7.1. SR 10-20-2008 - Laserfiche WebLink

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a city's claim or loss experience to that of others over athree-year experience period. The Property Schedule has increased again with the addition of the YMCA building and the normal inflationary factor the League applies to property values to provide replacement cost coverage. The premium expense for the YMCA building will be reimbursed to the City by the Y, and totals approximately $7,500. We will work with staff to prepare any necessary documentation for this reimbursement. 4) The City's Workers Compensation coverage renewed on October 1st, and again shows an excellent Experience Modification factor of .77. The City's safety training, risk management efforts continue to help control Workers Compensation coverage expenses. This modifier means the City receives a discount from LMCIT base rates of 23%. The League's Workers Comp rates have increased an average of 5% for most classifications for 2008. And though the League notes an overall reduction in the frequency of claims, rising medical costs continue to impact workers comp rates. In fact, medical costs now make up about 63 percent of LMCIT's total worker comp loss costs. The best possible strategy is to avoid the injuries in the first place! 5) An optional quote for Excess Liability coverage has again been secured. At $1,000,000 limits, the additional cost would be $69,812. At a $2,000,000 limit, the annual additional cost would be $ 104,718. These quotes are also influenced by the land use claim noted in item 3. above. The City has declined the purchase of additional limits in the past, but we will continue to offer the quotes for the Council to consider. The City has elected the League's waiver option, and generally has a total of $1,200,000 available for any one "occurrence". There are some special exceptions, and in some cases, separate limits for special types of losses, however, the general limit is currently $1,200,000. This limit was recently amended when the State changed the tort limit as of January 1, 2008. The Council will want to again consider its prior decision to waive the statutory tort limit for municipalities. The statutory limit is currently set at $400,000 for any one claimant, and $1,200,000 for any one `occurrence'. LMCIT has historically offered the option to "waive" this statutory limit, making the full "occurrence" limit available for any one incident. The City of Elk River has elected to "waive" the statutory limit, but may wish to re-visit this decision again. We have enclosed a copy of the League's most recent risk management memo regarding both the "waiver" question and considerations for purchase of excess liability limits. If the Council wishes to consider these questions again in a work shop setting, we'd be happy to present in more detail. If the Council should decide to make a change to "non-waived" status at this time,