CC PACKET 06102008 - Laserfiche WebLink

Home Browse Search

lei MEMORANDUM DATE: May 27, 2008 TO: Mike Morrison, City Manager FROM: Roger Larson, Finance Director PI'EM: 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 $212,592. The cost for renewal of St. Anthony's insurance coverage remained fairly stable reflecting a 5.1% increase in total premiums. A review is as follows: Property: The premiums show an increase of $1,704, mainly because of a slight increase in properly values, an increase in value of building contents and the related costs associated with replacement. General Liability: The premium increase of $5,165 is related to higher expenditures to]- construction orconstruction projects, capital improvements, an increase in operating expenditures and an overall rate increase associated with property damage claims administered by the League. 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 ($461). Automobile: Premiums decreased ($3,048) due to a reduction in the League's rate they charge for automobile coverage and the City has experience a limited number of automobile related claims. Workers Compensation: Overall all LMC member cities experienced an increase in premiums. Part of the increase is inflationary and is based on the overall cost of the League providing workers compensation insurance. The other part of the increase is related to the hiring of three new police officers that were added to the coverage (2 for the 24 hour Lauderdale contract and I St. Anthony officer). I3ased 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 $2,281 reduction (2%) in workers' comp premiums. As in previous years, no other insurance companies contacted the City or our designated agent, expressing interest 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 2008 and the projected 2009 operating budget.