2.4. ERMUSR 07-15-2014 - Laserfiche WebLink

Home Browse Search

�/ Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: Elk River Municipal Utilities Commission Theresa Slominski, Finance and Office Manager John Dietz—Chair Al Nadeau—Vice Chair Daryl Thompson—Trustee MEETING DATE: AGENDA ITEM NUMBER: July 15, 2014 2,4 SUBJECT: Renewal Premium for LMCIT Property/Casualty Insurance BACKGROUND: Our annual renewal for Property and Casualty Insurance is effective 7/1/2014 through 7/1/2015. DISCUSSION: We have received our renewal premium from the LMCIT for the 2014/2015 year. The 2014/2015 premium is $147,559 with a$20,000 per occurrence/$40,000 annual aggregate deductible, except the Equipment Breakdown has a separate $20,000 per accident deductible. This is a reduction from the prior year of$4,914. We have a reduction in premium this year in the municipal/auto liability due to the new LMCIT rating process transition where we benefit in not having the Land Use, Police, Sewer Back-up and Employment Related exposures. Our dollar value of coverages increased due to the LMCIT Replacement Cost Inflation Factor, and our Experience Factor increased 3.6% from .878 to .910. I have attached the Renewal Premium Summary for your review, which lists the various coverages and related premiums of the prior and current year. Given we have a reduced premium for 2014/2015; our agents are not recommending any changes to our current occurrence and aggregate deductibles. If the Commission desires to make any such changes, we would need to let the LMCIT know as soon as possible. ACTION REQUESTED: Staff recommends that the Elk River Municipal Utilities Commission approve the submitted insurance policy with the renewal premiums of$147,559 and no changes. ATTACHMENTS: • Renewal Premium Summary rrWERED R Y P Page 1 of 1 ATURE Reliable Public Power Provider P O W E R E D T O S v E 46