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Mounds View City Council June 26, 2000 <br />Regular Meeting Page 7 <br />B. Consider Renewal of Insurance Policies for the Period from July 1, 2000 to <br />June 30, 2001. <br />Chuck Clysdale, Maguire Agency, stated they have already presented the insurance renewals to <br />City staff. He noted his son Matthew is in attendance tonight and is now the owner and president <br />of the Maguire Agency. Mr. Clysdale stated he plans to continue his work with the Maguire <br />Agency with his son as the owner. <br />Mr. Clysdale reviewed that the City's insurance program and workers compensation which is <br />placed through the League of Minnesota Cites, as it has been placed for many years. The overall <br />total cost this coming year has remained the same, as it was approximately two years ago, in <br />spite of the fact that the exposures have increased. He noted the City property values insured <br />about $13.8 million and now that has increased to over $20 million in property values yet the <br />overall total insurance costs have remained the same. The payroll and expenses have also <br />increased, yet the insurance costs have remained which is a result of the competitive program <br />offered by the League. Mr. Clysdale stated rates and all lines have remained the same or gone <br />down nominally 2% to 3%. <br />He advised that the City workers compensation premiums have increased, not because of a <br />change in rates but because the experience modification went from 1.17 to 1.25 which is a debit <br />of 25% to the workers compensation premiums. He advised this is a result of one serious <br />workers compensation loss that occurred in 1996. Mr. Clysdale explained that every community <br />is experienced rated by the Workers Compensation Rating Bureau considering the premiums <br />paid and losses paid. A year from now, that loss will go out of the experience modification <br />calculations and the City will get reduced modifications, eventually to a credit since during that <br />time there was one year with no loses whatsoever. <br />He advised that the League is now offering broadened limits and coverages to fit the needs of <br />municipalities, which he has reviewed with City staff. He reviewed the areas which have been <br />broadened without a specific cost increase to the City of Mounds View. <br />Mr. Clysdale stated the City received dividends on its package insurance of over $18,000 and on <br />its workers compensation package of over $8,000. That, combined with competitive premiums, <br />makes this program very attractive for a growing municipality with good experience. The City <br />also writes its coverage based on a $5,000 deductible for all losses (property and liability) which <br />is a great risk management tool since the City manages its losses. This year's savings for having <br />this moderate deductible was $31,000 and has consistently saved premiums in excess of $30,000 <br />annually since that program has been put into place. <br />Mr. Clysdale stated in general Mounds View has again experienced a successful year of low <br />losses and stable premiums which is a credit to the City's interest in loss control and safety. He <br />noted the City receives credits on the experience side of the program because of low losses. He <br />• stated they will bind coverage July 1st and deliver the policy subsequently. <br />