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Home My WebLink About1998-05-06 PACKET 04.F.REQUEST OF CITY COl1NCIL ACTION COUNCIL AGENDA MEETIIVG ITENi # DATE 5/6/98 , f'REPARED BY: City Clerk Caron Stransky ORlGIP�ATING DEPARTMENT STAFF AUTHOR ��..x�....��.��..<..*�,.�«W..��<��.��.�.�... • • • � � Approve renewal of the Property, Inland Niarine, Municipal Liability, Automobile, Boiler & Machinery, Open Meeting Law, �ond, Liquor Liability and Workers' Compensation coverage for the 1998/99 policy period. �UDGET IMPLICATION $286,700 $256,102 Self ins. Fund BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE SUPPORTIPJG DOCUMENTS � MEMO/LETTER: Caron Stransky City Clerk, dated April 30, 1998. ❑ RESO�UTION: ❑ ORDINANCE: ❑ EtJGINEERING RECOMNENDATIOi�: ❑ �EGAL i2ECOMMENDATION: ❑ OTHER: ADMIhdISTRATORS COMMENTS ,�P�� c � City Administrator Date R R 9 rt d R'k # 4 rt 8 t** k** W k# 4 A 4* 4 R! 4 tr 4 t ie R 4**# A 9 9: h 4 k k* 9* 8 COUIVCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER � � � � Date: 4128l98 To: Ryan Schroeder, City Administrator From: Caron M. Stransky, City Clerk RE: 1998-99 INSURANCE PACKAGE RENEWAL Attached is a premium rate breakdown prepared by the City's Insurance Agent, T. C. Field & Company, for the policy period April 3, 1998 through April 3, 1999. The following policies are up for renewal: Packaqe Policv The package policy inciudes property, inland marine, municipal liability, and automobile coverage. Purchasing the large deductible of $20,000 per occurrence, $60,000 aggregate, results in a premium savings of $93,470. For the 1998/1999-policy period, the premium decreased $16,073 primariiy due to some policy changes. Buildings and contents are now covered for replacement cost and mobile and miscellaneous equipment valued under $25,000 is no longer scheduled. Total premium: $140,206. ($16,073 decrease) Open Meetinq Law Defense Reimbursement Policv TFie palicy wouid reimburse a Ciiy official fior 8G perceni ofi the defiense costs incurred by the City official in defending an open meeting lawsuit with a$20,000 per lawsuit per official limit. The 1998l1999 premium ($1,846) decreased $903. The City has the option of amending coverage whereby the LMCIT would reimburse a City official for 100 percent of defense costs, with a$20,000 per lawsuit per o�cial limit. The amended coverage would increase to 100 percent of defense costs for an additional premium of $425. Total premium with 100% defense coverage: $2,271 ($478 decrease) MEMORANDUM: 1998-99 INSURANCE PACKAGE RENEWAL Apri128, 1998 Page 2 Boiler & Machinerv Protects the City from the unexpected cost and expense associated with equipment and machinery breakdowns. The coverage provides protection on a wide variety of machinery and equipment, such as: ➢ Water system pumps, motors, etc. ➢ Air conditioning, refrigeration, and heating systems ➢ Electrical wiring, breakers, transformers, switches, etc. The actual cost of repairing and replacing equipment as quickly as possibie and lost income or extra expense to continue operations while the equipment is down, are covered costs. Premium: $3,868. ($99 increase) Public Emplovees Dishonestv. Faithful Performance Blanket Bond Coverage provided at $1,000,000 limit per loss. Premium: $2,306. (No premium change) Liguor Liabilitv AKA Dram Shop. Coverage is provided for the River Oaks Golf Course, who is licensed for the sale and consumption of 3.2 Beer On-Sale. The premium which, based on food/liquor receipts, increased slightly. Premium: $3,356. ($277 increase) V`J�rkers �o��ersation Total premium: $104,095. This is a$10,402 decrease from the 1997/1998-policy period. The premium reflects a 10% Managed Gare Credit. The League is again offering the "retrospective rating option," whereby the City pays a net deposit premium at the beginning of the policy period. At the end of the policy period, an audit will determine the actual payroil for the period and the resulting net actual premium. When a retrospective rating option has been selected, the finai premium is not known until ali claims for the policy period are closed. The final premium is determined based on losses. The City is either billed or refunded the difference between the net deposit premium and the finai premium. The following three Retro-Rated options are available: MEMORANDUM: 1998-991NSURANCE PACKAGE RENEWAL Apri128, 1998 Page 3 The minimum premium for each option is equal to audited premium muitiplied by the percentage shown plus losses and loss-related expenses. The maximum premium for each option is the audited premium multiplied by the percentage shown. The Acting Finance Director has reviewed the three options and recommends the City select the 57.9 minimum factor/130% maximum factor. Excess Liabilitv The premium to carry a$1,000,000 excess liability policy, with waiver of government immunity is $37,826, without government immunity $31,439. The Self-insurance Fund established years ago to provide self-insurance against