HomeMy WebLinkAbout15.F.1. 2005/2006 Property/Liability Insurance Renewals
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council CONSEr~T
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2005/06 Property/Liability Insurance Renewals
DATE: July 18, 2005
Introduction
Council is requested to approve of the renewal of property and
liability jnsurance coverage from the League of Minnesota Cities.
Background
Attached is a list of property/liability insurance premiums for
the renewal of the present coverage with the League of Minnesota
Cities insurance Trust (LMCIT) . The policy period is August 1,
2005 to July 31, 2006.
Basic Policy
The policies proposed are basically the same as current coverage.
The premiums are slightly smaller than last year but more items
and value are covered. The decrease is mainly due to lower rates.
The total deposit premium has decreased from $315,060 to $313,312
covering the City, SPUC and EDA.
All of the coverages are from the League of Minnesota Cities
Insurance Trust.
There is more detail available on the policy for any Council
member that desires it.
Optional Coverage
Quotations were not requested for the following coverages:
Flood
Earthquake
Garage keepers
PIP (auto coverage)
Volunteer accident
Asbestos removal liability (in excess of basic coverage of
$200,000)
Open meeting law defense
Joint Powers contracts
Fire works
Utility poles and lines - SPUC
Independent Administrative Boards
Umbrella Policy
Premise medical - no fault coverage
Extraordinary expense (loan for disasters)
The city budget contains $248,670 for insurance (not counting
employee group or work compo insurance) and deductibles across
all funds (General Fund $192,680), excluding SPUC. SPUC shares
in the cost of the insurance and their share for this year has
not been determined yet, last year it was $86,422.
One of the items for the renewal of the property/liability
insurance is to waive the monetary limits on municipal tort
liability. Council previously did not waive the monetary limits
on tort liability established by Minnesota Statutes 466.04 and the
renewal was processed accordingly. The current liability limit is
$1,000,000.
In a move that is contrary to private insurance companies, LMCIT
has included terrorism property coverage up to $1,000,000 as a
result of 9/11. There is also included up to $1. 5 million
coverage for mold liability.
One item that is recommended for Council to consider is whether
to increase the blanket bond for the City Clerk and Treasurer.
These positions have a separate policy) . The current limit of
$100,000 for those two positions has not been raised for awhile
and is far short of the recommended level of 6 million
(Government Finance Officers Assoc.) . A previous Council
declined to follow the GFOA recommendation. The premium to
increase the limit from $100,000 to $250,000 is $150.00. Last
year, the bond amount was increased from $50,000 to $100,000 for
all other employees.
The City Administrators recommendation is to increase the bond
for the Clerk and Treasurer to $250,000.
Action Requested
Move to accept the property/liability insurance renewals from the
League of Minnesota Cities Insurance Trust with increasing the
bond for the City Clerk and Treasurer to $250,000 for a deposit
premium of $313,312, and not waive the monetary limits on tort
liability established by Minnesota Statutes 466.04.
Gregg Voxland
Finance Director