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<br />I ~\.( <br />( II <br />IIi{ River <br /> <br /> <br />ITEM 4.2. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL _ C \ <br />LORI JOHNSON, FINANCE DIRECTOR -tt(j~J <br />SEPTEMBER 20, 1994 <br /> <br />DATE: <br /> <br />SUBJECT: CITY PROPERTY LIABILITY AND <br />WORKERS' COMPENSATION <br />INSURANCE RENEWAL <br /> <br />. <br /> <br />The City's (including Elk River Municipal Utilities) workers' compensation, <br />property, liability, and miscellaneous insurance policies come due on October <br />1. The City currently has coverage with the League of Minnesota Cities <br />Insurance Trust. This year, the City solicited bids from the League of <br />Minnesota Cities Marinco, Penco, and Titian. All of the companies declined <br />to quote with the exception of the League of Minnesota Cities. The other <br />companies declined because of the competitive price of the League's program <br />and the fact that they would not cover all of the items that the League would <br />cover. Dan Greene of First National Insurance Agency works on the City's <br />behalf in soliciting bids from the various companies. Each year he contacts <br />all providers who write municipal insurance in the State of Minnesota. <br />However, because of the strength and price competitiveness of the League's <br />program, very few other companies write municipal insurance in Minnesota. <br /> <br />The attached information was provided by Dan Greene. The information <br />outlines the upcoming contract. There are basically two contracts to be <br />discussed. The first covers property, liability, boiler and machinery, and <br />other miscellaneous coverage and the second addresses the City's workers' <br />compensation insurance. This year there are also several decisions which the <br />Council will be asked to make regarding insurance. Some of those are <br />decisions which must be made prior to the renewal on October 1 and some of <br />the decisions can be made any time during the contract year. <br /> <br />PROPERTY. LIABILITY. AND OTHER INSURANCE <br /> <br />. <br /> <br />The first page of the handout details each type of coverage and the associated <br />premium. As you can see, the City's premium is going to increase from <br />$159,763 to $193,968. Of course, a portion of this is for coverage for the <br />Municipal Utilities and is reimbursed to the City by the Utilities. The <br />premium overall increased 21.4 percent. Part of this increase is due to an <br />increase in municipal liability insurance which is based on annual <br /> <br />P.O. Box 490. 13065 Orono Parkway. Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />