithful Performance Bond $ 328 j $ 367
Municipal Liability $ 49,442 $ 42,045
Automobile Liability&Physical Damage $ 6,929 $ 7,039
Open Meeting Law # Included Included
Petro-fund j Included Included
Fireworks r Not Covered j Not Covered
r No Fault Sewer Back Up Not Covered Not Covered
TOTAL PROPERTY/CASUALTY PACKAGE $ 147,559 $ 140,506
Liquor Liability Not Covered Not Covered
�-
Excess Liabili __ �_....
ty r Not Covered Not Covered
TOTAL P/C PREMIUM $ 147,559 $ 140,506
Workers'Compensation-Deposit Premium j $53,523 TBD
City Volunteer Accident Plan Not Covered j Not Covered
rTOTAL PREMIUM $ 201,082 j— — TBD
Note:
1. The City Hall/Utilities office building and contents for both entitles is not
included in the Property premium because this is in the City's coverage
for$3,636 building plus$968 contents premium. The Utilities portion of
the premium is: Building$1,004(27.6% or 12,488 sq. ft.)plus contents$211
($389,557 coverage @ 0.05423/$100 coverage).
2. The Municipal Liability premium decreased about 15%. The decrease is
due to both a decrease in rates and an improvement in the Utility's
liability claims experience modification from a .910 to a.880 (12% credit).
3. The Automobile premium increased slightly because there are 47 vehicles,
versus 46 vehicles on last year's renewal.
50