HomeMy WebLinkAbout15.F.6. 2003/04 Insurance renewals
/sFb.
CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2003/04 Insurance Renewals
DATE: July 30, 2003
Introduction
Council 1S requested to approve of the renewal of property and
liability insurance 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,
2003 to July 31, 2004.
Basic Policy
The policies proposed are basically the same as current coverage.
The premiums are slightly larger than last year but more items
and value are covered. The increase is small partly due to no
library being covered. The total deposit premium has increased
from $224,381 to $280,146 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
Sewer backup - $1,000 no fault coverage
Premise medical - no fault coverage
Business interruption - SPUC
Extraordinary expense (loan for disasters)
The city budget contains $196,870 for insurance (not counting
employee group or work compo insurance) and deductibles across
all funds (General Fund $146,050), 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 $78,800.
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 implemented terrorism property coverage up to $1,000,000 as a
result of 9/11. There is also up to $1. 5 million coverage for
mold liability.
The increase in premium is mainly due to increased expenditures
and the related liability coverage - part of the cost of growth.
Action Requested
Move to accept the property/liability insurance renewals from the
League of Minnesota Cities Insurance Trust with a deposit premium
of $280,146 and not waive the monetary limits on tort liability
established by Minnesota Statutes 466.04.
~
Finance Director
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