CC PACKET 06282005 - Laserfiche WebLink

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ME MFM11dAAD1LM DATE: June 17, 2004 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: LEAGUE OF MN CITIES INS URANCE 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 $163,708. This amount represents an increase in premiums of $7,466. Basically the cost for insurance remained stable with the exception of Property, Automobile, Workers Compensation and Liquor Liability premiums, Ilroper•ty: The premiums have increased because of the addition of the new Public Worlcs and Fire Station buildings being added to our assets/property. Automobile: Premiums Dere increased due to the rating factor increase and a trailer being added to the coverage. The loss ratio for this year's premium is based on 2003 and'7_004 activity when a St. Anthony squad was t -boned and suffered major damage. Workers Compensation: Overall the cost for all LMC member cities saw an increase in premiums. The increase is moderate and is within the projected allocation in this year's budget. St. Anthony will continue to maintain a Managed Care Provider. F;mployees who are injured on the job are assigned to a specific clinic and coach for the rehabilitation of their injury. "'Phis results in a 3% reduction in workers' comp premiums and assists the employee with developing a medical plan and treatment schedule. Liquor Liability: 'T'hese premiums are based on sales. In 2004, during construction both stores were closed, which reduced the cost of liability insurance. The increase in premiums for 2005 is based on estimated sales for both stores being opened for 12 consecutive months. As in previous years, no other insurance companies chose to compete with the League of Minnesota Cities Insurance Trust. It should be noted that the costs of the premiums are within the amount budgeted in the 2005 operating budget. Staff recommends Council pass Resolution 905-053 approving renewal of insurance coverage through the League of Minnesota Cities at a cost of $.163,708, approving off -sale liquor liability insurance totaling $1.1,250 and waiving the statutory limits of tort liability.