5.8. SR 09-07-2004 - Laserfiche WebLink

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2) 4) 5) Recommendation: Relying on information with more accuracy over the past three years, would indicate that the City should stay one more year at the current $1,000 Deductible level, "test" the results again next year, and consider the option again. This would be the "safest" route, I believe. On the other hand, the single "bad" year out of five, may be a "fluke", and could be related to the number of projects, construction, growth in the City, and may not occur again. In general, the City's approach to safety and loss control has grown more specific and, we hope, more effective. The council could also decide to take the chance, assume that results will continue to improve, and choose to take the $2,500 Deductible Option and take advantage of the premium savings this year. & 3) Faithful Performance Bond Limit I believe it is time for the City to make an increase in this limit to $500,000 level. The City's activities continue to grow, and so does the number of people who have contact with financial matters, and the budget. The "formula" the League mentions in its discussion on appropriate bond limits comes from the Municipal Finance Officers Assn. The "exposure index" is equal to 10% of the City's gross annual revenues, plus the market value of any negotiable securities. Any "exposure index" in excess of roughly $7,000,000 results in a suggested bond limit of $500,000 by the League. The discussion paper is available in the LMCIT Library on the League's web site and is entitled "LMCIT Bond Coverage", if you wish to review the entire discussion. Recommendation: Increase the Bond limit to $500,000. $5,000 Deductible - Equipment Breakdown Savings is negligible - $786. Claims of this nature, in general, tend to be large, so the savings effect for an insurer, or in this case, the League's self-insured program, is not significant. Credits tend to be small until the deductibles become more significant - $25,000-$50,000 range for large property schedules, for example. Recommendation: Reject this Option. Purchase of $1,000,000 or $2,000,000 Excess Liability Coverage I believe this is a policy decision. Also, the cost is significant to add these layers of protection against damages for injury or accident. In general, the tort limits in statute do not apply to all claims for damages. Examples include: claims under federal civil rights laws, liability assumed under contract, actions brought in another state, claims based on liquor sales, or based on a "taking" theory. For a