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11 MEMORANDUM DATE: June 1, 2010 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 $207,648. The cost for renewal of St. Anthony's insurance coverage remained stable reflecting a (0.45%) decrease in total premiums. Significant in this year's renewal is the stability of the City workers compensation experience modification. It currently is at .78 which is basically the lowest modification rating that the League of Minnesota will assign. A review of the renewal is as follows: Property: The premiums show an increase of $4,434, mainly because of the increase to property in the open due to the renovation of Emerald Park. In addition, the properly values set by the League and value of building contents, showed a slight increase. General/Municipal Liability: The premium decrease of ($4,061) 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 dropped slightly resulting in a decrease of ($793). Automobile: Premiums decreased ($1,483) due to the limited number of automobile related claims the City has experienced. Open Meeting Law: Council will see that the Open Meeting Law is listed at a cost of $0, but this is for accounting purposes only. In previous years, the cost for Open Meeting Law coverage had its own classification. New this year is that the premium for Open Meeting law coverage has been merged into the cost of General/Municipal Liability coverage. It is important to note that the League will continue to maintain a separate policy related to Open Meeting I aH,. Workers Compensation: With the reduction in this year's modification rating, St. Anthony is at the bottom of the modification scale. This reflects St. Anthony's commitment to educate and train employees on the importance of remaining 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.