03-13-2000 Council Packet - Laserfiche WebLink

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March 10,2000 2000 Insurance Policy and Worker Compensation Insurance Policy Premium Tabulation and Award Recommendations, page 2 The payroll increase is due to additional full time police officers, the adjustment of public works maintenance position wages, and scheduled wage adjustments for the city staff as a whole. The experience modification increase reflects an increase in the number and severity of worker compensation claims. Liability Insurance Package Policy and Excess Liability The package policy and excess liability policy premiums total $ 107,192 for 2000, compared to $95,625 for 1999, and $97,370 for 1998. The increase from 1999 to 2000 is $11,567, or 12.1%. The premium increase is comprised of property value adjustments to offset inflation; a 5% rate increase for vehicle coverage; the addition of two vehicles; and the City’s overall municipal loss experience. Public officials liability increased due to higher loss experience, including two land use claims which had very high defense costs. As the City’s loss experience is averaged over a three year period it is expected we will continue to incur higher premium costs for the next two years. Staff recommends the award of the 2000 insurance coverage as presented in the attachment and the adoption of the attached resolution. COUNCIL ACTION REQUESTED: (1) Award of the 2000 insurance package effective January 1, 2000 to the League of Miimesota Cities Insurance Trust for the worker compensation coverage, $34,592; for the comprehensive municipal property and casualty package, $83,830; for the umbrella excess liability, $18,848; for the petrofund reimbursement, $595; for the open meeting law, $939; for the boiler and machinery, $1,585; for the surety bonds, $780; and for the golf course liquor liability, $625. (2) Adopt Resolution No Insurance Purposes. , To Not Waive The Statutory Tort Limits For Liability WP\VIN60\WPDOCS\TOMUOOOIniTib.wpd