The URL can be used to link to this page

Home My WebLink About2013-07-17 PACKET 04.E.� REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # � DATE 7/17/2013 . � • PREPARED BY: City Clerk Caron Stransky ORIGINATING DEPARTMENT DEPARTMENT HEAD *********:�******�**************��**************� COUNCIL ACTION REQUEST: Consider renewal of the package policy through the League of Minnesota Cities Insurance Trust (LMCIT) with a$50,000/$100,000/$1,000 deductible for the April 3, 2013 to April 3, 2014 policy period. STAFF RECOMMENDATION Approve renewal of the package policy. BUDGET IMPLICATION: $205,000 BUDGETED AMOUNT �� •G •llll •► � •► ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECONOMIC DEV. AUTHORITY ❑ DATE REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ $199,723 ACTUAL AMOUNT DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS: � MEMO/LETTER: Caron Stransky dated July 3, 2013 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Insurance Proposal for the City of Cottage Grove ADMINISTRATORS COMMENTS APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � Date ****************�******************************* http://i ntranet/city-cou nci Ilco u ncil-actio n, doc CITY OF COTTAGE GROVE � MINNESOTA MEMO To: Honorable Mayor and City Council Members From: Caron Stransky, City Clerk Date: July 3, 2013 Subject: INSURANCE PACKAGE POLICY 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. The coverage type and premiums are broken down as follows: Package Policy The package policy includes property, mobile equipment, automobiles, boiler and machinery, crime, employee dishonesty, general liability, and open meeting law coverage. The City carries a $50,000 per occurrence deductible, $100,000 policy period aggregate. Once we exceed the annual aggregate of $100,000, a$1,000 per loss deductible would apply. The deductible for our Boiler and Machinery policy is $2,500 per occurrence. Overall, our premium increased from $184,938 to $199,723 or an additional $12,785, an overall 8% increase. The City's insurance agent has indicated that this is due to five key factors - number of households, number of sewer connections, number of City employees, number of police officers, and overall expenditures and exposures. Key exposures include the increase in our automobile values, mobile equipment, and buiiding values for our new public safety/city hall facility and splash pad. A copy of the insurance proposal detailing our package policy from the City's Insurance Agent, Bill Velin of Wells Fargo Insurance Services, is attached for your information. 2013 Budget In 2013, the City budgeted $205,000 in the Self-Insurance, 4352-General Liability expenditure account for package policy coverage. Recommendation Staff recommends renewal of the package policy with a$50,000/$100,000/$1,000 deductible, for the April 3, 2013 to April 3, 2014 policy period, for $199,723. /Attachment Insurance Proposal for City of Cottage Grove Effective Date: Apri13, 2013 to Apri13, 2014 Presented By: Bill Velin Wells Fargo Insurance Services USA, Inc. 430o MarketPointe Drive, Suite 600 Bloomington, MN 55435 952.830.300o Main .. - - 1 .. , "�'''' �r � " ,�, � : r - y � l� j 4 _ _. i 9 .ri . � � �� 1 ' I 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, 2013 to April 3, 2014 This insurance proposal is a descriptive summary of the insurance policies to be piaced on your behaif 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 Weils Fargo Insurance Services' representatfve of any questions you have on the policy's terms and conditions. 2 Wells Fargo Insurance Services Confidentfai. O 2013 Wells Fargo Insurance Services. All rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm 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. Thfs fnsurance proposal is a descrfptive summary of the insurance pollcies to be placed on your behalf based on risk informatlon provided by you. It should be used for reference purposes only. This proposal is not fntended to represent, supersede, amend or alter the terms, conditions, excluslons or other provisions of the Insurance contract between you and the Insurance carrler. Only your Insurance carrfer may modify the terms of your Insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Servlces' representative of any questions you have on the policy's terms and conditions. 3 Wells Fargo Insurance Servlces Confldentlal. O 2013 Wells Fargo Insurance Servlces. All rights reserved. 5/14/2013 mw\Proposal\Clty of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Schedule of Locations Location #1 7516 80 Street South Cottage Grove, MN 55016 Thls insurance proposal is a descriptfve summary of the insurance poiicies to be placed on your behalf based on risk information provided by you. It shouid be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exciusions 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 polfcy's terms and conditfons. 4 Wells Fargo Insurance Services Confidentfal. O 2013 Welis Fargo Insurance Services. All rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Property Carrier League of Minnesota Cities Insurance Trust Limits of Liability $66,863,190 Actual Loss Sustained $ 50,000,000 Deductible(s) $ 50,000 100,000 Blanket Real and Personal Property, Property in Open, Scheduled & Unscheduled Equipment Blanket Business Income, Extra Expense, & Expediting Expense Terrorism Activity Annual Aggregate Limit Per Occurrence Annual Aggregate** **If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies *See Statement of Values on-line at the League of MN Cities Website for Specific Location Information. Thls Insurance proposal Is a descriptive summary of the insurance pollcles 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, excluslons or other provisions of the insurance contract between you and the fnsurance carrier. Only your Insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advlse your Wells Fargo Insurance Servfces' representative of any questlons you have on the pollcy's terms and condltions. 