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HomeMy WebLinkAbout2010-05-05 PACKET 04.D.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 5/5/2009 PREPARED BY CITY CLERK CARON STRANSKY ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider renewal of the package policy with a $50,000/$100,000 /$1,000 deductible and volunteer accident coverage through the LMCIT and outlined in the Insurance Proposal from Wells -Fargo Insurance Services. STAFF RECOMMENDATION Renew the package policy and volunteer accident plan coverage for the 2010 -2011 policy period. BUDGET IMPLICATION ADVISORY COMMISSION ACTION N/A SUPPORTING DOCUMENTS: ® MEMO /LETTER: City Clerk Caron Stransky dated April 28, 2010 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Insurance Proposal ADMINISTRATORS COMMENTS - City Administrator Date COUNCIL ACTION TAKEN: dAPPROVED ❑ DENIED []OTHER CITY OF COTTAGE GROVE MINNESOTA To: Honorable Mayor and City Council Members From: Caron Stransky, City Clerk Date: April 28, 2010 Subject: PACKAGE POLICY AND VOLUNTEER ACCIDENT PLAN The City of Cottage Grove received the attached insurance proposal from our insurance agent, Wells Fargo Insurance Services, for the renewal of our package policy and the accident plan for volunteers, broken down as follows:: Osrverage TyPe`�- ` 21309 `, �t71�t � : �° to�xycdApat 21f} ' 2011. r ` � Prernrziin Prertaiuri3:; Packag Policy: 6 Property /Mobile /Crime /Open 68,216 69,835 Meetin i Automobile 24,485 24,525 • Boiler & Machinery 5,870 5,963 Bonds 1,193 1,198 General Liability 67,369 64,825 Total Package Policy: 167,133 169 Open Meeting Law 1,142 Included in Package Polic Volunteer Accident 2,175 1,813 Total Premium 170,450 168,159 Package Policy The package policy includes property, mobile equipment, automobiles, boiler and machinery, crime, employee dishonesty, and general liability coverage. This year, the open meeting law coverage is included in the package policy. The City carries a $50,000 per occurrence deductible, $100,000 policy period aggregate. Once the annual aggregate of $100,000 is exceeded, a $1,000 per loss deductible will apply. The deductible under the Boiler and Machinery coverage is $2,500 per occurrence. Overall, our manual premium decreased from $170,450 to $168,159, or in the amount of $2,291. Volunteer Accident Plan Volunteers working under the City's direction and control are provided disability, death, impairment, and medical benefits for any injury while performing volunteer services. This premium decreased $365 and it is coded to the worker's compensation line item in the Self- Insurance Fund (Object 9700- 4148). 2010 Budget The City budgeted for a 15% increase in our insurance premium for 2010 in the amount of $194,900 in the Self Insurance 4352 - General Liability Expenditure Account. Recommendation Staff recommends renewal of the package policy with a $50,000/$100,000 /$1,000 deductible, and the volunteer accident plan for the April 3, 2010 to April 3, 2011 policy period. /Attachment Insurance Proposal for Presented By: Bill Velin Wells Fargo Insurance Services USA, Inc. 4300 MarketPointe Drive, Suite 600 Bloomington, MN 55435 952.830.3000 Main 952.830.3oo9 Fax Together a• far t i 1P pl City of Cottage Grove Coverages Common Coverage Terms Named Insured City of Cottage Grove Principal Address 7516 80 Street South Cottage Grove, MN 55016 Effective Dates April 3, 2010 to April 3, 2011 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only, This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 1 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Named Insured The Named Insured is amended to read as follows: City of Cottage Grove and City of Cottage Grove EDA And any other divisions, subsidiaries and persons and organizations under the control of the Named Insured, and any business entity incorporated or organized under the laws of the United States of America (including any state thereof), its territories or possessions while the person or organization named in Item 1 of the Declarations or the forenamed owns, during the policy period, an interest in such entity of more than fifty percent (50 %). This clause is subject to the acquisition reporting provisions as outlined in the policy. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 2 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Schedule of Locations Location #1 7516 80 Street South Cottage Grove, MN 55016 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages 20= Carrier League of Minnesota Cities Insurance Trust Limits of Liability $47,178,372 Blanket Real and Personal Property, Property in Open, Scheduled & Unscheduled Equipment Actual Loss Sustained Blanket Business Income, Extra Expense, & Expediting Expense $ 5,000,000 Terrorism Activity Annual Aggregate Limit Deductible $ 50,000 Per Occurrence 100,000 Annual Aggregate ** * *If the annual aggregate is exceeded, a $1,000 deductible per claim, per line of coverage applies Note: Inflation Factors for 2010 - Buildings - 1.5% - Contents - 2.2% - Property in the Open - 1.5% This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 4 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Property (cont.) Scope of Coverage includes but is not limited to Asbestos Clean up, Abatement and Removal - $250,000 Per Location • Loss of Revenue, Extra Expense and Expediting Expense - $5,000,000 Per Occurrence • Demolition and Debris Removal - Direct Physical Damage to Covered Property - 25% of Replacement Cost - No Direct Physical Damage to Covered Property - $50,000 Per Occurrence • Leasehold Interest - $500,000 Per Location • Pollutant Cleanup & Removal - $250,000 Per Location • Errors - $500,000 Per Occurrence • Rental Reimbursement - $25,000 Annual Aggregate • Arson Reward - $5,000 Per Fire Loss • Accounts Receivable - $500,000 Per Location • Valuable Papers and Records - $500,000 Per Location • Extraordinary Expense - $250,000 Annual Aggregate • Utility Services - $100,000 Per Occurrence • Water and Supplemental Flood Coverage - $500,000 Per Occurrence /$500,000 Annual Aggregate This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 5 Wells Fargo Insurance Services Confidential. 