5.1. SR 11-06-2006 - Laserfiche WebLink

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The League's base rates increased for 2006 by about 5%, and the City's projected payroll also increased from last year by about 5700,000, With these changes in mind, the improvement in the Modifier is saving the City about $25,000! Together with the City's election of a $10,000 deductible and this excellent Modifier. Workers Compensation coverage is very well-priced for 2006. Good job on the loss control and emphasis on employee safety! 6) An optional quote for Excess Liability coverage has again been secured. At $ LOOO,OOO limits, the additional cost would be 567,520. At a 52,000,000 limit, the annual additional cost would be $ 101,280. These premiums are higher than last year, and arc also impacted by the recent land use claim. The City has decided against the purchase of excess limits in the past. relying on the statutory municipal tort liability limits. The City has elected the League's waiver option, and generally has a total of$I,OOO,OOO available for anyone "occurrence". There are some special exceptions, and in some cases, separate limits for special types oflosses, but in general, the figure to remember is $1.000,000. Should the Council decide to go ahead and purchase these additional limits, we will add the cost to the final proposal. We discussed these options last year in workshop, and the Council decided to stay with the $1,000.000 general limit. We just want to offer again that higher limits are available. 7) This year's Vehicle schedule includes 147 units. When preparing information for this year's renewal, a decision was made to drop Comprehensive and Collision coverages on some of the older units with approximate market values at $5,000 or less. Since claim payments on such older units would be on a depreciated basis, it was detennined that it was not cost effective to continue to insure these units for physical damage coverage. Although the premium savings is not really significant, it made good sense to change the strategy for insuring older vehicles. 8) The City changed to a 52,500 deductible in 2004. With this year's premium increase, the Council may want to consider purchasing a larger deductible, if not for a long-term strategy, then perhaps for the peliod oftime the Builders' Association claim impacts premium costs. But for tIus claim, we would likely have recommended at least one more year at the $2,500 deductible level. A "Deductible Option" page follows this memo, and will outline the potential premium savings associated with several reasonable deductible choices. 9) After a thorough review of the League's "No-Fault Sewer Back-up" coverage last year, it was our recommendation that the City decline the coverage and continue to self-insure any "No-Fault" incidents. We did not secure a quote this year, but if there is interest again this year, the cost \vould be