Agenda Packets - 2002/08/29 - Laserfiche WebLink

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Item No. 7A Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Resolution 5830 Authorizing the Purchase of Policies for the July 2002 through June 2003 Insurance Year Date of Report: August 21, 2002 Mr. Charles Clysdale of the McGuire Agency will be at the August 26, 2002 City Council meeting to make a presentation on the City’s insurance policies. For many years, virtually all of the insurance policies have been purchased from the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT tailors its policies specifically to meet the needs of member cities and offers the most competitive premiums since it is owned by the policy holders. Attached is a bound document that summarizes the City of Mounds View’s insurance coverage. Two pages in it, marked by post-it-notes, will be the focus of Mr. Clysdale’s presentation Monday night. Mr. Clysdale and I will also answer questions on other parts of the insurance summary or other insurance issues. The City of Mounds View purchases insurance policies as a means of transferring risk to another entity. Some risk is retained by the City by means of deductibles on the insurance polices. The insurance policies continue the $10,000 deductible on the property and liability policies and $5,000 deductible on the worker’s compensation policy that have been in effect on previous policies. Larger deductibles save the City money on average over a period of years. This is because the increased premiums needed to purchase insurance policies with low deductibles will more than cancel out the losses the City pays in deductibles. The attached Resolution 5830 authorizes staff to enter into these policies and make payment of the premiums as they become due. Respectfully Submitted, Charles Hansen