8.4. SR 09-16-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 8.4 Agenda Section Meeting Date Prepared by General Business September 16, 2013 Tim Simon, Finance Director Item Description Reviewed by Insurance Policy Renewal Cal Portner, City Administrator Reviewed by Action Requested Approve by motion,the renewal of the city's insurance policies with the League of Minnesota Cities Insurance Trust (LMCIT). Background/Discussion The City of Elk River has participated in the LMCIT for over 20 years. Coverage has been in binder since the official July 1 renewal date awaiting finalization of the renewal documents and rates. The workers' compensation insurance renewal is also included effective October 1, 2013. The policies have remained unchanged for the most part. Following are a few highlights of this year's insurance renewal: • The city received two dividends last year from LMCIT; $52,210 on the liability package and $24,339 on workers' compensation. The dividends have historically offset premium increases, allowed for deductible increases and fund the safety budget. • Our insurance agent,Northern Capital Insurance Group, analyzed our deductibles and feel we are at a good level based on our size and experience. They recommend no deductible changes. • Our property schedule remains relatively the same with a slight increase based on a recent LMCIT/HIRONS appraisal for updated replacement cost values. • Coverage for property, autos, municipal liability, etc.include an increase from two past land use claims that impacted the formula. This renewal will complete the surcharge for one prior claim. • Workers' comp costs decreased as our experience modification factor has decreased from 1.02 to 0.82. LMCIT indicated that a 1.02 is "average." This was a great improvement in just one year. We did have some larger claims fall off the 3-year look back from the third year. The city continues to be proactive in promoting safety and safety standards through the continued dedication of all city employees and the Safety Committee. Financial Impact All insurance policy renewals are budgeted in the 2014 budget. Attachments ■ Northern Capital Insurance Group summary letter P a w E A E U s r NaA f RE]