Laserfiche WebLink
r/^. <br />REQUEST FOR COUNCIL ACTION <br />MAR 1 I 2002 <br />Cl I y Or UhUfitu <br />DATE: March 11,2002 <br />ITEM NO:7 <br />Department Approval^ Administrator Reviewed: Agenda Section: <br />Name Tom KuehnV?y City Administrator ’s <br />Title Finance Director /7/c^^ Report <br />Item Description: <br />2002 Liability Insurance Policy and Worker Compensation Insurance Policy <br />Premium Tabulation and Award Recommendations, with Resolution to Not <br />Waive the Statutor>' Tort Limits for Liability Insurance <br />Attachments: <br />(1) Liability and Worker Compensation Insurance Premiums Tabulation <br />(2) Worker Compensation Plan Estim.ated Premium Quotation <br />(3) Resolution Not to Waive the Statutory Tort Limits for Liability Insurance <br />A comparative tabulation of the 2001 and 2002 renewal insurance premiums, and the <br />2002 budgeted amounts is presented for your review. At this time we are recommending <br />award of all the policies as presented. <br />The City will continue to carry an umbrella excess liability policy of $2 million and will <br />not waive the statutory limits established under Minnesota law. The LMCIT has <br />specifically requested that Council adopt a resolution stipulating whether the City will or <br />will not waive the statutoty limits under the law. <br />. estimated cost for all policies for 2002 is $173,659 compared to $160,428 for 2001, <br />.d $141,984 for 2000. The City will place all coverage with the LMCIT program. <br />Worker Compensation Coverage: <br />The renewal premium quotation for worker compensation insurance reflects a gross <br />initial premium for 2002 of $56,992, which is adjusted by our experience modification of <br />1.13, increasing the premium to $64,401, and finally adjusted by a premium discount of <br />8.76%, resulting in a net initial premium of $58,758. This is an increase of $8,980, or <br />18.04% greater than the 2001 initial premium. The higher premiam is due to an increase <br />in the City’s experience modification rating, which is affected by the number and severity <br />of worker compensation claims in recent years. The premium increase is also affected by <br />the increase m the total estimated payroll of $123,400, and by an overall increase in the <br />rates applied to the worker compensation class codes.