5.1. SR 07-22-2002 - Laserfiche WebLink

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2) 3) 4) 5) 6) -Rateable expenditures are higher than last year by about $736,000. -Property values insured have risen from about $36.3 million to $45.6 million. Several new facilities have been added since last year, and the Replacement Values for existing buildings have been increased by an inflationary factor. -Vehicles insured have increased from 112 at renewal last year to 122 for this year. Builder's Risk coverage - will be added for the new Public Safety facility, the City Hall additions and remodeling project. These new facilities are not yet included in the attached costs. We requested a quote for the municipal liquor store operation this year, including the liquor liability. For the past several years, it has been more competitive cost- wise to purchase coverage outside the League's program. This separate policy again renewed in April. Outside market conditions and coverage restrictions may result in the need to come back to LMCIT with these coverages. The current premium is around $5,500. LMCIT's cost would be higher by about $ 6,500, which is more than twice the price, but will accommodate the City's need for protection without special conditions. This matter is still under discussion, so the quote is just for your information tonight, and in case a change becomes necessary. Workers compensation coverage - also with LMCIT, but will not renew until October 1a. The Experience Modifier, an indicator of effective safety procedures, Is currently at .81, which translates into a discount from standard rates of 19%, and is excellent. We anticipate that this coming policy year's modifier will be comparable. Dividends -LMCIT paid the city a dividend of $37,934, this past December. The substantial increase over last year is due in part to reduced claim activity within the LMCIT program, and in part to the City's long-time participation in the LMCIT program and the success of safety & loss control efforts. The ability to return a portion of premiums paid also speaks to the financial wisdom of the LMCIT program and its plan administrators. Deductible Options - we have again included several deductible options, but are not prepared to make a recommendation to you tonight. Overall, the City's claim experience appears to be improving, which typically would provide incentive for the purchase of a larger deductible and subsequent premium savings. We have requested additional actuarial data and a quote for larger occurrence deductibles with "stop-loss" provisions from LMCIT. After completion of this analysis and calculation of financial benefits, we may be back with a recommendation to change deductibles. For now, the current deductible of $500, or a change to $1,000 deductible would be reasonable.