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, : 17 MEMOR A NDTTM DATE: May 21, 2002 TO: Mike Morrison,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$144,708. This amount represents a decrease in premiums of($1,351), which is primarily due to decreases in automobile and workers compensation premiums. As in previous years, no other insurance companies chose to compete with the League of Minnesota Cities Insurance Trust. Last years coverage is primarily duplicated, however,in November of 2001, St. Anthony elected to add No Fault Sewer Backup Coverage to the policy and is now reflected as a line item. Workers' compensation costs continue to be a concern for all Minnesota businesses. The decrease in the work-comp premiums is due to a slight decrease in St. Anthony's experience modification, which directly relates to workers compensation claims/payments and a non-smoking credit for our Police Department. 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. Dram Shn!/l Aqunr Liahility The cost for coverage from these carriers varied in price, as did the coverage offered. The low bidder for our two off-sales stores was General Star Indemnity at $12,509. Minnesota Joint Underwriting Association was the lowest bidder for the Stonehouse at$24,015. Both of these companies are rated A+ and comply with State Statues relating to Dram Shop coverage. RecommendaNnn: Staff recommends Council pass Resolution #02-047 approving municipal & liquor insurance coverage totaling$181,232.