5 Wells Fargo Insurance Servlces Confldentlal. O 2013 Wells Fargo Insurance Services. All rlghts reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm 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 Thfs insurance proposal is a descrlptive summary of the Insurance pol(cies to be placed on your behalf based on r(sk Information provided by you. It should be used for reference purposes only. Thls 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 modlfy the terms of your (nsurance pollcy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the pollcy's terms and condltlons. 6 Wells Fargo Insurance Services Confldential. c0 2013 Wells Fargo Insurance Services. All rlghts reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm 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 Thfs Insurance proposal Is a descriptive summary of the insurance policies to be placed on your behalf based on rlsk information provlded by you. It should be used for reference purposes only. Thls proposal is not fntended to represent, supersede, amend or alter the terms, conditions, excluslons or other provlslons of the insurance contract between you and the Insurance carrier. Only your Insurance carrler may modify the terms of your Insurance policy. You are obllged to read your lnsurance pollcy and advise your Wells Fargo Insurance Servlces' representative of any questlons you have on the pollcy's terms and conditlons. 7 Wells Fargo Insurance Services Confidential. O 2013 Wells Fargo Insurance Servfces. All rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Boiler & Machinery/Equipment Breakdown Carrier League of Minnesota Cities Insurance Trust Blanket Limit of Coverage $ 66,856,319 Per Occurrence Air Conditioners/Compressors Includes Production Machinery Deductible $ 2,500 Any One Accident Thfs insurance proposal is a descriptfve summary of the insurance policies to be placed on your behalf based on risk informatlon provlded by you. It should be used for reference purposes only. Thls proposal is not intended to represent, supersede, amend or alter the terms, condltions, exclusions or other provlslons of the Insurance contract between you and the insurance carrler. Only your insurance carrler may modffy the terms of your Insurance pollcy. You are obliged to read your insurance policy and advlse your Wells Fargo Insurance Services' representative of any questlons you have on the policy's terms and conditions. $ Wells Fargo Insurance Services Confldential. O 2013 Wells Fargo Insurance Servlces. All rlghts reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Mobile Equipment Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 4,435,107 580,221 Deductible(s) $ 50,000 100,000 Scheduled Equipment Valued over $25,000 Unscheduled Equipment Valued under $25,000 Per Occurrence Annual Aggregate** Scope of Coverage includes but is not limited to ■ Perils Insured Against - Special Form ■ Valuation - Replacement Cost ■ 100% Coinsurance Note: ** If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies. *See Schedule of Equipment on-line at League of MN Cities Thls 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. Thls proposal Is not intended to represent, supersede, amend or alter the terms, cond(tions, excluslons or other provislons of the insurance contract between you and the Insurance carrier. Only your insurance carrler may modlfy the terms of your insurance policy. You are obllged to read your insurance policy and advlse your Wells Fargo Insurance Services' representative of any questfons you have on the policy's terms and conditions. 9 Wells Fargo Insurance Servlces Confldentlal, O 2013 Wells Fargo Insurance Serv(ces. All rights reserved. 5/14/2013 mw\Proposal\Clty of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Crime Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 250,000 Deductible(s) $ 50,000 100,000 Blanket Covering Forgery or Alteration Money & Securities Per Occurrence Annual Aggregate** ** If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies. Thls insurance proposal is a descriptfve summary of the Insurance pollcfes to be placed on your behalf based on rfsk fnformatfon provided by you. It should be used for reference purposes only. This proposal is not Intended to represent, supersede, amend or alter the terms, conditlons, excluslons or other provlslons of the insurance contract between you and the insurance carrier. Only your insurance carrler may modlfy the terms of your insurance policy. You are obllged to read your insurance pollcy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditlons. 10 Wells Fargo Insurance Services Confidential. O 2013 Wells Fargo Insurance Servlces. All rfghts reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Bond Carrier League of Minnesota Cities Insurance Trust Limits $ 1,000,000 Faithful Performance Coverage Deductible(s) $ 50,000 Per Occurrence 100,000 Annua) Aggregate** ** If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies. Thls 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. Thls proposal is not intended to represent, supersede, amend or alter the terms, conditfons, exclusfons or other provisfons of the insurance contract between you and the Insurance carrler. Only your fnsurance carrier may modffy the terms of your insurance pollcy. You are obliged to read your Insurance policy and advise your Wells Fargo Insurance Servlces' representative of any questions you have on the policy's terms and conditlons. 11 Wells Fargo Insurance Servlces Confldential. O 2013 Wells Fargo Insurance Services. All rights reserved. 