excess liability for the City and its o�cers and employees, has a cash balance as of December 31, 1997, totaling $1,148,861. Refunds During the 1997/1998-policy period, the City of Cottage Grove received the foilowing premium refunds from the LMCIT: Package Policy Workers Comp Warkers Comp 12/97 $ 52,280 09/97 77, 019 04/97 3�,62C Total: $164,919 The total refund of $164,919 was deposited in the Self-Insurance Fund. 1998 Budqet $286,700 was budgeted for the insurance package in the Self-Insurance Fund. Sufficient funds were budgeted to cover the actual premium. The difference between the amount budgeted and the actual premium ($30,598) will remain in the Self- insurance Fund. MEMORANDUM: 1998-99 INSURANCE PACKAGE RENEWAL April28, 1998 Page 4 Recommendation Staff recommends renewal of the Property, Inland Marine, Municipal Liability, Automobile, Boiler & Machinery, Open Meeting Law (with 100% coverage), Bond, Liquor Liability, and Workers' Compensation coverage for the 1998l99-policy period in the amount of $256,102. /cs Attachments __------ ___ __._ . T.C. FIELD COMPANY Insurmiee m;d Bond< Sinre ]91? CITY OF COTTAGE GROVE .. i :,-,�.,. .u.:, . .� • - - . : ..� v r Property/Time Element* Inland Marine* Municipal Liability* Automobile* Boiler & Machinery .. ..; .. 4, 702 110,448 22,493 3,769 2, 749 2, 306 1998/1999 $22,075 4,005 93,261 20,865 3,868 1,846 2,306 Open Meeting Law :• . Liquor Liability Workers' Compensation TOTAL *Deductible: $20,000/60,000/1,000 1997/1998 Approximate savings for large deductible: $93,470 K 1 ' 144 7 $282,679 Renewal coverage is bound up to 60 days pending issuance of policies. Coverages bound are based on L.M.C.I.T forms and practices in effect on renewal date. 3,356 104,095 $255,677 530 3��oreh Fobert Saecc � Sc Paut, Min:�esora 55101 �(67 Z) 2Z i ?+41� Fax� (67?) 2 M�aili�g Addrea� P.O. Roz 640i6 a St P�ul, ti1ntne,ota ��764 A� Affirma�ive Attion cmpioper �� Pro en rtv� Blanket Building, Contents, Property in the Open, Loss of income, Extra Expense, Mobile Equipment and EDP (per 1997 form) Loss Of Income - Ice Arena Extra Expense - Golf Course Premium Inland Marine* Mobile Equipment Miscellaneous Equipment & Radios EDP Hardware& Software Any One Item Under $5,000 in Value Any One Item Under $25,000 in Value Premium Municir�al Liabilit� Operating Expenditures Waterworks, Payroll Waterworks, Per 1 MM Gallons Streets, Miles Golf Course Receipts Golf Carts # of Arena Independent Contractors, Per $100 Poai/Seach Errors & Omissions Expenditures Premium Automobile* Liability # of Units Premium .. .,; $22,600,241 $106, 925 $100,000 $18,636 $1,152,400 $422,631 $762,594 Included $4,702 $11,271,389 $313,300 1,198,000,000 172 $1,105,100 35 44,550 $13, 795,200 � $33,122,689 $110,448 $600,000 119 $22,493 ,.; ,., $23,301,737 Induded Included $22,075 $1,306,856 Induded See Above •-. $4,005 $7,278,512 $327,300 1,088,000,000 142 $1,176,100 60 44, 550 $10,227,600 1 $24,083,000 $93,261 $ 750,000 110 $20,865 *$20,000/60,000/1,000 deductible applies. ,. .,; 1998/1999 Or�en Meeting Law Defense Reimbursement Per Lawsuit Per Official $20,000 $20,000 Aggregate Per Official $20,000 �20,000 Premium $2, 749 i� : . Faithful Performance Blanket Bond Limit Deductible Premium �oiler & Machinery limit Any One Accident for Property Damage, Business Interruption and Extra Expense Expediting Expense Ammonia Contamination Water Leakage Ice Rink Buried Piping Deductible Premium Linuor Liabifity (Golf Coursel Bodily injury Each - Person Limit Bodily Injury Eacn - Occurrence Limit Property Damage - Each Occurrence Limit Loss of Means of Support - Each Person Limit Loss of Means of Support - Each Occurrence Limit Liquor Receipts $1,000,000 0 $2,306 $5,000,000 $25,000 $25,000 $25,000 $50,000 $2, 500 $ 3, 769 $500,000 $ 500,000 $500,000 $500,000 $500,000 46,156 $1,000,000 0 $2,306 $5,000,000 $25,000 $25,000 $25,000 $50,000 $2,500 '. :.: $500,000 $500,000 $500,000 $500,000 $500,000 50,319 Premium $3,079 $3,356 OPTIONS: $1,000,000 Excess Liability: Annual Premium with Waiver of Governmental Immunity -$37,826 Annual Premium without Waiver of Governmental Immunity -$31,439 Open Meeting Law Is presented with SO% Coinsurance as per Expiring To Amend the coverage to 100% Coinsurance the Annual Premium would be $2,271.00 (an additionai premium of $425) Workers' Comr�ensation Street & Road #5506 Ambulance Service #7380 Waterworks #7520 firefighters (Not Vofunteer) #7706 Firefighters (Volunteer) #7708 (Pop) Police #7720 Shop & Yard #8227 Clerica) #8810 Parks #9102 Municipal Employees #9410 Elected/Appointed Officials #9411 Club-Country/Golf #9060 Arena, All Employees #9182 Experience Modification Managed Care Credit Premium •� ��; $373,800 0 $286,900 $185, 700 16,935 $1,731,000 $118,000 $1,082,100 $421,900 $593,900 $31,800 $305,576 $163,705 1.02 .90 $114,497 ...1_�_, � � • $410,247 $37,000 $233,437 $157,234 16,935 $1, 883, 549 $125,600 $1,116,760 $457,722 $663,048 $31,800 $303,410 $167,000 1.04 .90 $704,095 Payrol) $5,292,381 $5,593,290