CC PACKET 06122007 - Laserfiche WebLink

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17 MEMORANDUM DATE: June 6, 2007 TO: Mike Morrison, City Manager FROM: Roger Larson, Finance Director ITEM: LEAGUE OF MN CITIES INSURANCE RE' NEWAL 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 $202,368. Overall the cost for insurance coverage remained fairly stable reflecting a 3.1% increase in total premiums. A review is as follows: Property: The premiums show an increase of $4,549, mainly because of escalating property values and the related costs associated with replacement. Inland Marine: The premiums increased of $652 because of the addition of the new Elgin street sweeper. Liquor Liability: These premiums are based on annual sales and the League's rating of losses. Based on the League's overall experience rating of liquor liability claims, the rate the League charges decreased which resulted in a decrease in premiums of ($1,750). Automobile: Premiums decreased ($671) due to a reduction in the League's rate they charge for automobile coverage. Workers Compensation: Overall all LMC member cities experienced an increase in premiums. The increase is inflationary and is based on the overall cost of the League providing workers compensation insurance. Based on the success of getting employees who are injured on the job into a successful rehabilitation program, St. Anthony will continue to maintain a Managed Care Provider. This program provides employees with a coach and assists employees with a specific medical plan to rehabilitate their injury. This result is a 2% reduction in workers' comp premiums. 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 2007 and 2008 projected operating budgets.