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6.1. SR 11-16-2009"o ~~en1 umber Ci Council ~~ ~ enca Section ee~~n~ ~.te prea~red by Administration November 1 ~, 2009 Tim Simon, Finance Director ~ten~ ascription eviewed by Annual Insurance Renewal Lori Johnson, Cit Administrator aviewad by coon ~ ue~ed The City Council is asked to consider renewal of the City's insurance policies with the League of Minnesota Cities Insurance Trust ~LMCIT~. acl~~round! iscussi~n For over twenty years the City of Ells River has participated in the LMCIT. Mary Eberley of First National Insurance Agency will present the July 1, 2009, LMCIT renewal, which was just received from LMCIT. Coverage has been ~.~ Binder since the official July 15t renewal date even though tlae renewal documents and rates were just ~.•eceived. The worl~ers' cotxapensation insurance renewal is included as well; that policy renewed on Qctober 1, 2009. The policy has remained unchanged for the most part. In the last renewal, we increased our deductible to $10,000 and that has been very successful. The details of the proposal are outlined in the attached memo from Mary ~berley. Here are a few highlights which are outlined in Mary Eberley's attached me~xao: ~ The City continues to receive a dividend for• participating in the LNICIT program. ~ Builders' Association claim no longer has an hnpact on our renewal. ~ The property schedule has added nearly $S.G ~x~ion. ® The overall .increase comes to about 3% with no change in deductible and excluding the X43,400 ERMU equipment breal~down coverage the prenuum decreased 10%, ~ The City again has an excellent experience Modification factor of .55. The City continues to be proactive in promoting safety and safety standards through the continued dedication of all City employees and the Safety Co~x~.~~.ttee. These efforts result in a substantial premium savings for the City. ~in~nciai__Ir~p~ct See attached Premium Summary & Comparison -2009 worksheet tt~chn~a~nts ® Letter from Mary Eberley -First National Insurance agency ~ City of Elk River Premium Summary & Comparison S: \Council\Tun\2009\InsuianceRenewa109-10. doc Council\Tim\2009 \InsuilnceRenewa109-10. doc _ r J ~ 3, ~ ~ ~ ski ..,, :~ ;,~. 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It, too is a good renewal, although not quite as favorable as last year, The Experience Modification factor has increase a bit, but is still excellent at .85. This means a 15% discount from the League's base rates. The League's workers Comp rates have not changed - a few changes on some of the work classifications, but not enough to make much difference. 7} Municipal liability limits have increased for this year's renewal, The new tort limit for municipalities has now been set at $1,500,000 after the change instate statute, we did not seek a quote for additional limits this year as the City has always chosen to decline the offer of higher limits in the past, Should the Council be interested, we will get you the premium quote and come back with the information, Additional limits can be added at any time. Coverage has again been renewed on the basis of waiver of the per claimant limit, but this too can be changed. Statute now provides that a payment for any one claimant can be limited to $500,000.1f the Council is interested, we can provide information on the change in cost, 8} The City changed to a special deductible plan last year - $10,000 per `occurrnece'1$50,000 aggregatel$1,000 `maintenance' after reaching the $50,000 aggregate. Results so far have been very favorable, so we are not recommending a change, what we have been able to do this year, however, is to reduce the aggregate limit to $40,004 with no change in premium cyst. The City's claim history has been very good, and with good safety practices in place, we would expect this trend to continue, we did not seek optional quotes this year but plan to do so next year, This year's renewal is an excellent one and we recommend the Council approve it, but if there are other questions, we will, of course, address them for the Council. First National appreciates the opportunity to work with the City of Elk River, ERMU, and the fine staff, we thank you for the continued business, Respectfully, Mary Eberley, C U Agent ® N ~ ~ s- 00 N ^ O (~ ^ '~' O ^ O r- ~ ~ N ~ Q o '~ c~ N 'd" W I„- ~ W Q7 O W l!7 r M ~ o ~ ~ ~ ~- m ~ a o z ^ ~ ~ ^ ~ ~ c~ ~ J r l(} r r I~ ~ ® ~} U ~ Ef} r ~ ~} Z 69~ Z (~-} Z 69 M ® ~ '`"' b9 p ~ M N N ~ h o Q ~ ~. c~v °v `~ a d ~' ° ° ~ ~ ~ ~ o N U ~ ~ U ~ ~ ~ ^ p ~ J J O v o ~ v 0 u~ ~ N ~ co c~ m a ~ ~ 0 00 ~ o ^ c~ oo ~- ® 00 0 ~ r Q) W (Yy F- W m ~ ~ W oD O ~ O 0] U r-~ N r N ^ N Z ^ f~ f~ ^ D ~!? 0~ p0 ~ .~ ~ 609 ~ ~ U N ~ ~v ~ a 69 0 ~ U ~ r r-- ~ N ~ ~ U7 p ~} ~ Z ~ "" ? ° 'n ~ ? ~ ~ N ^ ~ ^ ~ a~ ~ ~ rn ~ ~ ~ m ~ u ©d p '~'" O r ~ C ~ ~ ~ O O EH EH Q U O O D O c- y} ® r O~ d7 O C~ W C~3 I- W lf? , J N W ti ('~? ~ o~ ti ~ ~ ' 7 J r ~ ^ U r- o ~ N ] U ~- ~ N [~ ~ o N ° I p W ~ , ~ ~ ~} d b N ~ ( j Z C } ~ Z } v ~ ~ ? r ~ ~ o ~ N ^ ~ r} ~ ~ ~ N ~} d ~ ~ o ao ^ a t` ~' (V o .~.. _ ~ ~ v N rn ~ W ® 07 0 ~ I~ fn W ~ H W 0 ~ ti ~ N N~ N ~A '~'" f~ ~ .~ s ~ 00 b9 tY} I~ 'd' N J (~ ~~ {~ J U ~ v bK} ~" r J U N 69 07 (f} M h C~ ~ ® ® ~ ti© N O r ~ ~ Z ~~ r Z p ~ ~ Z M N ~ N o o D In ~ ~ N to 6R} N .. c~ N o~ 07 c+~ v} W r I-- W ~ ~ d' on N N o0 c a 0 U *~ a N O O © {p Z ^ ~ a f~ 'd' 00 O M~ N ~ ~`' -~ a o ~ (D N > U N ~ > U ~ o 69 ~ 6g ~ ~ ~} ~ {f3 u7 ° ~ ? d a i . c , 0 0 ® b r ~ ^ o ~ ~} ~ ? ~ ~r ~ ? 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