09-30-1985 CC MIN - Laserfiche WebLink

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~ PAGE 4 CITY COUNCIL MINUTES SEPTEMBER 30, 1985 that the costs included parking lots and landscaping. He noted that in his opinion a combined building could be constructed to accommodate both a maintenance building and a City Hall at an estimated cost of $15 per square foot for the maintenance building and $20 to $25 per square foot for the City Hall and added that, by combining the buildings the cost per square foot could be reduced due to less site work. Mr. Weicht also noted that there are lease back programs the City could possibly take advantage of. He also recommended that the City use gas radiant heat and that the Blaine and Champlain City Halls are in the same general complex as the public works garage. 6.5 Quotes for City Insurance Program The City Administrator explained that both he and Dan Greene had been exploring insurance markets in Minnesota and that there are essentially only two markets remaining in the municipal insurance business, those being the Home Insurance Company and the League of Minnesota Cities Insurance Trust. He explained that the Home is renewing its accounts on a selective basis and is keeping only the profitable accounts. For expample, he noted that he had become aware of just recently that -th~ City of Glenwood is not being renewed by Home even though their contract expires in December. With regard to companies that had previously been in the municipal business, the picture for them had changed dramatically. He noted that Iowa National Mutual Insurance company was now in receivership and that many of the companies doing business in Bermuda were going out of business. He also noted that the Western Casualty Surety company is no longer in a municipal market. The City Administrator explained that Cities in the League of Minnesota Cities Insurance Trust Program are experiencing an approximate 55% to 69% increase in premiums and many other cities are considering themselves fortunate if their premiums doubled. He noted that in discussions with Peter Tritz of the League of Minnesota Cities Insurance Trust, several cities have experienced premium increases of 399% to 499% and even to 599% over the previous year.