5.3. SR 07-09-2001Item ~ 5.3.
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Lori Johnson, Finance Director
July 9, 2001
SUBJECT: Property and Liability Insurance Renewal with LMCIT
For many years the city has had insurance coverage with the League of Minnesota Cities
Insurance Trust (LMCIT) for its property, liability, auto, bond and other related insurance
coverage. The contract with LMCIT renewed on April 1, 2001; however, we just received
information from LMCIT on the premium and changes in the policy. Typically this
information has been presented to the Council prior to renewal, with the exception of last year
due to a similar delay from the LMCIT. The city has requested that its policy renewal be
changed to July which is a less busy time for LMCIT which should allow the underwriters
time to get the renewal information to the city prior to the actual renewal. The renewal
information provided at this time includes the contract for April, May, and June 2001 and a 12
month contract for July 1, 2001 to July 1, 2002.
Mary Eberley of First National Insurance Agency will be present on Monday to discuss the
policy in as much detail as the Council wants. Because there are no other insurance
companies currently writing municipal coverage in Minnesota, no other quotes are provided.
The city has some unique items including the dam and the beach that many companies do not
want to insure. The LMCIT's premiums are also extremely competitive so most companies
do not want to do municipal business in Minnesota knowing that they cannot match the
premiums or the high level of coverage that the LMCIT offers.
Action Requested
The City Council is asked to consider the insurance renewal with LMCIT for coverage
through July 1, 2002.
FIRST NATIONAL INSURANCE AGENCY
716 MAIN STREET
ELK RIVER, MN 55330
763-441-2500
June 22, 2001
Honorable Mayor & Council Persons
City of Elk River
P. O. Box 490
Elk River, MN 55330
Ladies & Gentlemen:
Re: League of MN Cities Insurance Trust
April & July Renewals
Thank you for the opportunity to attend your meeting on the 9th to present the City's insurance renewal
program with the League of MN Cities Insurance Trust. We appreciate the time and will respect your full
agenda.
A very brief out line of the City's insurance program is enclosed for your study prior to the meeting. You
will note our reference to three coverage periods for costs and comparisons. To better manage the renewal
process, we have moved the annual anniversary date for the City's coverage to July 1st. It is this change
which results in the three-month coverage period from April 1st to July 1, 2001. Lori Johnson and I will be
available to review this change, along with several other matters you may wish to note. I will also be
happy to review any part of the proposal in greater detail, should you have any questions.
I would also like to take a moment on the 9t~ to introduce myself to you. I am your City's new agent with
First National Insurance and the LMCIT program. The City's account has been well served for many years
by Dan Greene. Dan and I have made several changes at our agency, allowing him to focus on several new
areas of interest and expertise. These changes allow me the opportunity to work more closely with the
LMCIT program, and with the fine staff at the City of Elk River. I am a great fan of both!
Q~ Sincerely,
PCU
Agency Manager
FIRST NATIONAL INSURANCE AGENCY
716MAIN STREET
ELK RIVER, MN 55330
763-441-2500
763-441-6714
RENEWAL ACCOUNT SUMMARY FOR:
CITY OF ELK RIVER
13065 ORONO PARKWAY
P.O. BOX 490
ELK RIVER MN 55330
763-441-7420
PREPARED BY: MARY K. EBERLEY
JUNE 13, 2001
CITY OF ELK RIVER
PREMIUM COMPARISON:
2000-2001
2001-2002
ANNUALIZED
4-1-01 TO
7-1-01
PROPERTY
MOBILE PROPERTY
MUNICIPAL LIABILITY
AUTO LIABILITY
UM/UIM
PHYSICAL DAMAGE
CRIME
BONDS
BOILER & MACHINE
PETROFUND REIMB.
OPEN MEETING LAW
(80%)
TOTALS
$ 22,839.00 $ 39,260.00
$ 4,225.00 $ 4,676.00
$107,122.00 $115,048.00
$17,183.00 $ 16,728.00
$ 1,152.00 $ 1,188.00
$17,873.00 $17,304.00
INCL INCL
$ 2,293.00 $ 2,284.00
$ 4,419.00 $ 4,756.00
$ 689.00 $ 500.00
$ 1,392.00 $ 1,380.00
$179,187.00 $191,124.00
$ 6,815.00
$1,169.00
$28,762.00
$ 4,182.00
$ 297.OO
$ 4,326.00
INCL
$ 571.00
$1,189.00
$ 125.00
$ 345.00
$47,781.00
OPTIONS:
*EXCESS LIABILITY
LIMIT OF LIABILITY $1,000,000
WITH WAIVER OF IMMUNITY
$23,554.00
OPTIONS CONTINUED:
$1,000. DEDUCTIBLE INCL. BOILER- APPROX. ANNUAL SAVINGS
$11,300.00
100 % OPEN MEETING LAW - $231.00 ADD'L ANNUAL PREMIUM
MAJOR CHANGES OVER EXPIRING POLICY TERM:
PROPERTY INCREASE OF 2.4 MILLION
(2000-2001 TERM $33,806,289. 2001-2002 TERM $36,253,650.
· MUNICIPAL LIABILITY EXPENDITURES INCREASED BY APPROX. $375,000
· ADDITION OF 5 AUTOMOBILES