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• MEMORANDUM <br /> DATE: May 21, 1992 <br /> TO: Thomas D. Burt, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL <br /> Mr. Mark Flaten of American Risk Services-will be present at the May 26, 1992 Council <br /> Meeting to discuss the League's proposal for insurance coverage June 1, 1992 - May 31, <br /> 1993. <br /> The-information includes quotations for property, auto, general liability and worker's <br /> compensation. The cost for maintaining our present coverage of $10,000 Deductible and <br /> $50,000 Aggregate is $228,590. <br /> This amount represents an increase in premiums of $21,770 which is primarily due to <br /> increases in workers compensation costs ($16,432). This increase (20.7%) is based on a <br /> • 4.96% increase in payroll, a 9.89% increase in our experience modification and an average <br /> rate increase of 4.65%: <br /> There were no other insurance companies who submitted a bid. Most company's contacted <br /> indicated they could not compete with the League because of the annual dividend check they <br /> distribute each year. <br /> However, recently I did receive literature from National Beer Wholesalers Association (CNA <br /> Insurance ) regarding workers compensation coverage and in the near future I will contact <br /> this company to inquire if they will compete with the League. <br /> Recommendation <br /> Staff recommends Council accept the League of Minnesota Cities insurance proposal which <br /> includes $10,000 Per Occurrence/$50,000 Aggregate at a cost of$228,590 for the period of <br /> June. 1, 1992 through May 31, 1993. This coverage includes a fixed workers compensation <br /> premium and no changes in deductibles or liability amounts. <br /> • <br />