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COUNCIL MEETING <br />MAR 1 3 2000 <br />CITY Oh Unv->i<v^ <br />REQUEST FOR COUNCIL ACTION <br />DATE: March 10,2000 <br />ITEM NO: <br />Department Approval Administrator Reviewed: <br />Name Tom Kuehn ' kk? <br />Agenda Section: <br />City Administrator ’s <br />Title Finance Director Report <br />Item Description: <br />2000 Liability Insurance Policy and Worker Compensation Insurance Policy <br />Premium Tabulation and Award Recommendations, with Resolution to Not <br />Waive the Statutory Tort Limits for Liability Insurance <br />Attachments: <br />(1) Liability and Worker Compensation Insurance Premiums Tabulation <br />(2) Worker Compensation Plan Estimated 2000 Premium Quotation <br />(3) Resolution Not to Waive the Statutory Tort Limits for Liability Insurance <br />A comparative tabulation of the 1999 actual and 2000 renewal insurance premiums, and the <br />2000 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 not <br />waive the statutory limits established under Minnesota law. The LMCIT has specifically <br />requested that Council adopt a resolution stipulating whether the City will or will not waive <br />the statutory limits under the law, so we have included a resolution this year. <br />The estimated cost for all policies and the agent of record for 2000 is $ 1 48,984 compared to <br />$ 131 ,105 for 1999, and $ 131,011 for 1998. The City will place all coverage with the LMCIT <br />program. <br />Worker Compensation Coverage; <br />The renewal premium quotation for worker compensation insurance reflects a gross initial <br />premium for 2000 of $45,973, which is reduced by our experience modification of .82 and <br />a premium discount of 6.76%, resulting in a net initial premium of $34,592. This is an <br />increase of $6,312, or 22.32% more than the 1999 initial premium. The base rate for all <br />classifications was unchanged from last year, however, the total estimated payroll increased <br />$99,600, and the experience modification increased from .71 in 1999 to .82 in 2000, resulting <br />in the net premium increase.