HomeMy WebLinkAbout4.F.4. 2012/2013 Property Liability Insurance Renewals-League of Minnesota Cities Insurance 9FL1.
CITY OF SHAKOPEE
CONSENT
Memorandum
To: Mayor and Council
Mark McNeill, City Administrator
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From: Julie Linnihan, Finance Director
Re: 2012/2013 Property Liability Insurance Renewals- League of Minnesota Cities Insurance
Trust (LMCIT)
Date: August 8, 2012
Action Requested
Move to accept the LMCIT property /liability insurance renewal per the quoted premium.
Introduction
The League of Minnesota Cities Insurance Trust (LMCIT) serves over 1,100 members for
property, liability, workers' compensation insurance and benefit needs. The City of Shakopee
has been affiliated with the LMCIT program to ensure continuous, consistent insurance coverage
since 1987, and annually works with the LMCIT and the local agent, Sue Sichmeller, to update
and renew the existing property and liability policies. It is important to note that the LMCIT
program provides members with a dividend plan. The dividend recently received from the
League as $91,354, for the 2011 review period.
Background
Renewal
Attached is a list of property /liability insurance premiums for the renewal of the present
coverage, (which reflects updated property, equipment, liability and vehicles schedules)
with the LMCIT. The policy period covers July 31, 2012 to July 31, 2013.
Basic Policy
The policies proposed provide comprehensive coverage that may be specific and unique
to the LMCIT plan. These include coverage for police and firefighters professional,
public officials, errors and omissions and cyber protection coverage to name a few. The
premium rates have increased slightly from the prior year. The total deposit premium has
increased from $445,907 to $471,289, an increase of $25,382. The annual premium
provides coverage for the City, Shakopee Public Utilities (SPUC) and EDA. The
increase is a result of new property and equipment added to the listing of coverage (parks,
vehicles, equipment), as well as the slightly increased rating modifier.
Optional Coverage
Optional coverage options are available to municipalities, on a case by case and as
needed review. These include areas such as Bond and Crime coverage, with increased
limits. Each year, the policy is reviewed to ensure that sufficient coverage is in place in
the event of loss.
Tort Waiver Liability Coverage
One of the items that provides for a base of calculation for the City policy is the
determination to not waive the monetary limits on tort liability, as established by
Minnesota State Statutes 466.04. The coverage and premium reflect this decision, which
was approved at a July 2012 Council meeting.
The city budget annually provides for the rates for this specific insurance across all funds. The
portion specific to the Shakopee Public Utilities is estimated at approximately 25% of the
premium total, with the City portion at 75 %. City staff, SPUC staff and the agent of record will
be meeting to review and confirm the allocation of the costs for the upcoming premium year.
The City bills SPUC annually for their portion of the coverage cost.
Action Recommended
Move to accept the property /liability insurance renewals from the League of Minnesota Cities
Insurance Trust for a deposit premium of $ $471,289.
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LEAGUE or CONNECTING & INNOVATING
MINNESOTA SINCE 1913
CITIES
July 26, 2012
Capesius Agency Inc Covered Party: City of Shakopee
1240 East Third Avenue
Shakopee, MN 55379 -2135
Effective Date: 07/31/2012
p -.✓ RENEWAL PREMIUM SUMMARY
Common Coverages
Coverage Deductible Premium
• Property $2,500. $165,223.
• Mobile Property 2,500. 16,398.
• Municipal Liability 2,500. 167,746.
• Automobile Liability 2,500. 20,380.
• UM/UIM $200,000 all covered autos 2,500. 1,611.
• Basic Economic Loss Benefits (PIP) all covered autos 2,500. Included.
• Automobile Physical Damage 2,500. 33,633.
• Crime 2,500. Included.
• Petrofund NA Included.
• Defense Cost Reimbursement NA Included.
021 ( l `5 �_ -- (65 - 1 C` -f (f ea
Experience Rating Modifier: .784 )
(Applied to Municipal Liability, Auto Liability, and UMJULM) The modifier is calculated with a formula which compares
the city's actual toss history with the amount of losses that would be expected for a city of that size if the city were a perfectly average
LMCIT member. If the city's losses and expenses are better than average the city receives a premium credit. If the city's losses and
expenses are worse than average, the city receives a premium debit.
Optional Coverages
Coverage Deductible Premium
• Bond 2,500. 2,024.
• Equipment Breakdown 2,500. 15,264.
• Excess Liability Limit: $ 1,000,000 NA 49,010.
• Liquor Liability Limit: $ NA Not Covered.
• Fireworks Not Covered.
• No Fault Sewer Back Up Limit: $ Not Covered.
• Airport Liability Not Covered.
TOTAL $ 471,289.
DO NOT PAY UNTIL YOU RECEIVE INVOICES
TORT LIMIT $500,000. /$1,500,000.
Comments: If the expiring covenant includes additional interests (mortgagee, loss payee,
additional insured) you will find a schedule of those interests included with the Premium
LEAGUE OF MINNESOTA CITIES 143 UNIVERSITY AVE. WEST PHONE: (651) 2814200 FAX: (651) 281 -1298
INSURANCE TRUST ST. PAUL, MN 35103 -2044 TOLL FREE: (800) 9254122 WEB: WWW.LMGORC
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