8.2. SR 12-19-2011 - Laserfiche WebLink

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~` REQUEST FOR ACTION River To Item Number Ma or and Ci Council 8.2 Agenda Section Meeting Date Prepared by Administration December 19, 2011 Tim Simon, Finance Director Item Description Reviewed by rove Annual Renewal of City's Insurance Policies With the A Cal Portnex, Ci Administrator pp League of Minnesota Cities Insurance Trust Reviewed by Action Requested Approve annual renewal of the city's insurance policies with the League of Minnesota Cities Insurance Trust (LMCIT). Background/Discussion For over twenty years, the City of Elk River and Elk River Municipal Utilities (ERMU) have participated in the LMCIT. Mary Eberley of Liberty Insurance Agency will present the July 1, 2011, LMCIT renewal, which was just received from LMCIT. Coverage has been in Binder since the official July 1 renewal date even though the renewal documents and rates were just received. The workers' compensation insurance renewal is included as well; that policy renewed on October 1, 2011. The policy has remained unchanged for the most part, except that the Council is asked to consider an increase in deductible option. Here axe a few highlights which are outlined in Mary Eberley's attached memo: • The city continues to receive a dividend for participating in the LMCIT program. • The recent land use claim has an impact of approximately $23,000; this will be applied in the next two subsequent renewals. • The property schedule has remained relatively the same as last renewal. • The property, autos, municipal liability, and other miscellaneous policies are down .68% over last year's renewal outside of the land use claim impact. The workers' compensation costs have increased as our experience modification factor has increased from .93 to .95 for this renewal. The city and ERMU continue to be proactive in promoting safety and safety standards through the continued dedication of all city employees and the Safety Committee. These efforts result in a substantial premium savings for the city. We are recommending that the Council consider changing to a $20,000 deductible option and keeping the same $40,000 aggregate. Historically, in looking at the last couple of years, the city would generate a net savings every year going to the $20,000 deductible option. Outside the land use claims, the only other significant claim was for hail damage in the parks. Given the good claim history and the balance in our insurance fund, this makes sense for the city to consider. The last time the deductible was increased was 2008 when the city went from $5,000 to $10,000. AU'