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k <br /> ...- �� REQUEST FOR COUNCIL CONSIDERATION; Agenda `°n: 11.a <br /> ""{„„y” Report:lumber. 94-1 21 fly' <br /> STAFF REPORT Report Date: 6-91-94 <br /> fr ,..=' Councl Action: <br /> O Special Order of Business <br /> CITY COUNCIL MEETING DATE June 27, 1994 0 Public Hearings <br /> G Consent Agenda <br /> g Council Business <br /> Item Description: Presentation of 1994/95 Insurance Renewals <br /> Administrator's ReviewiRecommendacion: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> ,C,TJlYaIAR.Y; <br /> Quotations from the League of Minnesota Cities Insurance Trust(LMCIT) for the renewal of the City's <br /> various insurance policies have been received. Attached is a condensed outline of the City's insurance <br /> program and a premium comparison of 1994/95 rates to 1993/94 rates which has been prepared by our <br /> agent, Charles Clysdale of the Maguire Agency. A comparison of the renewal premiums to'the amount <br /> budgeted is presented below. <br /> Coverage Budget Premium Variance <br /> Property & Liability + $ 99,438 $ 96,864 ($ 2,574) <br /> Boiler & Machinery . <br /> • <br /> Workers Compensation $ 86,516 $ 54,060 ($32,456) <br /> TOTAL $185,954 $150,924 ($35,030) <br /> There are two reasons for the large variance between the amount budgeted for workers compensation <br /> and the renewal premium. The first reason is that the LMCIT did not change any of the rates from last <br /> year while our budget assumed a 5% increase. The second reason is that the City's experience modifier <br /> was reduced from .83 to .75. Our budget assumed no change in the experience modifier. Both of <br /> these factors have proved to be very benefical to the City, but were unexpected. <br /> The agent has recommended that the City increase coverage from $50,000 to $100,000 on the employee <br /> faithful performance bond for an additional premium of $319. I concur with the agent's <br /> recommendation. <br /> Don Brager, Finance ector <br /> RECOMMENDATION: <br /> Approve the renewal quotation from the LMCIT for renewal of the City's insurance policies in the <br /> amount of $150,924 plus increase faithful performance coverage for an additional premium of $319. <br />