0 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 201.0 -2011 City of Cottage Grove Coverages Petro Fund Claims -Made Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 250,000 Reimbursable Costs and Defense Costs Each Tank Release 250,000 Term Aggregate Deductible Not Applicable This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. it should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 14 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Carrier League of Minnesota Cities Insurance Trust Blanket Limit of Coverage $43,880,023 Deductibles $ 2,500 Per Occurrence Air Conditioners /Compressors Includes Production Machinery Any One Accident This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or after the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 15 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Mobile Equipment Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 2,636,664 Scheduled Equipment Valued over $25,000 561,685 Unscheduled Equipment Valued under $25,000 Deductible $ 50,000 Per Occurrence 100,000 Annual Aggregate ** Scope of Coverage includes but is not limited to Perils Insured Against - Special Form Valuation - Replacement Cost 100% Coinsurance Note: Inflation Factor for 2010 - 2.5% ** If the annual aggregate is exceeded, a $1,000 deductible per claim, per line of coverage applies. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 16 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Crime Carrier League of Minnesota Cities Insurance Trust Limits of Liability Blanket Covering $ 250,000 Forgery or Alteration Money & Securities Deductible $ 50,000 Per Occurrence 100,000 Annual Aggregate ** ** If the annual aggregate is exceeded, a $1,000 deductible per claim, per line of coverage applies. This insurance proposal is a descriptive summary of the Insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 17 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Carrier League of Minnesota Cities Insurance Trust Limits $ 1,000,000 Faithful Performance Coverage Deductible $ 50,000 Per Occurrence 100,000 Annual Aggregate ** ** If the annual aggregate is exceeded, a $1,000 deductible per claim, per line of coverage applies. This insurance proposal Is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 18 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages General Liability Claims -Made Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 2,000,000 Products & Completed Operations Aggregate 1,200,000 Each Occurrence 2,000,000 Electro Magnetic Fields Aggregate 50,000 Fire Legal Liability (Any One Fire) 1,200,000 Limited Pollution Liability (Including Lead & Asbestos) 1,000,000 Land Use or Development Litigation 2,000,000 Failure to Supply - Annual Aggregate 2,000,000 Mold Claim Limit - Annual Aggregate 100,000 Outside Organization Claim Limit Retroactive Dates Municipal Liability 4/03/87 Municipal Limited Pollution 9/12/88 Deductible $ 50,000 Per Occurrence 100,000 Annual Aggregate ** ** If the General Annual Aggregate is exceeded, a $1,000 deductible applies per claim, per line of coverage Additional Covered Insured South Washington County Ambulance This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the Insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 19 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages General Liability Schedule Rating Basis Classification Premium Basis Operating Expenditures Cost $ 14,103,300 Waterworks Payroll 331,200 Waterworks - Per 1 mil gallons Gallons 1,355 Streets Miles 159 Golf Course Sales 1,663,000 Golf Carts Cars 75 Rec Centers, Arenas, Community Centers Area 47,716 Liquor Off Sale > $249,999 Stores 1 Swimming Pools - Seasonal - Board 4 feet Number 1 Swimming Pools - Seasonal - Without Diving Board Number 1 Independent Contractors Cost 7,606,015 E &O Other 5 Year Prior Acts over 12,000M Cost 31,789,203 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only, This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the Insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 20 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services: All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Carrier League of Minnesota Cities Insurance Trust Limits of Liability Limit, Symbo Coverage $1,200,000 1 Combined Single Limit for Bodily Injury and Property Damage BASIC 5 Personal Injury Protection 200,000 6 Uninsured /Underinsured Motorists 1,000,000 8, 9 Hired or Non -Owned Auto Liability Deductible Deductible Symbol Coverage 50,000 2, 8 Comprehensive (Applies to Owned & Hired Autos) 50,000 2, 8 Collision (Applies to Owned & Hired Autos) Automobile Symbols 1 = Any Auto 2 = All Owned Autos 3 = Owned Private Passenger Autos 4 = Owned Autos Other Than Private Passenger 5 = All Owned Autos Requiring No -Fault Coverage 6 = Owned Autos Subject to Compulsory U.M. Law 7 = Autos Specified on Schedule 8 = Hired Autos 9 = Non -Owned Autos Additional Coverages Actual Cash Value Valuation Replacement Cost Coverage Applies to Vehicles 44, 46, 51, 55, 72, 75, 79, 80 & 89 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. you are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 25 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Group Self- Insured Accident Plan for Volunteers Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 100,000 Coverage A: Accidental Death Benefit 100,000 Coverage B: Permanent Impairment Benefit 400 Coverage C: Weekly Disability Benefit, Waiting Period: 3 Calendar Days, Maximum Period: 26 Weeks 1,000,000 Coverage D: Medical Benefit Maximum Amount 500,000 Total Limit of Liability Per Accident This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the Insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 34 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011 City of Cottage Grove Coverages Open Meeting Law Claims -Made Carrier League of Minnesota Cities Insurance Trust Coverage Reimbursement to a City Official for 100% of the Defense Costs Incurred by the City Official in Defending an Open Meeting Lawsuit Reimbursement Limits $ 50,000 Defense Costs Per Lawsuit, Per Official - Maximum 50,000 Agreement Term Aggregate Per Official - Maximum 3/9/94 Retroactive Date This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 37 Wells Fargo Insurance Services Confidential. © 2010 Wells Fargo Insurance Services. All rights reserved. 4/9/2010 mw \Proposal \City of Cottage Grove 2010 -2011