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couwniL mpeting MAK 2 2 1999 REQUEST FOR COUNCIL ACTION UH Y Of UttUNO DATE: March 16,1999 ITEM NO: / / Department Approval: ' Administrator Reviewed: Agenda Section: Name Tom City Administrator's Title Finance Director J77A Report Item Description: 1999 Liability Insurance Policy and Worker Compensation Insurance Policy Premium Tabulation and Award Recommendations Attachments: Liability and Worker Compensation Insurance Premiums Tabulation Worker Compensation Plan Estimated 1999 Premium Quotation A comparative tabulation of the 1998 actual and 1999 renewal insurance premiums, and the 1999 budgeted amounts is presented for your review. At this time we are recommending award of all the policies as presented. The City will again have an umbrella excess liability policy of $2 million in 1999, and as in the past several years will not waive the statutory limits established under Minnesota law. The estimated cost for all policies and the agent of record for 1999 is $131,105 compared to $131,011 for 1998, and $117,945 for 1997. The City will place all coverage with the LMCIT program. The renewal prennum quotation for worker compensation insurance reflects a gross initial premium for 1999 of $43,273, which is reduced by our experience modification of .71 and a premium discount of 5.65%, resulting in a net initial premium of $28,280. This is an increase of $1,839, or 6.95% more than the 1998 initial premium. Although the base rate for most classifications decreased about 3.0% from 1998 to 1999, the total estimated payroll increased $100,000, resuiting in the net premium increase. The payroll increase is primarily due to the addition of a full time CSO, the addition of the police reservist hours in the initial calculation, and scheduled wage adjustments for the city staff as a whole. It is recommended that the 1998 insurance coverage be awarded as presented in the attachment.