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19 MEMORANDUM DATE: May 15, 2003 TO: Mike Mornson, City Manager FROM: Roger Larson,Finance Director ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL The attached information includes price quotations for property, auto, general liability, and workers' compensation. The cost for maintaining our present coverage of$10,000 deductible and $50,000 aggregate through the League of Minnesota Cities totals $152,013. This amount represents an increase in premiums of $7,305. Basically the cost for insurance remained stable with the exception of the renewal of our property coverage. The increase is comprised of two components: 1) Due to the high amount of claims for property damage throughout the county, insurance carriers have across the board increase premiums(10%). 2) With the redevelopment of our park system, a significant amount of "property in the open"was added to the policy. Some examples would be the new building at Central Park and the lights for the ball fields. Workers' compensation costs continue to be a concern for all Minnesota businesses. St. Anthony's premium for work-comp remained stable because there was little change to our experience modification,which directly relates to the cost of workers compensation insurance. In addition, to help rehabilitate employees in a timely manner, St. Anthony has in place a Managed Care Plan where employees who are injured on the job are assigned to a specific clinic for rehabilitation of their injury. This results in a 3% reduction in workers' comp premiums and assists the employee with developing a medical plan and treatment schedule. As in previous years,no other insurance companies chose to compete with the League of Minnesota Cities Insurance Trust. Recommendation* Staff recommends Council pass Resolution #03-036 waiving statutory limits of tort liability and approve municipal & off-sale liquor insurance coverage totaling$161,913.