HomeMy WebLinkAbout4. 2006/07 Property/Liability Insurance Renewals
#Lj
CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
RE: 2006/07 Property/Liability Insurance Renewals
DATE: July 18, 2006
Introduction
Council is 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 wi th the League of Minnesota
Cities insurance Trust (LMCIT) . The policy period is August 1,
2006 to July 31, 2007.
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 increased from $313,312 to $380,857
covering the City, SPUC and EDA.
The main reason for the increase in premium are an increase in
property values from 48 million to 59 million and the expenditure
basis for the liability premium has increased from 54 million to
68 million.
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)
I
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 $305/970 for insurance (not counting
employee group or work compo insurance) and deductibles across
all funds (General Fund $231/570)/ 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 $96/226.
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.
Action Requested
Move to accept the property/liability insurance renewals from the
League of Minnesota Cities Insurance Trust for a deposit premium
of $380/857/ and not wai ve the monetary limits on tort liability
established by Minnesota Statutes 466.04.
Gregg Voxland
Finance Director
finance\docs\insure\prplia06
CITY OF SHAKOPEE -7-
COMPANY PREMIUM COMPARISON
SUMMARY:
2005-2006* 2006-2007*
PROPERTY $ 65,021 $ 73,331
INLAND MARINE $ 7,988 $ 9,882
CRIME $ 1,561 $ 1,595
MUNICIPAL LIABILITY $168,374 $214,128
ERRORS & OMISSIONS INCLUDED INCLUDED
AUTOMOBILE $ 61,952 $ 71,489
BOILER & MACHINERY $ 8.416 $ 10.432
TOTAL PREMUIM $313,312 $380,857
*premiums at Inception of Policy & Does Not Include Interim
Endorsements or Updates
.~--_...- .' .-------
....,..,.-.-- .. '-'.'-'--"~-<-' - --.-.-..- _....-._.,~.--
. --.'. .' --.-- . -.. , .
__ __.. . '___M___~'~_"__'___'__"__' __. ."._._ _~___ . '-",- ,----.
-
Potential Sesquicentennial Logo
Okay or Not??
. ;
;
. .
'.
S 1--1 h l'U) b ;-.
· .. . >o( I. s...$'
.......
'\
,
1~S7 JdOC7 .
.
.
i
f .
I
.
,