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r <br />• * <br />Mm I <3 1997 <br />REQUEST FOR COUNCIL ACTION C/TVof <br />DATE; January 10,1997 <br />ITEM NO: j <br />Department Approval: i/* <br />Name Tom Kuehn <br />Title Finance Director <br />Administrator Reviewed:Agenda Section: <br />City Administrator's <br />Report <br />Item Description: <br />1997 Insurance Policy Premium Tabulation and Award Recommendation <br />Attachments: Insurance Policy Premium Tabulation <br />Attached is a comparative tabulation of the 1996 actual and 1997 renewal insurance <br />premiums, and the 1997 budgeted amounts. At this time we are recommending award of <br />all the policies (the worker compensation coverage is presented as a separate item on the <br />agenda). <br />The City will carry an umbrella excess liability policy of $2 million in 1997, and as in the <br />last several years will not waive the statutory limits established by Minnesota Statutes <br />466.04. <br />The estimated cost for all policies and the agent of record for 1997 is $123,234 compared <br />to $134,226 for 1996, and $140,825 for 1995. However, the City can further reduce the <br />premiums by approximately $5,300, or 4.3%, from $123,234 to $117,934, by increasing <br />the deductible from $500 to $1,000. A review of the claim history for the past five years <br />indicates the City would have paid an additional $7,650 in deductibles, but would have <br />also paid approximately $25,000 less in premiums, for an estimated net savings of <br />$17,350. Based on the claim history we would recommend that the City increase the <br />deductible from $500 to $1,000. This would not apply to the worker compensation <br />insurance. <br />Mr. Carl Bennetsen, of R.L. Youngdahl & Associates, Inc., the City's agent of record, <br />will be attending the Council meeting on this coming Monday to answer any questions <br />Council may have. <br />It is recommended that the 1997 insurance coverage be awarded as presented in the <br />attachment. <br />*>