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`V G GB ce CU a/a <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />RATE: February 3, 1994 <br />PE: 1994 Insurance Renewals <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />The cost of insuring the City of Little Canada for the policy year <br />commencing January 1, 1994 is $45,903, exclusive of worker's compensation <br />coverage. This is an increase of $936 over 1993 amounts. <br />This amount does not include excess liability (umbrella) coverage. Due to <br />the fact that statutory limits of liability exist for tort claims against <br />municipalities in the State of Minnesota, we have deemed it unnecessary to <br />provide this coverage the past few years. (See copy of past League of <br />Minnesota Cities' memo attached.) To add the excess coverage of <br />$1,000,000 in 1994 would cost $8,275 should we not waive our rights of <br />statutory immunity. If we waive the right to statutory immunity, the cost <br />.ould be $11,279. (What this does is give people the right to sue us for <br />pore than statutory limits. I do not feel that is a prudent <br />expenditure.) Based on a discussion with our insurance agent, Mr. Dave <br />Seppelt, I would recommend we not add umbrella coverage again in 1994. <br />Another option that exists in 1994 is coverage for violations of the open <br />meeting law. The premium for this coverage is $500. This coverage <br />provides 80% of defense costs incurred by a City official in defending an <br />open meeting law lawsuit. In some of the recent Minnesota cases, defense <br />costs have been substantial ($10,000 to $20,000). We should consult with <br />the City Attorney to see if this coverage is necessary. <br />One last point of information relates to glass coverage under our <br />automobile portion of the policy. I was requested to see if zero <br />deductible coverage is available for automobile glass damage. Our agent <br />checked with the League of Minnesota Cities Insurance Trust and discovered <br />it is not. A $250 deductible is the lowest available for auto glass <br />claims. That is the present amount under our policy. <br />Should you have any questions regarding this information, please let me <br />know prior to Wednesday's meeting. <br />JH:kv <br />Pid0 °45 <br />