5/14/2013 mw\Proposal\Clty of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages General Liability Claims-Made Carrier League ofi 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(s) $ 50,000 100,000 Per Occurrence Annual Aggregate** ** If the General Annual Aggregate is exceeded, a$1,000 deductible applies per claim, per line of coverage Thfs Insurance proposal is a descrfptfve summary of the insurance pollcles to be placed on your behalf based on risk Informatlon provlded by you. It should be used for reference purposes only. This proposal Is not intended to represent, supersede, amend or alter the terms, conditlons, exclusions or other provlsfons of the Insurance contract between you and the Insurance carrier. Only your insurance carrier may modlfy the terms of your insurance pollcy. You are oblfged to read your insurance pollcy and advise your Wells Fargo Insurance Services' representative of any questlons you have on the policy's terms and conditions. 12 Wells Fargo Insurance Services Confldential. O 2013 Wells Fargo Insurance Services. All rlghts reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages General Liability Schedule Rating Basis This fnsurance proposal is a descrfptive 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. Thfs proposal fs not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the fnsurance carrler. 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. 13 Welis Fargo Insurance Services Confidential. O 2013 Wells Fargo Insurance Services. Aii rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Automobile Carrier League of Minnesota Cities Insurance Trust Limits of Liability Deductible 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 *See Schedule of Vehicles on-line at League of MN Cities 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. Thfs proposal Is not fntended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisfons of the insurance contract between you and the insurance carrier. Only your Insurance carrler may modify the terms of your Insurance policy. You are obliged to read your Insurance polfcy and advise your Wells Fargo Insurance Services' representative of any questlons you have on the pollcy's terms and conditions. 14 Wells Fargo Insurance Services Con�dentlal. O 2013 Wells Fargo Insurance Services. All rlghts reserved. 5/14/2013 mw\Proposal\Clty of Cottage Grove 2013-2014.docm r ( City of Cottage Grove Coverages Automobile (cont.) Additional Coverages �. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. ■ Actual Cash Value Valuation ■ Replacement Cost Coverage Applies to the following Vehicles 1999 Ford Sewer Jet Vactor 2000 Ford Sterling LT7500 2000 Ford Ambulance 2003 Sterling LT7501 w/Equip. 2003 Cyclone II Aerial Ladder 2003 Ford E-450 Ambulance 2006 Freightliner M2 Dump Truck 2006 Freightliner M2 Dump Truck 2007 Ford Emergency Command 2009 Freightliner M2 Dump Truck 2010 Freightliner Dump Truck 2010 Freightliner Dump Truck 2010 Chev. G4500 Ambulance 2012 Ford Medic 2013 Typhonne Rear Mount 2012 Ford Truck #1133 #9725 # 1727 #7085 #4758 #4125 #8676 #8677 #4232 #8349 #5546 #5545 #5859 #7804 #7297 #6492 $203,420 $154,109 $110,000 $215,474 $740,000 $110,000 $124,666 $123,613 $185,000 $162,989 $173,179 $165,262 $135,520 $150,000 $454,345 $83,497 Thls fnsurance proposal is a descriptive summary of the i�surance policles to be placed on your behalf based on risk Informatfon provided by you. It should be used for reference purposes only. Thls proposal fs not Intended to represent, supersede, amend or alter the terms, condltions, excluslons or other provislons of the fnsurance contract between you and the Insurance carrier. Only your Insurance carrier may modify the terms of your Insurance pollcy. You are oblfged to read your insurance policy and advise your Wells Fargo Insurance Services' representatfve of any questlons you have on the policy's terms and conditlons, 15 Wells Fargo Insurance Services Conffdential. O 2013 Wells Fargo Insurance Services. All rights reserved. 5/14/2013 mw\Proposal\Clty of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Group Self-Insured Accident Plan for Volunteers Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 100,000 100,000 400 1,000,000 500,000 Coverage A: Accidental Death Benefit Coverage B: Permanent Impairment Benefit Coverage C: Weekly Disability Benefit, Waiting Period: 3 Calendar Days, Maximum Period: 26 Weeks Coverage D: Medical Benefit Maximum Amount Total Limit of Liability Per Accident Thls Insurance proposal is a descrlptive summary of the insurance pollcies to be placed on your behalf based on rfsk Information provlded by you. It should be used for reference purposes only. Thls proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provfsions of the insurance contract between you and the Insurance carrier. Only your Insurance carrier may modlfy the terms of your insurance policy. You are obllged to read your insurance policy and advise your Wells Fargo Insurance Servfces' representative of any questlons you have on the policy's terms and conditlons. 16 Wells Fargo Insurance Servlces Confidentlal. O 2013 Wells Fargo Insurance Services. All rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2014.docm City of Cottage Grove Coverages Open Meeting Law Claims-Made Carrier League of Minnesota Clties 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 ` Thfs Insurance proposal is a descriptive summary of the Insurance pollcles to be placed on your behalf based on rlsk Information provlded by you. It should be used for reference purposes only. This proposal fs not intended to represent, supersede, amend or alter the terms, condltlons, excluslons or other provls(ons of the insurance contract between you and the insurance carrier. Only your Insurance carrier may mod(fy the terms of your Insurance policy. You are obliged to read your Insurance policy and advfse your Wells Fargo Insurance Servlces' representatfve of any questlons you have on the pollcy's terms and conditions. 19 Wells Fargo Insurance Services Confldential. O 2013 Wells Fargo Insurance Servlces. All rights reserved. 5/14/2013 mw\Proposal\City of Cottage Grove 2013-2D14.docm