Laserfiche WebLink
Zity of <br /> <br />iver <br /> <br />Item #3.9. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />May 22, 2000 <br /> <br />Consider Renewal with League of Minnesota Cities <br />Insurance Trust for Property and Liability Insurance <br /> <br />The city's property and liability coverage was up for renewal on April 1. <br />Typically, the insurance renewal information is presented to the council prior <br />to the actual renewal date. However, this year the city received the renewal <br />information in mid-May for the April 1, 2000 - April 1, 2001 contract. The <br />city has had coverage with the League of Minnesota Cities Insurance Trust <br />(LMCIT) for around twenty years and staff recommends renewal with the <br />LMCIT so I don't believe the timing of this information will be an issue. <br /> <br />There are several reasons the city has had coverage with the LMCIT for so <br />many years. First, there are only a few other companies who cover <br />municipalities and those companies will not cover all city operations such as <br />the dam and the beach. Second, these companies cannot match the LMCIT's <br />broad coverage. Third, the LMCIT premiums have typically been 35 to 40 <br />percent lower than other bids, plus the League has a dividend program. This <br />year the League returned $7 million in dividends to its member cities. <br />Finally, it is hard to match the good working relationship we have with the <br />LMCIT. We often request and receive advice on how to avoid liability in <br />certain areas and take part in the LMCIT's loss control seminars. <br /> <br />This year our agent Dan Green requested quotes from four companies, <br />LMCIT, Pennco, Marinco, and Lymon Corporation. After reviewing all of the <br />quotes, it is clear the LMCIT has the best coverage and rates for the city. The <br />renewal premium is $177,106, a decrease of $8,293 from last year's premium. <br />Elk River Municipal Utilities is a participant in the city's insurance coverage <br />and $54,540 of the premium will be paid by the Utilities for their coverage. <br />You may recall that last year the city purchased Y2K insurance to cover any <br />unanticipated problems or claims arising out of the Y2K issue. This was <br />originally intended to be a two-year contract; however, because the League <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />