7.1. SR 10-20-2008 - Laserfiche WebLink

Home Browse Search

REQUEST FOR ACTION To Item Number City Council 7.1, Agenda Section Meeting Date Prepared by Administration October 20, 2008 Tim Simon, Finance Director Item Description Reviewed by Insurance Renewal and Consider $10,000 Deductible Level Reviewed by Action Requested The City Council is asked to consider renewal of the city's insurance policies with the League of Minnesota Cities Insurance Trust (LMCIT) including a change in the deductible. Background/Discussion For over twenty years the City of Elk River has participated in the LMCIT. Mary Eberley of First National Insurance Agency will present the July 1, 2008, LMCIT renewal, which was just received from LMCIT. Coverage has been in Binder since the official July 1" renewal date even though the renewal documents and rates were just received. The workers' compensation insurance renewal is included as well; that policy will renew on October 1, 2008. The policy has remained unchanged for the most part, except that the Council is asked to consider the various deductible options. The details of the proposal are outlined in the attached memo from Mary Eberley. Here are a few highlights which are outlined in Mary Eberley's attached memo: • The City continues to receive a dividend for participating in the LMCIT program • Builders' association claim has an impact of approximately $30,000; this will be the last renewal period impacted by the builders' associations claim • The property schedule has added nearly $18 million • The overall increase comes to about 8.8% with no change in deductible • The City again has an excellent Experience Modification factor of .77 The City continues to be proactive in promoting safety and safety standards through the continued dedication of all City employees and the Safety committee. These efforts result in a substantial premium savings for the City. We are recommending that the Council consider changing to a $10,000 deductible option. Please review the options attachment presented by Mary Eberley outlining deductible options. Historically, in looking at the last five years the city would generate a net savings every year going to the $10,000 deductible option. The $10,000 deductible option has been reviewed and approved by the ERMU's commission contingent on City council approval. Mary will give a brief overview of the options at the meeting. C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\InsuranceRenewal.doc