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13. MEMORANDUM DATE: June 5, 2009 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 $208,592. The cost for renewal of St. Anthony's insurance coverage remained stable reflecting a (1.9%) decrease in total premiums. Significant in this year's renewal is the drop in the experience rating for workers compensation. It went down from .83 in 2008/09 to .78 in 2009/10. A review of the renewal is as follows: .Property: The premiums show an increase of $840, mainly because of a slight increase in property values set by the League, an increase in value of building contents and the related costs associated with replacement. General Liability: The premium decrease of ($1,789) is directly related to the amount of 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 the premiums remained stable resulting in a minimal increase of $98. Automobile: Premiums decreased ($370) due to the limited number of automobile related claims the City has experienced. Workers Compensation: With the reduction in this year's modification rating; St. Anthony is at the lowest end of the modification scale. The change reflects St. Anthony's commitment to have its employees remain safety conscious when performing their duties. 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 who assists employees with a specific medical plan to rehabilitate their injury. This result is a $2,230 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 2009 and with premiums remaining stable it will help balance the 2010 operating budget.