5.5. SR 11-01-2010 - Laserfiche WebLink

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5) The City insures the YMCA facility and is reimbursed by the Y for costs. This year's cost is approximately $9,500. We will again assist City staff in allocating this back to the YMCA. 6) Workers Compensation coverage for the City renewed October 1, 2010. It too is a good renewal, although not quite as favorable as last year. The Experience Modification factor has increased from .85 last year to .93 for this year. This means a 7% discount from the League's base rates, but with the factor increase from last year, it represents in increase of 8% since last year. League Workers Comp rates have also decreased an average of about 2%, but the net result is an increase in Workers Compensation costs. The City's Safety Committee reviews and modifies training and equipment to help improve safety for the City's staff. 7) Municipal liability limits have increased about 3% for this year's renewal. Although the City has opted not to purchase additional "excess" limits in the past, I have secured a quote for an additional $I Million in limit. The additional cost to add another million in limit would be $54,353 including Liquor Liability, and $52,191 without. If the Council is interested, this additional limit could be included with the renewal. Coverage has again been renewed on the basis of waiver of the per claimant limit, but this too can be changed. Statute now provides that a payment for any one claimant can be limited to $500,000. If the Council is interested, we can provide information on the change in cost. It is a nominal savings of about 2% or perhaps $1,000 to reduce the per claimant limit to $500,000. 8) The City changed to a special deductible plan two years ago - $10,000 per `occurrence'/$50,000 aggregate/$1,000 `maintenance' after reaching the $50,000 aggregate. Results so far have been very favorable, so we are not recommending a change. What we have been able to do last year and this, however, is to reduce the aggregate limit to $40,000 with no change in premium cost. The City's claim history has been very good, and with good safety practices in place, we would expect this trend to continue. We plan to look at options again at the next renewal. This year's renewal is a very good one and we recommend the Council approve it, but if there are other questions, we will, of course, address them for the Council. Liberty Insurance Agency and I appreciate the opportunity to work with the City of Elk River, ERMU, and the fine staff. We thank you for the continued business. Respectfully, Mary Mary Eberley, CPCU Client Executive