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<br /> <br />REQUEST FOR ACTION <br /> <br />To <br />Ci Council <br />Agenda Section <br />Administration <br />Item Description <br />LMCIT Insurance Renewal <br /> <br />Meeting Date <br />Se tember 17, 2007 <br /> <br />Item Number <br />5.3. <br />Prepared by <br />Tim Simon, Finance Director <br />Reviewed by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Action Requested <br />The City Council is asked to consider renewal of the city's insurance policies with the League of <br />Minnesota Cities Insurance Trust (LMCIT) including a change in the deductible. <br /> <br />Background/Discussion <br />For over twenty years the City of Elk River has participated in the LMCIT. Mary Eberley of First <br />National Insurance Agency will present the July 1, 2007, LMCIT renewal, which was just received from <br />LMCIT. Coverage has been in Binder since the official July 1st renewal date even though the renewal <br />documents and rates were just received. The workers' compensation insurance renewal is included as <br />well; that policy will renew on October 1, 2007. The policy has remained unchanged for the most part, <br />except that the Council is asked to consider the various deductible options. The details of the proposal <br />are outlined in the attached memo from Mary Eberley. <br /> <br />Here are a few highlights which are outlined in Mary Eberley's attached memo: <br />. The City continues to receive a dividend for participating in the LMCIT program <br />. Builders' association claim has an impact of approximately $22,000-$23,000, this will also impact <br />one more renewal period <br />. The property schedule has added nearly $11 million <br />. The overall increase comes to about 4.6% with no change in deductible <br />. The City again has an excellent Experience Modification factor of .74 <br /> <br />The City continues to be proactive in promoting safety and safety standards through the continued <br />dedication of all City employees and the Safety committee. These efforts result in a substantial <br />premium savings for the City. <br /> <br />Weare recommending that the Council consider changing to a $5,000 deductible option. Please review <br />the options attachment presented by Mary Eberley outlining deductible options. She will give a brief <br />overview of the options at the meeting. <br /> <br />Financial Impact <br />See attached premium summary & comparison -2007 worksheet <br />