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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration November 6, 2006 <br />Item Description <br />Insurance Renewal Presentation from Ma <br /> <br /> <br />Administrator <br /> <br /> <br />Introduction <br />Mary Eberley of First National Insurance Agency will present the July 1, 2006, League of Minnesota <br />Cities insurance Trust (LMCIT) renewal, which was just received from LMCIT. Coverage has been <br />bound since July 1 even though the renewal documents and rates were just received. The workers' <br />compensation insurance renewal is included as well; that policy renewed on October 1. Other than <br />considering deductible options, the policies remain basically unchanged. <br /> <br />Discussion <br />The details of the proposal are included in the attached memo from Mary Eberley. I do, however, want <br />to highlight a few items from the renewal. The fIrst being the city's experience modifIcation factor for its <br />workers' compensation insurance which dropped from an already excellent rate of .81 to .68. This is a <br />huge savings in premium for the upcoming year. Credit for this good rating goes to many including Bruce <br />West, Safety Coordinator, the Safety Committee, the department heads for promoting safety and holding <br />their employees to our safety standards, and, especially, to every city employee for practicing good safety <br />habits while at work. This rating results in a substantial premium savings for the city. Second, part of the <br />premium increase in the renewal is due to the lawsuit with the Builder's Associations. This additional cost <br />has been isolated and will be charged to the building inspection division for the next three years. The <br />cost for the 2006-2007 renewal is $25,000. <br /> <br />As I stated, we are recommending that the Council consider two deductible options. Please review the <br />options attachment presented by Ms. Eberley outlining deductible options. She will give a brief overview <br />of the options at the meeting. <br /> <br />Financial Impact <br /> <br />Attachments <br />· Letter from Mary Eberley-First National Insurance Agency <br />· City of Elk River Premium Summary & Comparison <br />· Deductible Options <br /> <br />Action Requested <br />The City Council is asked to consider renewal of the city's insurance policies with LMCIT including a <br />change in the deductible. <br /> <br />s: \ Council\Lori\2006\Insurance Renewal.doc <br />