01-06-2014 Council Agenda - Laserfiche WebLink

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"tile anada 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.Iittle- canada.mn.us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: January 3, 2014 RE: 2014 Insurance Renewal MAYOR Bill Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss ADMINISTRATOR Joel R. Hanson As part of processing our 2014 insurance renewal with the League of Minnesota Cities Insurance Trust (LMCIT), we asked for some alternate quotes. The quotes and our recommendations are as follows: • Making LMCIT auto liability coverage primary for employees who use their personal vehicles for City business. The cost is about $10 per person. I believe we should cover the Building Official, Code Enforcement Officer, Parks & Recreation Director, and the Parks & Recreation Assistants at minimum given their more extensive personal vehicle usage. Other options would be to include the office staff (they use their vehicles to make bank deposits), the City Administrator, the City Clerk, and our Cable TV employees. That would involve around 12 people if we covered everyone and the cost would be around $120. • Adding replacement coverage to automobile physical damage. The cost is about 25% of the physical damage premium. To cover the Vactor would cost about $98 a year. Our 2009 Plow Truck would cost about $51 a year. Our 2006 F250 would cost $16. Our total auto physical damage premium is $2,168 so the cost to cover all scheduled vehicles would be about $542. We won't need to cover every vehicle, but staff would recommend adding this coverage to most vehicles. • We also obtained a quote for Excess Liability Coverage (Umbrella). To add $1,000,000 excess coverage would run $7,962. Given our statutory limits of liability apply most cases with the exception of civil rights claims, staff would not recommend this coverage. • Our deductible for Mobile Equipment coverage (this covers things like our front end loader, large mowers, and the Bobcats) is $2,500. To lower the deductible to $500 would cost $3,190. Given our low claims in this area, staff does not recommend this change.