CC PACKET 05252004 - Laserfiche WebLink

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2® MEMORANDUM DATE: May 18, 2004 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 $156,242. This amount represents an increase in premiums of $4,229. Basically the cost for insurance remained stable with the exception of Property, General Liability and Workers Compensation premiums. Property: The premiums have increased because of the completion of our park buildings at Central and Silver Point Parks,which were added to the coverage. General Liability: These premiums are based on total City expenditures. As part of balancing the 2004 budget, all Departments prudently monitored their budgets. The result is that our spending was significantly less that the prior year,which decreased the premium. Workers Compensation: Overall the cost for workers compensation saw an increase in premiums. In addition, there are some lingering claims from Liquor Operations (Stonehouse), which affected our experience modification rating(they will be out of the system next year). To help rehabilitate employees in a timely manner, St. Anthony will continue to maintain a Managed Care Provider. Employees who are injured on the job are assigned to a specific clinic and coach for the 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 approving renewal of insurance coverage through the League of Minnesota Cities at a cost of $156,242, approving off-sale liquor liability insurance totaling$9,315 and waiving the statutory limits of tort liability.